Competitive Analysis and Market Strategy of Woolworths

This presentation discusses the competitive analysis and market strategy of Woolworths, the biggest supermarket chain in Australia. It covers topics such as market research, grant and other support, distribution channels, competitors, SWOT analysis, financial performance, growth potential, and sustainability. The presentation also includes an exit strategy and references. The document type is a presentation and the type of assignment is not mentioned. The subject, course code, and college/university are not mentioned either.

Fin
Woolworths

Titles Introduction
 Team
 Market research
 Grant and other support
 Distribution channel
 Competitors and competitive analysis of Woolworths
 Market strategy
 Assumption
 Financial performance
 Growth potential and sustainability
 Exit strategy
 References

Introduction
 Woolworths was founded in the September
1924.
 Woolworths is biggest supermarket chain of
Australia.
 It is operating around 995 stores in Australia.
 It works by making close contacts with the
farmers and growers of Australia in order to
ensure the best availability of product to the
consumers.

 It has also started the online market
segment for providing the easy
convenience to customers.
 It mostly specialises in selling groceries
such as fruits, vegetables, packaged
food and meat. Besides this, it also sells
DVDs, magazines, household products,
baby supplies, beauty and health
products.

Team

Market research: segmentation and
targeting of Woolworths
 Segmentation is basically dividing the
whole market into various sections.
 In the retaining products, segmentation
is done on the basis of age level.
 It has segmented the market in all age
group as well as people of all gender.

 Targeting consist of identifying the
market segment and find particular
segment for achieving the objective.
 The primary target is the household
segment.
 Besides this, it has also targeted the
women’s by starting fashion accessories
and women wear.
 It has targeted this segment in order to
target the young generation.

Grant and other support
 In year 2018, it has made commitment
for the better and greener future.
 By doing partnership with “Land care
Australia”, it has started the “Woolworths
Junior Landcare Grant program.”
 The grant objective was to inspire the
kids in order to focus on production of
food, adopt the best waste management
practices (Landcare, 2017).

Distribution channel
 Distribution is an essential aspect in any
retailing business.
 In Woolworths, manufacturer supplies
the products to supplier. With the help
of supplier, it get all the products and
serve it to the end consumers.
 If it will pay less or no attention to the
distribution channel, it will affect the
price competitiveness and its profit.

Competitors and competitive
advantage of Woolworths
 In Australia, the major competitors of
Woolworths is Coles, Wesfarmers and Aldi.
 Each competitor has adopted the innovative
strategies in order to achieve the more
customer and market base.
 In order to achieve the competitive
advantage, it has adopted the three year
strategies.
 These strategies are adopted just to win the
trust of customers .

 Among all the strategies, low cost
pricing strategy is the most focused
strategy in order to gain the competitive
advantage.
 This strategy has improved the
shopping experience of all customer in
the retailing business.
 It has also adopted the value strategy in
order to improve the loyalty system.

Market strategy- SWOT analysis
1. Strength
 Market leader in the Australian retail
business.
 Best and optimum utilisation of
technologies and human resource.
2. Weaknesses
 Changing government policies which
has affected the growth of Woolworths.
 Growing presence of the online market
has somewhere restricted the growth.

3. Opportunities
 It has the opportunity to promote its
brand through sponsorship and
advertising.
 It can open various stores in new
geographical areas.
4. Threats
 Increasing competition from the
international market pout threat to
Woolworths.
 The increasing cost of raw material can
affect the company in future.

Assumptions
 Due to the increasing retail business, it
is assumed that competition will likely to
increase in the near future.
 Government will also impose several
restrictions and policies on the retail
industries.
 the new entrant will definitely come up
with new concept in order to beat the
competition.

Financial performance
 In Woolworths, endeavour and
Australian food are the major growth
driver.
 From this, it has achieved the sales
growth of 4.3% and 4.5%.
 29.5% gross profit in the Australia food
improvement.
 It has also achieved the 9.6% increase
in the Australia food (Wooloworths,
2018).

 The net financial cost was 20.6% due to
the regular reduction in the net debt of
company.
 Approx. 60 million of the cost has result
from the evolving sopping patterns and
customers need.
 Approximately $30 million resulted from
the increase in cost of electricity and
transaction.

Growth potential and
sustainability
 For future, Woolworths will be manage to
grow ahead of the competitors and
market.
 Group sales of Woolworths has also
increased by the 3.05 to 74.3 billion.
Besides this, the tax profit was decreased
by the 8.3% to 5.5 billion.
 These figures states that, Woolworths has
more power to grow in the near future.

 Woolworths has set the sights on
sustainability.
 By the year 2020, it has set the targets
for sustainability in order to move to a
circular economy.
 It is also fulfilling its corporate social
responsibility in a better way.
 From the report published, it has been
founded that it has list of targets.
Among all those targets, it main target
is to ensure the zero food waste.

Exit Strategy
 The masters exit plan of 1.5 million is
back on track.
 It has taken this decision after the
federal court ordered the company.
 The order of the court has threatened
the woolworth’s to exit from the home
improvement.

References
 Landcare. (2017).
Introducing the Woolworths junior
landcare grants program.
Retrieved from: https
://landcareaustralia.org.au/woolworthsgr
ants
/
 Woolworths. (2018). Woolworths group.
Retrieved from:
https://www.woolworthsgroup.com.au/ic
ms_docs/195396_annual-report-
2018.pdf