Marketing Management Report: Woolworths, Australia, Market Analysis

This report offers a comprehensive analysis of Woolworths' marketing and management strategies, focusing on the Australian market. It begins with an executive summary and table of contents, followed by an introduction that outlines the report's objectives and scope. The core of the report delv...Read More

Marketing Management
AQF Level 8
[Student name]
[Student number]
[Marketing and management of Woolworths, Australia]
Word count: [2500]

Executive Summary
Marketing and management are complementary to each other. Managing the marketing
activities is assistance for the brands to detect the specific needs, demands and requirements
of the customers. Herein lays the effectiveness of the theories and models like BCG matrix,
which is a means for measuring the relative market share of the brand as compared to the
strategies adopted by the competitors. SWOT analysis, 5C analysis, decision-making analysis
forms a crucial element in the report for assessing the internal and external environment of
Woolworths. Promotional advertisements is a means for placing orange mango drink in the
competitive ambience of the threshold of Australia. High market share helps in maintaining
the tag of market leader, reflecting the consistency in the higher competitive edge over the
contemporaries like Aldi, IGA, Coles. Targetting children, athletes and office goers would
expand the sources of income for Woolworths. Revision of continuous improvement
strategies are needed for enhancing the standards and quality of the Orange Mango Drink.

Table of Contents
1. Introduction.........................................................................................................................4
2. Market Analysis..................................................................................................................5
3. Market Segmentation..........................................................................................................8
4. Target Market Recommendation......................................................................................10
5. Conclusion........................................................................................................................11
References................................................................................................................................12
Appendices...............................................................................................................................14
Appendix 1...........................................................................................................................14
Appendix 2...........................................................................................................................14

1. Introduction
This section of the report introduces the concept of marketing and management to the
readers. Management is an important aspect in business, which helps the marketers to lure the
buyers and achieve their satisfaction, trust and dependence. Tools and techniques like
marketing mix, brand positioning are assistance in terms of expanding the triple bottom line
approach (Iacobucci 2017). The other aspects of the report sheds light on market analysis,
market segmentation and target market of Woolworths in the threshold of Australia. Further
narrowing down the search, the report would focus on the marketing of the product, Orange
mango drink.
Corporate level strategies are beneficial in terms of enhancing the labour productivity
through the means of strategic management. The main focus of this section is on
Woolworths, which is an Australian chain of supermarkets. The company owns a share with
Coles, accounting for 80% shares of Australian market. Promotional strategy is used by
Woolworths, where advertising is the main form of marketing the products and services like
that of orange mango drink (Woolworths.com.au 2019). Loyalty Schemes are introduced for
luring new customers and retaining the prospective customers. These aspects are important
elements of the continuous improvement strategies, driving the business towards upgradation.
Marketing mix strategy is also used by Woolworths for attaching better placement for
the products like Orange mango drink. Choice in the flavours is an effective means for
influencing the purchasing power and decision of the customers. Customer analysis is
conducted through the means of context analysis, where internal and external environmental
analysis forms an integral part of the marketing strategy. Tests are conducted for measuring
the quality of the drinks. Steenburgh and Avery (2010) is of the view that diversified nature
of marketing expands the triple bottom line approach. The focus is on the customers

possessing high spending power. Shopper cards are a means for upgrading the shopping
experience for the customers.
1000 stores operates in Australia, expanding the sales revenue of Woolworths. In
addition to this, 950 convenience stores and supermarkets also contribute in enhancing the
operations. Apart from this, online marketing is a means for enhancing the trafficking of the
audience towards the brand image. Mobile app services reflects the technological
advancement embraced by Woolworths for polishing the tag as the market leader in the fresh
food categories. Fresh Food People Campaigns are launched for involving the customers into
the mainstream business activities through the means of newsletters, magazines
(Woolworths.com.au 2019). The managers ensure that the customers have easy access to the
deals, offers and promotion of the products like Orange mango drink. Gift cards are
advertised on the social media, which enhances the information of the customers about the
benefits, which they can avail for investing in the services.
2. Market Analysis
According to the arguments of (), market research is one of the essential aspects, which
needs to be conducted prior to the formulation of the marketing strategies. Sound knowledge
of the internal and external market environment is assistance for the brands to strengthen the
foundation of operations. Three methods of conducting market research has been presented,
which are 5C analysis, Porter’s Five Forces and SWOT analysis. These are tools, which
enhances the familiarity of the brands about the competitors and their marketing strategies.
5C analysis is vital for the brands, helping in the decision-making processes. The
components of the analysis are customers, context, company, collaborators, complementers
and competitors. Wagner and Eggert (2016) argues that 3C model suffices the need for
analysing the marketing situation.

Fig: Total grocery market share 2017-18
(Source: Roymorgan.com 2019)
According to the reports of 2018, Woolworths has emerged as the largest grocery
retailer with the market share of 34.8%. This data was 1.4 points higher than the previous
financial year. Woolworths shares its marketing with Coles, which accumulates the market
share of 27.6% of the total grocery market. Dominance of Woolworths enhances it brand
image in the category of fresh food produce. As a matter of specification, the product range in
this context are fresh meat, bread, fruits and vegetables, placing the brand on a higher
pedestal as compared to Coles, Aldi and IGA supermarkets. According to the previous years’
reports, Woolworths expanded the market shares through the assistance of the dollar value,
which included all of the foods from the fresh foods categories. Gummesson (2017) is of the
view that these issues provided the brand with higher competitive advantage as compared to
Coles, intensifying the competitive rivalry. Both of the brands hold 50% of the markets
shares in the fresh food categories.

The reports also states that Woolworths is a market leader in the production of sea foods,
accounting for 7% of the total sector produce. The critics are hopeful that divestment from
the Wesfarmers would further be an assistance in terms of expanding the scope and arena of
the business. This aspect seems to be prospective for Woolworths in terms of practicing
product differentiation and diversification. The measurability of this lies in the production of
the products like mango drinks, carrots, roasted and salted cashews, organic salted butter,
fruit salad, burgers among others (Woolworths.com.au 2019).
This market share is analysed by Woolworths through the consideration of the BCG
model, which helps in measuring the balance between the annual growth rate and operations.
Relative market share is a vital aspect, which helps in enhancing the awareness about the
marketing tactics of the competitors, Aldi, Coles, IGA. The essential components of this
model are question marks, star, cash cow and dogs. Woolworths’ market share makes it a
star, as it has high market share in the high growth market. Product differentiation and
diversification are the agents, contributing in maintaining higher competitive edge over the
competitors. These aspects also suffices the need for influencing the purchasing power and
decision of the buyers and suppliers, reducing the intensity of the threat of new entrants and
substitute products. Countering this, Mullakhmetov et al. (2016) states that substitute
products are a platform for the start-ups in terms of establishing their brand in the market,
however, Woolworths’ promotional and advertising strategies expands the customer base
through the means of innovation.
SWOT analysis is also a productive option in terms of measuring the resources,
competencies of the brands like Woolworths. Along with this, it also detects the avenues,
which the brand can avail for upgrading the advertising standards of orange mango drink on
the social networking sites. Detecting the strengths and weakness helps Woolworths in
generating unique values, which maintains the position of the brand as a market leader.

According to Porter’s generic strategies, differentiation in the production of the sea foods and
orange mango drinks is conducted through the means of measuring the customer benefit area
and utility value in terms of the market share (Walle 2017). The focus alters according to the
altering needs of the clients and customers, which develops balance within the operations.
Narrowing down the marketing strategies and techniques towards identifying the targets is
assistance for improving the focus of the business.
Reference can also be cited of the decision-making analysis, where the main aim is to
measure the conglomeration of the need and processes used for fulfilling the need. The initial
stage covers detection of the potential risks, which acts as an obstacle placing the orange
mango drink in the competitive ambience of the market. This is followed by information
search on market research, which consists of the tactics adopted by the competitors to lure the
customers. The final stage is that of evaluation of the alternatives, which expands the thought
horizons of the personnel of Woolworths (Chernev 2018).
If Porter’s five forces are considered, then competitive rivalry of Woolworths with Coles
Group, ALDI, Tesco, Amazon and Wesfarmers is quite high. This is in terms of the low
operational costs. As the market share is quite high, therefore, the focus of the business is on
digitalisation, which helps in achieving growth and development. The threat of substitutes is
also high, as there is a need of higher capital, which most of the start-ups do not possess.
3. Market Segmentation
Segmentation of the target market is done by Woolworths through the means of
geographical, behavioural, psychographic and demographic methods. Psychographic
segmentation is conducted through the means of identifying the age, gender, income, lifestyle
and the values possessed by the clients and the customers. According to Martín-de Castro
(2015), these factors are assistance in terms of conducting marketing mix for the products
like orange mango drinks. Mention can be made of the office goers, athletes and children,

who prefer drinks for rejuvenating their energy towards coping up with the hard day’s
schedule. As a matter of specification, for detecting the target customers, Woolworths
conduct need analysis for generating customer oriented business.
The athletes exercise a lot, which indicates the requirement of lots of energy to cope
up with the other activities. The diet also needs to be balanced for ensuring the smooth
functioning of the bodily functions. Orange mango drink consists of 25% fruit juice, which is
made from reconstituted orange juice and pulp, sugar, food acid, flavours and preservatives
along with vitamin C and food colouring. The labelling consists of the nutrient information,
which addresses the worries of the parents regarding selecting healthy drinks for children
(Homburg, Jozić and Kuehnl 2017). This drink is one of the preferred products of the
customers, as they prefer healthy and organic ingredients in the foods and beverages. The
scientists are concerned with the aspect of added preservatives, which can degrade the health
of the customers.
Variation in the flavours of the orange drink is a means for influencing the purchasing
decision and power of the clients and customers. The customers are provided with the option
of choosing from the different flavours according to the needs and requirements. Discounts,
schemes and offers on the online shopping is a means for expanding the customer base. These
aspects can be effective for reaching to the children, as they prefer different flavours in the
drinks. As the fat content is less, it would help the children to get the required amount of
energy for achieving the bodily growth and development.
Office goers go through lot of pressures, which results in the loss of energy. In this
circumstances, the tendency is to gorge on fast foods, which becomes a habit, as they are
readily available (Maggon and Chaudhry 2015). Orange mango drink consists of vitamin C
content, which provides the young adults to regain the lost energy for conducting the
activities according to the requirements.

4. Target Market Recommendation
Price discount strategy can be one of an effective steps for Woolworths in terms of
improving the situation of saturation in the competitive ambience of the market. Quality of
the orange mango drink and convenience of the customers can be stressed for generating
unique value propositions in the business. Making plans of launching additional stores can
also suffice the need of direct marketing to expand the sales revenue and profit margin.
However, for this, additional capital is required, which reflects the need of revising the
budget. Instead of focusing on the price, the emphasis needs to be on the quality of the
ingredients, which are used for preparing the orange mango drink. Webster and Hume (2018)
assumes that premium pricing strategies for the marketing of the Drink would expand the
sales revenue in case of the customers with high income.
Targeting multiple customers like athletes, children, office goers would expand the
sources of generating high sales revenue and profit margin for Woolworths. Discounts on the
online purchases can also be an effective source of achieving high customer satisfaction.
Sponsoring events like marathons can be an additional source of income in terms of
expanding the customer base. In this context, mention can be made of the community
involvement, which would enhance the cultural diversity. Awarding the winners with a pack
of orange mango drink would act as a promotion.
Orange and mango acts as a fusion for the drink in terms of enhancing the taste and
quality. Therefore, lab tests are essential in terms ensuring whether they are appropriate for
maintaining the health conditions of the customers. Maggon and Chaudhry (2015) opines that
strategic alliance with the members of research and development team would be effective for
measuring the effectiveness of the drink. The storage facilities also need to be proper, so that
the freshness and quality of the drink is maintained until it reaches the customers.

Keeping the drink as a preference option in the canteen would act assistance in adding to
the sources from which sales revenue and profit margin can be enhanced. This aspect would
also be effective for catering to the specific tastes and preferences of the customers. Along
with this, distribution of free samples along with the popular products would also act as an
effective sources of promotion (Homburg, Jozić and Kuehnl 2017).
5. Conclusion
Woolworths is one of the largest supermarket retail chains, catering to the specific needs,
demands and requirements of the clients and customers. Promotional and advertising
strategies is used for placement of the products like that of the orange mango drink. Within
this, marketing mix is an essential tool, which helps in identifying the target audience of
children, athletes, office goers. Serving all of these target audience is assistance in terms of
expanding the sources of revenue generation and profit margin. Social media marketing is a
means for influencing the purchasing decision and power of the buyers. Typical example of
this lies in issuing loyalty cards, gift cards, bonus schemes and others, which relates to the
inclusive practices for expanding the triple bottom line approach. Differentiation in the
flavours of the orange mango drink is a means for penetrating into the foreign market
development. Using the drinks in sponsoring events reflects the product diversity, which
would expand the customer base.

References
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of Services Marketing, 31(1), pp.16-19.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing Science,
45(3), pp.377-401.
Iacobucci, D 2017, 'Situation analysis: the 5Cs', pp. 294-298, in Marketing Management, 5th
Edition, Cengage, Australia.
Maggon, M. and Chaudhry, H., 2015. Revisiting relationship marketing and customer
relationship management in leading tourism and hospitality journals: Research trends from
2001 to 2013. Journal of Relationship Marketing, 14(1), pp.53-77.
Martín-de Castro, G., 2015. Knowledge management and innovation in knowledge-based and
high-tech industrial markets: The role of openness and absorptive capacity. Industrial
Marketing Management, 47, pp.143-146.
Mullakhmetov, K.S., Sadriev, R.D., Gabidinova, G.S. and Akhmetshin, E.M., 2016. Control
in marketing-based management. Academy of Marketing Studies Journal, 20(2), pp.13-19.
Roymorgan.com 2019. Woolworths and Aldi grow grocery market share in 2018 Available
at: http://www.roymorgan.com/findings/7936-australian-grocery-market-december-2018-
201904050426 [Accessed on 30th Dec 2019]
Steenburgh, T & Avery, J 2010, 'Marketing analysis toolkit: Situation analysis', Harvard
Business Review, February 4, Harvard Business School Publishing, Boston, MA

Wagner, S.M. and Eggert, A., 2016. Co-management of purchasing and marketing: Why,
when and how?. Industrial Marketing Management, 52, pp.27-36.
Walle, A.H., 2017. Rethinking Business Anthropology: Cultural Strategies in Marketing and
Management. Routledge.
Webster, G.B. and Hume, M., 2018. Analysing the Role of Social Media in Dialogue
Marketing and Management as a Contemporary Franchising Local Area Marketing
Technique. In Social Media Marketing: Breakthroughs in Research and Practice (pp. 176-
205). IGI Global.
Woolworths.com.au 2019. About us. Available at: https://www.woolworths.com.au/
[Accessed on 30th Dec 2019]

Appendices
Appendix 1
Fig: Purpose of Woolworths business
(Source: Woolworths.com.au 2019)
Appendix 2
Fig: Impact of social media marketing on the productivity of Woolworths
(Source: Woolworths.com.au 2019)