Marketing Strategies of Woolworths

This article analyzes the marketing environment of Woolworths, a leading supermarket chain in Australia. It discusses macro and micro environmental factors, product, pricing, place, and promotion strategies. Recommendations for improving marketing performance are also provided.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Macro environmental factors:....................................................................................................5
Micro Environmental factors:....................................................................................................8
The Four Ps:...............................................................................................................................9
Product Strategies:.................................................................................................................9
Pricing Strategies:..................................................................................................................9
Place Strategies:...................................................................................................................10
Promotion Strategies:...........................................................................................................10
Conclusions and Recommendations:.......................................................................................11
References:...............................................................................................................................12

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Introduction:
The importance of the marketing communication in the modern business environment
is observed to increase in a significant manner. The impact of the globalization is playing a
crucial role for the increasing the business competing amongst the companies operating in the
modern world of business. Steger (2017), claimed that the globalization is one of the major
reason responsible in providing the ease to the companies for expanding their business
operations across the globe. As a result, the effective minimization of the cultural barriers or
the national barriers resulted in reduction in the market monopoly (Baylis, Owens & Smith,
2017). Having said, the concept introduced considerable amount of business competition and
scope for increased new entries.
With a precise focus on the increased new entries, the sustainability of the business
operations of the existing business organizations is seen to be at threat. Hence, the
significance of the customer retention strategies is observed to increase in a notable manner
and under such situation, the marketing communications and the efficient implementation of
the marketing strategies is considerably crucial for the success of the companies. With a
precise focus on the fact, the paper analyses the marketing environment of one of the largest
supermarket chain operating in the Australian retail market named as Woolworths. The paper
highlights the marketing environment of the company with precise analysis of two macro
environmental and micro environmental factors of the company. Along with his, the paper
evaluates the marketing mix of the company with precise explanation on the product
strategies, pricing strategy, place strategies and the promotion strategies applied by the
chosen organization. With a precise understanding of the impact of these strategies on the
business operations of the company and the industry, the paper provides a set of

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recommendations for the improvement of the performances of the company in applying the
strategies.
The chosen organization operates in the retail and supermarket industry of the nation.
Australian retail industry is observed to be associated with a significant growth and that is
pretty prominent with the fact that the turnover of the mentioned market has increased to
320.8 billion US dollars in the year 2018 from 293.16 billion US dollars of 2015
(Statista.com, 2019).
(Information: Annual retail turnover in Australia from 2004 to 2018 (in billion Australian
dollars))
(Information Courtesy: Statista.com, 2019)
Other than this, the retail sales growth in the nation is expected to be 2% annually
(Statista.com, 2019). Along with this, the gross value added by the Australian retail trade
industry in the month of March, 2018, is observed to be approximately 19.4 billion Australian

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dollars (Statista.com, 2019). Hence, the significant growth of the mentioned industry is pretty
prominent.
Considering the marketing mix strategies of the company, the mentioned company is
observed to apply mixed pricing strategy where the focus on both premium pricing and
competitive pricing is maintained. At the same time, the company is observed o offer a wide
range of products to their customers which mainly belong to the optimum quality. At the
same time, the company’s focus on the social media marketing is pretty prominent. Having
said that, the strong presence of the company across the nation provides considerable amount
of ease to the company in conducting sustainable marketing.
Macro environmental factors:
For the evaluation of the macro environmental factors that are affecting the business
performances of the company and the industry, the analysis regarding the political and
economic scenario of the mentioned nation is significantly crucial.
Considering the political environment of the nation, it is evident that the strong
connection of the country with several organizations such as the OECD, and World Trade
Organization is significant in portraying the existence of the business friendly environment of
the nation (Wto.org, 2019). At the same time, the presence of the country in the various
associations such as the G20 or Commonwealth of Nations (G20.org, 2019), shows the strong
and effective trade relations of the country with the other leading trade nations of the world.
Hence, it is understandable that the development of such strong connection with the other
nations is able to convert the business market of the nation as one of the most preferred
destination for the foreign investment. The visionary leadership of the prime minister of the
country is playing a crucial role in maintaining the political stability in the country and at the

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same time, the good governance from the part of the government is able to provide
considerable amount of confidence to the investors in conducting their purchases.
With a precise focus on vulnerable economic condition of the world, the government
is able to conduct certain changes in their economic policies which not only improved the
financial security to the companies operating in the nation, but also it has the potential of
driving the global market giants towards Australian markets for bulk investments. The
government’s approach with the changes is pretty transparent and at the same time,
accountability of the government with the changes in the economic policies of the nation is
highly regarded amongst the citizens of Australia.
Hence, it is understandable that the political scenario of the nation is able to provide
the much required ease to the company in conducting sustainable business. The stable
political environment has the potential contribute in the improvement of the growth of the
company.
Considering the economic factors, it is pretty visible that the country has a strong
economic background. The estimated GDP (PPP) of the nation in the year 2018, is observed
to be 1.313 trillion US dollars which is 19th in the world (Tradingeconomics.com, 2019). At
the same time, the per capita value of it, is seen to be 52191 US dollars and that places the
country at the 17th place in the global ratings (Tradingeconomics.com, 2019). On the other
hand, the GDP (nominal) of the nation is seen to be 1.500 trillion US dollars in the same year
and that makes sure that the country is at the 13th position in the global list of GDP (nominal)
(Ceicdata.com, 2019).
The per capita value of it places the country at 10th position with a value of 59655 US
dollars (Ceicdata.com, 2019). Hence the strength of the economy of the mentioned nation is
pretty prominent. Having said that, the economy of Australia had a growth of 2% in the year

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2017 (Heritage.org, 2019). The economic factors of the nation are able to place the nation as
one of the preferred destination for the foreign companies placing their headquarters for
managing the Asian business operations. The reputation of the nation in being one of the low
cost locations has the potential to influence the modern organizations as well for relocations.
However, the changes in the taxation policy is observed to be a spot of bother for few
companies operating in the nation. However, the established and the small scale business
organizations are observed to praise the classification of the taxation policy of the country.
With a precise focus on the taxation policy of the nation, it is evident that the companies with
a turnover of less than 25 million US dollars will qualify for the lower tax bracket
(Heritage.org, 2019). Hence, the taxation policy of the nation is able to contribute in the
growth of the small scale companies in an efficient manner. On the other hand, the Australian
market is observed to face a significant demand of certain products such as the copper, oil or
the pharmaceuticals. Australia is seen to import these products from the other countries and
the cost of it is approximately 221 billion US dollars (Business.gov.au, 2019).
Hence, it is evident that the company has the potential of introducing these products
for gaining a massive sales in the retail market of the nation. Along with this, the economic
condition of the nation, is significantly strong and that increases the potential of the
customers of the nation in conducing repetitive purchases from the company. The score of
33.0 in the Gini Co- efficient aspect signifies the position of the company at the intermediate
stage and at the same time, it shows a balanced distribution of the wealth amongst the citizens
of the nation (Data.worldbank.org, 2019). Hence, it is understandable that the financial
condition of the citizens of the nation will not be a concern in conducting repetitive purchases
from the company.

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Micro Environmental factors:
The competitive rivalry and the bargaining power of the suppliers will be evaluated in
this section as they are two of the most impactful factors affecting the business operations of
the company.
With a precise focus on the competitive rivalry aspect, it is visible that the company is
exposed to an intense business competition offered by the competitor organizations such as
the Tesco, Walmart, Coles Group and Amazon. One of the largest competitors of Woolworth
in Australia is seen to be the Walmart and that is pretty prominent with a generation of
514.405 billion US dollars as revenue by the company in the year 2019 (Walmart.com, 2019).
On the other hand, Tesco is also providing a tough competition to Woolworth with a revenue
of £63,911 million in the same year (Tesco.com, 2019). Having said that, the efficient
business performances of Coles group in the nation is also evident with generation of a
revenue of 39.388 billion Australian dollars in the year 2018 (Colesgroup.com.au, 2019).
Amazon slowly but steadily is able to capture a significant market share and the
sustainability of the business operations of the nation is visible with the increment of the
revenue of the company to 232.887 billion US dollars in the year 2018 (Amazon.in, 2019).
The main basis of business competition amongst these organizations is seen to be the urge of
the companies in applying the low pricing and gaining the cost leadership along with the
diversified product offerings and the continuous development of the products and services of
the companies. Other than this, the evolution of the marketing communication as one of the
important basis of the business competition is pretty significant for the local business
researchers. Hence, the company is currently facing a high competitive rivalry from the part
of the competitor organizations.
Considering the aspect of the suppliers, the availability of the sufficient number of
suppliers with the capability of supplying the products in appropriate quantity and at

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reasonable prices, is significant in stating the reduced concern of the company. Along with
this, the suppliers are observed to have the skills of delivering their products on time and in
accurate manner which increases the ability of the company in providing quality products to
their customers in an uninterrupted manner. Though the business operations of the company
is significantly dependent on the services of their suppliers, the availability of sufficient
number of suppliers and development of a strong supply chain are able to place the
organization in perfect position for experiencing a low bargaining power of the suppliers.
The Four Ps:
Product Strategies:
The main product strategy of the company is to provide quality products to their
customers. The mission statement of the company is pretty significant in stating the urge of
the company in delivering high quality products to their customers. The senior managers of
the company are observed to be pretty concerned about the customer retention and in such a
situation, the capability of the company in delivering the desired quality is notably important
for the success of the company. Other than this, the company has the expertise of delivering a
wide range of products to their customers which is pretty prominent with the depth of the
offering in various product domains such as the Apparel and Accessories, Household, Baby
wears, Pet, Liquor and beverages, Freezer fruits, vegetables, seafood and meat, Pantry
products, Dairy, Fridge and Eggs along with the bakery products and the vegetarian products
(Woolworths.com.au, 2019). The objective of the company with such diversified product
offerings is to target a larger number of customers.
Pricing Strategies:
With a precise focus on the support that the company is able to achieve from the
parent organization, Woolworths Group, it is visible that the company is in perfect position

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for the application of the competitive pricing policy and keep the pricing of their products at
par from that of the rival brands of the company (Woolworths.com.au, 2019). The company
is observed to apply mixed pricing strategy where the company applies low pricing for
majority of their products, however, some of the products of the company are observed to be
priced at premium price tags.
Place Strategies:
Woolworths is considered to be a retail giant of the Australian market and with the
achievement of almost 80% of the market share of the nation’s supermarket industry, the
status for the company is perfect in accordance to majority of the business researchers. The
company is observed to have strong presence in the nation with operational stores in 995
different locations. Considering the expansion of the Woolworth’s business activities, the
company is able to spread their business in Germany, New Zealand, Mexico, Austria and
South Africa (Woolworths.com.au, 2019).
Promotion Strategies:
The company is able to put strong emphasis on the social media marketing for
promoting their products and services. Along with this, the company is able to apply several
innovative marketing schemes for maintaining the brand visibility. Considering the online
promotions, the efficiency of the marketing team of the company in various social media
platforms such as Facebook and Twitter is pretty prominent and at the same time, the
company has the expertise of creating promotional videos for their customers which they
stream through their YouTube page for providing a better knowledge to their customers
regarding the products and services that they offer (Woolworths.com.au, 2019). Other than
this, the company is observed to advertise for their products in business magazines and the
widely purchased national newspapers.

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Conclusions and Recommendations:
On a concluding note, it is evident that the company is applying competitive pricing
to make sure that they achieve the cist leadership in the Australian retail and supermarket
industry and at the same time, the sales of the luxury items offered by the company is seen to
be associated with premium pricing policy. On the other hand, the diversified product
offerings of the company is seen to be crucial in targeting a larger customer base which not
only increase the sales of the company but also, it will improve the financial stability of the
company through the generation of higher profit. The company’s focus towards the
promotional activities is seen to be well distributed amongst both the offline and online
marketing channels.
With a precise look back at the discussion, it is understandable that the increment in
the company’s efforts for acquiring the customer inputs through the customer relationship
management system and the design of the products in accordance to the requirements of the
customers will be significant in increasing the product diversification. Along with this, the
design of the products on the basis of customer inputs will certainly increase the best seller
products for the company.
Other than this, the product offering from the part of the company in the consumer
electronics segment is seen to be largely limited. However, considering the increasing sales
of the consumer electronics products in the global retail market, the company needs to
improve their efficiency in introducing such products.

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