Marketing Strategies of Woolworths in Australia

Explore the marketing strategies of Woolworths in Australia, including product, branding, differentiation, and growth strategies. Discover opportunities for expansion and sustainability, along with recommendations for future success.

MARKETING
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EXECUTIVE SUMMARY
This report is going to aim at the retail supermarket and grocery sector with special
reference and a deep study about Woolworths company operating in Australia. This
report is going to aim at the different business strategies of Woolworths and its different
approaches towards its operations and marketing. The notion of the report is to apply
appropriate business analysis tools and the factors affecting the strategic marketing
decisions of Woolworths. Several areas for opportunities to enhance the future of the
organization have been explored and the ways through which it can survive in the
market for a long term has also been recommended. A deep study and research have
been conducted to evaluate the different external and internal factors affecting different
marketing strategies of the company and the ways in which the company undertakes its
operations, marketing, and other business activities.
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Table of Contents
EXECUTIVE SUMMARY...................................................................................................2
INTRODUCTION...............................................................................................................4
WOOLWORTHS AND ITS STRATEGIES........................................................................4
OPPORTUNITIES.............................................................................................................8
RECOMMENDATIONS.....................................................................................................9
CONCLUSION.................................................................................................................10
REFERENCES................................................................................................................11
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INTRODUCTION
An effective and efficient operating and marketing strategies are the two integral
functions of an organization, responsible for the success or failure of an organization. It
not only gives an organization an opportunity to being recognized by the customers, but
it also connects customers with an organization (Biddle, 2017). Furthermore, it involves
various activities such as promoting and advertising the brand, so that more and more
customers can reach out to the brand easily (Rosenbaum et al, 2015). The purpose of
the report is to articulate various business strategies and different approaches to
managing operations and marketing in order to achieve organizational objectives and
goals. To explore further, an example of the company Woolworths has been taken,
which is a supermarket and grocery chain, founded in the year 1924 and headquartered
in Bella Vista, New South Wales, Australia.
WOOLWORTHS AND ITS STRATEGIES
The retail supermarket sector is the fastest growing and fiercely competitive sector in
Australia, generating around $103 billion of revenue in the market. Woolworths is the
largest supermarket and grocery chain, operating in Australia and deals in products like
groceries and vegetables. It also sells products like magazines, DVD's, health care
products, beauty care products, etc.,(Mialon et al, 2016). The current CEO of the
company is Branford Banducci, who was appointed as a CEO in February 2016. The
current strategy of Woolworths includes extending its leadership, maximizing their
value, growing their business and nurturing the talent.
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The different strategies of Woolworths are as follows:
 Product Strategy: Woolworths has a vast range of products available for each
and every customer. From groceries to international cuisines, it provides different
customers with a vast range of products in the market. Along with the diversified
range, it also aims to maintain the quality of its products, consequently, satisfying
the needs and wants of the customers effectively and efficiently. (Dasnair and
Dube, 2017).
 Branding Strategy: The vision of the company is to provide its customers with
high-quality products and services to deliver the customers with high-quality
products and services each and every time. The company aims to maintain a
positive relationship with its customers and making them understand the brand
and its values (Powell, 2016). Its green symbol also indicates and connotes
about its eco-friendly products and the organic-shaped ‘W’ is the shorthand for its
name. Thus, it creates a strong brand image in the minds of the customers and
possesses a strong branding strategy.
 Differentiation and Positioning Strategies: The differentiation and positioning
strategy of Woolworths aims at providing different products according to the
different segments of its customers (Bailey, 2016). It aims at differentiating its
products and positioning them according to the needs and wants of the
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customers. For example, it has a diversified range of products concerning the
different wants and needs of the customers in the market.
 Marketing Strategy: The marketing strategy of Woolworths focuses on
enhancing the customer experience and building strong relationships with them.
This gives the company a strong competitive advantage as it helps it to maintain
a loyal customer base through its unique and eco-friendly products (Parkinson,
2018).
 Growth Strategy: The growth strategy of Woolworths involves establishing
strong relationships with its customers and providing them with quality products
and services so that the customers put Woolworths 1st above all its brands. It
aims to maintain a balance between the needs and wants of the customers and
its growth and development. It also aims at making its staff responsible towards
its customers and improving the shopping experience of the customer through
their products and services (Bosiu et al, 2017).
The marketing mix of Woolworths helps to analyze its operations and marketing in the
supermarket retail sector. The marketing mix of Woolworths is as follows:
 Product: Woolworth provides its customers with the diversified range of the
products and allows them to choose from this diversified range (Muchiri, 2016).
The products of Woolworths include vegetables, fruits, meat, and other packaged
products. No customer remains dissatisfied and all the needs and wants of the
customers are addressed by the company.
 Price: Along with the diversified range of products, Woolworths has the
diversified price range as well. Different products of Woolworths are available at
different prices which are pocket-friendly and cost-effective (Bailey, 2016). The
prices at Woolworths are competitive and it also has products available at lower
prices for the customers preferring low costs and premium prices for other
customers as well.
 Place: Woolworths operated around 1000 brands in Australia; out of which 950+
are supermarkets and other are convenience stores. It covers almost all the cities
and areas of Australia which helps it to reach out to more and more customers
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and expand its customer’s base (Pulker et al, 2018). Not only this, but it also has
mobile applications for purchase and also operates at other social media platform
as well.
 Promotion: As the company operates on social media platforms, it promoted its
products and services through advertising in magazines, newsletters and also it
offers several discounts and gift reward program to its customers (Bailey, 2016).
This not only increases the number of its loyal customers but also attracts new
customers as well.
Apart from the marketing mix analysis, the market segmentation, targeting, and
positioning also helps to understand the operation of Woolworths (Sultan et al,
2018). Woolworths has diversified its products on the basis of the different needs
and wants of the segments of the customers. After the segmentation, it targets its
products to the target customer groups such as providing quality products at low
prices for customers who are not willing to spend more or customers who want to
purchase particular brand products and have no barriers regarding cost (Pulker et al,
2018). After this, the company positions its products and makes it easily accessible
and available to different target customer groups preferring different products on the
basis of their wants and needs (Knox, 2015).
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The growth and innovation strategies of the company are undertaken through
various platforms, Apart from providing the customers with in-store experience;
Woolworths also provide them to experience online shopping through making online
purchases on mobile applications and other social networking platforms (Methner et
al, 2015). The company ensures its growth by gaining competitive advantage
through effective HR management. An effective and efficient HR management
enhances employee morale, their satisfaction and consequently increase the
company's turnover and improves its financial position (Morioka et al, 2016).
Woolworths aims at introducing new innovative processes called ‘end-to-end-
processes, which would be better for a customer and convenient for stores. This
technique emphasizes on delivering productivity targets and MSRDC building and
automation installation on time and budget (Woolworths, 2019).
Woolworths undertakes several strategic management techniques and
implements them to resist to changes prevailing in the market. In the promotional
strategy of the Woolworths, the company has essentially used social media to retain
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its existing customers and attracting new customers (Bitzer and Hamann, 2015).
Furthermore, this strategy has also helped the company to promote and launch new
products according to the changing needs of the target customer groups in the
market. Moreover, techniques to reduce operating costs and an effective and
efficient human resource management have helped the company with long-term
sustainability and benefits in the retail supermarket industry. Currently, around
200000 employees are working in the company, generating around a$56.726 billion
(2018), in a financial year.
OPPORTUNITIES
Woolworth and Coles acquire 80% or the market share in the supermarket retail
industry (Carey et al, 2016). In order to achieve its business objectives more effectively
and efficiently, Woolworths can explore the following opportunities to increase its market
share and to sustain in the market for a longer term.
 Expanding business: Woolworths have the opportunity to expand its business
to new geographical areas and exploring beyond the geographical boundaries of
Australia. It can expand its business in developing countries and also through
social media platform (Spilland and Ling, 2015). With the help of social media, it
can be easily recognized by people across the globe and it can deliver its product
to such customers by expanding and making its products easily accessible.
 A joint venture or partnership: Woolworths can also indulge in a partnership or
joint-venture with other company which will help it to gain a competitive
advantage. Apart from this, it can also acquire other trusted companies in the
market to expand and grow its business and serving its customers with more
choices and product range (Flamingh and Peters, 2019).
 Modern technology: Technology is an important factor which enhances the
functioning and operating of a company (Recker et al, 2016). Woolworths can
involve new modern and innovative technologies in its operations and functions,
in order to gain a competitive advantage over its competitors. Also, modern
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technology reduces the time consumed and also helps in managing human
resources more effectively and efficiently.
 Optimum utilization of resources: Furthermore, Woolworth has the opportunity
to utilize the available resources to their full potential so that they are not
exhausted. It can also engage in producing health and sustainable products
which can contribute to the protection and development of the environment.
RECOMMENDATIONS
From the above research and analysis, the following recommendations can be made to
Woolworths, in order to improve its performance in the future:
 Focusing on healthy and sustainable products: Woolworths can focus on
producing more healthy and sustainable products in the market. Customers
nowadays are becoming more health and environmentally conscious (Parkinson,
2018). In that case, they would like to prefer a company which provides them
with health products which are not only good for the customers but are also
sustainable and protecting the environment. It will also help the company to
retain its existing customers and also attract new customers as well towards the
products of the company, which will consequently increase the company's
revenue and profitability.
 Exploring and expanding the business outside Australia: The products and
services of Woolworths are only limited to the stores in Australia. This limits its
scope and functioning (Methner et al, 2015). The company can explore the new
international market and expand its business outside Australia, which will help
the company to reach out to more customers.
 Reducing operating costs: Woolworths shall strive to reduce its operating costs
as its day’s inventory is higher than its competitors. It shall also reduce its
transportation costs which will help it to invest the amount to other operational
and functional activities which will help it to gain a competitive advantage over its
competitors.
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 Exploring new ideas for Innovation: The Company shall always experiment
with the new innovative technologies and ideas to achieve the business
objectives and goals effectively and efficiently (Govendar, 2017). It shall also
adopt new and innovative technologies to receive customer feedback faster and
resolving the pain points of the customer as early as possible.
CONCLUSION
To conclude, it can be said that from the above research, analysis, and
recommendations, Woolworths has a good scope to explore the retail supermarket
industry and establish a good competitive advantage over its competitors. Apart from
being the largest supermarket chain in Australia, it can operate and establish strong
customer relationships beyond the geographical boundaries of Australia, consequently,
promoting its growth and making it the strongest and the largest supermarket chain in
the world.
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