Marketing Strategy and Plan Report 2022

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student
Name of the University
Authors note

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MARKETING STRATEGY AND PLAN
Executive Summary
The demand for organic foods has been increasing in Australia and other parts of the world.
People are clinging towards healthy living, healthy eating habits. The health-conscious
people would always choose quality over price according to their requirements. This is the
reason that a new product line is developed for the reputed supermarket chain of Australia-
Woolworths. This company is one of the highest revenue gainers in the country and now it is
the time that they should launch their individual-labelled products. This is the marketing mix
report of the new product and its operational aspects.
Woolworths has been selling the organic products of different brands in their stores.
This time they are introducing a new range of organic packaged foods and drinks labelled
under the name of Woolworths. Developing brand equity and improving the present market
condition is the main objective of this initiative. The target segment would be the people of
Australia who wants healthy and organic food for themselves and the family. The brand
would be positioned in high quality and reasonable cost category.
All the four major parts of the marketing mix have been discussed in this report to launch the
new products. Control and evaluation process is an important part of the whole process. The
report has a conclusion and recommendations part as well.

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MARKETING STRATEGY AND PLAN
Table of Contents
Marketing Initiative........................................................................................................3
Marketing Objectives.................................................................................................3
Marketing: Target and Positioning.................................................................................4
Segmentation..............................................................................................................4
Targeting....................................................................................................................5
Brand positioning.......................................................................................................6
Marketing Mix tactics and strategies.............................................................................7
Product.......................................................................................................................7
Pricing........................................................................................................................9
Promotion.................................................................................................................11
Advertising...........................................................................................................11
Publicity and Public relation building..................................................................12
Social Media.........................................................................................................14
Distribution..............................................................................................................14
Control and Evaluation................................................................................................16
Implementation and Schedule......................................................................................18
Conclusions and Recommendation..............................................................................19
Reference List..............................................................................................................21

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MARKETING STRATEGY AND PLAN
Marketing Initiative
The initiative goal that is taken for improving the present marketing condition of
Woolworths is the expansion of the total demand in the market. This would be done by
introducing a new private labelled product range in the stores. The product is packaged
Organic food and drinks that would be labelled under Woolworths' name. Marketing
penetration would be based on providing high quality products at a reasonable price. The
products would be introduced in some of the selected stores and then in the rest of the stores
in Australia and the UK. The frequency of using a Woolworths product will be increased if
the promised quality product is delivered to the customers.
Marketing Objectives
 Introduction of new Organic products ranges to enhance the business scope. The main
objective is to expand the market for Woolworths products.
 To achieve at least 15 % growth in the first year of launching and 5% growth in
consecutive years.
 The goal is achievable as this would address some trending needs of the consumers
 The steady growth of vegetarians and organic food lovers in Australia is the real
reason for choosing this initiative.
 The total period of 1 year would be invested in this project.

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MARKETING STRATEGY AND PLAN
Marketing: Target and Positioning
Segmentation
The product is aimed for the segments of consumers who are already the customers of
Woolworths and at the same time for the new customers visiting the stores. From the total
market of Australia, the following market segments would be selected for this intervention.
Geographic segmentation
Area Rural and urban areas
High-density areas
Demographic segmentation
Age People of any age, specifically children, the youth and mid-
aged people. The age group of 20-55 years
Sex Both male and female
Income High to moderate-income persons
Low-income persons
Behavioural segmentation
Readiness to purchase High readiness as organic foods are trendy and healthy
Enjoy new products
People who avoid new products
Loyalty High- Brand Loyalty of Woolworths
New consumers with minimum brand loyalty
Psychographic segmentation
Class Young adults and adults with high or moderate-income
Lifestyles People having busy lifestyles
Low key health orientation

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MARKETING STRATEGY AND PLAN
Overweight
Attitude People living a careless and unhealthy life
People having interest in healthy and organic living
Personality Consumers with a belief in natural goods
People with care for daily consuming calories
Table 1: customer segmentation
(Source: created by the author)
Depending on the above segmentation, the market for new organic products is
selected. The analysis of the target market is done on the basis of market research
done, including the internal and external environment evaluation (Morgan et al.,
2019).
Targeting
According to Jaworski (2018), differentiating marketing would be apt for the target
consumer selection of these products. Selecting the target consumers for the new organic
product range of Woolworths is based on certain findings.
 According to a report by ABC News, the number of vegetarians in Australia is having
a slow yet steady growth. In 2016, the percentage of people who are interested in
vegetarian foods were 11%, whereas, in 2010, the percentage was about 5.1%
(Armstrong et al., 2018).
 The demand for organic foods is increasing in the health-conscious people of
Australia. The demand is expected to grow by 16.5 % by the end of 2022 (Atkinson,
2016).

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MARKETING STRATEGY AND PLAN
 People who have a busy lifestyle often eat unhealthy readymade foods, and that
affects their health. Our product would target the consumers who are health conscious
and wants some healthy food options for their daily use.
 Research stated that people within the age group of 20 to 55 years have the inclination
to eat organic foods and drinks that are free of any synthetic, pesticide side effects.
The above discussion shows that people in Australia have a demand for organic foods
and drinks. As opined by Perreault (2018), the target marketing would be differentiation form
the regular items in the supermarket stores. The organic products by Woolworths are
designed to mitigate the need for health-conscious customers. New consumers, along with the
old one, would be introduced to this product range as well. Young and mid-aged consumers
having a moderate to high income and living in the urban areas would be approached first.
Brand positioning
Woolworths' positioning in the market already has the base for the launching of a new
brand. The products of this company are known for their best qualities and reasonable prices.
The company has always concentrated on the quality over the price. The positioning plan for
the new organic range would be in high quality and moderate price range (Aghazadeh, 2015).
The aim is to provide the customers with a wide variety of food and drinks of organic sources
in a price that is slightly lower than other brands available in the market. The prime concern
would be the authenticity and product variations.

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MARKETING STRATEGY AND PLAN
Figure 1: Positioning map of Woolworths after launching the Organic range
(Source: Created by the author)
The packaging of these products would be done using eco-friendly materials. Like the
beverages would be delivered in glass and tin cans. Some of the fruits and vegetables that
need necessary packaging would be packed in biodegradable packets (Keegan & Rowley,
2017).
Marketing Mix tactics and strategies
Product
Woolworths is known for its product quality and standard pricing system. The organic
products are good for health, and it also serves the environmental sustainability factors.
Woolworths already sales organic products from several productions, but it does not have any
individually owned product range in organic food sections.
The differentiation effect would be achieved by individualisation of the products, its
quality and its cost (Datta, Ailawadi & Van Heerde, 2017). The customers’ feedback in

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MARKETING STRATEGY AND PLAN
organic foods that are available in the markets is not quite impressive. Most of the time, they
get normal products in the name of organic products and that too at high prices.
The packaged and individualised products by Woolworths would ensure the high
quality product and the customers visiting this section of the supermarket would get advice
from the executives about their buying. The packaging of the products would be done in glass
jars or bio-degradable packing elements.
Product features
Organic packaged Foods
Processed meat  Products would be sourced
from the farm owners
directly.
 Each of the product would
have printed durability,
nutrition information printed
in the packet.
 Quality of these products is
the priority
Packaged organic super seeds, dry fruits and
vegetables
 Reusable glass jar packing.
The consumers tend to buy
the products that have multi-
faced usages. The jars could
be used for multipurpose
afterwards as well.
 The vegetables would be

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MARKETING STRATEGY AND PLAN
freshly bought from the
farmers. Organic fruits and
vegetables are becoming a
popular choice of health-
conscious people in
Australia. The brand name
of Woolworths will enhance
its reliability.
Organic Packaged Drinks
Energy drinks  Availability in variety of
range and flavours like
lemon blast, lemon blast,
super berries, energetic
apple and Peach mania.
 The packaging would be
different from the available
products in the market.
Fruit juices  Launching individualised
fruit juices with Woolworths
label
 Would be available in more
than 15 flavours.
 Some categories would be

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MARKETING STRATEGY AND PLAN
pure, and some would be
mixed flavours.
Pricing
The pricing strategy for Woolworths’ new range would be based on price-quality
leadership. The competitors in the market are offering organic products in the high range.
Most of the stores of Woolworths itself has some of these products on their shelf. The pricing
decisions were made for these products is depended on the price sensitivity. The introductory
price would be reviewed after one year. The prices of the competitors have been compared
with Woolworths’ new products.
Comparison of prices among the market competitors
Brands Organic Foods Prices
Australia’s Own Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.80
A$ 2.00
A$ 3.20
A$ 1.50

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MARKETING STRATEGY AND PLAN
MIK Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 2.10
A$ 2.00
A$ 3.50
A$ 1.00
StMichael Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.70
A$ 1.80
A$ 3.80
A$ 1.50
Woolworths Organics Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.50
A$ 2.00
A$ 3.10
A$ 1.20
Demand and supply estimation of organic foods in Australia
Estimated revenue of the organic retail
market
$1.7 billion
Total percentage of farmers having
organic farms
1.6% of the total Australian Agricultural
land
The current share of the organic food
market
2.1%
Per year growth rate of organic markets 10-30%

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MARKETING STRATEGY AND PLAN
Promotion
As a brand, Woolworths has always given importance to their promotional
endeavours. The company has maintained its brand equity through a number of promotional
ventures. Promotions would be done both in online and offline channels. The target would be
to increase the awareness of the product and make it popular among the customers (Baltes,
2015). The brand name of Woolworths would be used to promote the reliability issues of the
product.
Advertising
Advertising Channels Promotional details Objectives to be served
Company Websites  A new page in the
Woolworth website
would be developed
for the individualised
label of organic
foods
 The base website
would also have
information about
the new range
 Regular updates of
the product and its
features would be
available on the
 To let the customers
know about the new
products and their
features (Stead &
Hastings, 2018)
 To increase the
traffic on the
company website

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MARKETING STRATEGY AND PLAN
website
TV commercials  The advertisements
and promotional
campaigns are shown
in TV commercials.
 Booking 2 hours of
morning and evening
slot for the
advertisements
Describing the new product
feature and how it fits the
customers need
Table 1: Advertising Channels for promotion
(Source: Created by author)
Publicity and Public relation building
Promotional Channels Details Objectives
Promotional Events  Arranging some
events in the stores
of Woolworths to
introduce the
products
 Small games for the
customers in the
store to attract their
attention and
distributing some
products as the prize.
Attracting the attention of
the customers who visit the
stores. Promoting the
products among them.
Marketing promotions  Posters and To increase awareness of the

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MARKETING STRATEGY AND PLAN
pamphlets
distributed in the
busy areas and local
transports.
 This could be done
in four months
intervals.
products
Press Release A press release would be
arranged in the first month
of the project.
To introduce the product
features to the audiences and
market through the press
(Kotler et al., 2015)
Table 2: Social media Channels for promotion
(Source: Created by author)
Direct, as well as online interactions, would be performed to communicate with the
customers. As the evaluation would be done in three months, the feedbacks could also be
collected in the meantime. Promotional events would be arranged in the stores and discount
offers would be introduced (Knox, 2015). Once the brand and the product gains attention, the
cost of promotion would be cut gradually. In some of the places like the websites and online
accounts, promotions rate would be fixed throughout the year.
Social Media
Social Media Channels Details Objectives
Twitter, Facebook and
Instagram
 Realising short
videos of product
features and
 To solve the queries
and questions of the
customers about the

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MARKETING STRATEGY AND PLAN
usefulness.
 Engaging with the
customers in
interaction (Paley,
2017)
new venture
 To promote the
product online
YouTube and online
advertising
 Teasers and
advertisement videos
releasing
 Booking online
advertisement slots
in some of the
reputed sites
Attracting the attention of
the customers and increasing
awareness of the
Woolworths Organic range
Table 3: Social media Channels for promotion
(Source: Created by author)
Distribution
The organic foods will be directly imported from the agricultural field and the
farmers. Some portion of it would also be collected from the regular suppliers of organic
foods and drink materials (Atkinson, 2016). This way, the costs could be minimised as the
intermediaries would be reduced.

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MARKETING STRATEGY AND PLAN
Figure 2: Woolworths’ stores in Australia
(Source: terracycle.com)
At the first phase, some of the selected outlets would be provided with the new
organic products of Woolworths. After assessing the performance of these products, the
distribution would be done in other outlets of Australia. The major alternatives of distribution
channels would be internet, in-store distributions are telemarketing (Katz, 2016). Main
channel members of distribution would be the suppliers and the distributors along with the
stores.

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MARKETING STRATEGY AND PLAN
Figure 3: Distribution chain of the Woolworths Organic
(Source: Created by the Author)
Control and Evaluation
Evaluation and control process would be done either weekly or in a gap of three
months. Evaluations are useful to revert the results and control the growth perspectives (Fill
& Turnbull, 2016). The evaluation after the launch would be done in more than one aspects.
Store customers, as well as the online customers, would be given the same importance in the
evaluation process. The measuring method and timings are stated in the following table.
Metric Measuring Method Timing Responsibility
Introducing the
new range
successfully in
the market
 Working and evaluating
consumer responses after
introducing the product
(Hollensen, Kotler & Opresnik,
2017)
 Measurement of the media
Every three
months
Marketing director

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MARKETING STRATEGY AND PLAN
coverage
 Measuring the increase in sales
 Measuring the sales number of
Woolworths Organics
 Collecting direct feedback from
the customers visiting the stores.
Increasing the
market share of
the new
product by 5%
 Calculating the total sales and
market share of the new
Woolworths Organics range.
 The quarterly growth of the
product sales would be divided by
the total industry growth in one
year
One year Finance officer
Increasing the
website traffic
by 40%
 Google Analytics could be used
for this analysis
 Counting the number of people
visiting the website page
 Unique visitors number
assessment
 Counting the bouncing rate. This
refers to the number of people
who have left the page at their
first visit (Baker & Saren, 2016)
 Search-engine like Google, traffic
Weekly Communication
and marketing
officers/team

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MARKETING STRATEGY AND PLAN
counts
 The number of traffic that have
directed from the social site
media like Facebook and
Instagram.
Increasing the
number of
buyers up to
7%
 Increasing promotional posts
every month
 Number of posts shared
 Number of the flowers gained in
Organics products page
 Reviews received from the
mummy blogs
 Number and nature of comments.
Weekly Marketing team
Implementation and Schedule
Implementation is the most important part of any planning (McDONALD, 2016). The
plan implementation for the new organic range of Woolworths needs to be done according to
a pre-defined strategy. The first thing that should be given priority is planning for product
development and its pricing (Chaffey & Smith, 2017). Promotion of the new products is
crucial to make people aware of its features and uniqueness. The promotion is to be done
from start to throughout the project.
Product development and launching it in the market should not take much time. The
project would start in the starting of October, and the final evaluation would be done after
one year. The evaluation of the progress would be run after every three months before the

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MARKETING STRATEGY AND PLAN
final review in September 2020. In the meantime, growth and promotion in the social media
and other medium need to be kept in continuous monitoring.
Conclusions and Recommendation
 The introduction of the individually labelled organic product is based on the
market demand for organic foods and drinks. The market research shows a gap
between the supply and demand equations of these products. The new product
range by Woolworth would directly address the demands of the health-
conscious people in Australia. The price of these products is decided to be
kept lower so that consumers could buy them easily.
 It is recommended that the product should primarily be launched in the urban
stores of Australia. As organic products are slightly high priced and need a

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MARKETING STRATEGY AND PLAN
certain type of economic background to afford, it would be effective to
introduce it in urban markets at first.
 The sustainable approach linked with the products should be highlighted in its
promotions. Even the store managers should present the products’ positive
aspects to the consumers who visit the stores.
 Online distribution of the Woolworths organic need to be given special
importance. Most of the people in Australia have a hectic life schedule and
prefer to have direct delivery of the products at their doors. Woolworths
should concentrate on increasing product and brand awareness online.
 The evaluation process should not be done immediately after the launch. There
must be some time gap between the introduction of the product and its first
evaluation month. It is recommended to have an evaluation after three months
so that the consumers could have familiarity with the product and give their
feedback.
 Implementation of a successful promotional plan is the most vital requirement
in this project. The customers should have complete access to the websites and
social media sites of this company. The sale would increase if the unique
quality and features could be perceived by the consumers at every level.

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MARKETING STRATEGY AND PLAN
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