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Recommendations for Whole Foods Market's Growth

   

Added on  2019-10-18

4 Pages852 Words234 Views
RecommendationsImproving existing customer’s loyaltyThe availability of organic food products is no longer a differentiator for Whole Foods Market since competitors like Walmart have started carrying organic food products alongside inorganic food products and are offering the same organic food products that Whole Foods Market carries at a cheaper price. As a result, the company’s current customers have started to perceive Whole Foods Market as being greedy (Alaimo, 2018). Therefore, it has become very important for Whole Foods Market to work towards improving current customer’s loyalty towards the brand. Whole Foods Market can improve customer loyalty and differentiate itself from competitors by enhancing the customer experience. Strategies that Whole Foods Market can use to enhance customer experience include offering speaker series/workshops on healthy living, having an in-house dietician or naturopathic doctor, and building a customized app. Increasing distribution channelsThere is a trend in the industry towards more and more traditional supermarkets offering online grocery shopping or home delivery option to their customers. This is to meet the changing customer needs of convenience (Saskia et al., 2016). Consumers that are most likely to shop online fall in the age group of 25 to 34 years old (Kempiak and Fox, 2006), which is also the target population of Whole foods Market. Therefore, it is recommended that Whole Foods Market start to offer the option of e-grocery or home delivery to its customers to meet their changing needs. Whole foods Market is in a great position to offer this option to its customers as it can use Amazon’s delivery service.

Horizontal diversificationMany competitors are also offering non-food products and services within their stores. The only non-food products that Whole Foods Market offers are organic personal care products and locally sourced flowers. The company should consider adding in more non-food products and services that have similar qualities as its core offerings such as locally sourced, organic, natural, environmentally friendly, etc., that would appeal to individuals that are interested in living a healthy and sustainable lifestyle. An example of such offerings may include in-store services such as naturopathic clinics and yoga classes. Another example may be eco-friendly home furnishing such as bed linens and towels made from organic cotton without the use of pesticides and furniture made from recycled plastic or reclaimed, locally produced wood. International expansionThe company currently has stores located in the US, Canada, and the UK with majority of the stores in the US. Due to the saturation in its US home market, it is recommended that the company consider expanding to other countries. It’s presence in the UK market puts it into a good position to expand into other European countries. European organic food market continues to grow with Germany and France being the largest markets for organic food in the world after US. Italy, Switzerland, Sweden and Denmark are also among the top 10 largest markets for organic food in the world (Bio Eco Actual, 2019). Therefore, the company should evaluate these target locations by performing market environment analysis, consumer analysis, competitor analysis, financial analysis, and analysis of company’s strengths and weaknesses. Once the company has identified the country that they would like to expand into based on their analysis,

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