Report on Australian Corporation Woolworths

MARKET
SEGMENTS AND
DECISION
MAKING

Table of Contents
INTRODUCTION ...............................................................................................................................3
1 Industry market for the chosen organization and current trends running in the industry.............3
2 Nature of competition in industry ................................................................................................3
3 Outline of major market segments for organization and identification of primary and secondary
target market ...................................................................................................................................5
4 Discussion of level of involvement of primary segment that is likely to have towards the
organization in terms of decision making .......................................................................................6
5 Positioning map for the market place ..........................................................................................7
CONCLUSION .................................................................................................................................10
REFERENCES...................................................................................................................................11
APPENDICES ...................................................................................................................................13

INTRODUCTION
Decision making process is critical and complex process and it requires systematic and
organized approach from the side of management. Market segmentation is done for targetting
specific group of consumers and it supports for selling commodities and services to large number of
customers (Wilson & Gremler, 2012). Present report is based on Australian corporation Woolworths
(Woolworths. 2016). The report describes about industry market for the chosen organization and
evaluation of current trends in growth, profitability and macro environment has been mentioned. In
addition to this nature of competition in industry has been described. Moreover, major market
segments for the organization and strategies adopted for meeting the competition that exist in
market has been explained.
1 Industry market for the chosen organization and current trends running in the industry
(A) Growth :-Woolworths is a leading supermarket chain of Australia that deals in
supermarket industry and provides superior quality food and services for its consumers. Grocery
store sector in Australia is facing intense competition and pressure. Supermarket retail sector is
facing competition as many players are trying for starting their business (Kotler, & Armstrong,
2015). According to AFCG industry reports it has been observed that supermarket and grocery store
industry is growing at the rate of 4.1% annual growth. In addition to this it has been forecasted that
this industry will observe growth of more than 2.9% in financial year 2016-2017 (AFCC
INDUSTRY REPORT. 2016).
(b) Profitability :- Supermarket industry is facing fierce competition and this industry
renders huge success and growth opportunities (Shani & Chalasani, 2013). As per data revealed by
AFGC annual report Overall revenue earned by supermarket and grocery industry in financial year
2015-2016 was $105 Billion. It shows that huge success and growth opportunities are provided by
this sector.
(c) Macro factor :- Diverse range of factors gives impact on working and operational
activities of supermarket and grocery industry. List of macro factors includes political, economical,
social, technological, environmental and legal factors (HShani & Chalasani, 2013). Overall
performance of supermarket industry gets affected due to it and it is vital that impact of these
elements should be considered while carrying out functions of this industry.
2 Nature of competition in industry
Supermarket and grocery store industry in Australia is growing at a faster rate and it is
offering huge potential for gaining success and financial revenues. The grocery store and
supermarket industry is fiercely competitive and intense competition is faced by existing market

players (Hall, Timothy & Duval, 2012). Woolworths and Coles are major players of supermarket
industry that hold more than 80% market share and position. ALDI which is a German based firm
has created big challenge for existing supermarket firms in Australian market. In last five years
ALDI has gained big market share and it is creating challenge for existing firms such as
Woolworths and Coles. Aldi is offering products at reasonable rice rates and due to that popularity
and large consumer base has been gained by it majorly due to the discounted price label products
(Chandon & Wansink, 2012).
Woolworths, Cole and other supermarket firms are now forced to cut prices of their products
for facing the competition that has been created by ALDI. Competitive strategy has been adopted by
existing firms and goods and commodities are sold at reduced price rates. Current trends that are
going in supermarket and grocery industry is to cut prices of the goods so that large number of
consumers can be sold goods of supermarket firm (Cairns & Caraher, 2013). Majority of firms have
opted for competitive strategy instead of product differentiation strategy. Price war is going among
existing companies Woolworths and Cole and arrival German based firm ALDI.
(SOURCE- Pulizzi, 2012)
Illustration 1: Australia supermarket market shares