Marketing & Management for Woolworths: Issues, Strategies, and Recommendations

This article discusses the issues faced by Woolworths in today’s competitive world, segmentation, targeting and positioning strategies of the company, marketing strategy of Woolworths, and recommendations for the company moving forward.

Running head: Marketing & management
Marketing & management

Marketing & management
Table of Contents
Introduction.................................................................................................................................................3
Issues for Woolworths.................................................................................................................................3
Segmentation, targeting and positioning strategies of the company............................................................5
Marketing strategy of Woolworths..............................................................................................................6
Recommendations for the company moving forward..................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Marketing & management
Introduction
Woolworths is a famous and well known retail chain in Australia and it encounters a strong and
unique level of competition from Coles that is another grocery outlet in Australia. The company
provides a wide range of retail products including vegetables, meat fruits, magazines and daily
stationeries. The main of this task is to provide 100 fresh products to their customers in the
market. On the other hand, the paper explains that how the firm uses effective marketing
strategies to build a strong position in the market. Furthermore, here is the discussion about the
issues that are being dealt by Woolworths in today’s competitive world. Further detail of the task
is discussed below.
Woolworths is a major Australian company established in 22nd September 1924 having
headquartered situated in Bella Vista, new south Wales, Australia. It is the second biggest
company in Australia measured by revenue and the second largest firm in New Zealand. Along
with this, Woolworths is the biggest takeaway liquor retailer in Australia. The company manages
most of the recognized and trusted brands in Australia (Woolworths, 2018). The firm is on a
mission to offer the best in value, quality, and convenience for the customers across the world.
The organization has more than 3000 stores in the world. The company employs more than
205,000 employees who serve over 29 million customers across the world. Woolworths
maintains trust on the business partners such as manufacturers and local farmers to maximize the
profitability and revenue. Effective and unique strategies are used by the firm to gain competitive
benefits in the marketplace.
Issues for Woolworths
There are various issues faced by the company in today’s competitive world that affect the
growth and sustainability of the firm adversely (Alati, 2013). Some of the issues that are dealt by
the company have been stated below.
Slowing market growth: Due to competition, the company is unable to increase its growth and
success in the international market. Therefore, various challenges are being faced by the firm.
Along with this, the company’s sells rating is going down as it influence the progress of the firm.
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Marketing & management
Market discounting: There are enormous competitors existed in the marketplace which could
influence the sustainability of the firm. Due to competition, Woolworths has to reduce their
prices in the market. Therefore, it influences the profitability and progress of the company. It
also has a direct impact on the image and goodwill of the organization. By demanding lower
prices from its suppliers, the company drives down the durability and quality of the products and
services. As a result, the company is selling shoddy products and services in the global market
(Rankin, 2017).
Weak staff morale: One of the significant issues for Woolworths is weak staff morale that
affects the business operations and activities of the organization. Due to poor organizational
structure, the leaders are not able to motivate and enhance the productivity and performance of
the employees within the organization. As a result, it could affect the confidence, morale, and
loyalty of the employees and on the other hand, they get frustrated at the workplace (Fletcher,
2015).
Aldi’s entry into SA and WA: The potential entry of the rivalries such as Aldi and coles have a
direct impact on the revenue and returns of the company. Along with this, Aldi and Lidi operate
their business activities and operations for a long time. The competitors make new and
innovative strategies and plan to attract and retain the clients in the Australian market. Therefore,
the firm is unable to make a unique and dynamic image in the minds of the customers. It is one
of the significant issues for Woolworths that could have a direct impact on the outcomes and
results of the firm.
Apart from these issues, Woolworths also faces some other challenges including greenhouse
issues and climate change issues. In addition, uncovered violations occur at every link in the
retailers thus it creates ethical issues in the workplace which could affect the business operations
adversely. Greenhouse gas emission is raising steadily thus it affects the goodwill and position of
the Corporation (MacMahon, Smith & Lawrence, 2015). Apart from this, Safety standards are
not followed by the company in Australia. As a result, the federal court has ordered Woolworths
group to pay total penalties of $3.057 million for breaches of the Australian consumer law
relating to safety issues. In addition, the defects in Woolworth’s products caused several serious
injuries. It is noticed that 90% of the Woolworths Tasmanian supermarket were unable to
comply the workplace rules and laws. In addition, the firm failed to focus its contractors to
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ensure plans and policies across the world. All these issues are being dealt by the organization in
various environments across the world (Bepari & Mollik, 2016).
Segmentation, targeting and positioning strategies of the company
Woolworth’s group has been engaged in retailing operations and activities to provide retail
products, grocery products, and home products with rendering fashion accessories. The company
uses various strategies such as segmentation, targeting and positioning to beat the competitors
that have been discussed below.
Segmentation: Segmentation is the process of dividing the total markets into the different
sections based on the multiple criteria comprising of demographic, behavioral feature, and social
economic features. Segmentation strategy is initiated by the company to attract a number of
customers in the marketplace. Gender plays a vital role towards the development and inception
of a large number of retailing services and products. Apart from this, clothing and homecare
products are created by the organization after considering the tastes and preferences of the
customers across the world. Segmentation of Woolworths products based upon the age levels is
an important policy for mitigation of inventory and overstocking obsolescence (Sultan, Wong &
Sigala, 2018).
Targeting: One of the significant strategies which adopted by Woolworths is targeting. By using
this strategy, the company has been able to find out the right and potential target market across
the world. The organization identifies and evaluates the target market to attain its objectives of
revenue generation. The primary market of the company is the household segment of the retail
market and upper-class people which are reflected by the high quantum of sales that has taken
place in terms of sales of groceries followed by home products. Furthermore, Woolworths has
introduced large sets of women fashion accessories aiming towards the targeting the young
female consumers in the marketplace. With the help of targeting strategy, the firm has been able
to cover the three fourth of the Australian retail market (Hubbard, Rice & Galvin, 2014).
Positioning: This strategy is implemented by Woolworths to sale the wide range of products and
services in the world. Positioning strategy focuses on the preferences and tastes of the consumers
to facilitate a distinct place in a specific market segment amongst the current set of the product
and services. It is stated that the firm focuses on the products and services of the competitors to
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differentiate its products from the rivalries. Along with this, promotional activities are done by
the organization for providing the fresh food to its consumers. On the other hand, the
introduction of loyalty schemes has been undertaken in the form of reward and discount in order
to improve and enhance the overall shopping experience for its consumers. In this way,
Woolworths has positioned its retail products and services (Rosenbaum-Elliott, Percy & Pervan,
2015).
Marketing strategy of Woolworths
Marketing strategy refers to the fundamental goals and objectives of attaining a sustainable
competitive advantage and maximizing sales. The main competitors of Woolworths are Coles
and Adi that have become the biggest threat to the company (Armstrong, Adam, Denize &
Kotler, 2014). The firm uses marketing strategies to stand out against the competitors in the
global market. Some of the marketing strategies are stated below.
Cost cutting strategy: Aldi and Coles are primary competitors for Woolworths that affect the
goodwill of the firm adversely. Woolworths focuses on the strategies, procedures, and plans of
the rivalries to attract and retain more clients globally. Also, it focuses on the prices of the
competitors to destroy the competitors. Woolworths uses cost-cutting strategy to maximizing the
revenue and returns. Under this strategy, the organization provides offers and discount to the
consumers to attract large target market (Khan, 2011).
Advertisement and promotional strategy: The firm initiates the advertisement and
promotional strategy to promote the premium level products and services. The promotion is done
by the celebrities in the market as it could have a direct impact on sales and revenue (Moriarty,
Mitchell, Wells, Crawford, Brennan & Spence-Stone, 2014). On the other hand, marketing
campaigns are done by Woolworths to increase the consumers in the market (Altstiel & Grow,
2015).
Leadership strategy: One of the significant strategies that initiated by Woolworths is leadership
strategy. By implementing this strategy, the firm has been able to monitor and focus on the
needs, desires, and requirements of the target market to increase the revenue and outcomes. The
managers and leaders collect feedback from the consumers in term of quality and prices of the
products. Feedback also helps in knowing and understanding whether the consumer is satisfied
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Marketing & management
with products or not. By using leadership strategy, employees are able to make a reciprocal
relationship with consumers across the world (Ali, 2012).
Marketing mix strategy: This strategy is also implemented by Woolworths to analyze and
identify the demand of the consumers. By initiating the marketing mix strategy, the organization
has been able to decide the prices of the products and services. This strategy focuses on the price,
place, and promotion of the retail products and services (Chimhundu, McNeill & Hamlin, 2015).
All these strategies are used by Woolworths to make a strong image and position in the minds of
the consumers. Along with this, the firm is more successful in its engagement with its suppliers
as they are monitoring the prices to grow the sales of the products.
Recommendations for the company moving forward
Although Woolworths is one of the significant brands in the retail industry yet the company
needs to focus on the process and business operations for overcoming the competitors across the
world. For this purpose, some recommendations have been given to make a good and bright
image in the future that is discussed below.
 Woolworths should figure out the weakest department within its supply link and make it
more effective and strong as it will help to improve the supply chain management of the
company. On the other hand, supply chain shall be optimized at all time to avoid and
reduce any threats that have a direct impact on the business logistics operations and
activities.
 Woolworths must pay more attention to controversial operation behavior in order to
reduce misunderstanding of the suppliers.
 Along with this, the company should focus on the prices of the products and services to
attract the target market. In this way, the firm would able to differentiate its products and
prices from the competitors.
 Furthermore, the organization should adopt the people focuses development strategy to
improve and enhance the quality of products and services within the organization.
 Business growth and corporate level strategies shall be initiated by the firm to cope and
strive with rivalries in the international market.
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Marketing & management
 To increase the sale of the retail products, top management and managers of Woolworths
should make strong relationship with suppliers and consumers. It will help to satisfy the
needs and requirements of the consumers worldwide. Apart from this, managers should
direct and assist the employees for providing the right information to the consumers in
terms of product quality, feature, and price.
 Innovation shall be done by the company to attain high growth level in the market.
Conclusion
The study showed that Woolworths is an effective and powerful brand in the world. On the
above-mentioned analysis, it can be clearly said that the company uses unique and dynamic
strategies to strive with competitors. The company has perfectly understood the needs,
requirements, and process of their business. Furthermore, the firm uses unique segmentation,
targeting and positioning strategies to retain and attract the customers in all over the world. This
analysis indicated that STP strategies have also directly impacted on the growth and potential of
Woolworths. In addition, some suggestions have been given after considering the overall
strategies of the company.
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References
Woolworths.,(2018). Our businesses, Retrieved from 28th April 2018,<
https://www.woolworthsgroup.com.au/page/about-us/our-brands>
Woolworths.,(2018). About us, Retrieved from 28th April 2018,<
https://www.woolworthsgroup.com.au/page/about-us>
Bepari, M. K., & Mollik, A. T. (2016). Stakeholders’ interest in sustainability assurance process:
An examination of assurance statements reported by Australian companies. Managerial Auditing
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Alati, J. (2013). Australian corporate law, [Book Review]. Ethos: Official Publication of the Law
Society of the Australian Capital Territory, (230), 41.
MacMahon, A., Smith, K., & Lawrence, G. (2015). Connecting resilience, food security and
climate change: lessons from flooding in Queensland, Australia. Journal of Environmental
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Rankin, J. G. (2017). Australia, a consumptive society. Drug and alcohol review, 36(2), 270-277.
Fletcher, J. F. (2015). Morals and Medicine: the moral problems of the patient's right to know
the truth, contraception, artificial insemination, sterilization, euthanasia. Princeton University
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Sultan, P., Wong, H. Y., & Sigala, M. (2018). Segmenting the Australian organic food consumer
market. Asia Pacific Journal of Marketing and Logistics, 30(1), 163-181.
Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic management. Pearson Australia.
Rosenbaum-Elliott, R., Percy, L., & Pervan, S. (2015). Strategic brand management. Oxford
University Press, USA.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
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Khan, S. (2011). Marketing mix strategy adaptation: a retail organisation's response to the
global economic downturn (Doctoral dissertation).
Ali, A. (2012). Leadership and its Influence in Organizations–A Review of Intellections.
International Journal of Learning and Development, 2(6), 73-85.
Chimhundu, R., McNeill, L. S., & Hamlin, R. P. (2015). Manufacturer and retailer brands: is
strategic coexistence the norm?. Australasian Marketing Journal (AMJ), 23(1), 49-60.
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Altstiel, T., & Grow, J. (2015). Advertising creative: Strategy, copy, and design. Sage
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Moriarty, S., Mitchell, N. D., Wells, W. D., Crawford, R., Brennan, L., & Spence-Stone, R.
(2014). Advertising: Principles and practice. Pearson Australia.
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