Marketing Management Report: Woolworths Customer Value Analysis

This report provides an in-depth analysis of marketing management principles, focusing on customer value, value proposition, and customer segmentation. It begins with an executive summary outlining the key topics, including the use of Porter's Five Forces and SWOT analysis in understanding market competitiveness. The report defines customer value as the benefits derived from a product minus its costs and explores the concept of value proposition as a company's promise to its customers. It further examines how these factors contribute to a company's financial success, emphasizing the importance of customer satisfaction and brand image. The report then analyzes how supermarkets, specifically Woolworths, provide value to customers through various means such as store presence, online platforms, supply chain management, and marketing strategies. A detailed examination of Woolworths' customer segmentation strategies is also included, with a focus on demographic features and how the supermarket leverages its website to support its customers. The report concludes with a summary of findings and recommendations for enhancing customer value and market strategies.

Running head: Marketing Management
Marketing Management
Name of the Student
Name of the University
Author Note

1
Marketing Management
Executive Summary
The report includes about the marketing management, marketing management help the
company to know the strategies regarding the product and services of the company. It is done
so that the company can know who they can stand in the market and the tools which are used
in market management are Micheal Five Force Model, swot analysis. This tools help the
company to know different competitive aspects which the company had to suffer from. The
report also includes about customer value and value proposition and how it affect in the
financial success of the company. Lastly it concludes as how the supermarket do customer
segmentation and what are the process which are laid in the website and how it help the
company to make customer value.

2
Marketing Management
Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Meaning of Customer Value..................................................................................................4
Meaning of Value Proposition...............................................................................................5
Financial success of the company..........................................................................................5
Means by which Super Market supply value to customers....................................................6
Supermarket shop regularly...................................................................................................7
Meaning of customer segmentation.......................................................................................8
One of customer segmentation of supermarket......................................................................9
Website of supermarket and how it support its customers.....................................................9
Conclusion and Recommendation............................................................................................10
Conclusion............................................................................................................................10
Recommendation..................................................................................................................11
References................................................................................................................................12

3
Marketing Management
Introduction
Marketing Management is a process from which the company develop strategies for
its product and services (Chernev 2018). It evaluate all the decision regarding the product
such as advertisement, promotion and how the product will reach to its ultimate consumers. It
is a tool which help the company to analysis the competiveness which the industry have and
how the company should manage it. The tools which is used is Porter’s five forces it help the
company to know various competitive aspects of industry and let them know who are the
most threats to the company (Moutinho & Vargas-Sanchez 2018). Another tool which help
the company is Swot analysis. In this the company is able to know different internal and
external aspects of the organization as Internal is show the strength and weakness of the
company and external it show the opportunity and threats in the company. This both factor
help the company to know in which area they have to give more emphasis and how to
overcome all the necessary information about the company (Baker 2014).
This technique also includes a market research of the product and services given by
the company as it see how the company product is performing in the market and how they
able to complete their business goals (Burns, Bush & Sinha 2014). It also includes customer
segments and help the company to know their customer and as a result of it company is able
to do required changes which are required in the product. Customer segmentation is a process
from which the company do their customers research, as it divide the market into different
segmentation so that it can take each class of the customers.
Discussion
Meaning of Customer Value
Customer Value is the incremental benefit that the customer derive by consuming the
product in return of the money it has pay. The value signifies the benefit which the customer

4
Marketing Management
get from the product (Bagozzi et al,. 2018). It is calculated as Total benefits – Total cost. It
basically depend upon three factors such as Services, Quality and the cost. The value of the
product increase when the quality and the service of the product is increased so it can be
directly related to quality. If the company decrease its quality than the customer value will
also decrease. The parameter from which customer value can be define are market branding,
social influences and past experience with the product. The value can be calculated into two
ways as Desired Value and Perceived Value.
Meaning of Value Proposition
It is refers to the proposition which the company promise to its customers. It is the
value of money which the company is ready to pay to the customer by providing good quality
of products and cheap and low rates (Lusch & Vargo 2014). It also represent a company
brand value to the customers. This can be termed as a statement which the company can use
to attract the customers as it state why the customers should be associate with the company.
This help the company to develop a brand image in front of the customers. It analysis
different stages in the market and then it help the company to know more how the company
should increase their value in respect of its customers.
Financial success of the company
The above mentioned both factors helps in financial success of the company as both
are related to the customers so both help the company in different ways as:
1. Customer Value – It is the value which the customer pay in return of the goods.
So if the customer value increase it mean the product satisfaction also increase by
the company (Baker & Saren 2016). As it help the company to know more about
the product and how they are maintaining the quality so it the value increase it
show that the company is making its product quality at the best.

5
Marketing Management
2. Value Proposition – This is the value which the company promise to pay to the
customer. If the value proposition increase it will directly increase the value of the
company. So it will directly help the company to increase the value of the
company. This statement help the company to gather the customer by providing
the best service and in return ask low cost of the product (Pasquier & Villeneuve
2017). This help the company to know how the product fill the needs of the
company and how they can improve their product and how they can expands their
business.
Means by which Super Market supply value to customers
Super market supply each kind of product to its customers. They provide all the
services to each types of customers. The means from which they provide value to the
customers are:
1. Store – The supermarket have different store across the country so the
customer have full freedom to take whatever the product they want (Flint &
Woodruff 2014). It has different store so each customers can get the value
which ever they want.
2. Online Store – The supermarket has also opened their store in the online
portal and this help the company to serve each type of customers and away
from country also (Kumar & Reinartz 2016). This give a flexibility to the
customers to choose product and services from their home and in their
suitable time.
3. Supply Chain Management – The super markets have a good supply chain
management and as a result of it able to provide each product to the
customers at right time and at right place (Leroi-Werelds et al,. 2014). This

6
Marketing Management
chain help them to reach more number of customers and help them to
provide variety of products.
4. Marketing Management- Each supermarket have different method of
marketing and marketing process help the company to get more number of
customers and as a result it help them to get more number of business (Brito
et al,. 2015). This help them to let the new customers know about the
product and help to satisfy their need and also help the company to get more
business from new and old customers (Jaakkola & Alexander 2014).
5. Distribution channel – This help the company to manage all its services
regarding the delivery of the product and also it help to figure out how the
company will manage the products and how it will reach to the ultimate
customers.
Supermarket shop regularly
The super market which is selected is Woolsworths. It is the largest supermarket in
Australia. It was founded in 1924. It deals with all kinds of product which a supermarket
should provide and it have a large customers based.
Value provided by Woolsworth
The value which is been provided by the supermarket is up to the mark as it is the
largest market and it keep its brand value by providing best services in the market, Some
points which can explain more how they provide better services are listed below:
1. Stores – It have stores in all over the country, and it provide different services
to its customers. It have all kind of the products so each kind of customers can
get satisfy their need and preferences (Sengupta, Bamel & Singh 2015). As it

7
Marketing Management
have so many product so it have low cost also which help the customers to get
all type of the product at low cost.
2. Online store – It have also started online portal which help the customers to
get product as per their need and preferences from anywhere in the country as
it can check the cost of the product and order online and the product will reach
directly to the home of the customers (Parsell, Wang & Kapoor 2014). This
process help the company to get more number of customers which is not able
to come and visit the stores. It help them to attract all type of customers and
also all type of areas where the store of the company cannot reach.
3. Supply chain management – The Woolsworth supply chain management is
also very effective as it have more than 900 stores all over Australia and still it
able to manage whole process of the product (Floh et al ,. 2014). This also
help the customers to get the product as per their needs and preferences.
4. Distribution Centre – It have different distribution channel which help the
company to supply all the product. As it have such a fixed distribution channel
so it help the customers to take their products as per the need and preferences
of the customer.
5. Support Offices – This facility is also there in the supermarkets as it also help
the customer in case of any emergency and problem occur in regard with the
services provided by the supermarkets. This help them to gain an advantage
over the competitors and also help to get the loyalty from the customers.
Meaning of customer segmentation
Customer Segmentation is the practice in which the company divide the customer into
different groups of individual which have are similar, it is done so that the company can
make marketing strategies related to that individual (Osterwalder et al,. 2014). It is separated

8
Marketing Management
as per gender, age, interest and their spending habits. This help the company to know each
class of customers and help them to make plan accordingly. The company have many
knowledge about the market so to know the more about the new and as well as old customers
to make different strategies regarding the business. It help the company to expand its business
and also help them to get more profit from the business.
One of customer segmentation of supermarket
It related to divide the total market structure into several different sections which are
based upon demographical features, product characteristic and economic features. Each
segmentation have a similar type of consumers which acquire some types of product and
services (Diener et al,. 2014). Demographical features – It comprises of the age of the
consumers, genders of the consumers, average level of the education which the consumers
have as gender play an important role which is played by them in the selection of the product.
The supermarkets target each type of customers, one of the segments which the
company had is household segments of the retail market that is reflected by high quantum
level it means high level of sale of groceries which is followed by home products for the
customers. As this product is the most selling product and help the company to increase the
total profit of the company.
Website of supermarket and how it support its customers
The website of the company had all kinds of products and services which the
company had provided. It contain also the detail of the product which is provided by the
company and also it contain all the product which the company had to provide and the
customer can easily select their option from the listed product and can purchased as per their
need and preferences.

9
Marketing Management
Communicate with customers
The website help the customers to know all the details of the product. It provide them
all the details related to the product. It contains a list of discount which the customers can get
by applying their orders online, this help the company to make the customers go more digital
and make them aware how to use the online website (Payne & Frow 2014).. It creates value
as the company have a brand value to maintain that the company is able to provide good and
quality product to its customers as well as it help to track their delivery and allow them to add
n subtract any product before the delivery takes place to the customer place (Yao et al,.
2014). To maintain and create new value company had offers different gift cards and rewards
so that company can get more business and can earn and create more values to the company.
This will help the company to increase the brand value of the company and also it will
increase the goodwill and loyalty of the customer in the business.
Conclusion and Recommendation
Conclusion
The report concludes about the marketing management as it state how the company
make strategies regarding the product and services provided with them. It show how the
company manage its product and service. It is done by the tools which help the company to
know all the factor which affects the competitive strategy of the company. The tools used to
know the marketing strategies is Porter Five Forces Model, Swot analysis and Pestel. This
tools help the management to overview the company competitors and what are the strength
and weakness of the company and what are the threats and opportunity which the company
has in present and future of the business.
Lastly the report concludes about customer value and value proposition and how they
help the company in getting financial success in the company. Customer value show the

10
Marketing Management
value which the customers pay for the product of the company. It help the company to
provide good services. Value proposition is the value which the customer had in the business.
This help the company to make a brand value over the customer and the company attracts the
customer by their brand value. The report also include a details of supermarket and how it
help the company to give value to its customers. It also had a customer segmentation,
customer segmentation is a process from which the company segregate the market structure
in different aspects so that it can make strategies taking each type of customers, it is done so
that the company can address all type of customers and how they can increase their business
in the market.
Recommendation
From the above report related to marketing management it can be recommended to
the supermarkets that is listed below:
1. Customer Value – The supermarket can increase its customer value by providing
more quality products at suitable rate. It should provide them discount so that it can
increase the company value with customers. This will help them to get the loyalty of
the customers and also help them to increase the profit of the company.
2. Value Proposition – The supermarket can increase their marketing strategies in
order to increase their brand value and also it can develop more method to attract
more number of customers. This help the company so it should change their market
strategies so that the company will able to increase the brand value of the company
and it will also increase the market price of the company.
3. Customer Segments – The supermarkets should check whether the current segments
can help the company to achieve the desired goal and objective or not. If it is found
that it is unable to fulfil than it should change its customer segments process or it can
make change in the current segments process.

11
Marketing Management
4. Website - The supermarket can increase or upgrade it by adding a feedback area
where the consumers can put their problems which they have faced while ordering
products from the market and also it help them to know more how the customer are
dealing with company.

12
Marketing Management
References
Bagozzi, R. P., Rosa, J. A., Celly, K. S., & Coronel, F. (2018). Marketing-Management.
Walter de Gruyter GmbH & Co KG.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Brito, P. Q., Soares, C., Almeida, S., Monte, A., & Byvoet, M. (2015). Customer
segmentation in a large database of an online customized fashion business. Robotics
and Computer-Integrated Manufacturing, 36, 93-100.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing research (Vol. 7). Harlow: Pearson.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Diener, S., Semiyaga, S., Niwagaba, C. B., Muspratt, A. M., Gning, J. B., Mbéguéré, M., ...
& Strande, L. (2014). A value proposition: Resource recovery from faecal sludge—
Can it be the driver for improved sanitation?. Resources, Conservation and
Recycling, 88, 32-38.
Flint, D. J., & Woodruff, R. B. (2014). Marketing’s service-dominant logic and customer
value. In The Service-Dominant Logic of Marketing (pp. 201-213). Routledge.
Floh, A., Zauner, A., Koller, M., & Rusch, T. (2014). Customer segmentation using
unobserved heterogeneity in the perceived-value–loyalty–intentions link. Journal of
Business Research, 67(5), 974-982.
Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behavior in value
co-creation: a service system perspective. Journal of service research, 17(3), 247-261.

13
Marketing Management
Kumar, V., & Reinartz, W. (2016). Creating enduring customer value. Journal of
Marketing, 80(6), 36-68.
Leroi-Werelds, S., Streukens, S., Brady, M. K., & Swinnen, G. (2014). Assessing the value of
commonly used methods for measuring customer value: a multi-setting empirical
study. Journal of the Academy of Marketing Science, 42(4), 430-451.
Lusch, R. F., & Vargo, S. L. (2014). Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.
Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism,
CABI Tourism Texts. Cabi.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design:
How to create products and services customers want. John Wiley & Sons.
Parsell, R. D., Wang, J., & Kapoor, C. (2014). U.S. Patent Application No. 13/716,234.
Pasquier, M., & Villeneuve, J. P. (2017). Marketing management and communications in the
public sector. Routledge.
Payne, A., & Frow, P. (2014). Deconstructing the value proposition of an innovation
exemplar. European Journal of Marketing, 48(1/2), 237-270.
Sengupta, A., Bamel, U., & Singh, P. (2015). Value proposition framework: implications for
employer branding. Decision, 42(3), 307-323.
Yao, Z., Sarlin, P., Eklund, T., & Back, B. (2014). Combining visual customer segmentation
and response modeling. Neural Computing and Applications, 25(1), 123-134.