Marketing Management of Woolworths: Strategies and Analysis Report

This report provides a comprehensive analysis of Woolworths' marketing management. It begins with an introduction to the company and its role in the Australian retail market, followed by an examination of marketing management within the broader business environment. The report delves into Woolworths' strategic management process, highlighting key strategies and their impact. A detailed SWOT analysis assesses the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report evaluates Woolworths' marketing strategies, with a focus on digital communication, social media platforms, and responsible marketing practices. The analysis includes the application of e-commerce, online retailing, and customer engagement through digital channels. The report concludes with a summary of findings and references.

Running head: MARKETING MANGEMENT OF WOOLWORTHS
MARKETING MANGEMENT OF WOOLWORTHS
Kollipara Omkar Swarup
Central Queensland University
Authors Note

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Executive Summary
This report highlights on the importance of marketing management in the current
business environment. The chosen organization for ascertaining the management process is
Woolworths Limited. The strategic management process of the given organization is to be
examined. Moreover the business marketing environment is analyzed and all the present
marketing opportunities, strengths and existing threats if any in the organization through SWOT
analysis. Furthermore, the marketing plan of Woolworths Ltd. using social media platforms and
digital communication is to be evaluated. The application of responsibility management in the
organization is also to be ascertained.

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Table of Contents
Introduction:....................................................................................................................................3
Marketing management in the business environment:....................................................................3
Strategic management process of Woolworths:..............................................................................5
SWOT analysis of Woolworths:......................................................................................................6
Marketing Strategy:.........................................................................................................................8
Marketing plan using digital communication:.................................................................................9
Social media platform usage:.........................................................................................................10
Responsible marketing of Woolworths:........................................................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

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Introduction:
Woolworths is the leading company involved in the Australian retail marketing. It
provides basically every grocery items required by an individual under one roof. This includes
fruits, vegetables, packaged products and meat (Woolworths.com.au, 2018). Moreover, it started
selling products like stationary items, DVDs and magazines. Recently the company has
diversified its product range by providing jewelry, bags, clothing, household items and
accessories. In the recent times it has more than thousand stores in Australia, which includes
maximum supermarkets and various convenience stores.
In the current scenario, the organization is marketing its product using through online and
social media platform. Woolworths has recently generated a mobile app for the consumer to
make their grocery purchases. It provides facilities like speedy billing services to make sure that
the process is faster and provide maximum satisfaction to their customers. Moreover the
marketing management techniques used by the organization helps in retaining its position in the
competitive business market. Furthermore, its marketing technique using social media platform
and digital communication helps in providing timely feedback from the customer. This helps the
organization in constantly innovating and creating new marketing process.
Marketing management in the business environment:
Marketing is the most vital activity for a business as it affects both the sales and
productivity for a business simultaneously (Hutchinson et al., 2015). The key element of the
business marketing efforts is in creating maximum satisfaction to the consumer, which would
benefit both the organization and the customer. Marketing is an important business function that

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is significant for all the industries whether it is profit or non-profit organization. Marketing is the
organizational area that involves interacting with the public more often. As the customer believes
that the organization is creative based and dynamic based on their advertizing message. At a
much broader level, marketing generally offers crucial benefits to the community. This includes
developing products for satisfying the needs of the consumers and enhancing the quality of life
of the society.
Woolworths sells a variety of products including clothing, food, vital products and home
ware. They also facilitates financial services with Abas bank as the joint venture the financial
plan provides the consumer with various services, Luke store cards, customer loans and the visa
cards of Woolworths (McDonagh & Prothero, 2014). Woolworths current potential target
market includes the living standard measures and high income earners. The organization is
planning to target its potential customer so that they could purchase clothes and foods.
Woolworths is a leading organization in market grocery sales and serve more than 10 millions
consumer per week. During the mid 1980s, Woolworths was regarded as the biggest retailers of
food in the Australia. By the time 2001, it gained more than 38 % in the national grocery market.
Therefore it has now become leader in the market grocery sales for serving millions of
consumers per week.
The marketing strategy of the organization focuses on quality, greater conveniences,
lower prices and range is gaining strong consumer acceptance. The major focus remains on
building sustainable business management by continuously improving the consumer services by
offering rewards to the potential customers with quality, better value, lower prices, freshness,
convenience and services (Rokka, Hietanen & Brownlie, 2016).

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Strategic management process of Woolworths:
Woolworths has initiated various vital marketing strategies by overcome the existing
threats and living a long-lasting impact on the customers. The organization has been able to
satisfy the demands and requirements of the customers by providing them product
diversification, prices and quality. The major outstanding marketing strategies of Woolworths
are the application of its e-commerce instrument through its website. The products displayed on
the company websites major emphasis is given to its grocery items, which is the strength of
Woolworths (Fischer, 2015). This aspect helps in gaining competitive advantage over its
competitors like Aldi and Coles by ensuring its image related to “The fresh food for people”.
Therefore, this helps in providing the customer with better understanding for the product.
Woolworth’s main vision is to deliver its customer with right shopping experience every
time. Moreover, the mission statement of the company states that they lead their consumers
through efficiency and excellence, providing the deep knowledge for their services and products.
The main strategic priority of the company is to create multi option retailing related to better
quality services and products, low prices and in stores experience for meeting the requirements
of the consumers (Chang, Yu & Lu, 2015). Woolworths has proved to be the largest online
retailer in New Zealand and Australia by reaching its set goal of AUD$1 millions sales in the
online channel by the end of financial year 2104. The practices used by the Woolworths to
achieve the strategic priorities include the following:
Extend leadership in liquor and food: Re-establishing the market campaign for boosting business
growth by adding values to the stakeholders so that they can expand the market shares in

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Australia. It also emphasizes using reinvigorating progress to the country’s retailing industry by
becoming leader in facilitating in-store services, values and fresh product.
Maintaining track record for building new growth: Woolworths organization aims to be the most
worthy and trusted leaders in multi options retailing. It is supporting innovative and creative start
for developing sustainable, unique and profitable improvements. Its approaches to new domestic
areas and multinational market opportunities through social media are highly significant (Singh
et al., 2017).
Maximizing its shareholders value: Woolworths has accelerates the alignment with Big W
offered to their new customers. . It improves the long-term relationship with the organizational
stakeholders and further adding extra value by investing in businesses for them (Felix,
Rauschnabel & Hinsch, 2017). Moreover, changing the staffing policy to take advantages by
using international and local best talents is crucial.
SWOT analysis of Woolworths:
Strengths
 Strong financial performances:
Woolworth’s majority of businesses, like Safeway Supermarket, Dan Murphy’s and
Big W have presented significant financial status in the past few years (Agnihotri et al.,
2016). Woolworths has reached to 7.96% increase in revenue in the five years, which is
generally high than the other competitors like Bi-Lo and Coles (Woolworths.com.au, 2018).
Updating more facilities and opening more stores is the organization major strengths.
 Reputation and trusted brand name

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Woolworths has been ranked as the leading retailer in overall leadership and responding
creatively to the needs of the customers. Moreover, by the end of 2012, the organization was
voted as the leading sustainable retailer for in New Zealand and Australia in the term of range of
products, business size, price and services.
 Better relationship with its suppliers:
Woolworths has focus mainly on developing long-term relationship with their suppliers
and producers. The organization is proud of its relationship with their suppliers. Its program
Fresh Food Future was implemented for promoting sustainable agriculture by helping farmers
and awarding about it via social media (McCabe, 2017).
Weaknesses
 Significantly increasing debt
The debt rate has risen considerably by the year 2012 as compared to its last five previous
years which is increasing the possibility of organization’s financial risks.
Opportunities:
 Increasing online retailing:
Since the last few years, the future of Woolworths has increased significantly due to
advent of computerization. The advancement of latest technology, manufacturing innovations,
supply chain and variations in the life style of the consumers has expanded the online retailing
industry. The industry now is driven by internet development and digital commerce (Lamberton
& Stephen, 2016). Through its online shopping for its quality business all over New Zealand
and Australia has significantly increased the profit of the Woolworths in the recent years. After

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downloading the available app of Woolworths in their phones, the consumer can easily get
access to Big W’s shopping website. This further led to increase in 10% of transactions during its
2012 promotions (Armstrong, Delia & Giardina, 2016).
Threats
The increasing competition among the country’s major retailer is the main threat to
Woolworths. The organization’s everyday low price strategy is now applied in a different way by
its competitor Coles through its price rewind strategy. The other threats of Woolworths in the
organization’s market are unpredictability in Australian business environment.
Marketing Strategy:
Marketing strategy are the fundamental goals set by the organization for increasing it
sales and achieving sustainable competitive advantages. The major competitor of Woolworths is
Coles, as both the organization are the leading retail business in Australia dominating over 80%
of the retail industry, which give rise to duopoly (Woolworths.com.au., 2018). Woolworths has
initiated grocery discounts and pro option are generally done by celebrities for its premium label
products to create a positive impact on it sales. Woolworths has set its values and strategies by
the following ways:
Marketing their products responsively and ultimately become a brand value driven business
 To be a customer focused business by improving their core offer by ensuring that the
consumers put Woolworths at first (Wardle & Chang, 2015).
 To improve availability and growth by meeting the customers need as well as Ensuring
that the workers right are respected.

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 To simplify the business model and ensuring efficiency of business through its lean –
retail model.
The organization has initiated its new value and pricing strategy for increasing the sales.
The online prices have been made aligned with the store pricing. Recently variety of “click &
collect” locations is installed by Woolworths to increase their customer convenience and also
including drive-thru collection points. The company’s online marketing strategy is positioning
themselves as the proactive and aware leader in the retail industry (Devin & Richards, 2016).
The strategies techniques used by Woolworths lead generation through brand awareness and
consideration leading to direct sales
Marketing plan using digital communication:
More than 85% population in the world are using internet for purchasing and almost half
of the internet users are generally regular online shoppers purchasing goods online at least once
in a month (Spiller & Tuten, 2015). The decision making process of the consumers are greatly
influenced by the fellow customers. As the recommendations and comments posted by them
about the products or services greatly affects the fellow consumers and they review the products
or services thoroughly before purchasing a product or services. In the recent times people are
increasingly blocking or filtering the traditional marketing approach. Woolworths use digital
communication techniques through its outbound and inbound marketing. Te outbound marketing
of the organization includes prints ads, emails, telemarketing, trade shows and TV ads, which are
generally resisted.
Moreover, the inbound marketing strategies of the organization include social media,
blogging, RS, viral videos and free trials. Previously the concept of word of mouth has now been

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replaced by word of mouse. The consumer engagement and participation through the digital
communication helps in developing credibility and building reputation for Woolworths. The
potential customer provides feedback enhancing the organization’s brand name by conveying
their opinions. It further helps in exhibiting capabilities, news and expertise to the society at
large (Saeidi et al., 2015). Woolworths provide its real time conversation and news though the
latest digital communication techniques. Recently the social program is strategically integrated
into the company’s marketing mix and the followers are able to learn about the brands and
eventually becoming leads and the ultimate customer of the organization (Ngai, Tao & Moon,
2015). Internet marking through online advertizing and selling is helping Woolworths in
unlocking the potential customers unaware of its latest products or services. Overlays and
hotspots are the strategic placement of digital brand integration is used by blending Woolworths
branded products into most viewed program through video pre-roll.
Social media platform usage:
The marketing communication done through social media and its users are significantly
becoming important as nowadays, the marketers are becoming very proficient in it. Social media
includes You Tube, Blogs, face book, Linked in, twitter and websites. The three spheres of social
media are generally done through sharing, publishing and networking. The marketing plan used
by Woolworths using the social media is effective for building anticipation and exclusive
information. The mobile and internet application is providing new platform for advertizing and
marketing. The media consumption usage is increasing day by day. The information or the
marketing plan first catches the eye of the customer creating awareness. This is followed by
reviewing the information about the products or services and raising consideration or favorability
for the product. Finally this leads to the purchasing of the products online. Woolworths is using

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these marketing techniques since many years and thus raising its loyal customers (Peloza &
Montford, 2015). Woolworths segments its market by creating a rich CRM database and
updating it with their each and every customer contact.
A target potential market is further created through e-mail marketing campaign to track
about the behavior of its potential customers or the users. Woolworths develop their personalized
web experience by providing multi-channel entry through phone and email. Moreover, the latest
marketing plan using digital communication enables in capturing the sales details for the
organization. Woolworths uses online video commercials that generally occur prior to a video
online, which is typically of 30 seconds in length. The organization uses pre-roll advertizing
techniques for marketing. The pre-roll strategic techniques guarantee that the consumer would
see and hear the commercial before the actual streaming start for the video content. It is a
simplest technique of utilizing the online media for promoting a product and services.
Responsible marketing of Woolworths:
Woolworths Ltd. believes in loyalty and maintaining trust for the customers as its
cornerstones. The organization is continually initiating new strategies for building trust as well as
rewards its customers. With more than 3500 locations and being an important part of the society,
it serves the community by becoming a significant contributor to the communities across New
Zealand and Australia. Woolworths believes in buying and selling its product responsibly by
providing safe and quality products (Wu et al., 2015). They deliver choice and values for its
consumers that mostly focus on their wellbeing and health. Woolworths is committed in
upholding their human rights by respecting it employees as well as its supply chain. They believe
in responsible buying by dealing fairly and acting reasonably with all their trading partners.

12MARKETING MANGEMENT OF WOOLWORTHS
Woolworths will create in the near future affordable healthy eating index that will be based on
the customers shopping habits. This strategy would help the customers by supporting them in
making healthier food choices by providing knowledge, inspiration for the customers to get more
affordable healthy foods easily (Carey, Parker & Scrinis, 2017). The main aim of the
organization is to invest in generating products that would help in improving the brand portfolio
besides serving the potential customers and communities.
Conclusion:
Therefore, it can be conclude that efficient marketing management and digital
communication techniques in the recent times can maximize the growth of the organization.
Woolworth’s online shopping marketing strategy has increased its brand visibility at a global
level. New and rising consumer behavior besides the growth of media has made the traditional
marketing strategies ineffective. The future communication strategy involves media integration
with the marketing management of the business. The organization believes in earning the
consumers trust by enabling them in making decisions that would be beneficial for their own
health and increasing organizations goodwill. Woolworths collaboratively engage with their
stakeholders for the benefits of the society. It is the leading retail store online through its system
excellence and creating sustainable sales momentum in the food industry. Furthermore, the
organization has increase its customer in the recent years due to its low pricing strategy and
inspiring healthy choices to its customer and supporting the overall community by providing
responsible services.

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