Marketing Mix Analysis for Woolworths: BSBMKG502 Assignment

This assignment analyzes the marketing mix of Woolworths, a prominent Australian retail company. The student identifies key product characteristics, including groceries, magazines, and household items, and their significance in the market. The analysis reviews Woolworths' pricing policies, emphasizing their price competitiveness and psychological pricing strategies. Promotional methods, such as loyalty schemes, online media, and discounts, are evaluated for their impact. The distribution channels, customer service levels, and the application of each marketing mix element (product, price, place, promotion, and people) are also examined. The assignment explores Woolworths' unique selling proposition, pricing strategies, distribution channels, promotional activities, and customer service to determine their effectiveness and relevance to the target market.

Module 6
Term and Year: Term 3 2019
Qualification : BSB50215 Diploma of Business
Unit Code: BSBMKG502
Unit Title: Establish and adjust the marketing mix
Assessment
Task 1: Short questions
Task 2:
Student Name:
Student ID No:
Assessor’s Name: Andrey Loburets/ Michal Tomcik
Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the Elite
Education Vocation Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to
these assessment tasks.
Student Name:
Student Signature: Date:
Assessment submission (new) requirements
Please save this file as PDF format (include your name to the filename) before uploading onto Moodle.
Assessment deadlines penalty
It is expected that unless a simple extension, special consideration or disability services adjustment has been granted, candidates
will submit all assessments for a unit of study on the specified due date. If the assessment is completed or submitted within the
period of extension, no academic penalty will be applied to that piece of assessment.
If an extension is either not sought, not granted or is granted but work is submitted after the extended due date, the late
submission of assessment will result in a late penalty fee. For further information, please refer to the Assessment Policy.
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve
competence when all assessment components listed under procedures and specifications of the assessment section are
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 1 of 18

Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is
eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit (DNS) will be
recorded.
Principles of Assessment
Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training
Organizations (RTO) 2015, the learner would be assessed based on the following principles:
Fairness - (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable
adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs the
leaner about the assessment process, and provides the learner with the opportunity to challenge the result of the
assessment and be reassessed if necessary.
Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing competencies held
by the learner no matter how or where they have been acquired and, (3) the unit of competency and associated
assessment requirements, and the individual.
Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements covers
the broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their practical
application, (3) assessment to be based on evidence that demonstrates tat a leaner could demonstrate these skills
and knowledge in other similar situations and, (4) judgement of competence is based on evidence of learner
performance that is aligned to the unit/s of competency and associated assessment requirements.
Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable irrespective of
the assessor conducting the assessment
Rules of Evidence
Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module of unit
of competency and associated assessment requirements.
Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a judgement to
be made of a learner’s competency.
Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would mean
that any form of plagiarism or copying of other’s work may not be permitted and would be deemed strictly as a ‘Not
Yet Competent’ grading.
Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the
assessment evidence to be from the present or the very recent past.
Resources required for this Assessment
 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, submit the assessment via the student learning management system to your trainer along with the
completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 2 of 18

 This assessment is to be completed according to the instructions given by your assessor.
 Students are allowed to take this assessment home.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided
with feedback on your work within 2 weeks of the assessment due date.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You
will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of
competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment and re-enrolment policy for more information.
Procedures and Specifications of the Assessment
The candidate must demonstrate the ability, knowledge and skills to evaluate each component of the marketing mix and
determine a suitable marketing mix for specific markets, as well as monitor and adjust the marketing mix.
The candidate is to write a brief on the marketing mix in their own workplace or a workplace that they are familiar with. The brief
should address the evaluation of all components within the marketing mix and marketing performance. The brief is to be
presented to the class.
The brief (Task 1 and 2) should consider the key characteristics of the product, the promotion methods and each component of
the adjusted marketing mix. The brief needs to evaluate the contribution made towards the organisation’s marketing objectives,
strategies and desired positioning.
Your assessor will be looking for a brief that:
 addresses each point of the procedure described above
 establishes the marketing mix for a specific market
 evaluates each component of the marketing mix
 demonstrates the monitoring and adjusting of the marketing mix
 demonstrates culturally appropriate communication skills to relate to people from diverse backgrounds and people with
diverse abilities
 contains the literacy skills needed to analyse market information, write in a range of styles for different audiences and
interpret requirements
 contains the numeracy skills to interpret test results and to manage marketing budgets
 demonstrates organisational and time management skills to design and adjust a marketing mix.
Candidates must demonstrate their knowledge of:
 key provisions of relevant legislation, codes of practice and national standards that affect business operations
 organisational policies, procedures, products and services
 principles and concepts of marketing such as buyer behaviour and the analysis of elements of the marketing mix
 numeracy techniques.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 3 of 18

Task 1
1. Research the marketing
of the company’s
products or services of
your choice
The chosen company is Woolworths, is a well-known retail company in Australia. The company
aims at providing organic foods sector and services. The company is second largest retail
industry throughout Australia and New Zealand.. The operating income of the company is
$2.326 billion.
2. Identify the key
characteristics of the
products and/or
services and their
significance to the
market.
Woolworths is concerned with selling groceries such as fruits, vegetables, fruit, meat and
packaged foods. It also seels magazine, beauty products, household products and many other
stationery items.
Most importantly it operates stores 995 stores across the whole country.
3. Review pricing policy
and analyse pricing
variables to determine
their effect on the
market.
It aims to be price competitive and offer great value for money compared with other retail
chains. According to the pricing policy the customers pay the same price for most of the
products. A new pricing strategy is psychological conditioning. The company has a new
announcement that they are moving the price of more than 20,000 products to round dollars
and no cents. Due to the new pricing policy there the other competitors are changing their price
policy and customers are more attracted towards Woolworths.
4. Analyse the significance to market outcomes of:
a. Promotional methods
The promotional methods incorporated in Woolworths are:
They have been constantly innovating the same; it offers various loyalty schemes for the
customers which include petrol pump discounts.
Fresh food people campaign.
Using online media, newsletter and magazines for effective promotion
Extensive deals, offers and discounts and gift cards to the customers.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 4 of 18

b. Customer base Woolworths takes over 1.8 million of the market in Australia. Woolworths has 995 operating
stores across the Australia.
c. Channels of
distribution
The distribution channel of Woolworths incorporates four main intermediaries:
Producer
Wholesaler
Retailer
Consumer
d. Level of customer
service provided
The customer service level is the procedure that provides effective work in the company
and aids the company in conducting the effective customer service. The level of customer
service provided by Woolworths is Unacceptable, basic, good, world class and trademark.
5. Establish the marketing mix components on areas such as:
 Information on how each element of the marketing mix has been used.
 Analyse and test their significance to each other and relevance to customer base.
i. Product/ services
(What features and benefits
do you offer?
The unique selling position -
what makes your
product/service different from
your competitors’?)
The products and services provided by Woolworths is all types of grocery items which
includes fruits, vegetables, meat, packaged foods. It also provides magazines, stationery
item and dvds. The unique selling proposition of Woolworths is it provides wide range of
products of best quality and diversified products as well such as jewellery, bedding,
housewares, clothing and accessories. The diversified products in one store are like one
stop store to the customers.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 5 of 18

ii. Price
(Price is a critical
component of the
marketing mix as
choosing the right price
for your products or
services will help to
maximise profits and
also build strong
relationships with
customers.)
The pricing strategy of Woolworths changes with the changing impact of market. The
company maintain slightly higher price in the market. It differs from customer to customer
that is penetration pricing to premium pricing. There are shopping cards provided by the
company
iii. Place
(Represents the location
where a product can be
purchased. It is often
referred to as the
distribution channel.)
The company currently operates over 1000 stores in Australia and 995 stores. Some stores
operate as Safeway stores in Melbourne and Victoria. The company also perform in online
platform and mobile app as well. They also have private label brands such as Woolworths
Homebrand, Woolworth select, Woolworth’s gold, Woolworths Fresh. The retail chain is
based in the cities like Germany, Austria, United Kingdom The Company also operates in
South Africa.
iv. Promotion
(Promotion is more than
selling and advertising
your business. It’s about
attracting the right
people to use and reuse
your business. There
are a number of
techniques to use and
they can be combined in
various ways to create
the most cost effective
strategy for your needs.)
The promotional and advertising is the most important part of the company in order to
attract the potential customers
The promotional methods incorporated in Woolworths are:
They have been constantly innovating the same; it offers various loyalty schemes for the
customers which include petrol pump discounts.
Fresh food people campaign, that went well till 2012.
Using online media, newsletter and magazines for effective promotion
Extensive deals, offers and discounts and gift cards to the customers.
There are other promotional channels aids the company to reach the target segment and
gain more profit in the industry.
v. People
(Knowledgeable and
friendly staff can
contribute to creating
satisfied customers, and
can provide the unique
selling experience that
an organisation is often
seeking.)
There are in total 115,000 team members in support office, store distribution centre and
stores who provide the customers with products of supreme value, range, and superior
service. The current work force is well competent and highly skilled. They follow the
destination of zero policy when there is zero harm to the employees and the environment as
well.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 6 of 18

vi. Physical
environment
(The physical environment
where your products or
services are sold and
delivered can have a
significant impact upon
how your customers
experience your
business.)
The company take cares of the environment where the products and the service are sold.
The products are kept in such a way that the customers get attracted towards the products.
The website design of Woolworths is also attractive and simple to operate. The company
use billboards so as to make visibility
vii. Process
(Process represents the
buying experience that
the customer
experiences when they
buy your product or
service.)
Woolworths have customer friendly process and dose focus more on the customer
satisfaction. The process refers to the nature of service provided by the company that is
speedy billing service, the way the online and offline service works. The company makes
sure that they use faster way processing billing technology software and efficient support
staff. The feedback from the customer is done effectively and constant innovation are also
processed in the organization.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 7 of 18

Task 2
1. Based on Assessment Week 5’s practical case scenario, identify environmental factors and assess their potential
impact on the marketing mix.
a. Politics
(how does this factor impact
the company’s marketing
mix)
The political factor puts a great impact on the performance of the company. The political
obligations like Food Standards Code which must be adhered by all the retail industry in
Australia. The other political disturbances like laws, regulation of the country which must be
followed by the company on the other hand the political disturbances can also discourage the
investors to enter into the market.
b. Economics
(how does this factor impact
the company’s marketing
mix)
The economic factors include inflation rate, unemployment, recession and economic
slowdown and many more factors do affect the financial position of the company. The
economic slowdown has drastically reduced the purchasing power of the customer and
therefore they would tend to buy less. The increase in the living cost of the customers has
also reduced the purchasing power of the customers and therefore, they are more incline
towards the low cost products.
c. Social
(how does this factor impact
the company’s marketing
mix)
The dynamic and significant change in the lifestyle, the cultural and societal changes does
impact the buying behaviour of the customers. It is evident that the people are becoming more
sensitive towards the health and tend have organic food more. Therefore, the Woolworths has
good opportunity offers quality and organic products and expand in Australia.
d. Technological
(how does this factor
impact the company’s
marketing mix)
The technological advancement aids the business to be creative and innovate new change in
the business in order to bring more attraction from the customers and to improve the
performance of the company. Recently the company has implemented SAP design for the
organization Then Google application platform tends to support Woolworths for the effective
workforce function.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 8 of 18

2. Provide a list of consequences for the organisation and customers/ clients in a SWOT analysis
a. Strengths b. Weaknesses
1. Woolworths is a well-known brand in Australia and receive
enormous recognition.
2. It has been rewarded as having the most attractive loyalty
program in the country.
3. It covers around 41 percent of the Australian market.
4. It has most skilled and competent workforce.
The company is unable to support the higher level of
growth.
It has stronger bargaining power of the customers.
It has failed to sustain in the competitive advantage.
c. Opportunities d. Threats
It has good opportunity to assess the changing technology in
their business and customers are more focused on online
shopping.
Expand its business to a wider area.
Advances in the supply chain.
Population growth
Great competition like Coles and 7-eleven.
Investing very less on competing with Coles regarding price
leadership.
Customers have switched to adapt more conservative
spending pattern.
The increasing government policies hinder the growth of
the business.
3. Identify customer/consumer priorities, needs and preferences and the way they impact the marketing mix (relate it to either
Product, Price, Place, Promotions, People, Physical or Process).
a. Flexibility
(how easy-going is the
service)
Woolworths aims at providing good service to the customers, like speedy billing service and
acquiring of the goods bought. The company offers online service as well. It has latest
technology and software for billing and competent support staff who clarifies all the queries of
the company.
b. Engagement
(how sincere is the service
given)
The staffs aim at responding on the feedback of the customers and respond them with no
time. They provide the customer with superior service and a range of value and convenience.
The innovation lab helped the company to validate a new service offering to the customers.
c. Fairness
(Is the service free from
discriminatory treatment)
Woolworths believe in diversity and inclusion the company’s organization culture codes of
conduct, they assure that the service provided by the company is anti-discrimination such as
the company never asks any form of inducement or bribe and obtaining best value for money
but never practiced any unethical and unfair behaviour to the customers.
d. Information
(Is there sufficient provided
According to Food Standard Codes of Australia, this law states that the company must
provide all the necessary information of the nutritional content of the product such as the
precent of carbohydrates, proteins and other nutrients. The other information like
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 9 of 18

during service) manufacturing and expiry date.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 10 of 18

4. If additional products or services or new products will be offered by the company, how would you evaluate these
against: marketing objectives, target market characteristics and desired positioning.
a. Marketing objectives
The new service which can be implemented in Woolworths is opening an anew area for small
kids and babies where they can spend time and play.
The company seeks at providing ease for the mothers to do more shopping while they can
relax for their kids. The mothers do not get time to shop therefore; this service would allow
them to shop more without any tension of their kids.
b. Target market
characteristics
Specifically this area would target the parents with small kids. The target segment can be the
lower living standard measures, higher living standard measures.
c. Product/ service
positioning
The service positioning is done after segmenting the market. The needs, desires and wants
can be delivered by price, promotion and distribution. The service would make the women feel
freer to shop and hence creating position of the company service in the minds of the
customers.
5. How would it affect the company’s marketing mix (any adjustments required?)
Marketing Mix
(please  ) Yes No Adjustments required
(if ‘Yes’, please state comment/s and if ‘No’, no comment/s required)
i. Product 
  The new service will impact the company, there will be customers in the
stores and due to the new strategy the performance will increase.
ii. Price  
iii. Place  
iv. Promotion 
  The promotional strategy needs to be changes a little bit, like they need
to encase the new strategy in their promotional tools.
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 11 of 18

v. People   The target customers are generally parent with kids and there will
requirement of extra staff in the stores in order to handle the chid section
in the stores.
vi. Physical environment  

vii. Process   More focused service will be needing after this new strategy as there the
business will be dealing with kids.
6. Discuss how you would monitor the performance of the organisation’s products and or services in order determine
which components should be tested based on the following:
Monitoring activities Explain how does the method
works Review outcomes Review
period
Who would be
responsible
a. Revenue growth/
profitability
There will be revenue growth
as there will be more
members of customers who
are unable to shop more due
to the responsibility of their
kids and babies.
The customer number
is increased the sales
rate has been
increased.
6
months
Operation
Manager
Store
manager
b. Customer retention
rates
The customer retention rate
will increase
The outcomes are
positive
6
months
Human
resource
manager
c. Cost of customer
acquisition
The cost of customers
acquisition, the company
has spent $100 on marketing
in a year and acquires 100
customers than the CAC IS
$1.00
The outcome is found
to be positive
0ne
year
Sales
manager
d. Social media reach
Woolworths is already an
established company it
already has good reach in
social media
Good reviews from
the social media
2
months
Web
developer
V2019.T3. 1.0
BSB50215 Diploma of Business/ BSBMKG502/ 2019/ T3/ Assessment Tool Task 1 & 2 Page 12 of 18