Marketing Strategy and Plan for Woolworths' Organic Product Line

This report presents a comprehensive marketing strategy and plan for the launch of Woolworths' new line of organic packaged foods and drinks. The report begins with an executive summary highlighting the increasing demand for organic products in Australia and the strategic initiative to introduce a private-label organic range. It then outlines marketing objectives, target market segmentation, and brand positioning, emphasizing the product's high quality and reasonable cost. The report delves into the marketing mix, covering product features, pricing strategies, promotional activities (including advertising, public relations, and social media), and distribution methods. It provides a detailed analysis of the target consumer segments, considering factors like age, income, and lifestyle. Furthermore, the report includes a control and evaluation section to assess the effectiveness of the marketing efforts and concludes with recommendations for future implementation and schedule.

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student
Name of the University
Authors note

1
MARKETING STRATEGY AND PLAN
Executive Summary
The demand for organic foods has been increasing in Australia and other parts of the world.
People are clinging towards healthy living, healthy eating habits. The health-conscious
people would always choose quality over price according to their requirements. This is the
reason that a new product line is developed for the reputed supermarket chain of Australia-
Woolworths. This company is one of the highest revenue gainers in the country and now it is
the time that they should launch their individual-labelled products. This is the marketing mix
report of the new product and its operational aspects.
Woolworths has been selling the organic products of different brands in their stores.
This time they are introducing a new range of organic packaged foods and drinks labelled
under the name of Woolworths. Developing brand equity and improving the present market
condition is the main objective of this initiative. The target segment would be the people of
Australia who wants healthy and organic food for themselves and the family. The brand
would be positioned in high quality and reasonable cost category.
All the four major parts of the marketing mix have been discussed in this report to launch the
new products. Control and evaluation process is an important part of the whole process. The
report has a conclusion and recommendations part as well.

2
MARKETING STRATEGY AND PLAN
Table of Contents
Marketing Initiative........................................................................................................3
Marketing Objectives.................................................................................................3
Marketing: Target and Positioning.................................................................................4
Segmentation..............................................................................................................4
Targeting....................................................................................................................5
Brand positioning.......................................................................................................6
Marketing Mix tactics and strategies.............................................................................7
Product.......................................................................................................................7
Pricing........................................................................................................................9
Promotion.................................................................................................................11
Advertising...........................................................................................................11
Publicity and Public relation building..................................................................12
Social Media.........................................................................................................14
Distribution..............................................................................................................14
Control and Evaluation................................................................................................16
Implementation and Schedule......................................................................................18
Conclusions and Recommendation..............................................................................19
Reference List..............................................................................................................21

3
MARKETING STRATEGY AND PLAN
Marketing Initiative
The initiative goal that is taken for improving the present marketing condition of
Woolworths is the expansion of the total demand in the market. This would be done by
introducing a new private labelled product range in the stores. The product is packaged
Organic food and drinks that would be labelled under Woolworths' name. Marketing
penetration would be based on providing high quality products at a reasonable price. The
products would be introduced in some of the selected stores and then in the rest of the stores
in Australia and the UK. The frequency of using a Woolworths product will be increased if
the promised quality product is delivered to the customers.
Marketing Objectives
 Introduction of new Organic products ranges to enhance the business scope. The main
objective is to expand the market for Woolworths products.
 To achieve at least 15 % growth in the first year of launching and 5% growth in
consecutive years.
 The goal is achievable as this would address some trending needs of the consumers
 The steady growth of vegetarians and organic food lovers in Australia is the real
reason for choosing this initiative.
 The total period of 1 year would be invested in this project.

4
MARKETING STRATEGY AND PLAN
Marketing: Target and Positioning
Segmentation
The product is aimed for the segments of consumers who are already the customers of
Woolworths and at the same time for the new customers visiting the stores. From the total
market of Australia, the following market segments would be selected for this intervention.
Geographic segmentation
Area Rural and urban areas
High-density areas
Demographic segmentation
Age People of any age, specifically children, the youth and mid-
aged people. The age group of 20-55 years
Sex Both male and female
Income High to moderate-income persons
Low-income persons
Behavioural segmentation
Readiness to purchase High readiness as organic foods are trendy and healthy
Enjoy new products
People who avoid new products
Loyalty High- Brand Loyalty of Woolworths
New consumers with minimum brand loyalty
Psychographic segmentation
Class Young adults and adults with high or moderate-income
Lifestyles People having busy lifestyles
Low key health orientation

5
MARKETING STRATEGY AND PLAN
Overweight
Attitude People living a careless and unhealthy life
People having interest in healthy and organic living
Personality Consumers with a belief in natural goods
People with care for daily consuming calories
Table 1: customer segmentation
(Source: created by the author)
Depending on the above segmentation, the market for new organic products is
selected. The analysis of the target market is done on the basis of market research
done, including the internal and external environment evaluation (Morgan et al.,
2019).
Targeting
According to Jaworski (2018), differentiating marketing would be apt for the target
consumer selection of these products. Selecting the target consumers for the new organic
product range of Woolworths is based on certain findings.
 According to a report by ABC News, the number of vegetarians in Australia is having
a slow yet steady growth. In 2016, the percentage of people who are interested in
vegetarian foods were 11%, whereas, in 2010, the percentage was about 5.1%
(Armstrong et al., 2018).
 The demand for organic foods is increasing in the health-conscious people of
Australia. The demand is expected to grow by 16.5 % by the end of 2022 (Atkinson,
2016).

6
MARKETING STRATEGY AND PLAN
 People who have a busy lifestyle often eat unhealthy readymade foods, and that
affects their health. Our product would target the consumers who are health conscious
and wants some healthy food options for their daily use.
 Research stated that people within the age group of 20 to 55 years have the inclination
to eat organic foods and drinks that are free of any synthetic, pesticide side effects.
The above discussion shows that people in Australia have a demand for organic foods
and drinks. As opined by Perreault (2018), the target marketing would be differentiation form
the regular items in the supermarket stores. The organic products by Woolworths are
designed to mitigate the need for health-conscious customers. New consumers, along with the
old one, would be introduced to this product range as well. Young and mid-aged consumers
having a moderate to high income and living in the urban areas would be approached first.
Brand positioning
Woolworths' positioning in the market already has the base for the launching of a new
brand. The products of this company are known for their best qualities and reasonable prices.
The company has always concentrated on the quality over the price. The positioning plan for
the new organic range would be in high quality and moderate price range (Aghazadeh, 2015).
The aim is to provide the customers with a wide variety of food and drinks of organic sources
in a price that is slightly lower than other brands available in the market. The prime concern
would be the authenticity and product variations.

7
MARKETING STRATEGY AND PLAN
Figure 1: Positioning map of Woolworths after launching the Organic range
(Source: Created by the author)
The packaging of these products would be done using eco-friendly materials. Like the
beverages would be delivered in glass and tin cans. Some of the fruits and vegetables that
need necessary packaging would be packed in biodegradable packets (Keegan & Rowley,
2017).
Marketing Mix tactics and strategies
Product
Woolworths is known for its product quality and standard pricing system. The organic
products are good for health, and it also serves the environmental sustainability factors.
Woolworths already sales organic products from several productions, but it does not have any
individually owned product range in organic food sections.
The differentiation effect would be achieved by individualisation of the products, its
quality and its cost (Datta, Ailawadi & Van Heerde, 2017). The customers’ feedback in

8
MARKETING STRATEGY AND PLAN
organic foods that are available in the markets is not quite impressive. Most of the time, they
get normal products in the name of organic products and that too at high prices.
The packaged and individualised products by Woolworths would ensure the high
quality product and the customers visiting this section of the supermarket would get advice
from the executives about their buying. The packaging of the products would be done in glass
jars or bio-degradable packing elements.
Product features
Organic packaged Foods
Processed meat  Products would be sourced
from the farm owners
directly.
 Each of the product would
have printed durability,
nutrition information printed
in the packet.
 Quality of these products is
the priority
Packaged organic super seeds, dry fruits and
vegetables
 Reusable glass jar packing.
The consumers tend to buy
the products that have multi-
faced usages. The jars could
be used for multipurpose
afterwards as well.
 The vegetables would be

9
MARKETING STRATEGY AND PLAN
freshly bought from the
farmers. Organic fruits and
vegetables are becoming a
popular choice of health-
conscious people in
Australia. The brand name
of Woolworths will enhance
its reliability.
Organic Packaged Drinks
Energy drinks  Availability in variety of
range and flavours like
lemon blast, lemon blast,
super berries, energetic
apple and Peach mania.
 The packaging would be
different from the available
products in the market.
Fruit juices  Launching individualised
fruit juices with Woolworths
label
 Would be available in more
than 15 flavours.
 Some categories would be

10
MARKETING STRATEGY AND PLAN
pure, and some would be
mixed flavours.
Pricing
The pricing strategy for Woolworths’ new range would be based on price-quality
leadership. The competitors in the market are offering organic products in the high range.
Most of the stores of Woolworths itself has some of these products on their shelf. The pricing
decisions were made for these products is depended on the price sensitivity. The introductory
price would be reviewed after one year. The prices of the competitors have been compared
with Woolworths’ new products.
Comparison of prices among the market competitors
Brands Organic Foods Prices
Australia’s Own Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.80
A$ 2.00
A$ 3.20
A$ 1.50

11
MARKETING STRATEGY AND PLAN
MIK Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 2.10
A$ 2.00
A$ 3.50
A$ 1.00
StMichael Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.70
A$ 1.80
A$ 3.80
A$ 1.50
Woolworths Organics Soy milk
Rice
Chia Seeds
Vegetable soup
A$ 1.50
A$ 2.00
A$ 3.10
A$ 1.20
Demand and supply estimation of organic foods in Australia
Estimated revenue of the organic retail
market
$1.7 billion
Total percentage of farmers having
organic farms
1.6% of the total Australian Agricultural
land
The current share of the organic food
market
2.1%
Per year growth rate of organic markets 10-30%