Comprehensive Marketing Management Report: Woolworths Case Study

This report offers a comprehensive marketing analysis of Woolworths, a major Australian retail company. It begins with an executive summary and provides an overview of the industry background, highlighting the competitive landscape and market trends. The report then delves into Woolworths' marketing environment, examining both micro and macro factors such as competitors, customers, political and economic conditions. A key focus is on Woolworths' segmentation, targeting, and positioning strategies, followed by a detailed examination of its marketing mix, including product, price, place, and promotion strategies. The report concludes with a summary of key findings and recommendations for Woolworths' future marketing endeavors.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Executive Summary
Strategic Marketing Management is considered to be one of the vital parts of the entire business
for succeeding in the entire competitive market. In such scenario, the different businesses need to
mainly focus on the strategic plans with regards to the effective kind of implementation in real
life scenario. Serving the different customers along with generating revenue are considered to be
the major priorities of the business organizations which will be capable of making the growth of
the company efficient in nature. In the respective report, the internal along with external analysis
of the environment have been analyzed which plays a critical role in understanding the growth of
the company in the competitive business environment. In the competitive business environment,
there are different competitors such as Coles or Aldi which are mainly focusing on using the
competitive kind of pricing techniques which will be efficient in managing the suitable growth
aspects in a stable manner. Lastly, the marketing mix and the segmentation, targeting along with
positioning are the key or crucial elements which will be effective in managing the growth
opportunities in the competitive business environment.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Industry Background...................................................................................................................4
3. Marketing Environment...............................................................................................................5
3.1 Microenvironment.................................................................................................................5
3.1.1 Company.........................................................................................................................6
3.1.2 Customers.......................................................................................................................6
3.1.3 Competitors.....................................................................................................................7
3.2 Macro environment..............................................................................................................10
3.2.1 Political Environment...................................................................................................10
3.2.2 Economic Environment................................................................................................10
3.2.3 Social Environment......................................................................................................11
3.2.4 Technological Environment..........................................................................................12
4. Segmentation, Targeting and Positioning..................................................................................13
4.1 Segmentation.......................................................................................................................13
4.2 Targeting..............................................................................................................................14
4.3 Positioning...........................................................................................................................14
5. Marketing Mix...........................................................................................................................15
5.1 Product.................................................................................................................................15
5.2 Price.....................................................................................................................................16

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5.3 Place.....................................................................................................................................16
5.4 Promotion............................................................................................................................17
6. Conclusion.................................................................................................................................17
References......................................................................................................................................18

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1. Introduction
The report throws light in analyzing the marketing aspects of the company Woolworths
which is situated in Australia. Strategic management is defined as the aspect which mainly
considers the different strategies which are being carried on for achieving the better performance
(Wirtz and Lovelock 2017). Moreover, the marketing mix needs to be done which will be
suitable for understanding and determining suitability of the products or services for the
particular target customer base. Lastly, with the help of segmentation, targeting and positioning,
for getting the right audiences and aligning the products to the right audiences as well. The
management process is inclusive of the different aspects such as setting of proper objectives
along with analyzing the competitive internal along with external environment in which the
company operates.
In the respective report, Woolworths has been selected as the company which is
considered to be one of the renowned organizations for being the largest integrated provider of
leisure as well as retail. The company was incorporated in the year 1924 and is headquartered at
New South Wales, Australia. Woolworths is the Australian chain of grocery stores which is
owned by Woolworth’s group and it has been successful in covering more than 80% of the
market in Australia. More than 100000 employees are employed at Woolworths and the
company has been able to maintain their competitive position in the market with the revenue of
A$39.568 billion till the year 2019 (Woolworths.com.au 2020).

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2. Industry Background
Figure 1: Market Snapshot of Australian Retailing
(Source: Varadarajan 2018)
From the figure, it can be analyzed that Australia’s retail sales grow 3.7% in the year
2018 which is with 3.7% increase in the previous month. The sector has been segmented on the
basis of the category of the product, channels related to distribution along with analysis of the
dynamics of the market. Australia is considered to be one of the most urbanized societies in the
entire world with more than 24 million people (Ukkas et al. 2019).
The retail sector in Australia witnessed the positive kind of growth, despite the
significantly low increase in the amount of wages as well as rising debt of household. Moreover,
the future of the Australian retailing depends on the different disruptive forces which include the
changes in the spending patterns of the customers. In the current scenario, the retailing sector of
Australia is facing disruption as the Australian retailing sector required agility along with

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multiplicity of the delivery platforms that can be identified as non-responsive retailers. From the
figure, it is seen that the respective sector has experienced a growth rate of 5%, 2.6% or 3% in
the South Wales, Australia (Schlegelmilch 2016).
3. Marketing Environment
All the big as well as small business, however it is, tries to operates within the entire
marketing environment. Its present along with future existence, profits along with positioning
mainly depends on external as well as internal environment and the business environment is
considered to be one of the dynamic aspects of the business. Understanding of the entire market
environment is critical for the marketers in identifying along with recognizing what is wanted by
the different customers (Ramani and Srinivasan 2019).
Marketing Environment is essential to the different marketers as it assists in identifying
with needs of the different customers especially regarding how the customers make the different
decisions while purchasing the different products. In case of Woolworths, both internal and
external environment needs to be analyzed which will be helpful for understanding the different
opportunities along with threats which can impact their business in both positive or negative
manner (Osovtsev, Przhedetskaya and Sagidullaeva 2018).
3.1 Microenvironment
Micro Environment are considered to be the different nearby factors which affects the
ability of the companies for serving the different customers which includes the company itself,
marketing related intermediaries, suppliers as well as customers along with the public present in
the market. In case of Woolworths, there are three major elements namely company, customers

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along with competitors which have been discussed in detailed manner for understanding their
position.
3.1.1 Company
As a company, Woolworths have been successful in maintaining the loyal base of
customers in the market through utilizing the customer-centric approach. Due to the same,
through offering farm-fresh products at good rate of pricing along with great service,
Woolworths have been able to gain the competitive advantage over the other competitors.
Additionally, the geographic level of diversity as well as the multiple segments in the business is
the other two key elements which are formed by Woolworths in becoming competent in market
and improve their position in an effective manner (Woolworths.com.au 2020).
Woolworths mainly focus on the different areas wherein they are essential for their
effectiveness which includes customers, their operations along with employees which impacts
their business journey in a suitable manner. In addition, Woolworths have always wanted to
become the brand value driven business wherein their values will be understood by the different
customers in the market. Moreover, on the behalf of the employees, the company is mainly
focusing on creating a performance motivated culture which will be effective in enhancing the
value-based leadership for enhancing the future in a successful manner (Nguyen et al. 2019).
3.1.2 Customers
The main and major purpose for the existence of most of the companies is to satisfy the
different needs along with wants of the customers. The main aim of the entire enterprise is to
please the different customers along with earning of the profit in return. In case of Woolworths,
the major customers include the different individuals such as the office goers or the household

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women who prefer shopping from one shop wherein they are receiving all kinds of products and
services under one single roof. Therefore, the ultimate aim of Woolworths is to provide their
customers with the best products and services at the best prices (Mullakhmetov et al. 2016).
Woolworths Supermarket has been successful in introducing different innovative
capabilities such as the self-check out aspects in their showrooms which helps the individuals in
buying the products and services and not standing in long queues for paying their bills. In such
scenario, Woolworths have been able to serve the customers with the maximum discounts for
making them their loyal customers and improve their profitability. Woolworths, in the current
scenario have started using the self-check out system as due to the usage of traditional techniques
of marketing, there was decline in their earnings of revenue (Milinković et al. 2017).
3.1.3 Competitors
Name of the
Competitors
Number of Stores and
Incorporation of the
Company
Key Competitive
Advantage

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Coles The first store was
established in the year 1914
and there are more than 770
supermarkets available under
the brand Coles. There is
more than 20% of the market
share which has been
established by Coles in the
different parts of the country
(McDONALD 2016)
The company mainly
focuses on lowering the
costs which will be
effective for gaining strong
market share. In addition,
the company focuses on the
fact that the different
customers are able to shop
the different products with
full trust and confidence
which will be effective in
managing the growth in the
competitive business
environment
Aldi The company was
incorporated in the year 2001
and there are around 15
stores available in different
parts of the world.
The company Aldi has been
capable of providing strong
kind of responsibility
towards the different local
communities in a suitable
manner. The company Aldi
tries to provide maximum
focus on children as well as
youth for improving their

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effectiveness and gain
competitive advantage in
the market (Liu et al. 2017).
They try to deliver the high-
quality products and
services to the different
customers for improving
their efficiency and gain
competitiveness in
comparison to the other
competitors
Costco (Wesfarmers) The company has been
incorporated in 2009 and
there are more than seven
warehouses which will be
effective in managing the
growth of the company in a
suitable manner (Lazareva
2019). It is considered to be
one of the American retailers
wherein the different
storehouses are being
intended for helping the
Costco is mainly known for
carrying out the different
kinds of high quality
national along with regional
brands at the different
prices which are constantly
under the traditional kind of
wholesale approaches in a
suitable manner (Ismail et
al. 2018).

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SMEs, lessening the different
costs along with managing
the personal needs of the
customers successfully
Therefore, from the analysis of the micro or the internal environment aspects of
Woolworths, it can be concluded that the company is capable of improving their growth
prospects through the utilization of the different kinds of techniques which includes involvement
of low cost approach in selling the different products to their customers. In addition, the
company can include the effective and competitive pricing related strategies as there is
aggressive price wars which are affecting the growth prospects of the company suitably and it
will be efficient in managing the efficiency level of the company in comparison to the other
competitors which are present in the respective retail market (Hollebeek, Conduit and Brodie
2016).
3.2 Macro environment
3.2.1 Political Environment
The political environment in Australian economy is favorable for the entire business of
Woolworths Group for providing the appropriate as well as stable kind of growth opportunities
as the retail market. The political stability helps in ensuring the fact that there is high level of
growing interest of the different foreign investors along with the trading partners in the different
business organizations of Australia. With proper assurance of high level of return along with
lowering the risk of the failure of the business, Woolworths Group can be able to function in a