MRKT2004: Woolworths' Brand Strategy, Target Market & Equity

This report analyzes Woolworths' marketing communications strategy, focusing on its brand positioning, target market, and brand equity. Woolworths utilizes a quality-based brand positioning strategy, emphasizing fresh, high-quality products at reasonable prices. The company leverages its brand equity by introducing new product lines and maintaining a strong brand image through consistent marketing efforts. The primary target market is New Zealand, focusing on middle and upper-income groups, with social media, email marketing, and customer service as key touchpoints. Woolworths employs a 'house of brands' strategy, allowing each branded segment to focus on niche markets, enhancing customer loyalty and satisfaction. The report also discusses how Woolworths manages customer touchpoints and adapts to changing customer needs to improve market share and maintain customer relationships. Desklib provides access to similar solved assignments and study resources for students.

MRKT20042022T2
Marketing Communications

TABLE OF CONTENT
MAIN BODY...................................................................................................................................3
Background..................................................................................................................................3
Effectiveness of brand strategy....................................................................................................3
Discussing how the brand equity has been leveraged for the brand............................................3
Choosing one of the target markets for the brand........................................................................4
Discussing the strategy organization has used for brand.............................................................4
REFERENCES................................................................................................................................6

MAIN BODY
Background
Woolworths is the best and well-known grocery shopping website in Australia and it
aims in providing the fresh produce and home-made products to large number of customers in
quick and easier manner. Also, company is offering best of services through keeping the
experienced staff members so that grater customer loyalty might be maintained. Moreover, they
claim to be responsible member of Australian community and thus ensures that all the products
are made in environmental friendly and sustainable manner (Woolworth group, 2022). Also, the
company is known as the trusted business partners to most of the local farmers and
manufactures. Furthermore, company had diverted 24 million meals in Australia and New
Zealand and in 2021 it is known for having the largest share in the grocery market with about
37.4% according to certain reports
Effectiveness of brand strategy
The types of positioning strategies that are applied in Woolworths consist of quality
based brand positioning where it claims to provide the best quality food products that are not
only fresh but also available in reasonable prices to be consumed by large masses online. Also,
through establishing such type of strategies the firm is able to reach to target markets easily and
develop greater customer loyalty as consumers are ready to consume those varieties of products
that are high in quality and are ready to pay even little higher prices for the same (Bahcecik,
Akay and Akdemir, 2019). In context of brand identity it can be said that it truly supports current
brand positioning of the firm as the cited firm has sets its clear purpose in terms of long term
goals and methods of positioning in the market that is one of element in brand identity.
Discussing how the brand equity has been leveraged for the brand
The brand equity is been leveraged to the brand through the brand position in the target
market through which the firm would be able to easily introduce new product in the market or
introduce the new product line in the grocery such as freshly packed minim meals so that more
customers might be attracted towards the business for the purpose of earning higher revenues.
Moreover, the company keeps check on marketing mix so that proper brand awareness might be

created and also perceived quality might be provided to the customers on regular basis to
maintain the brand image in the market (Klein and et.al., 2019)
Choosing one of the target markets for the brand
The target market for wools worth is New Zeeland and mostly middle and higher income
class groups because of little higher prices of goods. Also, the major touch point of this market
before purchase is the social media through which customers are made aware of the products,
during the purchase is email marketing through which the product related information and
various discounts and offers on different items are been communicated. Lastly, after the purchase
major touch point for this target market is customer service channels that solve various queries
and collect feedback from the customers (Adıgüzel, 2020). Thus, brand manages all these touch
points through setting various benchmarks so that overall work might be monitored on regular
basis. Also, these are improved through focusing only on building strong relationships with the
customers so that market share might be improved along with sales and customer loyalty is
maintained over the long period. Moreover, wools worth is also involved in brainstorming
potential ways to customer touchpoint might be enhanced. Hence, the target changing needs and
preferences helps in managing the touch points within the customer journey in most effective
manner
Discussing the strategy organization has used for brand
Strategy and Sub Strategy : In relation with the article that is mentioned it can be said
that strategy that is been followed by the cited firm is house of brands where each branded
segment of the company is focused on providing services to the niche segment instead of
covering the whole target market (Gilal and et.al., 2022). Also, this Strategy further states that if
the different segments in wools worth were not classified as distinct rather than one single brand
that it would have lessened the impact on the market and among the target customers. Moreover,
there are various sub brands that are associated with the master brand and hence their
association's with the main brand also helps the firm in developing greater customer loyalty and
satisfaction.

Thus, it can be said that this approach is been used in wool worths so that advantages
from the new offering might be gained in short period and also through this channel conflicts
might be minimized to large extent.

REFERENCES
Books and Journals
Adıgüzel, S., 2020. Market and brand positioning and sustainability strategies in international
marketing. International Journal of Scientific Research and Management. 8(9). pp.9-24.
Bahcecik, Y. S., Akay, S. S. and Akdemir, A., 2019. A review of digital brand positioning
strategies of Internet entrepreneurship in the context of virtual organizations: Facebook,
Instagram and YouTube samples. Procedia Computer Science. 158. pp.513-522.
Gilal, R.G. and et.al., 2022. The role of nostalgic brand positioning in capturing brand equity:
Theoretical extension and analysis. International Journal of Consumer Studies. 46(1).
pp.161-181.
Klein, K. and et.al., 2019. Brand positioning based on brand image–country image fit. Marketing
Science. 38(3). pp.516-538.
Online
Woolworth group. 2022.[Online]. Available through:<https://www.woolworthsgroup.com.au/>.