Strategic Marketing Management Report: Woolworths, [University Name]

This report provides a comprehensive analysis of strategic marketing management, focusing on the case of Woolworths. It begins with an executive summary outlining the core elements of strategic marketing and its application within the organization. The report delves into the background of Woolworths, highlighting its evolution and key marketing strategies. Section 1 explores the role of strategic marketing, its processes, and its link to corporate strategy. Section 2 assesses the value of models used in strategic marketing planning, discusses the links between strategic positioning and marketing tactics, and analyzes the merits of relationship marketing. Section 3 examines the use of marketing techniques to ascertain growth opportunities, plan marketing strategy options, and create strategic marketing objectives. Finally, Section 4 evaluates the impact of external environmental changes on marketing strategy, internal analysis of strengths and weaknesses, and strategic marketing responses to emerging themes, concluding with recommendations and a reference list.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
Strategic Marketing Management can be referred to the approach of understanding the basic
elements of marketing, but from a strategic perspective. It offers a detailed framework for the
strategic planning and also outlines a structure for understanding, solving and identifying the
problems of marketing. The purpose of this report is to understand the role of strategic
marketing at Woolworths Organization. The organization serves approximately eighteen
million consumers each week and the organizational members value each of them. Moreover,
the report throws light on the marketing tools required to develop the strategic marketing
strategy. In addition to this, the report highlights the appropriate techniques of marketing for
the Woolworths Company. Last but not the least; it can be recommended that Woolworths
Company need to focus on their electronic marketing strategy, as it is of prime importance, in
today’s business scenario. Moreover, online marketing has also taken a successful place in
the retail industry and thus, Woolworths can practice the same in order to sustain in this ever-
competitive business market.

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Table of Contents
Introduction................................................................................................................................3
Background of the company..................................................................................................3
Section 1.....................................................................................................................................4
The role of strategic marketing in an organization................................................................4
The processes involved in strategic marketing......................................................................5
The links between strategic marketing and corporate strategy..............................................6
Section 2.....................................................................................................................................7
Assess the value of models used in strategic marketing planning.........................................7
Discuss the links between strategic positioning and marketing tactics................................10
Analyse the merits of relationship marketing in a given strategic marketing strategy........11
Section 3...................................................................................................................................13
Use appropriate marketing techniques to ascertain growth opportunities in a market........13
Plan how to use marketing strategy options in a market......................................................14
Create appropriate strategic marketing objectives for a market...........................................16
Section 4...................................................................................................................................18
The impact of changes in the external environment on a marketing strategy......................18
Internal analysis to identify current strengths and weaknesses in a marketing strategy....19
Strategic marketing responses to key emerging themes in a marketing strategy.................20
Recommendations....................................................................................................................21
Conclusion................................................................................................................................21

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Reference List..........................................................................................................................23
Introduction
Background of the company
Woolworths started its business in the year 1924 in a basement in the Imperial Arcade
of Sydney, Australia. The founder of the company was Percy Christmas and began to provide
the products and services at a cheaper rate to the customers, which has been the basic
foundation of the policies and values of the company till the present date. The company
became a chain in the year 1927 when they opened up their second store in the Queen Street
area of Brisbane. The company was progressing at a faster rate due to the effective marketing
strategies that had been taken up by the company (Arli et al. 2013). This led to the opening up
of a store in New Zealand by the end of 1929 and had 16 stores across different regions in the
Australian region. The use of radio in their marketing strategies during the year 1937 also
showed that they were advanced in their marketing skills, which helped them in attracting a
large number of customers. The company tied up with a radio programme known as ‘Rhythm
Round Up’ in Station GB present in Sydney (Atapattu and Sedera 2013).
The company also looks after its employees that help them in earning a better rate of
profit, as they launched a Staff Assurance scheme in the year 1939 that helped in looking
after the employees after they retired from the organization. This allowed in gaining the trust
of the employees so that they can work in a diligent manner (Wu et al. 2015). This report will
try to highlight the major marketing strategies that have been taken up the company in the
recent years that has helped them in surviving the competition that is present in the market. It
will also highlight the processes that are involved in the strategic marketing so that they can

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target the customers who are willing to purchase the products and services from the
organization (Richards et al. 2013).
Section 1
The role of strategic marketing in an organization
The use of strategic marketing helps in selling the product of the company that will
result in achieving the short and long-term goals. It results in increasing the sales and revenue
of the company by creating a new brand within the market. It is conceptual in nature and
helps the products to be sold in a specific manner. Tactical marketing on the other hand
provides the different strategies that are present in the market to the company by creating
profiles of the customers based on the demographic factors that are present in the area. It
helps in providing all the necessary information regarding the customers that are present in
the market so that it can help in providing the necessary products and services to them
(Tomczak, Reinecke and Kuss 2018).
Woolworths have been using the strategic marketing process that has helped them in
increasing their sales, which has resulted in better rate of revenue. The tactical marketing
procedure has been considered by the company, which has resulted in understanding the
needs and preferences of the consumers. This has helped in providing the products and
services to the customers based on their needs and demands (Armstrong et al. 2015). The
company makes it a point to appoint representatives so that they can survey the market from
time to time that will result in understanding the demands of the customers. This led to the
increase in the competitive advantage of the company, as the company was able to meet the
requirements of the customers. The relationship with the customers was also positive in
nature, as the trust levels increased with the customers that helped in selling the products to a
great extent (Turnbull and Valla 2013).

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The processes involved in strategic marketing
There are different processes that help in implementing the strategic marketing
concepts in the organization. The first process includes the planning phase that comprises of
three different procedures such as the situation analysis, market product focus and goal
setting and marketing program. The situation analysis helps the company in analysing its
strengths and weakness along with the opportunities that are present in the market by
understanding the external environment under which the company is operating. The situation
analysis also provides a competitive advantage to the firm, as they would be able to sell more
of the products so that it can increase the level of profits (Czinkota and Ronkainen 2013).
The focus on the market products along with the setting of the goal will help the
company in identifying the needs and preferences of the customers so that it can target the
right customers to whom the products can be sold in an effective manner. The goals that will
be set by the organization will help in increasing the sales on the market so that the products
can be accepted by the customer. The differences in the products that will be sold by the
company will help the customers in distinguishing the products at a lower price that is being
supplied by the company in the market (Ahmed and Rafiq 2013). This will also result in
increasing the advantage of the company in the market, as they will be able to understand the
prices at which the customers will be willing to accept the products. The positioning of the
company in the market is also important, as it will help in targeting the right customers for
the products and services that are being supplied by the company. The marketing programme
is the process that is included in the planning phase as well, which helps in understanding the
marketing tools in a proper manner. This will help in preparing the budget so that the

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expenses and the revenues can be estimated in a proper manner (Feliz, Rauschnabel and
Hinsch 2017).
The implementation phase is where the steps such as allocation of the resources,
designing the marketing strategies that will be taken up by the organization along with the
schedules need to be developed. This will help the company in implementing the strategies
that has been discussed in the planning phase. The last process is known as the concept phase,
which will help the company in making better comparisons regarding the plans that have
been done so that the changes that have taken place can be identified in a proper manner
(Brodie et al. 2013).
The links between strategic marketing and corporate strategy
The corporate strategy helps the company in proceeding towards a particular direction
that has been predefined by the upper management so that the goals and objectives can be
met in a proper manner. The strategy is made based on the current fiscal year so that it can be
developed. There is a linking between the corporate strategy and strategic marketing, as the
marketing processes of the company depends mostly on the strategies that are adopted by
them. The relationship between these two variables helps in sensing the market in a proper
manner so that the target customers can be identified. It also enables the company in
identifying the products that they can offer to the customers, which will help in increasing the
sales (Kotler 2015).
The link between the corporate strategy and strategic marketing is that it helps in
creating a value chain where the production, communication and delivering of the product
can be done according to the needs and preferences of the customers. The link is that it can
provide a better sense of the product to the organization, as the target customers can be
identified and help in delivering the products in a convenient manner (Morrison 2013). The

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acquisition of the customers that is the activities that are present for promoting the products
can help in attracting the customers in a proper manner. The core competency is also linked
with these two variables, as it helps in advertising the marketing the products in a better
manner. It also allows the organization in differentiating the products from its competitors so
that it can enable them in gaining a competitive advantage in the market. It also helps in
defining the different products that are present in the market so that it can help them in
enjoying a competitive advantage in the market. The delivery of the product will also result in
increasing the profits in a proper manner, as the company will take in to consideration the
needs and preferences of the customers as well (McDaniel and Gates 2013).
Section 2
Assess the value of models used in strategic marketing planning
The different models that are present in the strategic planning helps in understanding
the internal and the external analysis of the company based on which the marketing strategies
can be adopted. The internal analysis can be done with the help of SWOT that will help in
identifying the strengths, weaknesses, opportunities along with the threats that are present in
the market for the organization. This will help the management in understanding the
important strategies that needs to be taken up so that the company can operate in a successful
manner within the market (Salar and Salar 2014).
The strengths of Woolworths are that it is one of the leading retailing industries in
Australia. This has helped the company in exploiting the potential that is present in the
market along with the use of the resources in an efficient manner. This has led to a stronghold
position of the company in the market so that their presence can be felt within the market
where they are operating (Bas 2013). The company is also a successful brand, as it has
launched different products under its own brand label. This has helped in increasing the

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position of the company among the customers as well. The company also makes it a point to
reduce the carbon footprints by innovative packaging for the products so that the waste
products can be curbed to a greater extent (SyazwanAbTalib and Bakar Abdul Hamid 2014).
The weaknesses of the company are that the strategy for the growth of the company is
impacted through the external conditions that are present in the market. The company does
not have a presence in a stronger manner on the global environment compared to its
competitors. This has reduced its competitive advantage in the market, as a result of which
the brand is failing in the other markets. The government of Australia has also restricted the
company in keeping a high price of the products in the market, which has also turned out to
be a major weakness for the company (Shabanova et al. 2015).
The opportunities that is present for the company is that it has a better potential for its
growth in the market due to the advances that are present in the technological aspects. The
changes in the lifestyles of the consumers also need to be taken in to account so that the
products and the services can be provided to the customers according to their needs and
preferences. The company also needs to adopt different strategies so that it can adjust itself
with the different needs of the customers (Tsitsiloni, Grigoroudis and Zopounidis 2013).
The threats of the company are the increase in the price of the raw materials that has
affected their level of profit as well. The recession that has taken place in the Australian
economy has also affected the ability to make more money by the company. There is a huge
competition with Coles, as they also try to attract more number of customers by providing the
products at a lower price. The rise in the competition has also affected the level of sales for
the company, which has to be taken in to consideration by the management of the company
as well (Shabanova et al. 2015).

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The Ansoff matrix is an approach that helps in understanding the potential risks that
are present along with the options that can be devised for the company so that it can help in
the smooth operation as well.
There are four quadrants in the matrix where the lower left quadrant is known as
market penetration. The product development is at the lower right quadrant, which indicates
that it is risky to some extent. The market development is in the upper left quadrant and
diversification is at the upper right quadrant (Hussain et al. 2013).
Woolworths need to understand the matrix in a proper manner so that it can help them
in managing the resources in an efficient way. This will help in formulating the strategies so
that the level of profits can be increased to a greater extent. The market development
quadrant needs to be analysed by the company so that it can identify the opportunities and
threats that are present. The use of the different channels of sale will allow the company in
increasing the sales of its products so that the level of profit can increase as well. The
segmentation of the customers also needs to be done so that it can allow Woolworths in
understanding the major customers who are willing to take the products and services
provided by the company. The use of the marketing tools will allow the company in

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repositioning their products in a proper manner as well so that the buying behaviour of the
customers can be influenced in a proper manner (Medarac, Vignali and Vignali 2016).
The diversification strategy is risky in nature that needs to be understood by
Woolworths in a proper manner. The company needs to diversify its products according to
the needs of the customers so that it can enhance the level of profit as well. The
diversification strategy is also risky, as the products may suffer from adverse circumstances,
as the customers would not like to purchase those products. This might lead to the loss of the
company as well. The company needs to have expert knowledge on the economies of scale so
that they can be able to differentiate the customers according to the products and services
(Yin 2016).
The market penetration strategy will help in developing new marketing strategy for
the company so that the choice of products can be increased among the people. The company
can also introduce loyalty schemes, where the loyal customers can be rewarded with bonus
points and may get an additional discount on the products that they are purchasing. The loyal
customers also need to be called during the launch of new products or promotional strategies
that may help in increasing the activities related to sales (West, Ford and Ibrahim 2015).
The product development quadrant will allow the company in developing the products
in a new variety by packaging it a better way. This will allow the company in attracting more
number of customers towards the products so that the sales can be increased as well. The
repackaging of the products will help in attracting more number of customers toward the
stores. The service that is provided to the customers also needs to be increased so that the
level of efficiency can be maintained within the company by the employees (Baker and Saren
2016).

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Discuss the links between strategic positioning and marketing tactics
Segmentation of customers is very important for the company, as it helps in
understanding their needs, demography of the area and the purchasing habits of the customers
as well. Woolworths need to understand the market where they are operating in a proper
manner so that it can allow them in segmenting the customers according to the different
variable. This will give them a chance in understanding the needs and preferences of the
customers so that the products could be sold in a proper way in the market (Michelon, Boesso
and Kumar 2013).
Targeting the customers will also be helpful for Woolworths, as it will allow them in
influencing the customers in purchasing the products. The image of the company has to be
developed so that the messages of the products can appeal to the customers and influence
their buying habits as well. Targeting the customers in the right manner will allow
Woolworths in spreading the message related to the product in a proper manner so that the
sales can be increased as well (Ottman 2017).
The positioning of the company also needs to be understood due to the introduction of
new marketing strategies. The positioning strategy will also help the company in securing its
position the market based on the lifestyles and demographics of the customers. This helps in
attracting more number of customers so that the sale of the products can be increased within
the company (Purce 2014).
There is a link between the positioning and marketing tactics, as it will help
Woolworths in using the tools of marketing so that it can segment and target the right
customers. This will help in understanding the needs of the customers in a better manner so
that the products can be made according to the needs and preferences of the customers
(Piercy 2016). The availability of the right products in the market by the company will result