MGMT20132 Assessment: Novel Value Proposition for Woolworths Retail

This report develops a novel value proposition strategy for Woolworths Limited, focusing on the Australian retail sector. The proposed value proposition centers on a stock management application designed to provide customers with real-time information on the availability of essential items, especially during the COVID-19 pandemic. The application aims to maintain social distancing and address product shortages. The report includes an introduction to Woolworths, problem identification (product shortages), the proposed value proposition, its objectives (increasing competitive advantage and adapting to market changes), and anticipated benefits like increased customer numbers and improved revenue. Target customers are identified, and performance analysis metrics, such as customer feedback and visit frequency, are discussed. The report assesses the strategic fit of the proposal and concludes with a summary of the key findings, emphasizing the application's potential to enhance customer satisfaction, manage products, and improve the company's financial performance in a challenging business environment. The report references various academic sources to support its analysis.

Management
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Executive Summary
The main focus of this report is to develop a novel value proposition strategy for Woolworths
Limited which is operating and the Australian retail sector. The value proposition has been
developed in such a manner that a particular service can be provided to all customers of
which will have an indirect impact on the revenue generation capabilities of the company. In
addition to the level of customers is also expected to increase with the stock management
application introduced by the company. This application is expected to provide detailed
information about the availability of daily necessity items to the customers in the current
health crisis to maintain social distancing among customers.
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Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Novel value proposition.............................................................................................................5
Introduction to Woolworths...................................................................................................5
Problem to be solved..............................................................................................................5
Proposed value proposition....................................................................................................6
The objective of the proposal.................................................................................................6
Benefits of the proposed value proposition............................................................................7
Target clients..........................................................................................................................8
Analysis of the performance...................................................................................................8
Strategic fit.............................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The value proposition is the quality of a particular organization in terms of its products and
services that create uniqueness for the company. This value proposition quality helps the
organization to stand out among other competitors in the market. The objective of this report
will be to identify and develop a particular value proposition strategy for Woolworths
Limited that will help them to compete in this highly competitive market (Botha, Van
Rensburg, Toit & Motlatla, 2016). The level of competition in this market is significantly
higher and it is expected that the creation of a value proposition strategy will be helpful for
the company to gain profitability and increase the number of customers. It is proposed in the
given scenario to implement a stock management system that will help in identifying the
stock of medical supplies, sanitizers and tissue rolls in the current business environment. The
shortage of these above-mentioned products is a very difficult problem that is being faced by
the customers in the current business environment due to a current of the covid-19 pandemic
(Uhl & Gollenia, 2016).
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Novel value proposition
Introduction to Woolworths
As it is as of now talked about in the initial section that the business association chose for this
report is Woolworths Limited. Woolworths Limited is a business association working in
retail advertising in Australia. The fundamental focal point of this report will be on the
market section of this association and proposing techniques that will help in the making of an
incentive. Woolworths Limited is one of the biggest retail segment associations working in
Australia (Haskins et.al, 2020). It is considered as the second biggest association as far as the
age of income after Wesfarmers Limited. The degree of rivalry in this industry is extremely
high as various business associations are working in the business and there are no limitations
on exit or passage of business associations in this industry. A significant level of rivalry in
this industry makes interest in an incentive for each business association.
Problem to be solved
One of the most important difficulties that are currently being faced by business
organizations and customers in the current business environment is the endemic of COVID-
19. Pandemic has affected all the customers that are currently living in Australia as well as
other countries (Biddle, 2016). This is a global problem that is being faced by all countries
across the world. In this time every person needs to keep social distancing as it is one of the
most effective methods that can be used in the current business environment to stop spreading
this virus. All the countries are working on the development of a vaccine for this disease but
they have not been able to successfully develop a particular medicine.
World Health Organization has provided some instructions with the help of which this virus
can be controlled and such instructions include the use of sanitizer and soaps on a regular
interval of time. Lockdowns have been declared by the Australian government at various
locations to ensure that people are maintaining social distancing. People are only allowed to
leave their house in emergencies and to purchase medical supplies and general necessary
items (Grimmer & Mortimer, 2017). These items include the sanitizer soaps medical supplies
tissue rolls and other daily use materials. One of the problems that are being faced by the
customers is a shortage of these products at their nearby Supermarkets or shops. In the given
scenario it is proposed to develop an inventory management application that will help in
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communicating the availability of shock and quantity of available items concerning different
stores of Woolworth across Australia (Baldassarre, Calabretta, Bocken & Jaskiewicz, 2017).
Proposed value proposition
As it is already identified in the above section that one of the primary problems that are being
faced by customers in the retail industry is that they are not able to get required supplies
concerning necessary daily items at their nearby supermarkets. This is because the majority
of the customers are in panic and their purchasing these items in high quantity irrespective of
the suggestions provided by the government of Australia (Grimmer, 2019). In the given
scenario proposed value proposition is to provide an additional service to customers that help
them to evaluate the availability of different necessary items that are required daily.
This application will help customers of the company to evaluate whether required items are
available at their nearby Woolworths store. This will help customers to find a nearby store
that has all the necessary items in the stock. This will reduce the time taken by customers in
the shopping of necessary items which is very essential as it will prevent transmission of
COVID-19 virus. It is expected that this application will be very successful in the current
business environment. In addition to that this application can be expanded to different types
of items in the future for its long term use (Maunder, 2019). For example, different categories
of products and items can be listed on this application and customers can use this service to
conduct their shopping.
The objective of the proposal
Following are a portion of the destinations which will be accomplished by the association
with the presentation of this methodology-
Increasing the upper hand as it is now portrayed that there are different business associations
are working in the retail segment of Australia, for example, Walmart, Coles, Wesfarmers, and
different other new business associations, for example, JB Hi-Fi Limited. In light of this
industry investigation, it very well may be set the degree of rivalry in this industry is
fundamentally higher (Burns & Dewhurst, 2016). With the assistance of this offer, a
technique the executives of the association will have the option to adapt up to the degree of
rivalry and make an upper hand.
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Adjusting to the changes-Businesses need to guarantee that their activities are changed after
the adjustment in the outside business condition. Innovative elements are the absolute most
significant components related to the outside business condition. Presentation of innovation
in everyday tasks of a business association is significant as over the period each business
association will be required to guarantee that they are giving cutting edge administrations to
the clients (Julien, 2018). The presentation of this innovation at the prior appearances will be
useful for the association as clients by and large introduction and Associate a specific
Technology with an association that is presented such innovation in the market (Panigrahi
et.al, 2018).
Benefits of the proposed value proposition
Increment in the number of clients- The general number of clients is required to increment
altogether with the presentation of this offer system. As a matter of first importance,
innovation is in every case extremely famous among clients and clients will like to encounter
such innovation (Andrews, 2018). Notwithstanding the general time devoured by a solitary
client in grocery stores of Woolworths Limited is required to diminish altogether which will
build the number of clients that are visiting the market (Santoro, G., Fiano, Bertoldi &
Ciampi, 2018). This is because the client needs to diminish generally shopping time and
clients of different associations, for example, ranchers will move to Woolworths if this offer
system can lessen the hour of shopping.
Management of the products in the current scenario- Overall revenue of the organization has
been decreasing in the current business environment as people are afraid to enter into
supermarkets due to fear of contamination with COVID-19. Overall revenue will decrease
significantly if they did not find the required stock and they will be discouraged to visit the
supermarket again. Management is required to adapt their services following the current
business scenario and this value proposition strategy will be the most appropriate solution for
this scenario (Kasemsap, 2018).
Increment in income and productivity- As it is as of now portrayed that the quantity of clients
is relied upon to increment with the presentation of this offer methodology, it will positively
affect income age abilities. Notwithstanding the creation and cost of the activity will likewise
bring about expanded benefit edges as human asset cost is relied upon to diminish and by and
large, incomes expected to build (Äyväri & Jyrämä, 2017).
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Target clients
Another significant part of building up a specific incentive procedure for any business
association is to recognize target clients. The objective market of retail part associations is
exceptionally differing as far as age, sex, race, sexual direction, and so forth. Target clients in
this offer procedure can be separated dependent on age. In the current business scenario, all
the customers will be the target customers as this service will be helpful for every customer
of Woolworths Limited. In addition to that new customers are also expected to join with the
type of facility that this application will be providing (Grilo, NETO & Fernandes, 2016). This
is because all the customers want to decrease the time that they are spending out their houses
as the risk of contamination outside the house increases. In addition to that, it can also be said
that this application will be more preferable towards the younger generation of people that are
comfortable with the use of mobile applications. This is because older people are not very
comfortable with the use of technology. One of the primary factors that will be considered in
the development of this application will be the user friendly nature of the application as more
and more people will be able to interact with the application (Mulder, 2017).
Analysis of the performance
Another significant part of the business the executives concerning any new procedure
actualized by the association is execution assessment. As it is now distinguished in the above
segment that this methodology will be actualized as a test stage or initial stage during the
initial three months of activity. This will help in distinguishing the impression of clients
concerning this incentive methodology. Normally, this procedure will have the option to
expand the degree of consumer loyalty among new and existing clients (Vorbach, Müller &
Poandl, 2019). Following are some of the key performance indicators that will help in
understanding the performance of the new strategy and implementation-
Suggestions by the customers- Suggestions received from the customers will be the primary
factor that will be considered for performance evaluation. This is because the value
proposition strategy under consideration is expected to have a positive impact on the level of
customer satisfaction as this is an effective strategy that will help control the spreading of
COVID-19 (Sandino, 2018). Questionnaires can be distributed to customers at the location of
the supermarket to get their feedback.
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The number of customers- Frequency of visit by the number of existing customers and the
addition of new customers at the supermarket will also help in identifying whether the
strategy under consideration has been successful or not. This evaluation can be done with the
help of the questionnaire that will be distributed to take suggestions from the customer
(Barrett, 2016).
Strategic fit
Strategic fit refers to the strategic alliance of a particular strategy with the overall objectives
of the company and the current business environment. After a detailed analysis of the current
business environment as well as value proposition strategy it can be said that this is a strategy
in direct alignment with the overall objectives as well as the current needs of the customer
(Siddiqui & Khan, 2016). As it is already described that customers will be able to reduce the
time of shopping very significantly with the help of this application which is an essential
requirement in the current health crisis.
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Conclusion
After the overall development of this report, it can be said that the value proposition should
be developed in such a manner that a particular issue or problem faced by the customers can
be mitigated. In the given scenario objective of the organization was to deal with the
shopping of necessary items in the current global health crisis. It is expected that the number
of customers, as well as the level of satisfaction among such customers, will be increased
significantly with the introduction of this value proposition service. Different aspects of the
service have been discussed in this report along with the long term usability of this strategy.
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