MKT600 Marketing Plan: Woolworth's Fitness Tracker Launch Strategy

This report presents a comprehensive marketing plan for Woolworth, focusing on the launch of a new fitness tracking watch product line. The plan begins with the identification of objectives and issues, including the target market of health-conscious individuals and athletes, and the company's goal to provide accurate health estimates at competitive prices. It then details the development of marketing strategies, emphasizing the importance of building strong customer relationships and utilizing the marketing mix (product, price, place, and promotion) to achieve a sustainable competitive advantage. The report outlines action programs, budget and control measures, and the company's value proposition, highlighting its commitment to providing high-quality products at affordable prices. Furthermore, it evaluates the business's situation and develops marketing mix strategies, including product differentiation, pricing strategies, and distribution channels. The report also considers Woolworth's established brand recognition and its plans to expand into healthcare, leveraging technology and partnerships to offer comprehensive health solutions. The marketing mix variables such as product, pricing, distribution, and promotion are explained in detail.

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Contents
Development of marketing plan............................................................................................................2
Identification of objectives and issues...............................................................................................2
Development of marketing strategies................................................................................................2
Action programs................................................................................................................................3
Budget and control............................................................................................................................3
Marketing mix variables........................................................................................................................4
Value proposition..............................................................................................................................4
Evaluation of the business’s situation and development of marketing mix strategies........................5
Product..............................................................................................................................................6
Pricing...............................................................................................................................................7
Distribution........................................................................................................................................7
Promotion..........................................................................................................................................8
References...........................................................................................................................................10

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Development of marketing plan
Identification of objectives and issues
Woolworth has identified to add a new product line into its category. The company has
decided to add fitness tracking watches of its own label. The fitness tracking watches are
trendy nowadays. These are the smartwatches and everyone wanted to have in order to update
with the routine activities. The fitness tracking watches will estimate the steps walked the
whole day along with the heart rate. It will also calculate sleeping hours and will remind a
person to walk when he or she has rested for long.
It is the objective of Woolworth to provide accurate health estimates to the customers on
time. The company has to fulfil requirements of the communal public along with the athletes.
Woolworth will offer a wide range to the customers and customers can freely choose from
any model. The accessories will also be offered along with the base product. Woolworth will
continue its economical price policy and will offer fitness tracking watches on the nominal
prices so that it can capture a great number of customers (Wedel & Kannan, 2016).
It will be the goal of the Woolworth to capture people who are conscious about their health
and who like to upkeep with the routine activities. The company aims to capture such people
in order to increase market share. It will suit every age group and will meet their health
requirements. The company will directly sell its products through both offline and online
modes (Zhang, Watson Iv, Palmatier & Dant, 2016). The customers will also be offered
promotional offers on the purchases to be made by them.
Development of marketing strategies
The marketing strategy is all about the fundamental goal of attaining a sustainable
competitive advantage and enhancing sales. The company aims to maximise sales revenue in
a specific period of time is identified as the potential market. Woolworth is already having
core customers who are more loyal and not afraid of complaining. The company aims to work
for constructing a robust relationship with its customers. It is consistent to offer appropriate
services and products. The target customers of the company will include both males and
females (Todorova, 2015). There will be no product differentiation on the basis of gender.
Woolworth will include marketing mix encompassing product, price, place, and promotion. It
is also extended to more three Ps known as physical layout, provision of the customer

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services and process as fundamentals. In the product category, Woolworth will aim to fulfill
the potentials and requirements of the customers. The organization aims to serve products
with the advanced technology available in the market. It also focuses on product quality as it
is given on accessible products. The company has clearly identified with the customers
looking for and the way to satisfy customers with an accurate value for the money options.
The company has already done a great job and now aims to offer the highest quality factors
when it comes to quality. The products to be sold by the company will be cost-effective
driven products. Add on, it is kept in mind to serve better to the loyal customers with the
superior quality and services (Sinapuelas, Wang, & Bohlmann, 2015).
The pricing strategy as a part of marketing strategy uses several strategies. It will provide
several offers and techniques to the customers comprising several discounts and promotional
offers. The discount to be offered by the company on MRP will appeal to the customers. It
will assist in generating more income for the organization. The place under the marketing
strategy will focus on the accessibility to the customers (Stead & Hastings, 2018). The
company will be required to concentrate on choosing the location for the stores. The location
will be given foremost important for the convenience to the customers and attain the high
demand response. On the other side, promotion is mainly used for communication with the
target market. The company has its own publication which can have an effective role in the
communication with the target market (Ryan, 2016).
Action programs
The action program of Woolworth will include defined details of the marketing strategy of
the organization for attaining marketing objectives. It will also comprise a strategy adapted to
position best in the market. Woolworth has planned to go for the penetrate pricing in order to
grab the large market share. The action program of the company has three main objectives:
 Satisfy the need of the customers
 To secure a lead over the competition
 To generate profits
The action programs of the company define the steps to be taken for launching the product in
the market along with the steps taken for the promotions. These are the sequences which are
deliberately undertaken to expand in the market with the aim of generating profits.

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Budget and control
Woolworth has aimed to have a great budget to launch fitness tracking watches. Before the
launch of these smartwatches, the company is required to spend on the research and
development activities in a huge amount. Woolworth has made a budget of $150000 at the
initial level. The company will latter increase the budget decided. The activities will be
controlled by the supervision and other evaluating activities (Rajavi, Kushwaha &
Steenkamp, 2019).
In order to position itself, Woolworth has launched a brand campaign. The focus of the
company is on the people who are the greatest asset of the organization. The nostalgic brand
image of the company and subtle advertising messages are helpful to the positioning. The
higher volume of the products company to reduce prices as there will be a high turnover of
sales. Woolworth has invested a lot in the research and development in order to make
products available on the nominal prices. The company has even made an investment in data
mining for better understanding of the preferences of the customers. It has even gone for the
surveys to identify the features wanted by the customers in the smartwatch. It has helped the
company to know customers better and position itself better (Atwal & Williams, 2017).
Marketing mix variables
Value proposition
Woolworth is famous for ‘cheap cheap slogan’ for the new value proposition. It is well
received by the customers. The company already calls out its value offer to the customers and
it is communicated through the lower prices. The company claims that it offers products at
low prices always. The campaigns started by the company improve value perception and
tackles huge competition from the competitors (Abril & Rodriguez-Cánovas, 2016). The
intention of the business is to put customers first across all of its brands. The priorities of the
Woolworths are to connect, personalize and make convenient shopping experience. The E2E
process of the company makes better for the customers and humbler for the stores.
Woolworths has made a great retail team which listens to the customers, team members, and
suppliers. The team continuously assists the customers and enhance their shopping
experience.

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The wearable technology has made Woolworth maintain its differentiation in the
progressively competitive industry. Woolworth can easily maintain its market dominance in
the fitness tracking watch due to its strong brand recognition in the past. The company
considers that one size does not fit all. The company has created a family of products which
work impeccably with each other. It can take wearable technology to the next level. The
company can capture value by offering the customer with the data which has never seen
before (Liu, Li, Chen & Balachander, 2017). The performance tracking has been around for a
long time for athletes and normal people. The company has transitioned from one of the clip-
on trackers to the smart watches with a series of functionality. Woolworth will be dedicated
to its mission of offering users with health and fitness tools. It has attained pro to produce
something advantageous for healthy people. The company will inspire people to live happy,
healthy and strong (McDonald & Wilson, 2016).
Evaluation of the business’s situation and development of marketing mix strategies
Woolworth is an established retail store. It is one of the top five international businesses in
America. When it comes to the business standpoint, it is vital to attain market share, reinforce
brand reputation and connect with the customers in reliable ways. It has been observed that
two-thirds of international customers make purchase decisions on the basis of the brand

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alignment with their beliefs. Woolworth is doing an excellent job leveraging and driving
business growth (Kotler, et al. 2018). The new product section of the fitness tracking watches
will actively leverage the company along with the mission to have a greater impact. The
company spools its business models in the shifting markets. The core business of Woolworth
will construct around the new product segment that is tracking watches. The company will
have competition with competitors like Apple watch and Fitbit. The company will take a toll
on the wellness of the organization’s bottom line. Woolworth will position its business as a
vital piece in the healthcare ecosystem. In order to reinvent itself, the company has taken a
move towards the whole healthcare industry. Woolworth will even make a partnership with
the leading health partners. The company will have the vision of real-time medical
information, preventive care, remote medical support, and tailored machine learning to
upkeep people restored and catch an illness before it occurs (Bahadir, Bharadwaj &
Srivastava, 2015). Woolworth hopes that with its plans, health platform and Google’s cloud
computing will be capable to appeal to more official clients such as insurance businesses and
hospitals. Right now, Woolworth with the new product launch is aimed at marrying
technology with the health and fitness to assist customers in living better. The company will
expand into healthcare for the personnel and customers in the unique ways in order to better
serve the health for everyone (Kotler, et al. 2015). The development of the marketing mix has
been explained below.
Product
The marketing strategy feature reflects the solution to the requirements of the customers.
Woolworths is required to advance a unique product enterprise, features, and name in order to
stand out in the modest market. The elements required to be deliberated for developing
product strategies like assortment, quality, packaging, features, brand name, and amplified
services. Woolworths will sell products under five wide categories and each of these is going
to be separate product lines (Dadzie, Amponsah, Dadzie, & Winston, 2017). All of the
products will be sold under the brand name of Woolworths. The company will sell products
with lots of variety. It will allow customers to choose products from lots of variety available.
Woolworths will sell highly differentiated products with distinct features to win over the
competition. The products of Woolworths will be perceived as the higher quality due to its
goodwill in the market. So the customers will be willing to pay higher prices for fitness
tracking watches. It will be friendly for the customers to use (Katsikeas, et al. 2016).

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Woolworths is recommended to add additional benefits in order to increase the purchase of
the products like delivery, credit, warranties, after-sale services and so on. The company
should provide unique features which are trending in the market. The opportunities should be
identified within the market. The newly introduced models should also be tested in the
markets before going for commercialization. The extended product portfolio should be
introduced enabling with the new product lines top to satisfy the demand of the customers.
Woolworth should focus on the product packaging which is convenient to use. It should be
appealing to the customers (Baker, 2016).
Pricing
The pricing strategy of Woolworth will focus on setting the list price, payment period, credit
terms and rebates. The company will make use of the price penetration strategy and will set
inferior prices than its participants. It will even be able to gain market share on the basis of
cheap pricing. The company will also make use of the bundle pricing where products are
shoved together and sold at the lower prices. Add on, the optional pricing strategy will also
be used where prices are offered for the base product and the discrete prices are charged for
the accessories of the watches. The management of the organization should be conscious of
the possible reprisal from the contestants in the form of the undesired price war. The
customers now days are interested in deliberating the prices along with the total cost
comprised of acquiring, disposing and consuming of the product (Datta, Ailawadi, & Van
Heerde, 2017).
Woolworths will introduce discounts and allowances, the inferior prices will be introduced
for a shorter period of time to petition to the customers and gain market share. The company
can even reduce a percentage of the product prices. The company should use psychological
pricing which seems to be lower. For instance, Woolworth can price a product of $100 as $99
as people assume it to be lower. Once the products become popular, the company can
increase the products latter on (Jarvinen & Taiminen, 2016). The company will ensure the
availability of the customers for the tech-savvy customers. The company will even follow
global trends when it comes to the adoption of the smartwatches.
Distribution
The marketing strategy necessitates Woolworths to undertake some significant decisions
while advancing the distribution plan. The distribution plan should comprise:

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 Woolworths is likely to make the product obtainable to the targeted customer
segments by its channels. The company is even required a distribution partner in order
to serve the necessities of the customers.
 Woolworth will be requiring choosing a direct distribution. It is because the company
will be selling products through its own stores only and there will be no involvement
of middlemen such as retailers and wholesalers.
 The online distribution will also be combined with the physical stores. The company
can sell online through its website (Erevelles, Fukawa & Swayne, 2016).
The customers now days give significance to the convenience along with the easy
availability. Woolworth requires choosing appropriate distribution channels for its new
product, fitness tracking watches. The company should first deliberate product features. The
market dynamics should be analyzed along with the customer preferences, possessions, and
capabilities. The distribution strategy is required to be set accordingly if the customers are
likely to purchase from stores than online. Woolworth is required to view the distribution
strategies of competitors like Fitbit. The complete cost-benefit analysis of each channel
should be made along with the comparison of own resources and capabilities. It will assist
Woolworths to advance an active distribution channel (East, Singh, Wright, & Vanhuele,
2016).
Promotion
The promotions will be the most important features of the marketing strategy of fitness
tracking watches of Woolworths. The company can make use of promotional strategies in
order to attain the marketing objectives. Woolworths can make use of promotional options
like radio, TV and print advertising. Other promotions options to be used by the company are
tradeshows, catalogs and direct mail campaigns (Jackson & Ahuja, 2016). The promotional
plan for fitness tracking watches to considered factors are:
 Initiate with clearly describing unique selling propositions and comprehend why
clienteles require products and the way these are different from the available
alternatives.
 Create the message content and assess how the created message will assist customers
in forming a perfect image of the obtainable product. The company is recommended
to deliberate AIDA (awareness, interest, desire, and action) at the time of forming
message.

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 The promotional messages such as direct selling and high profile advertising will suit
if the organization wants to drive the product. Although, the pull strategy will
necessitate the advancement of a significant brand image which could appeal the
customers to the accessible product (Hofacker, et al. 2016).
 Woolworths is recommended to gather the target market information such as who will
purchase the product, what is price sympathy level, what are the customer’s
anticipated communication methods? Further, it is suggested to integrate this
information into the promotional plan.
The promotional options relied on the information are filtered and it is suggested to
demeanour a cost-benefit analysis of promotional substitutes. For instance, the range of TV
advertising as a promotional strategy will enable the organization to target the mass market
and enhance brand consciousness. It is a little expensive promotional strategy but best
suitable with the availability of adequate resources. On the other side, the reputation of social
media has enhanced suggestively during the last decade. The use of the promotional strategy
can help Woolworth to grasp the mass market cautiously (Fan, Lau, & Zhao, 2015).

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