Woolworths: Marketing Strategies to Compete with Amazon's Entry

This report, prepared for Woolworths Supermarket, addresses key marketing challenges posed by Amazon's entry into the Australian grocery market. It identifies issues such as social media ineptitude and declining brand reputation, offering innovative solutions to enhance competitiveness. The report proposes strategies including content marketing, storytelling, collective intelligence, sales promotions, and improved customer service through chatbots to boost social media engagement. To improve brand reputation, the report suggests relationship marketing, regular monitoring of digital platforms, customer feedback collection, word-of-mouth marketing, influencer engagement, and personalization. The report includes detailed implementation plans outlining objectives, target audiences, timelines, responsible departments, and resource requirements for each proposed solution, aiming to help Woolworths strengthen its market position and effectively compete with Amazon.

RUNNING HEAD: ISSUES FACED BY WOOLWORTHS
MARKETING
DIGITAL BUSINESS

ISSUES FACED BY WOOLWORTHS 1
Contents
Social media ineptitude..............................................................................................................2
Solution......................................................................................................................................2
Content marketing..................................................................................................................2
Storytelling.............................................................................................................................3
Collective intelligence............................................................................................................3
Sales promotion (Rewards and benefits)................................................................................4
Higher availability..................................................................................................................4
Implementation Plan...............................................................................................................4
Control....................................................................................................................................5
Brand reputation.........................................................................................................................5
Solution......................................................................................................................................6
Relationship marketing...........................................................................................................6
Regular monitoring.................................................................................................................6
Collect feedback.....................................................................................................................6
Word of Mouth.......................................................................................................................7
Engage with influencers.........................................................................................................7
Personalization.......................................................................................................................7
Implementation Plan...............................................................................................................7
Controlling..............................................................................................................................9
Bibliography.............................................................................................................................10

ISSUES FACED BY WOOLWORTHS 2
Social media ineptitude
Woolworths is facing an issue based on insufficient and unengaging social media interaction
with the customers. Therefore, customers show a low level of desire to interact with the
brand.
Solution
With the passing years, social media acts as a strong tool to connect with customers. It allows
the organization to attain quality information about its customer need, preferences and
interest in the market. Developing social media profiles alone does not attract customers but
the organization has to opt for effective strategies to retain existing and attract new
customers. Woolworths should undertake multiple measures to engage its customers on social
media platforms. It should develop the application of multiple marketing approaches and
theory to attract its customers and raise their engagement.
Content marketing
It should avail the use of content marketing to attract customers on social media platforms
like Facebook and Instagram as they are among the top used websites. Content marketing
refers to the creation of online material (video and blogs) to stimulate interest among the
customers towards the product or service (Ahmad et al., 2016). This strategy should be
available by Woolworths on Facebook because it has a high number of users in Australia.
Figure 1: Top used social media networks in Australia

ISSUES FACED BY WOOLWORTHS 3
Source: (Hughes, 2019)
Woolworths should develop the use of engaging videos on this platform. It should lay a high
focus on connecting Australians emotionally with the brand. In this form of video, it should
depict the supply chain process of the supermarket brand. Woolworths must not decrease its
product price as it will lower down its profitability and product quality. It should be honest
and transparent to its customers about product quality. It should state that it offers higher
quality product and therefore, its products cost higher. It will motivate the customers to opt
for Woolworths products as higher quality is superior to the low price of the product.
However, the supermarket should lay control that it develops ‘valuable’ and ‘relevant’
content for its target market (Odden, 2012).
Storytelling
Storytelling refers to sharing and interpreting the experiences of individuals. It is modern and
engaging marketing techniques and it is highly used by the brand. This marketing strategy
has the power to drive customer attention and enables the company to increase the value of
the product. Adopting its usage will allow the supermarket brand to connect better to its
customers. The supermarket brand should allow the customers to post their emotional,
interesting and positive experiences on its social media profile (Lundqvist et al., 2013). It will
generate customer's interest in the brand and it increases customer engagement towards the
brand. It is an economical approach and it will yield fine results for the supermarket brand.
Additionally, it is considered the most trustworthy and genuine by the customers. This will

ISSUES FACED BY WOOLWORTHS 4
enable in attracting newer customers and marinating the interest of existing customer's
(Pulizzi, 2012).
Collective intelligence
Collective intelligence states that groups yield more benefits than the sum of their parts. It is
a digital business theory empathizes on the capability of the group to collaborate for
achieving business goals. To achieve benefits on digital platforms, it should frame teams for
achieving efficiency in raising customer engagement (Malone & Bernstein, 2015). According
to this theory, the group will yield more and better results than tasks divided into individuals.
All the employees attain different understandings, knowledge and intelligence. Therefore,
when different minds come together understanding emergence and it gave rise to positive
results. It will enable the group to come up with distinct and unique solutions based on
increasing consumer interaction on social media (Woolley et al., 2015).
Sales promotion (Rewards and benefits)
Woolworths should avail the full benefit of social media platforms as it is an economical way
to grab customer's attention. Therefore, the supermarket store should offer 'Surprise
discounts' to its customers. It should display these offers and discounts via its social media
profile. It will motivate and develops a driving force among the customers to check for
discounts. To avail surprise discounts, customers will view the profile most often and it will
develop their interest among them (Buil et al., 2013). Example: Woolworths should conduct
fun activities on social media platforms and it can include a short quiz associated with the
supermarket brand. It should provide points for taking active participation in such forms of
activities. It will motivate the customers to opt for these interesting and beneficial contests. It
will provide dual benefits to the supermarket brand. Firstly, it will help in raising customer's
engagement towards the brand and secondly, it will allow in developing better interpersonal
relationships with the existing customers (Christou, 2011).
Higher availability
Providing the earliest possible solution to the customer's queries and complaints will enable
the supermarket brand to connect better to the customers. Therefore, the supermarket store
should raise the usage of Chatbots on the digital platform. Gaining a timely and required
response will motivate the customer's to connect more often with the brand. Therefore, the
supermarket brand should offer '24*7' availability to its customers on the social media
platform.

ISSUES FACED BY WOOLWORTHS 5
Implementation Plan
TOOL/
ACTION
OBJECTIV
E
TARGE
T
TIMING RESPONSIBILIT
Y
RESOURCE
S
REQUIRED
Content
marketing
To develop
quality
content for
raising
customer
interest
Lower
and
middle-
income
group
and
mediate
age
group
Initiated
from
February
2020
Marketing
Department
Human and
Financial
Resources
Storytelling To
emotionally
connect the
customers
with the
brand
Same as
above
From
February
2020 to
every
passing
weekend
Marketing
Department
Same as
above
Collective
intelligence
To gain
higher
benefit by
framing
groups in
response to
marketing
Same as
above
Initiated
from
February
2020
Human Resource
Department
Same as
above
Sales promotion To raise
customer
interest and
engagement
Same as
above
No fixed
date
(surprise
promotion
)
Marketing
Department
Same as
above
Higher
availability
To provide
an early
solution to
Same as
above
From
February
Customer Service
Department
Same as
above

ISSUES FACED BY WOOLWORTHS 6
attract
customers
to till date
Control
To gain information that weather the implementation plan is offering desired results or not,
Woolworths should compare the planned results with the actual outcome. It will enable the
supermarket market to analyze the area that is lacking. Framing plans alone is not beneficial
but they should be implemented in the right manner, at the right time and by availing the
assistance of the right individuals. Additionally, it should avail the use of previous annual
data to gain a quality understanding of the current results.
Brand reputation
Another key issue faced by the supermarket brand is decreasing brand reputation in the
Australian market. This is directly impacting the sales and profitability of the supermarket
store in contrast to Amazon.
Solution
Building a reputation is not an easy task as it took years to develop and maintain a reputation
in the market. An organization has to take into account multiple areas to raise its brand
reputation. It does not rely on a single activity or measure but an organization has to provide
quality and valuable product/service to its customers. Woolworths is an Australian based
supermarket store and it is experiencing an issue of lower brand reputation in the market. It
attains a high need to undertake steps to develop and maintain a reputation to minimize
competition from Amazon in the Australian market. Below are the possible measures to raise
its reputation in the market.
Relationship marketing
Relationship marketing is a form of digital marketing theory and it aims to build loyal
customers. According to this theory, the business organization should lay frequent
communication with the customers as it improves their loyalty. Conducting communication
with the customers regularly will allow Woolworths to develop a high number of satisfied
customers. This, in turn, will improve the brand reputation of Woolworths in contrast to
Amazon. It is highly prevalent in current time and business enterprises avail of its high usage
to yield positive results (Christopher et al., 2013).

ISSUES FACED BY WOOLWORTHS 7
Regular monitoring
The Woolworths should lay regular attention in monitoring the key activities on its digital
platform. It should respond to the negative feedback of the customers and devote efforts to
solve their complaints. It will enable the company to raise a high number of satisfied
customers. However, not all the complaints are genuine but some are also generated from
fake sources. Therefore, the company should be aware of these activities as they lay a direct
impact on the reputation of the business. It should early possible measures to address these
authentic and fake complaints.
Collect feedback
Woolworths should provide a voice to its customers to share their views and suggestions
about its specific product or service. This will be done by developing a short questionnaire on
the social media platform. It should offer coupon codes to the participants as it will motivate
them to participate in a quiz. The supermarket should positively welcome criticism as it will
provide a chance for further improvement. It will enable the organization to generate
information about customers' needs and expectations from the brand and it will help the
company to align with the customer choices. Fulfilling customer expectations will enable to
company to raise satisfied customers. This, in turn, will result in positive word of mouth and
enhances supermarket goodwill in the market.
Word of Mouth
Positive word of mouth is a highly effective marketing strategy responsible for increasing
supermarket brand reputation. It should seek the help of its loyal customer for this marketing
technique. It is an economical approach and offers a great advantage to the organization.
Firstly, it will increase the reputation in the market. Secondly, it will raise the number of
customers and minimize the competition from Amazon. Additionally, it should not
compromise with the product quality as it will help indirectly generating positive word of
mouth. It will enable customers to repeatedly opt for Woolworths. Additionally, it can also
post positive comments of its customers on its Instagram stories or post (Groeger & Buttle,
2014) (Heimbach et al., 2015).
Engage with influencers
With the rise in usage of social media, the number of influencers is also increasing.
Therefore, the supermarket brand should seek the help of social media influencers to promote
its product. Relying on influencers will enable the company to easily draw customer attention

ISSUES FACED BY WOOLWORTHS 8
to the brand. There positive reviews about the product will develop a positive perspective on
customers. It will be best suitable because influencers are easily accessible and they have a
high number of followers. This strategy will allow the company to easily raise its reputation
in the market.
Personalization
Amazon offers personalized service as it allows the customers to develop a personalized
message for the receiver of the product. Likewise, Woolworths should also offer personalized
service to its large customer base. It enables the company to increase their satisfaction level
and improve its reputation in the market. Personalization is also one of the trends in the year
2020 therefore; Woolworths should strictly adhere to its usage.
Implementation Plan
TOOL/ACTION OBJECTIV
E
TARGET TIMING RESPONSIBILIT
Y
RESOURCES
REQUIRED
Relationship
Marketing
To improve
interpersonal
relationships
between
Woolworths
and
Customers
Customer
of the
brand
From
February
2020 till
date
Marketing
Department
Efficient
employees with
good
communication
skills
Regular
Monitoring
To gain
quality
information
about
customers
response
Same as
above
Same as
above
Customer Care
Department
Human Resources
Collect
feedback
To provide
better
service by
Same as
above
Same as
above
Information
Technology or
Marketing
department
Human Resources
and Marketing
expert

ISSUES FACED BY WOOLWORTHS 9
Word of Mouth To gain
positive
reviews
Same as
above
Same as
above
-
Engage with
influencers
To develop a
positive
image and
gave rise to
positive
reviews
Same as
above
Same as
above
Marketing
department
Financial
Resources
Personalization To satisfy
the
customers
need and
preferences
and align
with
marketing
trend
Same as
above
Same as
above
Marketing
Department
Human Resource
Controlling
To avail the best result, the organization should seek the help of a marketing expert.
Additionally, the Woolworths executives should seek for timely results from the marketing
experts. It will allow the organization to raise its reputation in the market and easily compete
against Amazon.

ISSUES FACED BY WOOLWORTHS 10
Bibliography
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marketing (SMCM) on brand health. Procedia Economics and Finance, 37(16), pp.331-36.
Buil, I., Chernatony, L. & Martínez, E., 2013. Examining the role of advertising and sales
promotions in brand equity creation. Journal of business research, 66(1), pp.115-22.
Christopher, M., Payne, A. & Ballantyne, D., 2013. Relationship marketing. Routledge.
Christou, E., 2011. Exploring online sales promotions in the hospitality industry. Journal of
Hospitality Marketing & Management, 20(7), pp.814-29.
Groeger, L. & Buttle, F., 2014. Word-of-mouth marketing. European Journal of Marketing.
Heimbach, I., Kostyra, D.S. & Hinz, O., 2015. Marketing automation. Business &
Information Systems Engineering, 57(2).
Hughes, C., 2019. Use of social networking sites in Australia as of March 2019, by brand.
[Online] Available at: https://www.statista.com/statistics/729950/australia-social-media-
usage-by-brand/ [Accessed 24 January 2020].
Lundqvist, A., Liljander, V., Gummerus, J. & Van, A., 2013. The impact of storytelling on
the consumer brand experience: The case of a firm-originated story. Journal of Brand
Management, 20(4), pp.283-97.
Malone, T.W. & Bernstein, M.S., 2015. Handbook of collective intelligence. MIT Press.
Odden, L., 2012. Optimize: How to attract and engage more customers by integrating SEO,
social media, and content marketing. John Wiley & Sons.
Pulizzi, J., 2012. The rise of storytelling as the new marketing. Publishing research
quarterly, 28(2), pp.116-23.
Woolley, A.W., Aggarwal, I. & Malone, T.W., 2015. Collective intelligence and group
performance. Current Directions in Psychological Science, 24(6), pp.420-24.