Melbourne CSU: Digital Marketing Audit of Woolworths

This report presents a comprehensive digital marketing audit of Woolworths, evaluating its current strategies and effectiveness. It begins by identifying and assessing the core buyer personas targeted by Woolworths, analyzing their characteristics and the appropriateness of the targeting approach. The report then critically examines the company's marketing objectives, evaluating their alignment with overall business goals. A detailed situational analysis is conducted, encompassing both internal and external environmental factors, including a VRIO analysis to assess Woolworths' resources and capabilities, as well as a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report also includes a digital media audit, assessing the company's presence across various digital platforms, including content strategy, engagement levels, and overall effectiveness. The report concludes with an overall rating of Woolworths' digital marketing strategy, highlighting its strengths and weaknesses and offering recommendations for improvement. This analysis provides valuable insights into Woolworths' digital marketing practices and its impact on customer relationship management.

Running head:MANAGEMENT
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Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Core buyers personas targeted by Woolworths...............................................................................3
Evaluate the marketing objectives...................................................................................................4
Situational analysis and the identification of key opportunities......................................................5
Internal environment analysis..........................................................................................................5
VRIO................................................................................................................................................5
External environment.......................................................................................................................8
SWOT..............................................................................................................................................9
Digital media audit........................................................................................................................10
Rating of the strategies out of 5.....................................................................................................11
Conclusion.....................................................................................................................................12
Reference list.................................................................................................................................13

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Introduction
Digital marketing is being considered as the ability to reach the global market (Joshi,
2016). In the current business scenario, marketing audit has become compulsory in case of
understanding the strength as well as weaknesses of the company in the market (Chaffey& Ellis-
Chadwick, 2019). After identifying the performance weaknesses, the improvement areas are
being determined. With the simple inspection of all the outcomes, strategies and practices, the
digital marketing audit gives the proper idea of the market that is crucial for building the digital
marketing strategy (Järvinen, 2016). The purpose of this study is to shed light on the digital
marketing initiative adopted by Woolworths and its significant impact in case of developing the
strong customer relationship management. Highlighting the core buyer personas, the digital
marketing audit process has described the appropriateness of its selected target market.
Core buyers personas targeted by Woolworths
Buyer personas are being considered as the generalized reorientations of the ideal
customers. In order to internalize the sales, marketing and the services, the customers are being
attracted towards the company (Chaffey& Ellis-Chadwick, 2015). In case of creating the buyer
personas, including the semi fictional representation of the services and products the buyers’
personas are being developed. The values and beliefs of Woolworths have been developed by
focusing on delivering the best. Developing the strong interrelationship with the customers, it
aims to build its sustainable position in the market (Buchanan, 2016).Analyzing the target market
of the company, it has been identified that it aims to provide the standard quality of services to
the customers within affordable price

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Element Content
Who
Tessa is a married woman. Middle aged. She is having 3
members in her home. Sopping is her favourite pastime.
What To have the best and most cost effective choice.
Where Shopping and online news and social media surfing
Content Informative and descriptive with detailed elaboration.
Channels Facebook and twitter and news channels
Trust
touchpoints
Social media interactions and sample marketing
Pain touchpoints Time and high price
Customer,
consumer or influencer
Influencer because based on this, the product strategy will be
designed.
‘They say’
“ They say to get the entire household products under one roof
but with large variety”
‘We say’
“we say to come down to the store and experience the most
convenient form of shopping”

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Element Content
Keywords Household, varieties and convenient
According to the above customer persona, it is identified that the middle aged customers
are majorly being targeted by Woolworths (Woolworthsgroup.com.au, 2019). This is due to the
reason that middle age customers are having both the affordability and knowledge about the new
trends in the market. Hence, the frequency of their buying process is more, which is further
beneficial for the business. In addition, the above figure is also depicting that cost conscious
customers are being targeted by Woolworths in order to increase the sales volume. This is due to
the reason that cost leadership strategy is being followed by Woolworths in order to offer
competitive pricing to the customers (Chaffey & Ellis-Chadwick, 2019). In order to build bond
with the real customers, Woolworths has focused on introducing different customer centric
marketing practices (Woolworthsgroup.com.au, 2019). In case of sharing the values Woolworths
has also contributed in the CSR activities. Ensuring the community improvement, the company
has adopted the environmental strategy (Woolworthsgroup.com.au, 2019). This is attracting the
customers segments who are seeking for cost effective products and in larger varieties and
assortments. Customers seeking conveniences are also being targeted by Woolworths by offering
newer technologies and services (Woolworthsgroup.com.au, 2019). Middle aged customers are
majorly the working population and thus they are having less time to spend for shopping. In this
case, services such as self-checkout are initiated by Woolworths to provide higher conveniences
to the customers. Providing the standard quality of products in reasonable price, the price
sensitive customers have got targeted by the company.

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Evaluate the marketing objectives
 To increase the numbers of visitors 5 % in its official website within coming 1 year
Being a popular digital marketer, expectation of people from Woolworths is quite high in
terms of introducing the advanced technological support in the market. The strategic initiatives in
the company has focused on the introducing the customer centric business by providing plenty
of internet access.
 To expand the branding activities in twitter, Instagram and Facebook by launching smart
business app
Strong existence in the digital platforms such as twitter, Facebook and Instagram can be
considered as one of the important marketing objectives adopted by the company. Improvising
the source capabilities by introducing the updated apps as well as more online features, the
company has focused on increasing its availability through different marketing strategies.
 To identify the IT access regarding issues and introduce updated version of iOS.
Analyzing the emerging situation in the company, it has been identified that customers
are dealing with various IT access regarding issues. In that case, improving the digital marketing
practices the company aims to provide the standard IT access with updated version of iOS for
ensuring customer satisfaction.
 To satisfy the shopping habits of the customers through the introduction of its android
shopping app

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Analyzing the strategy, it can be said that establishing the nonnegotiable commitment the
company has not only brought the economic empowerment in the workplace, but also it aims to
satisfy the online purchasing trends of the customers (Woolworthsgroup.com.au, 2019).
Situational analysis and the identification of key opportunities
Internal environment analysis
VRIO
In order to analyze the organizational competence in the market, the VRIO analysis is
being conducted. In the VRIO analysis of Woolworths, resource based strategic analysis based
on the assumption can help to get the strategic directions of the company (Järvinen, 2016).
Woolworths is the great company that provides the grate services to the customers. By enjoying
the higher rate of profitability, it can help to increase the competitive pressure on market.
Resources Value Rare Inimitability Organization Competitiv
e
advantage
Global
presence
The
company has
revenue
stream that
can help the
company to
introduce
new digital
No String revenue
stream can help
the company to
introduce
advanced digital
marketing
initiatives
In the retail
industry,
Woolworths
can be
considered as
the most
diversified
It has
strong
competitiv
e
advantage

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marketing
opportunities
company
Opportunities
in the industry
The
company has
high market
share and
large
customer
base
No It can be
imitated the
competitors
The company
has not
utilized all
the
capabilities
Has strong
potential
Market
distribution
and
competitivene
ss
The strong
existence of
the company
in different
media
platforms
No Although it can
be said that the
competitors can
imitate the
company but it
will be tough
Yes Medium to
long term
competitiv
e
advantage
Brand
positioning
and
comparison
with the
competitors
The
company has
developed its
unique App
for ensuring
its
individuality
in the market
Although it can
be said that the
competitors can
imitate the
company but it
need high
market budget
The brand
based
customer
behavior can
be set
Temporary
competitiv
e
advantage

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Brand
extension
opportunity
Updated
software are
available in
the emerging
market
Most of the
competitors
aim to
introduce
same
features
Can be imitated
by the
competitors
With the
higher online
marketing
budget brand
extension can
be possible
Temporary
competitiv
e
advantage
Sales
management
Yes No Can be imitated
by the
competitors
Lots of
potential
factors needs
to utilized
Can be
able to
provide
sustainable
competitiv
e
advantage
Supply chain
network
Yes Yes, digital
app
copyright is
rare
IT disruption
chances is high
Has not
utilized the
digital
protection
policies and
other rights
Can
provide
strong
competitiv
e
advantage
Intellectual
property
rights,
trademarks
Standard IT
team with
efficient
employees
Yes Has standard
employee
management
team
Fully utilized Running
the
business

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and copyright
(Created by author)
External environment
Situation Analysis
Political Political stability can be considered as the major strength in the
Australian market (Buchanan, 2018). The lower level of corruption in
this country as well as strict protection for managing the intellectual
resources has proved the positive contribution of political environment.
The state and federal government have taken the joint initiatives towards
supporting the digital marketing practices in the country.
Economic Economic environment can be considered another important factor that
can determine the aggregate investment in the digital marketing process
and aggregate demand in an economy (Allen, 2017). By continuing this,
it can be said that based on the host country currency as well as exchange
rate the market infrastructure of Australian digital market can bring the
impact on the Woolworths online business operations.
Social Economic status in a country brings a strong impact on living standard of
people (McNair et al., 2017). In case of Australian market, analyzing the
social status of people it has been identified that with increasing
economic opportunities people have become fond of technologies. On
the other hand, changing in lifestyle, the ecommerce trends among the
people can bring high sales revenue for Woolworths.
Technological With rapid innovation and technological opportunities, supply chain,

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tracking and delivering process have got improved (Lovenduski& Hills,
2018). In that case, it can be easier for the company to manage its
continuous growth in the Australian market by highlighting the
multimodal aspects of communication.
Legal Strict taxation policy as well as customer satisfaction law always
maintain pressure on the company to ensure ethical guidelines regarding
the digital marketing policies.
Environmental Environmental protection act is strictly being followed by the company
in case of improving its waste management system (Foster, 2018). On
the other hand, it has also contributed in environmental sustainability
related initiatives which can published thorough the digital platforms that
in can ensure its stability in the market.
SWOT
Strength Weakness
 With the best rank in online shop[ping
platform, Woolworths is holding near
about 80% of the market share
 Managing the perceptions of
individuals the company has
developed strong pricing and
promotional policies
 In order to improve the digital
 Price war and negative promotion of
Woolworths on twitter can be
considered as the important
weaknesses of Woolworths.
 The IT problems in near about 500
stores in Australian has brought the
negative impact on its reputation

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infrastructure the company has
developed hardware and software
policies.
 The company has introduced updated
Woolies App and iOS.
(Smartcompany.com.au, 2019).
 Improper maintenance of IT tools, rate
of customer complaint has got
increased.
Opportunity Threats
 Increasing technological opportunities
and internet users can be considered
another opportunity for Woolworths.
 Adopting new digital practices as well
as government initiatives towards
improving the digital market
infrastructure can bring significant
impact on its growth.
 Increasing competition in the market
as well as internet bugs is an important
threat
 Availability of updated apps and
regulatory pressure can create
negative impact on its growth.
(Created by author)
Digital media audit
Analyzing the marketing priorities of Woolworths, it has been identified that improving
the rate of customer satisfaction the company has focused in introducing different objectives in
the market (Mandal& Joshi, 2017). In that case, the digital marketing objective of the company
focuses on increasing the brand value and make other understand regarding its importance. In the
digital media audit the client has more than 2k likes and ensuring its positive existence in the
market the company changes its posts in every 12 hours. In every Sunday, the per day likes