Woolworths Market Analysis Report: Marketing and Management 15

This report provides a detailed marketing and management analysis of Woolworths, a major Australian supermarket chain. It begins with an executive summary and an introduction outlining the report's objectives. The background section offers context on Woolworths' operations and market position. The core of the report involves a thorough market analysis using tools such as PESTLE analysis, Porter's Five Forces, competitor analysis, and SWOT analysis to assess the internal and external factors influencing Woolworths' performance. The report then delves into market segmentation, identifying target consumer segments based on geographic, demographic, behavioral, and psychographic criteria. Based on this analysis, the report recommends specific target markets and proposes marketing strategies, including cost leadership and diversification, to enhance Woolworths' competitive advantage and achieve higher levels of success. The report concludes with a summary of findings and recommendations, supported by references and an appendix.

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Marketing & Management 1
Executive Summary
The main aim of this report is to understand the concept of marketing and management. In this
report, the situational analysis has been done to recommend the market segment. Woolworths
has been taken into consideration in order to analyze the market environment. In the beginning of
the report, the analysis has been done with the help of strategic tools such as PESTLE Analysis,
Porter’s Five Forces, Competitor Analysis, and SWOT Analysis. From the above factors, the
market segment has been suggested in which the target consumer is decided. At the end, it has
been recommended that the company has to implement the Porter’s generic strategies at the
workplace to gain the competitive advantage. It has been concluded that the company will
achieve the higher level of success in the coming future.

Marketing & Management 2
Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Market Analysis...............................................................................................................................4
PESTLE Analysis........................................................................................................................4
Porter’s Five Forces.....................................................................................................................6
Competitor Analysis....................................................................................................................8
Internal Analysis (SWOT Analysis)............................................................................................8
Market Segmentation.....................................................................................................................10
Target Market Recommendation...................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendix........................................................................................................................................16

Marketing & Management 3
Introduction
Marketing Management is the organizational discipline that mainly emphases on the practical
application of marketing orientation. It is required to develop the marketing plan to achieve the
success in the business. It is essential for an organization to analyze the market situation before
developing the marketing strategies and setting the target market to attain the higher level of
success (Chernev, 2018). There are numerous strategic tools that help to analyses the market and
these are Porter’s Five Forces, PESTLE Analysis and many other tools (Rothaermel, 2015) In
this paper, the discussion is made on the marketing and management. In this report, Woolworths
has been taken into consideration to analyze the internal and external factor.
The main aimof this report is to target the consumers to increases the sales to gain the advantage.
In this report, market analysis of Woolworths will be done to evaluate the factor that affects the
growth of business. After that, segmentation will be prepared to increase the sales of the product
of the company.
Background
Woolworths is a supermarket chain in Australia which is retained by the Woolworths Group. The
company operates the business in Coles and it also specializes in household products, pet and
baby supplies, selling groceries, beauty products and stationery items. It has been evaluated that
the company operates in 100 stores across Australia in which 19 are convenience stores and976
are supermarkets that carrying the company’s logo to operate the business. The company
operates the business online with the name of “Home shop” to deliver the goods at home. The
company has 115000 employees who help the organization to operate in an effective manner. It

Marketing & Management 4
earns $56.76 billion in a year by selling their product in the market with the high quality
(Woolsworth, 2018).
Market Analysis
PESTLE Analysis
Political  The duopolistic nature of retail market
generates the high political pressure on
company.
 It has been analysed that the policies
developed by political parties influence
the retail industry to extend the
business at the international level like
Federal Government of Australia
developed the competition policy for
high competition.
Economic  It has been evaluated that the Australian
market is declined in economic terms.
 The declined economic condition of
Australia affects the international
operations of the company.
Social  It is observed that Woolworths has
strong relation with their suppliers as
they provide the many facilities to the

Marketing & Management 5
suppliers.
 It has been found that Woolworths has
lack of social presence in the
environment
Technological  It has been seen that the company use
green refrigeration in order to protect
the products from the external
atmosphere such as perishable products
(Nandonde, 2019).
 It is observed that the company use
SAP technology that helps to evaluate
or maintain the amount of inventory so
that the chances of fraud are reduces.
Legal  There are various laws has been
introduced by the government in the
country to reduces the loss or frauds
such as Australian competition and
consumer commission Act.
 Woolworths has to obey with the legal
obligations of vendor in all aspects
(Woolworths Group, 2018e).
Environmental  There are numerous environmental

Marketing & Management 6
laws has been introduced by the
government so that the companies
protect the environment.
 It is observed that the company invests
in energy efficiency and carbon
initiative to protect environment.
Porter’s Five Forces
The threat of new entrants  Low threat of new entrants
 There are numerous reasons due to
which the threat is low which is
beneficial for the organization.
 It is observed that existing companies
have high brand image in the market
due to which it is challenging for the
new companies to move in the industry
of supermarket. It is observed that the
supermarket requires the large capital
to enter the market that is also a major
factor for the company (Lasserre,
2017).
Bargaining power of suppliers  Low bargaining power of suppliers
 It has been evaluated that suppliers of

Marketing & Management 7
the company is highly attracted due to
its high revenue or income
(Woolworths Group, 2018d).
 Teys Australia, a red meat and supply
chain solutions are the suppliers of
Woolworths. It is observed that the
goods provided by the suppliers are
easily available in the market due to
which the companies can easily switch
with the other suppliers.
Bargaining power of Buyers  High bargaining power of Buyer
 There are numerous companies that
provide the similar services to
consumers.
 The companies provide the services in
low cost in order to attract the large
number of consumers towards the
services.
 As the many companies provide the
services due to which the buyers have
large options to purchase the product
(Dobbs, 2014).
The threat of competitors  The threat of competitors is high

Marketing & Management 8
 The many companies provide the
similar services to consumers such as
Asda, Coles and Wesfarmers.
 The companies provide the low prices
to beat the competitors by attracting the
huge number of customers towards
their goods or services.
The threat of substitutes  Low level of threat of substitutes
 It has been seen that the product of
supermarket has low substitute as they
not be replace with the other goods.
 The consumers have less choice to
purchase the substitute product of retail
market.
Competitor Analysis
It has been seen that Alda, Wesfarmers and Coles are the top competitors of the company who
provides the similar services of the business. All these competitors have high brand image in the
market but it is observed that the Wesfarmers gives the high competition to Woolworths in terms
of revenue. It has been evaluated that the Wesfarmers earned 20 million in terms of revenue
which is less than the Woolworths. Woolworths earned 28.4 million in terms of revenue which is
high amount as compare to the other competitors. But in terms of employee, Woolworths has
less number of employees as compare to Wesfarmers. Wesfarmers has 2, 10,000 employees in

Marketing & Management 9
all branches and Woolworths has 1, 90,000 employees that helps to earn the money. At the end,
it can be said that the Wesfarmers is the top competitors of Woolworths (Woolworths Holdings
Limited, 2018b).
Internal Analysis (SWOT Analysis)
Strength
The brand image of Woolworths is high as it is an oldest brand in the market of Australia.
The company has high share in the market as it has 34% in grocery market.
Weaknesses
It has been found that the company entered the online market, very late due to which it has less
presence in online sector. As discussed above, it is observed that the organization face the war of
price just because of its competitors in the market. Organization has high top competiton in the
market and they always offer the low prices to consumers in order to attract them.
Opportunity
It has been evaluated that Woolworths has the opportunity to attract the consumers towards their
services by using the social media. The company has high experience in the market as it is an

Marketing & Management 10
oldest company in Australia that is why; it has the opportunity to grow the business in the new
market (Avery, and Steenburgh, 2010). It has been seen that the Wesfarmers is the main
competitor of the company as they provide the similar services to consumers that is why; it is
recommended that the company has the opportunity to merge with the Wesfarmers to operate at
the international level.
Threat
Woolworths has the high threat of competitor as the company provides the similar services to
consumers. Nowadays, the demand of consumers is rises towards the organic and natural
products that would be a threat for the company. The organization has the high threat of losing
consumers as it always provide retail market products that is manufactured with the chemicals
and other process (Avery, and Steenburgh, 2010).
Market Segmentation
Segmentation Type
Segmentation Criteria
Target Customer
Segment
Geographic Region Woolworths is
available in the cities
of Australia but the
main target of the
company are those

Marketing & Management 11
cities that have
number of families
and the age of above
30 (Schlegelmilch, &
Bodo , 2016).
Sydney, Melbourne,
Perth are the cities of
Australia that has
large number of
population who lives
together
Density Urban/ rural areas
Age Main target 20-
30years or above 30
years
Demographic Gender Male, Female and
others
Occupation Not compulsory
because everyone
required retail
product
Life Cycle Stage Lifetime
Loyalty High brand loyalty as