Comprehensive Report: Woolworths Marketing and Management Strategies

This report provides a comprehensive analysis of Woolworths' marketing and management strategies. It begins with an introduction to the company, followed by an examination of its target audience and market needs. The report then delves into a detailed SWOT and PESTLE analysis, evaluating both internal and external factors influencing Woolworths' performance in the Australian retail market. Competitive analysis, including Porter's Five Forces, is also undertaken to assess the competitive landscape. The marketing mix is explored, and recommendations are provided to enhance Woolworths' strategies. The report concludes with a summary of findings and a bibliography of cited sources.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of the Student:
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1MARKETING AND MANAGEMENT
Executive Summary
In this report, a detail analysis of the marketing strategy of the Woolworths organization will be
explained. The different factors that might affect their growth includes the external and internal
factors has also been explained. The report starts with the introduction of the company then with
the marketing strategy that includes the marketing mixes even.

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Table of Contents
Introduction......................................................................................................................................3
Target audience................................................................................................................................3
Market needs....................................................................................................................................4
SWOT analysis................................................................................................................................5
PESTLE analysis.............................................................................................................................7
Summary......................................................................................................................................9
Competitive analysis......................................................................................................................10
Porter’s Five Forces...................................................................................................................10
Marketing mix...............................................................................................................................12
Recommendations..........................................................................................................................14
Conclusion.....................................................................................................................................15
Bibliography..................................................................................................................................16
Reference.......................................................................................................................................19

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Introduction
Woolworths limited is regarded as the major Australian company that has its own retail
extension in the Australia and New Zealand. This organization is the second largest company as
per the Australian revenue after the Wesfarmers, which is a retail based focused conglomerate.
The annual revenue of the organization is 59 billion AUD as per 20161. Bella Vista is their
headquarter in Australia and has Brandford Banducci as their CEO. They have different
subsidiaries as well that includes the Woolworths Supermarkets, Big W and much more. The
organizational profit is 1.2 billion as per 2016 and has an operating income up to 1.6 billion in
20161. In this report, the Woolworths have been chosen as the organization that has various
estimation of the market trends and a complete definition of the different market segments will
be explained. The different target audiences, their market needs along with the different
competitive external and the internal market analysis will be evaluated.
Target audience
The target audience of the Woolworths is usually the upper class aristocrat buyers. The
organization is lately thinking of going online so that more customers can avail this option and
the sale might increase2. The organization is lowly expanding to its multi countries and has
middle to upper class market audiences. There is a huge segmentation of the different brands
1 Woolworths.com.au. (2017). Woolworths.com.au. Retrieved 27 August 2017, from
https://www.woolworths.com.au/
2 Abbasi, A., Haghighi, M., Maskan, B. H. H., Ashkani, M., Hussein, S., Zameer, H., ... & Yasmeen, H. (2017).
International Journal of Customer Relationship Marketing and Management. Management, 8(3).

4MARKETING AND MANAGEMENT
their desires and their needs there is a need to make a compete analysation of the different
segmentation of the categories and their customers.
Market needs
The customers are quite aware and rely on the different campaign ideas that may be
viewed from the different parts of the previous campaign. The most important point that needs to
be kept in mind is to understand the perspectives of the customers rather than one’s own. The
Woolworths organization has to work tremendous hard in order to attain the satisfaction rate and
the first choice of the customers. The customers expect to make a fresh approach in making a
brand new platform towards making a brand new platform. There is a need to make a fresh
strength of the different emotional connections that is for the customers3. A research has been
carried out that is extensive in nature and there is a need to live up to their expectations in order
to resonate with them.
The super market will eventually want to fight on the price and there are few things that
need to be avoided in the organization. The only reason that the customers chose the Woolworths
over the other super markets is that the convenience, quality and price has something to do with
the trust of the brand4. The Food rescue and another brand is the one that does very good with the
organizational customers. These can be considered as the array of the reasons that the customers
pick as a relevant source from the Woolworths organization. Some of the things that are actually
3 Antoncic, B., Auer Antoncic, J., & Aaltonen, H. M. (2016). Marketing self-efficacy and firm creation. Journal of
Small Business and Enterprise Development, 23(1), 90-104.
4Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

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critical to the Australian customers is the price and in this matter they somewhat trust Woolworth
more than the other super markets5.
Some price perception gaps eventually narrows and is made critically important why the
customers chose the Woolworth brand. The price is something the Australians want to make it as
a communicating credential that has some core reasons why the customers pick this renowned
brand6. It is quite evident that the price perception gap narrows with the investment pricing that
needs to be paid off with the wallets of the customers.
SWOT analysis
In this section, the critical strategic analysis of the Woolworths organization will be
carried out that has a higher level of growth. The analysis indicates that the strategy of the
Woolworth is to make their level of growth positive so that it satisfies the customers and its
employees positively7. The SWOT analysis is based on the strengths and the weakness that is
based on the internal environment whereas the opportunities and the threats are based on the
external environment.
Strengths
The strengths of the Woolworth organization is that it is a market leader in the Australian
market of retail industry and its position of the leadership will further enhance the market value.
The leadership position of the organization has the further ability to enhance itself in exploiting
5 Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
6 Basile, G., Dominici, G., & Tani, M. (2016). Place Marketing and Management: A Complex Adaptive Systems
View. The Strategic Planning of the City of Avellino, Italy. Systemic Practice and Action Research, 29(5), 469-484.
7 Copley, P. (2014). Marketing communications management: analysis, planning, implementation. Sage.

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the potentials of the market that has strong resources from the backgrounds of the technology
and human resources8. There is a need to apply wisely the resources that might partially affect
the external conditions that is a necessity in minimizing the different carbon findings and their
footprints. It has a cost effective way to reduce the packaging and the achievements that has a
zero waste of the food by 2015 as suggested by the CSR of Woolworth in 20129.
Weakness
The weakness that can be considered is the growth strategy of the Woolworths
organization that can mainly have an impact on the different external environmental conditions
that might eventually affect their dominating ability in the Australian market. As per the
Australian Government, it can be seen that they have eventually restricted it to move from
Woolworths and there is a need to keep the higher prices of their products with the coloration of
the Coles10. This indicates that the major weakness is to support their high growth levels.
Opportunities
The retail world of Woolworth show that it has a good growth potential about the
different factors like the supply chains, computerization, consumer lifestyle and more that can
affect the ability of the different retailers. There is a need to provide good opportunity in order to
8Grabara, J. (2013). Employer’s expectations towards the employees from the marketing and management
department. Polish Journal of Management Studies, 7, 58-70.
9 Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
10 Mariani, M. M., Buhalis, D., Longhi, C., & Vitouladiti, O. (2014). Managing change in tourism destinations: Key
issues and current trends. Journal of Destination Marketing & Management, 2(4), 269-272.

7MARKETING AND MANAGEMENT
make that organization grow11. This can be said that the Woolworths organization is quite
positive towards embracing the change that may be in some other way be an option in the retail
world. Coping up with the various challenging needs of the customers is required by the
organisation.
Threats
There are various threats of the Australian retail market and that occurs mainly due to
high competition market level in the industry. The Woolworths is primarily in competition with
the Cole supermarket of Australia11. The major factor is that the Government intervention that
might eventually affect the growth of the Woolworths that is within the retail world of Australia.
PESTLE analysis
This is considered as a major analytical tool that will help in assessing the external
environmental conditions that might affect the performance of the industry. The PEST analysis
has been explained below:
Political
This condition affects the retail industry. In this case, particularly the Woolworths
organization has a tendency to make their performance rise to a greater level. It has been seen
that the Federal Government in Australia has launched a recent policy of competition that is
made to prevent the major independent players like this Woolworths and the Coles in eliminating
the level of the competition12. An increase in the market dominance helps the major retailers to
11 Morgan, N. A., & Piercy, N. F. (2015). Defining Quality: A Contingency Perspective. In Proceedings of the 1992
Academy of Marketing Science (AMS) Annual Conference (pp. 486-491). Springer, Cham.

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result into comparatively small struggling retails so that it becomes easy to perform in the
industry.
Economic
There is a decline in the condition of the economic market throughout Australia that has
eventually affected the performance of the Woolworths even. Apart from the decline in the
market, there are several economic activity indicators like the fluctuations in their rate of
currency and many more12. The weakening of the Australian dollar has made an adverse affect in
the Woolworth international retail market operations.
Social
The social factor is also the one that is affecting the Australian retail industry that has
made a sense in the operating organizations that is made across the country. There is a need to
achieve the high societal and the community development that may be because of the different
recent social trends 12. The customers that have more preference to the highly social responsible
organisations and some initiatives that has been undertaken sociably to make the retailers like the
Woolworth create an impact that must be significant over its customer may imply these.
Technological
The technology plays a major one that affects the retail industry like the Woolworth.
There is an addition to some of the major factors and their applications like the green
refrigeration technology that is known to store for a long time the different perishable products13.
12 Moutinho, L., & Huarng, K. H. (Eds.). (2015). Quantitative Modelling in Marketing and Management. World
Scientific.

9MARKETING AND MANAGEMENT
Environmental
This is another factor that affects the performance of the entire retail industry that
includes the Woolworth even in Australia. An analysis that can be implied in the Woolworth
organisation has affected in particular the sense of the wine making and the petrol that are the
now as an adverse threat. The threat is based on the performance of the different environmental
conditions that is based on the affected portion of the profitability performance in the few
business areas of the Company14.
Legal
The legal form in Australia is in the form of a carbon tax that has been implemented here
as well as in the retail industry like the Woolworth to be specific. Some of the indications of the
assessment of the organisation is to indicate the different regulations that has been made by the
Consumer Commission, New Zealand Commerce Commission and the Australian Competition.
These regulations have eventually affected the need for the different operations that could have
been done in a fair way in the performance of the Woolworth organisation15. There is a need to
operate for the different fair ways that will be affected eventually for the performance of the
Woolworths that is required to be adapted in order to gain a fair policy in the different
performing business operations.
13 Moutinho, L., & Huarng, K. H. (Eds.). (2015). Quantitative Modelling in Marketing and Management. World
Scientific.
14 Pike, S. D. (2013). Book review of Wang, Y., & Pizam, A.(Eds). 2011. Destination Marketing and Management–
Theories and Applications. Tourism Management, 34, 247-248.
15Pike, S. D. (2013). Book review of Wang, Y., & Pizam, A.(Eds). 2011. Destination Marketing and Management–
Theories and Applications. Tourism Management, 34, 247-248.

10MARKETING AND MANAGEMENT
Summary
After a complete analysis of the external market environment conditions with respect to
the Australian retail, industry has eventually resulted in the identification that has a specific
strategy of the different operations of the Woolworth. The operations are highly affected by the
different external industrial conditions. The strategies of the organisation have eventually turned
into different performing business operational strategies. 16The conditions that are required may
have affected the different need to perform as well satisfy the different innovations that might be
ever changing in terms of the social trends that is within the customers. It has been assumed that
the Woolworth organisation is going to create 10,000 different new jobs and might eventually
increase the sales of the food by the $2.5 billion as per the records in 201317.
Competitive analysis
Porter’s Five Forces
This porter’s five forces is an analytical tool that is required to access the different
current positions that may be used in the entire industry that will help in various ways to
differentiate the factors that might have a slight chance to improve the conditions of the
performance18. This analysis is the Australian retail industry that will help the retail industry to
go through the application of the different analytical tools that needs to be performed. These are:
Bargaining powers of the Buyers:
16Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons.
17 Grabara, J. (2013). Employer’s expectations towards the employees from the marketing and management
department. Polish Journal of Management Studies, 7, 58-70.
18 Weinstein, A. K. (2014). Marketing (RLE Marketing): The Management Way (Vol. 26). Routledge.

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The buyers are considered to be higher as there are some major super markets in
Australia and these super markets provides the customers with some of the basic necessities. As
the customers have plenty of choice to select from so, the bargaining power is significantly high
too19.
Bargaining powers of Suppliers:
From an analysis of the Australian retail, it can be highly indicated that there is a
concentration of certain big players who has majority of the share. An increase in the bargaining
power of the suppliers shows that there is a certain increase in the level that might be considered
moderate20.
Threats of new entry:
The threat of new entry in this case is considered low because large amount of the firms
have made it difficult to the new players to enter into the conditions of the industry21. Therefore,
there is a chance to reduce the threats of the new entry into the conditions of the market.
Rivalry among the Existing firms:
19Moutinho, L., & Huarng, K. H. (Eds.). (2015). Quantitative Modelling in Marketing and Management. World
Scientific.
20 Pike, S. D. (2013). Book review of Wang, Y., & Pizam, A.(Eds). 2011. Destination Marketing and Management–
Theories and Applications. Tourism Management, 34, 247-248.
21 Morgan, N. A., & Piercy, N. F. (2015). Defining Quality: A Contingency Perspective. In Proceedings of the 1992
Academy of Marketing Science (AMS) Annual Conference (pp. 486-491). Springer, Cham.