Marketing Report for Woolworths Australia: Analysis and Strategies

This marketing report provides a comprehensive analysis of Woolworths Australia, examining its market position, competitive environment, and customer segmentation. The report begins with an overview of Woolworths, followed by a detailed situational analysis using Porter's 5 Forces and SWOT/TOWS matrix to assess the external and internal environments. It then delves into market segmentation and explores Woolworths' marketing strategies. The report also addresses corporate social responsibility and concludes with recommendations for future improvement. This report offers valuable insights into Woolworths' operations, strategies, and areas for potential growth within the Australian market. The report is a valuable resource for students studying marketing and business strategy.

Running head: MARKETING REPORT FOR WOOLWORTHS
Marketing Report for Woolworths
Name of the Student
Name of the University
Author Note

1MARKETING REPORT FOR WOOLWORTHS AUSTRALIA
Table of Contents
Introduction......................................................................................................................................3
1. Woolworths Supermarket – An Overview...............................................................................3
2. Situational Analysis of Woolworths Australia.........................................................................4
2.1. External Environment Analysis........................................................................................4
2.2. Internal Environment Analysis.........................................................................................6
3. Market Segmentation...............................................................................................................9
4. Marketing Strategies of Woolworths Australia......................................................................10
5. Corporate Social Responsibility of Woolworths Australia....................................................12
6. Recommendations for Future Improvement...........................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

2MARKETING REPORT FOR WOOLWORTHS AUSTRALIA
Introduction
Woolworths is one of the largest retail stores in Australia. The Woolworths Supermarket
is renowned for its fresh food, especially groceries and it is seen to cater to a vast clientele across
the length and breadth of the country. Woolworths is particularly well-known for the superior
quality of its meat, fish and dairy products and attracts customers of every budget and social
background (Bailey, 2017). The company has been in existence for quite some time now and is
seen to hold onto a substantive and loyal customer base (Bailey, 2017). This assignment prepares
a marketing report that assesses the position which Woolworths Supermarket holds in Australia,
with reference to its competitors, customer segmentation and consumer behavior. For this
purpose, a detailed situational analysis is carried out for the Woolworths Supermarket, followed
by an analysis of the marketing strategies of the company. The report concludes with a number
of effective recommendations that the company can take into consideration, in order to be able to
grow and expand in the near and in the distant future.
1. Woolworths Supermarket – An Overview
Woolworths Australia is a large scale retail chain that operates in several cities and towns in
the country of Australia and which relies on an extensive and faithful client base for the
marketing of its goods and services (Burns et al., 2016). The fresh foods and groceries on offer at
Woolworths Supermarket are simply delectable and provide guaranteed satisfaction for those
who consume them or avail them on a regular basis. One of the biggest advantages of shopping
at a store like Woolworths Australia is the fact that it offers its goods at prices which are highly
competitive, thus enabling customers from diverse economic and social backgrounds to purchase

3MARKETING REPORT FOR WOOLWORTHS AUSTRALIA
goods and commodities at reasonable prices. In addition to being able to avail goods at
affordable prices, there are regular deals and discounts on offer for the fresh foods sold at
Woolworths supermarket that further add to the appeal of the foods or food products that are
associated with this particular supermarket chain. Woolworths Australia is not a company that is
known to compromise with the quality of its products and manages to ensure the satisfaction of
customers, new and old, continuously by providing them with the best quality fresh foods and
groceries to choose from on a daily basis (Cadotte, 2016). There is great variety associated with
the groceries and fresh foods on offer at Woolworths Australia. The company is seen to have an
active online presence as well and has acquired much name and fame in the recent past because
of the environment friendly approaches that it has undertaken towards the marketing of its goods,
more of which will be discussed in the subsequent sections below. Woolworths Australia takes
corporate social responsibility very seriously, and has been passionately involved in the
upliftment of Australian society through the removal of social ills, something that has further
added to the excellent reputation that this business is seen to enjoy in the country of Australia
(Chen & Wu. 2016).
2. Situational Analysis of Woolworths Australia
2.1. External Environment Analysis
The analysis of the external environment in which Woolworths Australia is seen to
operate, including the competitor analysis for the company, is going to be undertaken using the
tool of Porter’s 5 Forces.
Competitive Rivalry – The threat of competitive rivalry is something that is quite high for a
company like Woolworths Australia. This is because other retail stores like Tesco Australia and

4MARKETING REPORT FOR WOOLWORTHS AUSTRALIA
Coles Supermarket are also in operation in the country and which offer products that are not too
different from the groceries, fresh foods and other retail products that are made available by
Woolworths Australia. These are companies which are also seen to offer goods and services at
competitive rates, thus enhancing the rivalry with a business organization like Woolworths
Australia and compelling it to always be on the lookout for the best strategies with which to lure
its customers (Cramer, 2019).
Bargaining Power of Suppliers – The bargaining power of suppliers is something that is seen to
be quite low for a company like Woolworths Australia. The existence of large scale and small
scale supermarkets in every Australian city and town implies that there is a vast network of
suppliers and distributors that supermarket owners can rely on for the effective provision of
supplies with which to run their businesses. Suppliers can therefore never be in a position to
dictate terms and conditions to any of the supermarket administrators including those who
administrate a company such as Woolworths Australia (Grunelius, 2018).
Bargaining Power of Customers – The bargaining power of customers tends to be high for a
business such as Woolworths Australia. This is because there are many supermarkets and retail
outlets that customers can choose from when it comes to the purchase of fresh foods, groceries
and products that are needed on the domestic front (Cadotte, 2016).
Threat of Substitution – The threat of substitution is high for Woolworths Australia because the
products of this company are not unique or too exclusive from the products that are sold in the
market by other retail chains in Australia. There is also a huge demand for fresh food and
groceries in each and every Australian city and town, which implies that new enterprises can
soon emerge that could substitute the products offered by Woolworths Australia by something

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that is at least similar, if not better, posing huge competition in the process for this retail
company (Cadotte, 2016).
Threat of New Entry – The threat of new entry is also significantly high for a company like
Woolworths Australia. This threat again, is one that exists because of the wide scale demand or
need for retail products all over Australia which are the same as or similar to the products that
are available at Woolworths Supermarket. There is every possibility that a new supermarket or
retail company will emerge in Australia in the near or distant future, that will offer retail
products at competitive prices and consequently absorb the present customer base of Woolworths
Australia (Chen & Wu, 2016).
2.2. Internal Environment Analysis
The internal environment of Woolworths Australia shall be evaluated using the
framework of SWOT and TOWS Matrix.
Strengths – One of the biggest strengths associated with a company like Woolworths Australia
is the fact that it does not compromise with the quality of its products. Woolworths Australia is
renowned for the top notch quality of its grocery products like butter, eggs, milk, fish and meat
and even fresh vegetables and it is famous for providing top quality retail products like
household furnishings and any other product that is needed for use in a domestic or professional
setup, and which is of superior quality. The goods that are sold by Woolworths Australia are also
competitively priced which implies that customers of middle income budget can purchase
Woolworths products without feeling a pinch in the pocket (Bailey, 2017).
Weaknesses – Variety is something that Woolworths Australia is definitely known for but it
needs to undertake a greater diversification with respect to its goods and services so that it is able

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to keep up with the competition that it is faced with in the market. At present the variety of goods
offered by Woolworths Australia is not as appealing from the customer point of view as it ought
to be. Woolworths Australia needs to focus not only on quality and competitive pricing but also
on exclusivity of products so that it is able to stand out in the market sufficiently well enough
(Bailey, 2017).
Opportunity – The wide scale demand for retail products like groceries, fresh food and
household goods in Australian cities and towns implies that there is plenty of opportunity for a
business like Woolworths Australia to grow and expand. This is a business that can truly grow to
great heights because of the huge demand for the type of products or goods that it is seen to deal
in, and that too among customers of most ages and every budget (Burns, 2016).
Threats – There are significant threats that Woolworths Australia is faced with. The huge
demand for retail products in Australia implies that there are many supermarkets and grocery
stores in Australia that can offer products which are of a similar quality and price as those which
are offered by Woolworths Australia and who can at any point of time grab the market share that
Woolworths presently enjoys. Woolworths will always have to keep its products quite uniquely
positioned to avert such threats from affecting its business (Burns, 2016).
TOWS Matrix Analysis
Strengths/Opportunities – There are many opportunities that a company such as Woolworths
Australia can cash in on by virtue of its business strengths. Woolworths Australia offers
excellent quality products and services which it can use to attract customers in large numbers all
around the year. It can take advantage of the quality of its products to convince customers to buy
Woolworths Australia products all around the year instead of visiting any other supermarket or

7MARKETING REPORT FOR WOOLWORTHS AUSTRALIA
retail outlet in Australia for the same. The fact that it offers fresh foods of a superior quality is
something that the business should especially utilize to draw customers towards its products all
around the year (Haskins et al., 2019).
Strengths/Threats – The threats associated with the superior quality of goods or products which
are offered by a company like Woolworths Australia lies in the fact that other companies may
substitute this quality or offer products and services at a quality which is even superior to the
quality that is presently being offered by Woolworths Australia. The company needs to keep
vigil of this threat and ensure its quality is so exclusive so as not to be capable of quick
substitution or imitation by another or related business organization (Haskins et al., 2019).
Weakness/Opportunities – The opportunities that are associated with the fact that the company
does not offer too many diverse or wide range of products lies in the fact that the business can
draw or attract customers simply on the basis of its quality, letting customers know that the
quality of goods sold at Woolworths cannot be found elsewhere, and that it is the Woolworths
products which are worth purchasing n quality of their superior quality. Quality is something that
is especially relevant and important for the goods that are sold by Woolworths, given the fact
that it deals mostly in fresh foods, groceries and other types of retail products (Hepworth &
Newman, 2019).
Weakness/Threats – The lack of diversity and variety with respect to the products that are sold
by Woolworths Australia can result in customers feeling quite bored or jaded with what this
supermarket has to offer. Customers can instead turn to other supermarkets like Tesco and AVS
for better variety, or even Coles supermarket for that matter. Hence the business needs to be sure

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to look into the matter of variety and diversity at all times, so that the threat of competition as
posed by rivals, is something that can be avoided in the long term (Mansour & Barandas, 2017).
3. Market Segmentation
Geographic Segmentation – Woolworths Australia is a company that caters to customers who
are located in Australian cities and towns. The company has a presence in prominent cities like
Melbourne, Sydney, Canberra and Brisbane and there are places in the Northern and Western
territories where the Woolworths stores are seen to be present as well (MaCarthy, 2016).
Demographic Segmentation – The type of customers that Woolworths Australia identifies as its
target audience are people who are in the age group of 12 years to 70 years, given that this is a
retail outlet and it specializes in products and foods that can be availed and consumed by people
of all ages, be it baby food, breakfast cereal, meat and fish or fresh vegetables (Burns, 2016).
Psychographic Segmentation – People who are health conscious and who are particular about
the quality of what they use or consume are people who make up the target audience of a
company like Woolworths Australia (Kleinaltenkamp et al., 2016).
Behavioral Segmentation – Individuals who are inclined towards healthy living and who
believe in taking good care of their health all around the year are the type of people who are
likely to buy Woolworths products in large numbers, because of their superior quality
(Kleinaltenkamp et al., 2016).

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4. Marketing Strategies of Woolworths Australia
The marketing strategies of a company like Woolworths Australia are going to be assessed
using the framework of a marketing mix.
Product – The products which Woolworths Australia is famous for are fresh foods, fresh and
pure quality groceries and retail products, that includes products which are used for domestic
consumption and for outside or office use. The fresh food like meat and fish, eggs, and other
dairy products as well as the grocery products of the company are particularly well-known and
are the primary reason why the business has been as successful as it is until date (Merigo et al.,
2016).
Place – The place where Woolworths Australia appears to be operational is in the Australian
cities and towns like Sydney, Melbourne, Brisbane, Canberra and Hobart. Apart from operating
through physical retail stores or outlets, the company is also seen to have quite an elaborate
online presence and allows its customers to go ahead and make online purchases through the use
of apps. This in turn has added to the convenience of customers, who can now order for the
Woolworths products from the comfort of the home or office instead of having to be physically
present at one of its stores (Merigo et al., 2016).
Price – Woolworths is a company that makes it a point to keep its products very competitively
priced. Customers can go ahead and avail the products that are sold at Woolworths be it grocery
or fresh food or any other type of retail product for a price that is fairly reasonable. There is no
need for a customer to break the bank to buy something that is sold at Woolworths Australia.
There are frequent deals and discounts on offer here as well, that enable customers to save quite
a bit of their money when shopping at this retail store, online or elsewhere (Olson et al., 2018).

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Promotion – The social media presence of a company such as Woolworths Australia is
something that is quite strong. The company is active on major social media channels for the
purpose of marketing and distribution, such as Facebook, Twitter, Instagram and Youtube.
Woolworths Australia takes advantage of social media platforms to post regular images and
videos concern the use or the consumption of its latest products, and it also solicits customer
feedback for its retail products via such channels. As social media facilitates the immediate
dissemination of information at cost effective rates, Woolworths Australia is able to reach out to
a very wide section of its target audience using social media (Olson et al., 2018).
People – Woolworths Australia is a store that counts on a reliable network of professionals both
in the store as well as outside of it to run its operations with success. A loyal employee base is
something that the company is serviced by, that is, people who work dedicatedly at the physical
stores or outlets of the company for a fixed number of hours in the day while another team of
professionals are seen to handle the online marketing and operations of the Woolworths
Australia chain quite effectively (Hepworth & Newman, 2019).
Physical Space – As mentioned above, Woolworths Australia is seen to operate not only through
its physical stores that are located in prominent Australian cities and towns but also online.
Customers can buy Woolworths products via online platforms at any given point of time, and can
enjoy excellent discounts and rebates upon doing so. The physical stores of the company are
always well stocked with supplies and the store authorities are always well behaved with the
customers, making it a point to help customers locate the products that they need rather than
what they can do without, and making customers more favorably disposed towards them, in turn
(Sheikh et al., 2017).

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Process – The process that is followed by a company such as Woolworths Australia in order to
sell its goods and services is fairly uncomplicated. The products, whether be it groceries or fresh
food or other retail products are placed on the counters and shelves and customers can pick and
choose what they like, add it to their carts and pay their bills at the time of check out. The same
process applies for the online shopping facility offered by the company as well, with transactions
being carried out solely via internet banking or credit and debit cards for those who choose to
shop online (Sheikh et al., 2017).
Positioning – In order to ensure that its products remain attractive to a wide customer base at all
times of the year, Woolworths Australia is a company that chooses to position its products quite
uniquely. Each and every one of the products that are offered at this store are beautifully sealed
and packaged and a concern for the environment is demonstrated by the store by the fact that it
does not encourage the use of plastic. Recycled paper bags are also made use of by Woolworths
Australia as a measure of showing conservation or concern for the environment (Xu & Lee,
2019).
5. Corporate Social Responsibility of Woolworths Australia
It has been mentioned earlier in this report, that Woolworths Australia is a company that
takes the task of corporate social responsibility very seriously. The company makes it a point to
recruit indigenous Australians or aboriginal people into its ranks, ensuring in the process that
indigenous people of Australia are well represented in its workforce. Gender equity is also
something that the company is seen to strive for, by ensuring that men, women and even
members of the transgender community are recruited into the company in large numbers. Salary
gap is also something that is well avoided by Woolworths Australia, with men and women