Marketing Review and Opportunity Identification for Woolworths Group

This report provides a comprehensive marketing review of the Woolworths Group, a major player in the Australian retail industry. It begins with an overview of the company's objectives, market positioning, and services, including its supermarket, liquor, and hotel divisions. The report then delves into Woolworths' business operations, strategic focus areas, and understanding of the retail industry, particularly its commitment to sustainability. A detailed analysis of Woolworths' customer base and external influencers, including competitors like Coles and Lidl, is presented. The report also examines Woolworths' unique business strategies, including specialization and technological advancements, and conducts a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Furthermore, it includes a marketing mix analysis, a review of the company's business and financial status, and concludes with the current financial trends within the retail industry. The report utilizes various sources to support its findings and provides a complete view of Woolworths' market position and strategic considerations.

Running head: MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
Woolworths Group
Objectivity of the Organization
Woolworths Group comprises of some of the most recognisable and loyal brands in
retailing, further serving a broad range of customers. The company has recently refurbished its
market positioning by introducing recent multi-million dollar campaign programme. Recent
surveys of 2017 reveal that Woolworths has managed to sustain its top position in the league. Its
reputation has further strengthened from 71% to around 75% with increased revenue and
commercial activities (Arli et al., 2013). Woolworths has been considering its global expansion
into Asia, as the organization has been only resourcing its services from the continent since five
years. Woolworths is recognized for selling its products that are sourced from expert and
specialized Trade Associates with specific competence in each area (Yang, Gemming &
Rangan, 2018). The ultimate business goals of the company is to establish a consumer and store-
led culture as well as team and further evolve as a lean retailer through end-to-end process along
with system excellence. The three primary services provided by the company are Woolworths
Supermarket, liquor retailing known as BWS and Dan Murphy’s along with hotels under the
Australian Leisure and Hospitality Group (ALH Group) undertaking.
Step 2
Woolworths’ Business Operations
Woolworths’ determination and commitment towards diligence and integration is
noteworthy whereby every facet of the business subsists with the aim of bringing ease and
improvement to their customer base. The company’s strategic focus areas are regarded as an

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
outcome of a robust materiality as well as stakeholder commitment procedures whereby each has
ambitious objectives of supplying to the overall strategic plan. Its primary aim lies on providing
their customers with an associated retail experience (Ferguson, Pinnuck & Skinner, 2013). This
approach of the company entails them to connecting their customers from physical store to
provide them with a digital experience and further assisting their employee to further deliver a
reliable and brand-focused customer experience. One of the key approaches of Woolworths
approach is to leverage scale across the region of southern hemisphere (Wang, 2015). In the
course of closer assimilation across the business operations, the company will motivate
competence and further supplement significantly to its revenue generation.
Step 3
Understanding of the Retail Industry
It is resolute that the recent association regarding the sustainability between Woolworths
and their contractors or suppliers is at the fundamental and broad level with a strong
environmental objective. The company has immense dedication towards responsible retailing as
well as sustainable growth in Australia and other foreign regions (Knox, 2015). Following to
implementation of essential sustainable practices in the company, Woolworths has changed its
focus towards its contractors through immense acknowledgement in order to increase the level of
sustainability.
Several reports have revealed that Woolworths’ sales revenue has increased by over
A$450 million last year whereas the earnings declined by almost A$100 million in biannual till
last year (Borghei-Ghomi & Leung, 2013). The recent revenue figures has exposed that the
company has been making retail spatial expansion at a rapid pace thereby, increasing the number

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
of smaller metropolitan outlets along with new stores within the primary locations of Australia.
The category development is regarded as one of the stated medium of the company for its future
development. Woolworths’ development into the hardware as well as advanced accommodation
sector is a logical extension of the existing retail competencies, technology and abilities of the
organization (Hattersley, 2013). The company is keen to expand the advanced accommodation
category in general whereby enhancing its vital innovation, aid and opportunity in both
distribution and retail sector.
STEP 4A.
Cliental Base of Woolworths Group
Certain recent data has revealed that Woolworths has over 30% of the total grocery
market that includes fresh food and a further growth of around 10% points over while the Coles
Group has attained around 28% share which is regarded as an increase of 0.1% point as last
year’s result (Ferguson, Pinnuck & Skinner, 2013). It should be noted that a major section of
supermarkets have witnessed a decreased market share comprising of fresh food market in
comparison to their grocery market share in general. The most efficient performers in this retail
sector are Woolworths (26.7%) followed by Coles with around 24% market share (Woolworths
group, 2018).
The company recently added over 250 products to its list of 3500 permanently low-priced
products further assisting to rise up to 5 % in equivalent-store food retailing (Wang, 2015). Thus
rate of Woolworths’ market share and customer base has increased within the retail industry.
STEP 4B.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
The company comprises of three core business of food, petrol and financial services.
Woolworths has been governed by three fundamental ideas of collaboration, equality and
domestic resources (Yang, Gemming & Rangan, 2018). It has been noted that the organization
has outlined its three year plan in order to achieve greater consumer base by discounted price
rates and enhancing all facets of customer shopping experience.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
STEP 5
Woolworths’ External Influencers
External
influencers
Who are
they?
What is their role,
relationship and/or
influence with your
firm?
What interactions
and services do they
provide to us or we
provide to them?
What
are
their
expecta
tions of
our
firm’s
activitie
s and
perfor
mance?
What can our firm do to
meet their expectations and
needs?
1 Coles Operates over 800
supermarkets, retail and
consumer service chain
in Australia (Luiten et
al., 2016)
Offering products at
low cost prices that
facilitated Woolworths
to refocus on the
Australian Food sector.
N/A Planning to place groceries
in consumer responsibilities
with a ‘new click and collect
approach’ that benefits of a
developing strategy for
Australian buyers to
purchase through digital
form (Woolworths group,
2018).
2 Lidl Has its operation in over
25 nations and recently
has its expansion to the
US.
Offers a wide range of
improved quality food
groceries at reasonable
price ranges (Yang,
Gemming & Rangan,
2018)
N/A Enhancing the core offer to
guarantee brand loyalty.
Furthermore, creating
customer value through
systematizing success and
employing ‘Lean Retail’
model.
3 Costco It operates a global
chain of membership
warehouses and further
carry improved brand
name products at
considerably reasonable
prices.
Recognized as the
leading retail brand for
organic foods and
offers enhanced quality
products.
With less than 10 stores in
Australia, Colsco has
gathered a revenue of over
$1 billion further accounting
for a 1.3% market share
(Wang, 2015). Woolworths
is planning to expand its
reach by further increasing
the number of fuel stations
into mini-super markets.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
STEP 6
Woolworths’ Unique Business Strategies
Specialization
 Woolworths specialized in the process of production, export and local sales along with
import and domestic procurement of varied types of food products.
 The company functions as a responsible citizen by not only nurturing its citizens but also
following steps which are beneficial for the environment.
 Woolworths’ effective leadership skills reflect the fundamental values and principles
while engaging with the employees.
 Woolworths has set a significant differentiation by serving enhanced quality products,
ease and rapid services to its consumers along with its increasing presence at fuel stations
has resulted in enormous brand presence of the company within the retail manufacturing
industry.
(Woolworths group, 2018)

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
Technological Strategy
 Its recent digital strategy has received immense recognition because of their both e-
commerce as well as in-store customer experience.
 Several reports demonstrate that Woolworths social media presence has led the company
achieve a gain of over A$60 billion in revenue in 2017 which is regarded to be a 50%
increase as compared from last year.
Expertise or Skills
 Woolworths has a well-established and effective customer service skills further providing
communication medium through unique levels of platforms in order to facilitate
employee engagement (Knox, 2015).
Services-
 Mostly specializes in offering groceries along with health and beauty goods and financial
services (Yang, Gemming & Rangan, 2018).
 Woolworths’ has been delivering double digit revenue generation growth in the present
financial year with the elevating earnings margin. Furthermore, the company has
emphasized its digital services as an enduring growth strategy in order to improve its
channel profitability.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
Step 7
SWOT Analysis of Woolworths Group
Strengths
• Woolworths’ consists of a well-established brand portfolio with reliable supply raw
materials further facilitating the company to conquer any supply chain complexities
(Hattersley, 2013).
• It has further established competence in penetrating new markets and considerably
successful at implementation of new strategies by further generating revenues on capital
cost by creating new revenue streams.
• The company’s innovative market leadership positioning has been productively
developing its competence in utilizing its market potential through its well-organized
resource base in the form of technological resources, human resources as well as enhance
existence across the industry (Methner, Hamann & Nilsson, 2015).
Weaknesses
• Being incompetent in handling competitive challenges posed by new entrants, the
company has lost a relevant market share in the niche categories. Further establishing
internal evaluation mechanism (Borghei-Ghomi & Leung, 2013).
• Despite of being one of the leading retail organizations, Woolworths faced risks and
challenges in expanding to other service segments with its existing value and culture.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
• It is significant to note that the Australian government recently has posed limitations to
Woolworths’s raised product price rate in collaboration with one of its strongest
competitor, Coles that can be regarded as a major limitation for the company’s
development (Byrne, 2014).
Opportunities-
• Woolworths has been establishing new markets due to governmental agreement.
Furthermore, implementation of advanced technology level and free governmental trade
agreement has offered several opportunity levels to penetrate new developing market
(Knox, 2015).
• However it must be noted that the Australian retail industry has been demonstrating
significant developmental potential with several factors like advancement technology,
growth in supply chain management along with shift in consumer lifestyle preferences
have provided significant opportunities and potentialities for the company to enhance its
profitability (Theaustralian.com.au,2018).
Threats
• Increasing cost of raw material can be considered as threat to the profitability level of the
company.
• Shifting consumer buying behavior from digital domain can pose threats to the current on
store infrastructure driven distribution in retail market.

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
• One of the major threats to Woolworths can be from its greatest competitor that is the
Coles Supermarket, which has been considerably dominating the retail industry as well
(Merrett & Smith, 2013).
• Furthermore, governmental intervention can be regarded as another significant factor that
would influence the development of Woolworths especially within the Australian retail
industry (Knox, 2015).
Step 8
Marketing Mix Analysis of Woolworths Group
Product Price Area (Place) Promotion
Offers wide range of
grocery goods along
with expanded range
that has facilitated to
cater overall
consumers’
requirements by
providing one stop
shop (Dos Santos,
2013).
Offers both low and
premium price.
Sydney outlets offer
$20 coupons for every
2000 points collected
(Wang, 2015).
Operating over 1000
stores in Australia.
Furthermore,
launched mobile app
for its purchases.
Located in Austria,
Mexico and UK
(Yang, Gemming &
Rangan, 2018).
Utilizes digital media,
magazines and
newsletters for
effective promotion
(Borghei-Ghomi &
Leung, 2013).

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MARKETING REVIEW AND OPPORTUNITY IDENTIFICATION
Step 9
Woolworths’ Business Analysis
Woolworths has made been reported of acquiring a yearly profit of $1.53 billion, further
increasing its comparable food purchase by over 3% after nearly $1 billion of investment in
decreasing grocery prices. A recent two year average tax rate of 35% has raised its capital for
increased revenues (Ferguson, Pinnuck & Skinner, 2013).