Woolworths Marketing Report: Situation Analysis and Marketing Mix

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Added on 2024/07/24

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This marketing report provides an in-depth analysis of Woolworths Group (Australia), focusing on its marketing strategies within the retailing industry. It includes a situation analysis comprising competitor and consumer analysis, along with PESTLE and SWOT analyses to identify factors influencing the marketing environment. The report also details the organization's marketing mix, specifically the 4P strategy, and evaluates the effectiveness of the marketing plans. Key areas covered are target market identification, positioning strategies, and branding approaches, all aimed at understanding and improving Woolworths' competitive advantage in the market. The report concludes with a summary of the findings and their implications for Woolworths' marketing fundamentals.

Marketing
Fundamentals
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Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................4
Situation Analysis – Evolution of the Marketing Concept..........................................................5
Target Market, Positioning and Branding Analysis.....................................................................9
Marketing Mix...........................................................................................................................11
Conclusion..................................................................................................................................... 13
References......................................................................................................................................14
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Introduction
This assignment includes the updated corporate marketing strategies for the Woolworths Group
(Australia) which serves as a retailing industry in Australia. The purpose of this marketing
report is to analyse the key components of the marketing research and the role played by the
marketing strategies while implementing them. The brief overview of this marketing report is
explained as it includes the situation analysis which comprises of the competitor and consumer
analysis for the organization. The PESTLE and SWOT analysis of the organization has been
provided which will help in identifying the factors influencing the change in the marketing
environment in the competitive market. Also, the later section of the report provides a marketing
mix report for the organization which includes the 4P strategy for the organization. Finally, the
effectiveness of the marketing plans is evaluated and explained in order to better understanding
of the marketing fundamentals.
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Company Background
The Woolworths Group (Australia) is a retailing company that operates its business throughout
Australia and New Zealand. It is the second largest retailing company in Australia and New
Zealand. The Woolworths Group has about 70 shopping centres across the country and is listed
as a separate entity on the ASX.
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Situation Analysis – Evolution of the Marketing Concept
The basic aim of the marketing analysis is to gain a competitive advantage and lead in the
market. The retailing is considered one of the largest sectors in the world economy. In today’s
economy, retailing marketing is not limited to the buying and selling of the goods and services.
For the Woolworth Group, being a leader in the retailing market, it becomes essential that the
company significantly impact the tactical development as well as the overall marketing strategy
for retaining its position in the market. The near bulk of the market includes the important
stakeholders and their preferences. There are numerous organizations present in the market for a
particular market structure, which increases the competition and the methods of operations for
doing the business and retaining its top position. For developing proper market segmentation, the
immense and important procedures need to be followed. The decision making of the marketers,
as well as the customers, gets impacted by the internal as well as the external factors of the
environment.
Factors affecting Marketing Environment
In Australia, the business proceedings can be ideally organized due to its stable economic
condition. The Woolworth’s Group market segmentation claims a significant impact on the
overall strategy of the organization. For analysing the macro environment of the organization,
apart from economic, there are many more factors that directly and/or indirectly impact the
decision making of the customers as well as the marketers. The macro environment analysis
helps in dealing with the operating challenges for Woolworth. The PESTEL analysis is done
below:-
Figure 1: PESTEL Analysis
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(Source: Professional Academy, 2016)
Political. The political factors that affect the Woolworths Group include risks which include
major factors like the taxation policies of the country and the major wage legislation factors as
well as the legal framework which include the policies related to the minimum wage and
overtime. These factors affect immensely to the Woolworths Group and can impact the long-
term profitability of the firm (Spillan & Ling, 2015).
Economical. The economic factors like the inflation, interest rates, economic growth, increase
or decrease in the exchange rates and so on, may impact the running of the Woolworths Group
largely especially in the context of B2C.
Social. The social factors which include the shared attitudes and the belief and they may impact
directly the functions of the organization. They impact the marketers in understanding the
customers need and desires.
Technological. The impact of technology on the business has changed the methods of the
working of the industry. It is important for the business to adopt the new technology in the
market in order to be successful and remain competitive in the market.
Environmental. These factors may include the elements like bad weathers and the frequent
climatic changes that have been taking place recently. These factors may bring in the scarcity of
raw materials and therefore they may impact directly the working of the industry.
Legal. The legal factors impact the working of the industry if they work globally as there they
have to face many legal and ethical issues which have to be followed for running the business
successfully.
The above PESTLE analysis may influence both the marketers as well as the customers’ decision
making for the Woolworth’s Group.
Competitor Analysis
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Competitor analysis – It is a rule of the market that the strategic decision making of one industry
will surely affect the decision making the power of others. It becomes very important for the
firm to scan the competitors and their strategies in the market. To analyse the competitors and
their new and innovative competitive strategies make the firm stronger and ready to handle the
different situations that may arise due to those strategies (Lovelock & Patterson, 2015). The
competitor analysis for the firm help in understanding the financial, marketing, products arrival
or renovation, and other elements of the competitors much before they come in the market and
with this, the firm can innovate new strategies and ideas to tackle with the problem that may
arise due to their strategic planning.
Consumer Analysis
Consumer analysis – For the Woolworth’s Group, the objective of doing the consumer analysis
is to better understand the benefits that the organization is getting from the consumers, and also
knowing who the important market consumers are for the organization. The purchasing practices
and the buying motivations can be worked upon with the analysis of the consumer for the
organization.
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Figure 2: Consumer Analysis.
Source: 123RF, 2018.
SWOT analysis
The SWOT analysis of the Woolworth’s Group will help in knowing the strengths, weaknesses,
opportunity and threats for the company (Kerzner, 2017). The SWOT analysis is the internal
strategic factor which enables the firm to thrive in the competitive market.
Table 1 – SWOT analysis
Strength
 Suppliers are Reliable.
 Strong brand name and image.
 The distribution network is enormous.
 Skilled and talented workforce.
Weaknesses
 Vast gap in the product range.
 Outside core business, there is limited
success.
 New entrant’s challenges are tough to
be handled.
Opportunities
 Impact of New taxation policies
opening ways for established players.
 Online channel providing new
customers.
 Low shipping rates help in decreasing
transportation cost.
Threats
 In the future, there can be a shortage of
skilled workforce due to increasing
competition.
 The rise in the requirement of raw
materials can pose threat to the
profitability.
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Limitations of SWOT analysis - It is a static assessment, with the change in the circumstances
the results of SWOT analysis may also change. Moreover, it does not show the ways to achieve
competitive advantage.
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Target Market, Positioning and Branding Analysis
The potential customers who most use the products and the services of the Woolworths Group
are considered as the potential target market for the firm (Rosenbaum-Elliott, et. al., 2015). The
entire retailing sector of Australia and New Zealand maintains the versatile market structure. For
the organization, it is important to analyse and plan according to the benefits particularly towards
the development process of a proper business plan because it helps in organizing a proper
research process for the organization.
For arranging a proper research process and for a remarkable job scan both the external
environment as well as the internal environment.
Targeting Strategy Adopted
Targeting strategies play important role in running the business successfully and smoothly. The
emergence of new competitors in the market makes it important that the targeting strategies of
the Woolworths be excellent so that they can face the competition well. The targeting strategies
are adopted to achieve the following:
 To become a lean retailer with the help of an end-to-end process.
 Evolving Drinks business and satisfying the needs of the customers.
 Providing best services to the customers with system excellence.
 To generate sustainable sales thrust in the Food department.
 To empower portfolio businesses to deliver to various shareholders.
The retailing business is a business that never stands still or remains the same for a long time.
With the emergence of new market and competition, the future of the retailing business is always
unpredictable (Farris, et. al., 2017). One cannot predict the future of the retailing business. The
management of the Woolworths is trying hard to following points:-
 It is trying to place the customers at the top.
 They are listening to the needs and wants of the customers.
 They are also trying to bring in new and different ways to shop.
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Positioning Strategies
An effective product strategy focuses on the products and the benefits to the customers from the
products. The positioning strategies include the product characteristic, product pricing, and the
applications that are based on the production process. These strategies are explained below.
Positioning strategies with product characteristics. In this positioning strategy, the company
has to keep in mind the characteristics of the products. The price and the quality of the product
are very important and should be kept in mind while doing positioning strategies on the basis of
the characteristics.
Positioning strategies with product pricing. The pricing is very vital while the positioning
strategies are made for the products. The products with high price and quality are deliberately to
expand the market; therefore, it should be at the places where the product market needs to be
expanded.
Positioning strategies with product process. It is very important to associate the products with
the user class. The product's image will be influenced by the buyer class. The areas should be
better researched and then the preference should be made to buy the products.
Positioning strategies with product class and symbols. Simply for this positioning strategy, the
Woolworths will have to try to make sure to identify something that is very meaning and which
is not used by other competitors in the market.
Brand Strategies:-The brand strategies are the plans, basically, long-term plans which are made
for the development and success of the brands in the market. The effective brand strategy is
directly related to the needs of the customers and some way or the other impacts consumer
emotions and the competitive environments. These brand strategies should be soundly defined
and they should be executed in such a manner that they immensely benefit the business. A good
brand strategy affects every aspect of the business. These brand strategies not only help in
increasing the consumer awareness of the brand but they also help in recognizing the business all
over the world. These brand strategies help people all around the world to buy after recognizing
the product and its brand (Kew & Stredwick, 2017).
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Marketing Mix
The marketing mix of the product includes 4Ps. These 4Ps act as the tool and the techniques for
marketing. This 4Ps help in getting the preferred response from its target market.
Product Strategy. Being a leading Australia retailer, it provides all types of grocery items. The
range of products starts from low to the highest. The products of the company are placed
according to their need in the market and their pricing is also considered while placing them.
The products are categorically placed according to the market.
Pricing Strategy. The pricing strategy of Woolworths is somehow different from other retailers
as it believes in keeping the prices a little more than the other competitors. This strategy can be
changed and applied and it should go for the low prices and sales during the seasons which will
increase the profitability as pricing directly affects the mind of the buyers (Elavazhagan, 2015).
Placement. The marketing strategy of Woolworths is very good as it has been placing the
products according to the requirement and the need of the local community of that particular
area. The distribution channel of the Woolworths is excellent and it is working hard as a team to
turn around their business. Many of the stores are being operated as the Safeway stores all over.
The Woolworths has a wide distribution network (Muchiri, 2016).
Promotion. The extensive promotional channel for the Woolworths is helping the firm to earn
the profit at a greater ration and reach the target segment. The promotion for the Woolworths
has been always important for the company and it concentrates on the magazines and online
promotions more than the other methods of promotions. The other methods used for promotion
are advertising, personal selling, direct marketing, sales promotion, digital, and many more.
Marketing matrix
To maintain the consistency between customer’s priority, competitive strategies and chain
strategies is important and it creates easy flow in the activities of the business. The profitability
is also maintained with making sure that the consistency is maintained in the management
activities. The most important part for a retailer industry is to develop a proper market segment
and strategies and create a brand image so that all the people get attracted and buy the products.
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