Analyzing Woolworths' Marketing Management: Objectives and Strategies

This report delves into Woolworths' marketing management strategies, focusing on the alignment of corporate objectives with implemented marketing concepts. The analysis highlights Woolworths' vision of delivering exceptional shopping experiences and its mission to lead customers through product understanding. The primary objective of building low-price, high-quality offerings is examined alongside the application of selling and production concepts, exemplified by the W-reward loyalty program. The report identifies cost leadership as a core marketing strategy, evaluating its strengths, such as increased profit margins and market share, as well as potential weaknesses, including compromised customer service and delayed product development. Ultimately, the strategy aims to lower overall costs and increase revenue, aligning with the firm's objective of providing low-priced products.

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Marketing Management
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Corporate objective is an interpreted and achievable goal that is set by an organization,
which affects the internal strategic decisions of the organization. The vision of Woolworth is
delivering the best and right experience in shopping every time. The mission statement is that as
committed retailers, they understand and lead their clients through greatness and a deep
understanding of their products and services (Arli, Dylke, Burgess, Campus, & Soldo, 2013).
The primary objective of the firm is to build a low-price, high-quality products and services, and
an in stores experience which meets the requirements of their clients. The company has been
ranked as the most prominent online retailer of groceries in both New Zealand and Australia.
Thus it has its objectives to achieve AUD$1 million in the sales through the online platform by
the end of the fiscal year 2014 and by 2020.
A marketing orientation concept entails a firm reacting to the wants of their customers.
Woolworth applies the selling concept where they focus on selling and promotion of their
product and the production concept where they ensure that their products are of higher quality.
For example, their food products and the services are well prepared, and their quality and level of
packaging is perfect. The top sales of Woolworths are as a result of the high quality of the
products and services that they offer. As a selling concept, they have launched a loyalty program
known as W-reward aimed at building a healthy customer relationship and as a way of
promoting their products. The card earns points depending on the purchases made by a customer,
after which they can be redeemed and be used to purchase products from any store of
Woolworth.
The primary marketing strategy of Woolworth is cost leadership which is an integrated
set of activities that aims at delivering products and services at a reduced price relative to the
prices of the competitors, with characteristics that are desirable to the customer. Among the

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strengths of the strategy adopted by Woolworth is that it leads to high-profit margins. By selling
their products and services at lower prices compared to the prices of their competitors, the
margin of revenue raises (Keith, 2012). Second, cost leadership increases the market share by
leading to higher profits that are used to increase the demand for the customers and market share.
Lastly, it has a strength of leading to capital growth as more capital resources can be availed to
fund growth. However, the strategy has some weaknesses. First, by attempting to lower the
prices, the organization might lower prices in significant areas, for example, the customer
service, thus, drive away some clients who seek better services. Lastly, cutting costs may lead to
delay in developing new products as development requires costs which take time to be raised.
The main aim of the strategy is to lower overall costs by reducing wastages and storage but as
well increasing revenue. Thus, the firm will have achieved its objective which is to build low-
priced products.

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References
Keith, S. (2012). Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal of
Regional Food Studies, 2, 47-81.
Arli, V., Dylke, S., Burgess, R., Campus, R., & Soldo, E. (2013). Woolworths Australia and
Walmart US: Best practices in supply chain collaboration. Journal of Economics,
Business & Accountancy Ventura, 16(1).