Marketing Plan Analysis: Woolworths Organic Food Delivery App Report

This report provides a comprehensive marketing management analysis of Woolworths, focusing on the launch of its organic food delivery app. It begins with an introduction to Woolworths and its market position, followed by an examination of the product's brand positioning within the competitive Australian retail landscape. The report delves into the consumer adoption process, outlining promotional strategies and the impact of social media and personal selling. It then analyzes pricing strategy decisions, considering competitive pricing, product quality, and the influence of wholesalers and delivery costs. The analysis highlights the importance of competitive pricing and the role of the online platform. The report concludes by emphasizing the potential of the organic food delivery app to strengthen Woolworths' market position and fulfill customer needs, supporting future growth and profitability. The assignment references several academic sources to support its claims and analysis.

Running head: MARKETING MANAGEMENT ANALYSIS
MARKETING MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Product or service’s brand positioning...........................................................................2
Consumer-adoption process for the new product...........................................................3
Pricing strategy decisions for the product or service.....................................................4
Conclusion......................................................................................................................5
References......................................................................................................................7

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Introduction
Woolworths is an Australian grocery or supermarket based store that is mainly owned
by Woolworths Group and was established in the year 1924. Woolworths has been able to
gain around 80% of the total shares in retail industry of Australia. The firm specialises in
selling of groceries and many other products like DVDs, magazines, beauty and health based
products, pet supplies, baby supplies and household products as well (Woolworths.com.au
2019). The analysis in the report will be based on positioning of new product that has been
suggested for Woolworths. The “organic food delivery” app is the new product that will be
launched by Woolworths in the industry in order to develop its competitive position in the
retail industry.
Product or service’s brand positioning
The organic food based industry in Australia is worth 919 million Dollars and the
sector has depicted massive levels of growth in the last few years as well. The increase in
levels of demands for organic products is considered to be a key aspect that has an impact on
organizations that are a part of the industry. The retail sector has also been playing a major
role in the methods by which organic products can reach the customers. Australian retail
industry is highly competitive in nature and the organizations need to develop unique services
and products in order to differentiate themselves from others (Al Badi 2015). The positioning
of a brand is able to play a main part in proper formation of a customer base and maintaining
their loyalty levels as well. Woolworths uses the price-based positioning strategy in order to
face the price wars that are based on competition offered by its rival Coles. The price based
competition is able to play a key part in the ways by which Woolworths aims at maintaining
its operations and position in the market as well (Chen 2018).

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However, the organic food delivery app will be able to play a key part in development
of proper differentiation of Woolworths in Australian retail industry. The delivery of organic
products to the customers is considered to be an important factor that has an impact on the
profits that are gained by Woolworths in comparison to its major competitor
(Woolworths.com.au 2019). The international players in Australia also have the ability to
provide major competition to Woolworths based on development of delivery services of
organic food. Asda and Aldi are the two major international players who have the ability to
provide competition to Woolworths based on the amounts of revenues that are earned
(Choudhury 2019). Woolworths can however prove to be a major challenger who has the
ability to provide challenges to the international and domestic retail organizations. The
challenging position that will be developed by Woolworths in retail industry will be mainly
related to the new group of customers that will be gained by the firm in the highly
competitive retail industry of Australia. The international players in the industry will also be
challenged in a huge manner by the organic products that will be provided by Woolworths
with the help of its delivery process (Dolnicar, Grün and Leisch 2018).
Consumer-adoption process for the new product
Woolworths needs to develop several promotional activities in order to increase
awareness based in their service among the consumers. The promotional tools that can be
used by Woolworths in order to increase consumer adoption include online media, offers and
discounts, traditional media and many more (Woolworths.com.au 2019). The ease availability
and accessibility of the services is considered to be an important factor that has an impact on
the process of consumer adoption. Multiple channels of media are used by Woolworths in
order to promote the products to consumers and also to increase levels of availability as well
(Fan, Lau and Zhao 2015). Social media or online advertising are considered to be major
factors that have an impact on the customers of Woolworths. The major social media

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channels that are used by Woolworths in order to promote the products include YouTube,
Twitter and Facebook. The likes that are received by the organization with the help of its
social platforms are considered to be an important part of the promotions of services and
products offered by Woolworths to the customers (Grădinaru, Toma and Marinescu 2016).
Personal selling activities that are performed by Woolworths have an influence on the
process that is implemented for consumer adoption of various products and services.
Promotions and advertising have always played a significant role in proper development of
operations of Woolworths in the competitive retail industry of Australia. Sales promotions
have been able to support the growth of Woolworths in the market and has also been able to
improve the position that the organization has in retail industry (Jackson and Ahuja 2016).
The percentage of sales method is used by Woolworths in order to determine the promotional
budgets that have been set for a particular year. Social media based advertising is however
able to provide the highest levels of support to Woolworths in order to uphold its growth and
revenue levels as well (Kartajaya, Kotler and Hooi 2019). The consumers are influenced by
the communication that is developed by Woolworths with the support of its social media
pages. The reviews that are provided on the website have an impact on the sales of
Woolworths and adoption by the consumers as well. The success of organic food delivery
app will also be based on the communication process of Woolworths (Nuseir and Madanat
2015).
Pricing strategy decisions for the product or service
The competitive pricing strategy is used by Woolworths in order to offer its product to
the customers. The ease of availability of data based on customers is considered to be a major
factor that is able to influence the prices that are set for different products of Woolworths.
Some of the products of Woolworths are however sold at prices that are higher than its

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competitors in the industry (Woolworths.com.au 2019). The services that will be offered by
the organization with the help of its food delivery app will also be based on quality of
products that are being offered to consumers. The quality of organic products is considered to
be a major factor that has an influence on the operations of Woolworths and revenues that
have been gained by the organization as well (Thabit and Raewf 2018). The prices that are
charged for various organic products can have an impact on the quality as well. The prices
will be mainly based on the demands for organic products that will be offered by Woolworths
to its customers. The wholesalers and channel members will also be able to play a key part in
the proper development of prices for the organic products that will be offered by the firm
(Wu and Li 2018).
The costs based on providing the delivery will also be able to play a main part in
setting the prices for various products of Woolworths. The discounts that will be allowed to
the customers based on different organic products are considered to be an important aspect
related to the sales of the firm. The new products that are being introduced by Woolworths
are priced with respect to the demands and competition that is faced in the market as well.
Woolworths will have to consider the delivery partners and their costs in order to understand
the levels of prices (Kartajaya, Kotler and Hooi 2019). Price levels of organic products are
mainly based on the usage of extensive channels for the purpose of reaching the customers.
Online website of Woolworths will also play a key part in proper development of the
operations of the firm. The customers of the firm will be satisfied with the variety of products
that are provided to them through the website. Competitive pricing will be able to play a main
part in proper growth of the profitability levels that are gained by Woolworths with the help
of its new services (Dolnicar, Grün and Leisch 2018).

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Conclusion
The report can be settled by stating that Woolworths will be able to sustain its
operations in the Australian retail industry with the proper introduction of a new service
through the organic food delivery app. The services that are provided by Woolworths through
the app will help the organization to gain a new customer base in the retail industry. The
extended customer base will be able to play a major role in increasing the revenue levels of
Woolworths. The increase in revenues will support in maintaining the future operations of
Woolworths and its profitability as well. The demands and needs of the customers will also
be fulfilled in an effective manner with the support that is provided by the new and improved
products that will be provided by Woolworths.

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References
Al Badi, K.S., 2015. The dimensions of marketing mix. Journal of Management and
Organizational Studies, 2(1), pp.136-142.
Chen, H.J., 2018. What drives consumers’ mobile shopping? 4Ps or shopping
preferences?. Asia Pacific Journal of Marketing and Logistics, 30(4), pp.797-815.
Choudhury, R.G., 2019. Influence of Marketing Mix Decisions on Emotional Branding and
Its Effect on Customer Appeal. In Brand Culture and Identity: Concepts, Methodologies,
Tools, and Applications (pp. 806-823). IGI Global.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Step 9: Customising the Marketing Mix.
In Market Segmentation Analysis (pp. 245-254). Springer, Singapore.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Grădinaru, C., Toma, S.G. and Marinescu, P., 2016. Marketing mix in services. Ovidius
University Annals, Series Economic Sciences, 16(1).
Jackson, G. and Ahuja, V., 2016. Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), pp.170-186.
Kartajaya, H., Kotler, P. and Hooi, D.H., 2019. Marketing Tactics For Value
Engagement. World Scientific Book Chapters, pp.149-174.
Nuseir, M.T. and Madanat, H., 2015. 4Ps: A strategy to secure customers' loyalty via
customer satisfaction. International Journal of Marketing Studies, 7(4), p.78.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).

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Woolworths.com.au 2019. Woolworths Supermarket - Buy Groceries Online. [online]
Woolworths.com.au. Available at: https://www.woolworths.com.au/ [Accessed 7 Sep. 2019].
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
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