Woolworths Marketing Plan: A Comprehensive Analysis Report

This report provides a comprehensive analysis of Woolworths' marketing plan. It begins with a company background, detailing Woolworths' history, market share, and product offerings. A situation analysis, including a SWOT analysis, evaluates the company's strengths, weaknesses, opportunities, and threats. The report then outlines Woolworths' marketing objectives, segmentation, targeting, and positioning strategies. It delves into the company's marketing strategy, including key principles, changes, and enablers, alongside recommendations for improvement. The report concludes with an evaluation and control section, summarizing the findings and providing insights into Woolworths' performance in the Australian retail market. The assignment provides a detailed overview of Woolworths' marketing plan and its effectiveness.

Marketing and
Entrepreneurship

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Company Background............................................................................................................1
Situation Analysis...................................................................................................................3
Marketing Objectives.............................................................................................................6
Segmentation, Targeting and Positioning...............................................................................7
Marketing Strategy.................................................................................................................7
Evaluation and Control...........................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing and entrepreneurship both are the terms which state about innovation,
creativity and ways to grow. The whole sole difference between these two words is that an
entrepreneur uses marketing as a tool to influence customers and grow his own business. Today,
each and every company in the world is investing a lot of resources on marketing to gain higher
market share and competitive edge over others. With the rise in entrepreneurship and scarcity of
feasible opportunities, it has become very difficult for organisations to grow (Cronin and et. al.,
2011). This is where managers use marketing as it enables them in influencing the market forces
as well as customers. It allows them in attracting investment and in boosting their sales. So, it is
important for business to use marketing carefully.
This report is based on Woolworths LTD which is the largest supermarket chain in
Australia. It is currently operating in New Zealand. In this assignment, marketing plan of
selected organisation will be stated. It will be critically analysed to understand how it enables
organisation in achieving the set targets effectively.
TASK
Company Background
Woolworth was found in the year 1924 and today, it is the largest supermarket retailer in
Australia. Company started dealing in the food sector around 60 years ago with the advancement
in refrigeration technology. It is known to own almost 40% of total market share which amounts
to total of $82 billion (sector). Today, company has diversified itself and deals in different types
of products and services such as food, liquor (prime goods), fuel, insurance sector, etc. (AFN
Witers, 2015). It have a massive employee strength of 202,000 employees and is currently based
in Bella Vista, Australia. The revenue of company is approximately $59 billion which makes it
the world’s 19th biggest retailing chain. Innovation has always been part of organisation as it was
the very first supermarket store to introduce cash registers that would print out receipts to
customers (Dibb, 2010). Company’s Slogan is, “The Fresh Food for People”. While, it’s USP is
stated to be bringing world class products in every households.
The products of services offered by company is divided into different groups or brands.
This allows customers to explore various segments and find what they wants in comfortable
manner. The prime products offered by company are food and liquor, while it is also selling
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items like petrol, gold, investment, insurance. The brands which are there in company portfolio
are:
The product portfolio that is offered by company from its stores are given below in the
image below (Hanlon and et. al., 2014). They have divided different goods as per the sector, this
assist customers in shopping.
(Source: Woolworth, 2017)
All the products are categorised as per the brands. Woolworth is focused on providing
qualitative goods to customers (Roy Morgan research, 2017). Example of how organisation
offers different goods is stated below.
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Illustration 1: Our brands, Woolworth

(Source: Woolworth, 2017)
The company focusing on fulfilling the requirements of customers and that is why with
time it keeps on changing its product portfolio. Today, it sells food items, household’s products,
tobacco and alcoholic drinks, pet food from its stores (Helms and Nixon, 2010). They also have
stake in petrol, financial as well as transportation business ventures. But the core offerings from
business is the supermarkets.
Situation Analysis
This is conducted as to understand different factors that can have impact on company
productivity and profitability. Also, it allows managers in matching strengths with opportunities
while turning weakness into a competitive edge. It is important for Woolworth to evaluate
internal and external factors as to gain knowledge about market dynamics and its own
capabilities. SWOT analysis is used as a tool to identify different gap's that exist in company
ability and way they can be overcome.
Strengths
 One of the largest and oldest retailer in
country
Weaknesses
 It has a very low international presence.
Till now it has not ventured out of
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Illustration 2: Free from Gluten

 Massive number of supermarkets
branches in Australia and New
Zealand.
 Huge market share
 Diversified range of products and
services
 It is a great amalgamation of online and
offline sales channels.
 It is strongly committed to environment
and sustainability.
Oceania region.
 It is a late comer in online retailing
market.
 The company is very strong but it tends
to slip out opportunities.
Opportunities
 There is good forecast of growth in
retail in the year of 2018.
 Many opportunities in devolving
markets.
 Engaging with customers on social
media platform.
Threats
 The company is having huge discount
wars with Coles (another giant in
retailing industry)
 Company loss many customers in the
year of 2016
 ALDI is aggressively expanding in
marketing making it more difficult for
Woolworth.
 In Australia, the growth in online retail
is very slow.
Competitors: Cole, West-farmers, ALDI, etc.
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The SWOT analysis has stated about different advantages and dis-advantages that
company have at present. There are different opportunities that can be explored by them and they
have to ensure that no threat or weakness slows them down (Hsu and et. al., 2013). The company
at present is losing its market share which is represented in the graphical representation stated
below:
(Source: Roy Morgan Research, 2014)
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Illustration 3: Market share narrows between Coles and Woolworths,
while ALDI makes important gains

(Source: Roy Morgan research, 2016)
Woolworth is losing customers due to excessive competitive and better offers from rivals
and due to this it requires a new marketing strategy which will enable it in achieving targets.
Marketing Objectives
These are the goals and targets which will be set for employees and departments to
achieve (Jobber and Ellis-Chadwick, 2012). All the marketing objectives need to be aligned with
corporate targets so that efforts are directed towards same direction. Below are the corporate as
well as marketing objectives:
Corporate Objectives Marketing Objectives
 Enhancing customer base of company.  Maintaining its top position in market
and ensuring that it keeps on leading
retailing sector.
 Focusing on profitability (boosting it by
2%)
 Increasing marketing influencing my
increasing customer base by 4%
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Illustration 4: Supermarket weep: Woolies’ share continues to fall and Coles and Aldi split the
proceeds

 Better environment for customers and
employees.
 Ratio of efficiency has to be improved
by 30%
Segmentation, Targeting and Positioning
Segmentation is a process where company bifurcates its market on different basis as to
target it more effectively and position its goods in attractive position. Woolworth divides its
market or targeted population on different basis, such as demographic, geographic and social.
This assist company in targeting them in more effective way.
The target market of company is stated to be households and young people who do not
have time to go to different place to buy things for home (Ottman, 2011). The organisation aims
to attract young couples and people who want to buy everything from one place due to different
constraints. Even though few years back organisation was considered to be serving upper middle
class which affected its market share. But now they are trying to do the damage control as their
market share is constantly falling. Diversified range of products are sold in market and they
positioned with a lower pricing (Roy Morgan research, 2017). Basically, Woolworth is
competing with giants of discount stores, such as ALDI and Cole who attract customer with their
low cost one stop shopping experience.
Segmentation
The market is segmented on the basis of age,
geography and income.
Target market
Upper class, middle class and lower class, all
are the targeted audience. But it puts more
focus on attracting households and working
class which needs one stop shopping.
Positioning
A lower price, convenience shopping experience at one stop. Also company puts special focus
on customer satisfaction to make them loyal.
Marketing Strategy
Woolworth is known to be a master strategist in controlling its market share and
influencing variables at its best. Even though there is slight fall in the market share of company
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but it still is focusing on expansive growth (Solomon, 2014). The new strategy for Woolworth is
stated to be based on three key principles: Offer: Improving the core offering as to attract customers. Growth: Using innovation as a tool to meet consumer requirements
 Efficiency: Using lean retail method to add more customer value.
There are certain changes that will be made phased wise. Such as for phase 1:
 $125 million will be reduced for consumer (discounts provision), which will boost
company competitive position in market.
 Matching Woolworth store pricing with online offerings.
 Longer working hours as to facilitate customers, from 58000 hours per year to 63,000
hours.
 Adding half day of stock as to prepare for short term shelving.
 Fresh product offerings.
There are different changes which will be made into different segments of marketing mix.
Such as pricing and range strategy will be changed for future growth. The prime focus will be on
lowering prices, improving ranges, targeting customer with appropriate products, using improved
loyalty system and also enhancing the investment in Own brands. Woolworth is also focusing on
improving its physical evidence by refurbishing 80 stores per years instead of 23. This will
enable it in serving future customers.
Woolworth will be partnering with different companies, such as Beak and Johnson to
offer ultra-fresh, ready to cook and ready to heat meals (Dibb, 2010). The contract has been
made for 12 years where a facility will be developed which would mass produce these meals. It
needs to focus more on its online activities and develop more click and collect sites. This will
allow it in capturing more customers who shop online and are not really interested in putting
more efforts of going to supermarkets.
The company has to adopt Lean retail model and make it one of the core process. The
company will be benefited by it as it would allow it in cutting down cost by $500 million. This
will allow organisation in focusing its resources and adding more value to customer satisfaction.
Basically, they will be able to improve technology while focusing more on innovation that will
enable them in delivering improved products (Cronin and et. al., 2011). Top management of
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organisation is very much convinced that this new model will enable them in serving customer in
right way while it will also support company in minimising the cost that are incurred.
KEY Enablers in a Marketing Strategy
There are certain key enablers for the company that will assist it in attaining competitive
advantage. Such as it is able to explore opportunities due to its cross business functionality,
logistics and various customer service platforms (Woolworth, 2017). Another factor that
enhances organisation ability to adapt and integrate is innovation.
Additional Recommendations
There are certain recommendations which will assist Woolworth in improving its ability to
serve market in a better manner. They are as follows:
 There is requirement of consistency in strategy implementation as to protect company
from any external event. It has to aim to integrate fair pricing policy to standardise all
polices.
 It has to focus on continuous improvement as to enhance its quality of delivery.
 The company has to focus on using the qualities of employees as to complete task in
more effective way.
Evaluation and Control
Company will be focusing on various targets which have been set in the marketing
objectives or strategies (Wilson and et. al., 2012). This will allow them in reducing the cost while
increasing effectiveness. An evaluation will allow managers in rectifying any issue that might
hamper its impact in the future while control measures will be taken if there are any side effects
of strategy.
CONCLUSION
It can be concluded from the above report that Woolworths is a well-known brand in
Australia and it is highly diversified and competitive group. It has a massive presence in Oceania
region. Also company ranks 19th as per the world revenue wise. At present, it is engaged in a
fierce price war with ALDI and Cole's who are posing threat to its market share. Company had a
serious blow when it recorded a sharp 4 percent drop in its share in market in the last 2 years.
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This happened due to better offerings made by competitors. It led to changes in the management
of organisation as well as strategy of it. Today, company is focusing on three major principles
which are offer, growth and efficiency. The new plan of action will boost organisation’s ability
to influence customers and gain more market share at a rapid speed. There are different changes
in the marketing mix which includes refurbishments of stores, lowering cost of products and
improving ranges while targeting customers as per their needs.
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REFERENCES
Books and Journals
Cronin, J. J. and et. al., 2011. Green marketing strategies: an examination of stakeholders and the
opportunities they present. Journal of the Academy of Marketing Science. 39(1). pp.158-
174.
Dibb, S., 2010. Market Segmentation Success–Making it Happen!. Strategic Direction. 26(9).
Hanlon, C. and et. al., 2014. Challenges and opportunities for implementing integrated mental
health care: a district level situation analysis from five low-and middle-income countries.
PloS one. 9(2). p.e88437.
Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3).
pp.215-251.
Hsu, P. D. and et. al., 2013. DNA targeting specificity of RNA-guided Cas9 nucleases. Nature
biotechnology. 31(9). pp.827-832.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Ottman, J., 2011. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Berrett-Koehler Publishers.
Solomon, M. R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Wilson, A. and et. al., 2012. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
Online
AFN Witers, 2015, Woolworths announces new strategies to win over grocery shoppers, AFN
reveals full detail. [Online]. Available
through:<http://www.ausfoodnews.com.au/2015/05/06/woolworths-announces-new-
strategies-to-win-over-grocery-shoppers-afn-reveals-full-detail.html>. [Accessed on 20th
September 2017].
Roy Morgan research, 2017, Supermarket weep: Woolies’ share continues to fall and Coles and
Aldi split the proceeds. [Online]. Available
through:<http://www.roymorgan.com/findings/7021-woolworths-coles-aldi-iga-
supermarket-market-shares-australia-september-2016--201610241542>. [Accessed on
20th September 2017].
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