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Executive Summary

Woolworth Supermarkets is the largest food retailer in Australia, with about 95 years of service experience. This report aims to analyze the marketing mix plan for Woolworth Supermarkets, reviewing its marketing strategies as the best tool for development. The report also analyzes the tactical elements used to carry out marketing operations and reach target customers. The company deals with products such as wine and beverages, snacks, and fresh meat. The company has always advocated for the concept of “The Fresh Food People.” Woolworth supermarket’s main purpose is to create a better experience for its customers for a better tomorrow. Its core values include deep care, listening and learning, and doing the right thing at the right time. The company’s main objective is to create customers who raised it to number one in all company brands. Woolworth supermarket aims to be the best and outshine its competitors in the Food and Beverage Supply sector. It wishes to reach customers from different parts of the world. This is the reason why the company has decided to come up with a marketing mix plan that outlines the strategies that it will use to become the best.

Woolworth supermarket’s target market has been people of all ages, largely in Australia and New Zealand (Jones, 2020). However, the company wishes to expand its market and position itself as a high-quality product and service giver at reasonable prices. To achieve this, the company has to plan various marketing mix strategies. This report discusses the marketing plan for the Woolworth supermarket, and I believe that thoroughly researched and sound. If the plan goes smoothly, Woolworth supermarket will achieve its goals and become the best food producer in Australia and New Zealand.

Contents

Executive Summary. 2

Marketing Initiative. 4

Marketing Objectives. 4

Target Marketing and Positioning. 5

Segmentation. 5

Targeting. 6

Brand Positioning. 7

Marketing Mix Strategies and Tactics. 7

Product/Service. 8

Pricing. 8

Promotion. 8

Distribution. 9

Budgeting. 9

Evaluation and Control 10

Implementation and Schedule. 11

Conclusion/Recommendations. 13

References. 14

Marketing Initiative

The main initiative of Woolworth is to encourage customers to buy healthy food. This initiative will have an array of benefits to the company and its customers. In essence, it will promote a win-win situation. Thus, the reputation of Woolworth will increase. This is because it supports and enhances the healthy life patterns of customers. It also has a positive impact on the company’s sales. To achieve the provisions of this initiative, the company needs to identify its customers’ needs and choices and then conceive the idea of using strategies such as the differentiation of products. The company will have to position foods with high nutritional content at the checkout to influence their sales. This strategy is referred to as influential discriminatory stimulation (Batt, 2013). Therefore, the company will have to change the location of healthy food products and provide clear information on the nutritional content of the food. The target market will be health-conscious customers. This initiative will expand the total market demand and protect the company’s market share.

Marketing Objectives

The marketing initiative will encourage the selling and buying of healthy food products. This will impact the buying decisions of consumers. This impact will result from the ambient and structural changes that will happen in the company’s stores. The consumers of the food products will be psychologically stimulated under the following objectives:

• To extend the communication to consumers on healthy food products

The company will have to extend communication by about 80 percent to its health-conscious customers. This objective might be achieved by placing about 70 percent of highly nutritious and healthy foods in the most crowded parts of the store. They may also choose to make frequent announcements about these foods or about new foods in stock. The company may also choose to advertise their products in the most popular news sources within their operation area. This can be achieved in the first 12 months after the conception of the idea.

• To increase 25 percent of healthy food products sales monthly by increasing promotion activities inside the store.

For instance, Woolworth supermarket may organize food taste events frequently. This can be done two times a month. Customers may be given to taste healthy foods, snacks, and seasonal fruits. This objective can also be realized by displaying colourful booklets that contain information regarding nutrition and the adversity of unhealthy food products.

Target Marketing and Positioning

Segmentation

Its price influences the decision of customers concerning a particular product. To attract customers using the pricing strategy, Woolworths Supermarket ensures that both low-end and high-end customers are considered while setting the prices of the products. The company will have to position high-end customers’ high prices and relatively low prices for mid and low-level customers. Price positioning can also be conducted by setting different prices for consumers in different regions, depending on the residents’ average income and the economy (Chen & Uysal, 2002).  High-end consumers purchase high-priced products with the notion that high prices are associated with high quality. Woolworth supermarket will have to use segmentation variables such as:

• Psychographic Variables

This refers to the various channels of distribution and location of its stores. Woolworth supermarkets’ effectiveness can be increased through the adoption of supply chains that promote quick product delivery. Besides selling its products in physical stores, Woolworths may also focus on online sales capital to win customers outside the geographical borders (Jones, 2020).

Targeting

The target market for Woolworth supermarkets will be consumers of all social classes, and they will be targeted according to the following variables:

• Family Life Cycle

The pricing strategy that a company uses determines its performance in the industry. In that regard, Woolworth supermarket should adjust its prices to attract new customers and gain loyalty from existing consumers. Strategies based on pricing require the company to consider various factors such as the economic status of the target market, production costs, and compactors’ prices.

• Geographic Variables

Woolworths should strategize on the improvement of customer service to coincide with the customers’ desires. Woolworth supermarket should incorporate new technology that allows fast product delivery to customers to increase operations within the company. Effective communication is an important factor in business (Charles, 2007). This will ensure effective customer engagement, and that customer will be handled timely. The company will have to use different product promotion techniques to attract more customers and compete fairly with rivals in the market. Marketing through social media may help in winning competitors with strong sales.

Brand Positioning

Woolworth will have to use the marketing mix plan to make sure that it is well-positioned in the market to attract potential consumers of its products and engage in effective competition. The marketing mix is the best strategy that companies can use to engage the necessary resources during the formulation of a marketing plan. Woolworth Supermarkets should ensure that they have the right human resources to implement their projects (David & Martin, 2016). This means that there is a need for experienced and talented personnel in the industry. The company will have to consider factors such as demographics and behaviour of their target consumers. The demographic analysis that the company uses is based on the composition of their target population and the economic factors. Psychological perception is one of the many factors considered in decision-making. Woolworth will position itself by designing creative adverts and techniques in product promotion to attract potential customers. The company’s products will be of high quality and relatively cheaper to save the customers money (David & Martin, 2016). This will be an advantage over competing companies. Woolworth will also have to offer equal wages and opportunities to employees, prohibiting cases of discrimination.

Marketing Mix Strategies and Tactics

While defining their target market, Woolworth supermarkets will have to begin with developing and implementing tactics that will be used to reach customers. They will use the marketing mix plan as it is the best tool to develop the tactical elements that will be utilized during the implementation of the plans to reach the target market. These strategies will include items such as:

Product/Service

Woolworth supermarket is supposed to identify the level of demand for its products and services in the target market. It will also have to determine their packaging, branding, and current developments within the product market. The company should focus on offering quality products and services to its customers (Lamb et al. 2019). It should keep its slogan, The Fresh Food People”, relevant. The products they offer should be healthy and satisfying for their customers.

Pricing

Pricing is a very critical element in marketing. It is a crucial part of the marketing mix plan. Woolworth supermarkets will have to set the best prices for their products (Lamb et al. 2019). This will help in the maximization of profits and in the establishment of strong bonds with customers. Efficient pricing will help Woolworths eliminate the probability of suffering financial consequences resulting from too high or too low prices (King, 2016). However, pricing should be determined after determining the target market and understanding the customer’s profile.

Promotion

The techniques and ways that a company uses to market and promote its products are crucial in the marketing mix. There are high chances of losses if the business is not promoted, regardless of its financial status or popularity. The objective of promotion is to attract customers to use the business frequently. Promotion can be done through branding, public relations, and online, to mention but a few. Woolworths will attract customers when its promotion methods disclose the benefits of the products and why the products are worth buying (Kim & Ko, 2012). In this essence, the potential consumers will be lured and attracted to buying the Woolworth supermarkets’ products.

Distribution

Distribution is another important aspect of the marketing mix. Woolworth supermarkets need to consider their distribution channels as a crucial aspect so that they can have their products delivered from the manufacturers to the supermarket, and then to the end consumers. A lot of attention will have to be paid to the distribution chain in order to maximize profits and address completion (Kim & Ko, 2012). Woolworth supermarkets will need the best suppliers to ensure a constant supply of the best and freshest products. The chain of distribution should be kept the shortest possible to avoid delays and overspending. The figure below shows the distribution chain for Woolworth supermarkets.

Figure 1: Distribution Chain for Woolworth Supermarkets

Budgeting

This marketing campaign will cost approximately $200 million. The following table shows the percentage of the budget allocated to specific parts of the campaign with justifications.

Mix	% Allocated	Actual Budget ($)	Justification
Production	40	80 million	Production will be allocated the highest percentage because it involves lots of recurrent activities that require money. Among these activities is the purchase of products from producers.
Promotion	20	40 million	Paying for product and company promotion is relatively expensive.
Distribution	10	20 million	Distribution is allocated the least because the distribution chain is short and calls for little funds in order to maximize profits.
Management	30	60 million	Management involves human resources. This allocation will cater for salaries and allowances.

Table 1: Woolworths marketing mix budget

Evaluation and Control

Woolworths’s main objectives are to extend the communication to consumers on healthy food products and increase 25 percent of healthy food products sales monthly by increasing promotion activities inside the store. The main aim of the company is to increase sales and maximize profits. The measures that will be used to evaluate the marketing plan are presented in the table below.

Metric	Method of Measure	Timing	Responsibility
Sales	Sales Reports	Every two months until the goals are achieved	Managing Director
Food Quality	Certificates of credit	Every two months	Food and Drinks Association through the Managing Director
Customer satisfaction	Amount of Sales	Every month	Sales Manager

Table 2: Evaluation and Control of the Marketing Mix Plan

Implementation and Schedule

Below is a Gantt chart showing a month by month timetable for one year of when things are going to happen during the implementation of the marketing plan.

Launch Month

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

PRODUCT

Introduce psychological selling

PLACE

Establish offices in all areas of operation

Setup online training of product agents in zoom

PROMOTION

Social media advertisement

Food Taste Events

Make a proper website for advertisement.

Advertise on YouTube

EVALUATION

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

Review sales report

Figure 2: Gantt chart

Conclusion/Recommendations

In the current world, competition is no longer among organizations; it is a mind and heart of customers’ war (Donelda et al., 2008). The one who occupies an advantageous part of the customer’s mind and becomes recognized by the customers has a high chance of winning the competition. Winning the competition means that the company is likely to record high sales and profits. Woolworth supermarket should leave no opportunity unexploited to ensure effective communication of their products to their potential customers. This will help them sustain their competitive advantages. Actualizing the marketing mix plan will enable the company to survive challenges such as an economic recession. To determine their operating advantages and characteristics, Woolworth supermarkets need to position themselves in their marketing environment, quality of goods and services, and promotional methods (Farris, 2010). Woolworth supermarkets need to understand their development levels and constantly improve them to win stiff market competition.

References

Batt, R., 2013. Managing customer services: Human resource practices quit rates, and sales growth—Academy of Management Journal, 45(3), pp.587-597.

Charles, B. (2007). Testing a Newly Developed Typology of Positioning Strategies in South Africa. Journal of African Business, Vol.5, no.1.pp.77-82.

Chen, J.S. and Uysal, M., 2002. Market positioning analysis: A hybrid approach. Annals of Tourism Research, 29(4), pp.987-1003.

David K. & Martin W. (2016).Heike Mayer, Fritz Sager. Bern’s positioning strategies: Escaping the fate of a secondary capital city? Cities, Vol.10, no.1. Pp. 39-43.

Donelda S.M., Jim G. & Marios K. (2008).Positions and positioning: strategy simply stated. Business Strategy Series, Vol.7, no.3.pp.90-95.

Farris, P. W. (2010). Marketing metrics: The definitive guide to measuring marketing performance. Upper Saddle River, N.J: FT Press. Pp 235-238.

Jones, S. (2020). Woolworths: Where did it go wrong?. [Online] Mumbrella.com.au. Available at: https://mumbrella.com.au/woolworths-where-did-it-go-wrong-308694  [Accessed 1 October 2020].

Kim, A.J. and Ko, E., 2012. Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), pp.1480-1486.

King, M. (2016). ALDI is stealing market share from Woolworths Limited. [Online] Motley Fool Australia. Available at: http://www.fool.com.au/2016/04/15/aldi-is-stealing-market-share-from-woolworths-limited/ [Accessed1 October, 2020].

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2019). Essentials of marketing. Mason, Ohio: South-Western. Pp 331-333.

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