WHOLE FOODS
Agency: ABA
Agnes Szafranski, Bria Rodgers, Annie Gaskal
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1. SITUATION ANALYSIS Company: Whole Foods Market, Inc. NASDAQ Global: WFM Company Category: Natural and Organic Food Supermarket Founders: John Mackey and Renee Lawson owners of SaferWay Natural Foods, and Craig Weller and Mark Skiles, Owners of Clarksville Natural Grocery Year Founded: 1980 Headquarters: Austin, Texas Company Motto: “America’s Healthiest Grocery Store” Company Logo:
A. Company Overview Whole Foods Market owns and operates the world’s leading chain of natural and organic food supermarkets. Each store breaks down into 12-13 departments with product offerings from Grocery (bulk, frozen, dairy, including in-house 365 Everyday Value Brand), Prepared Foods (hot production, cold production, and Catering), Produce, Specialty (beer, wine and cheese), Bakery, Coffee/Juice Bar, Meat, Seafood, and Whole Body [8]. B. Current Sales Analysis •
Overall Sales and Market Share
At the end of their FY2012 Whole Foods Market had sales of $11.7 billion and 335 stores in North America and the UK; and at the end of their FY2013 Whole Foods Market had $12.9 billion in sales and 362 stores. Whole Foods Market just closed out FY2014 with sales of $14.2 billion and 400 stores and counting [8]. “Healthy, organic, and natural products, a segment few know better than Whole Foods, make up an estimated $150 billion market that's expected to grow by about 50% by 2018, according to industry tracker Penton's Next division” [3]. 2
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Analyzed Sales
For the fiscal year 2014, sales grew $1.3 billion to $14.2 billion, with sales per gross square foot increasing to a record $990. John Mackey says, “It’s true that natural and organic products are increasingly available in stores and online, yet no one does what we do. We hold the idea of food to a higher standard, banning more than 75 ingredients commonly found in other stores, and we believe our unparalleled quality standards and selection are a large part of why we maintain a broad base of loyal customers and attract new customers aspiring to a natural and organic lifestyle” [4]. Coming into FY2015 Whole Food Market’s performance is looking good for the quarter, which reflects continued market share gains and healthy returns. For the last eight quarters, new store openings have averaged weekly sales per store of $503,000, translating to sales per gross square foot of $722 and productivity levels, on a weighted basis, of 83%. High sales volumes have helped drive healthy store contribution of 4%[1]. For the quarter, sales increased $280 million to $3.3 billion. This means Whole Foods Market has stability in comparable store sales, which increased 3.1%, in line with reported results for the first three weeks of the quarter. A record of 13 new stores have been opened, expanding into seven new markets, and hit a new company milestone of five store openings in two days [5]. •
Competitive Market Share
[While] Whole Foods used to own the healthy food niche, [that is] no longer the case. "Competition is more intense right now than we've possibly ever experienced before," John Mackey, founder and Co-CEO of Whole Foods, said on a conference call with investors (in response to why Whole Foods Market (WFM) Stock was sinking back in May 2014) [1]. Key competitors such as privately held Trader Joe's, The Fresh Market Inc. (Nasdaq: TFM), and Sprouts Farmers Market Inc. (Nasdaq: SFM) have been stealing customers from Whole Foods. And traditional supermarket chains and superstores such as Kroger Co. (NYSE: KR) and WalMart Stores Inc. (NYSE: WMT) have expanded offerings to offer a vast selection of specialty foods [1]. •
Analyzed Market Share
Walter Robb, co-chief executive officer of Whole Foods Market said that their business model “is producing industry-leading sales per square foot, healthy returns on invested capital and strong operating cash flow” [4]. Robb also said that they “observed signs of stability in Whole 3
Foods sales trends and believe strategic initiatives will help generate further momentum and produce return on invested capital over the long term” [4]. Whole Foods Market is always innovating and going after what they can do to set the standard, or set them apart. John Mackey said in Q4 - 2014 Results Earnings Call Transcript, “we believe our leadership in retail innovation is a key driver of our continued market share gains, and it is exciting to see our new stores from Palm Desert, California to Toronto, Canada perform so well”[5]. Year to date, the Company has produced $859 million in cash flow from operations and invested $566 million in capital expenditures, resulting in free cash flow of $293 million. In addition, the Company has returned $126 million in quarterly dividends to shareholders and repurchased $478 million of common stock [4]. WFM's current earnings per share, an indicator of a company's profitability, is $1.56. Zacks Investment Research reports WFM's forecasted earnings growth in 2015 as 10.29%, compared to an industry average of -6.7% [5] C. Philanthropic Strategies Whole Kids Foundation, a nonprofit 501(c)(3) founded by Whole Foods Market and guided by the same values, principles, expertise and standards for quality ingredients, food production methods and nutrition [2]. MISSION •
We support schools and inspire families to improve children’s nutrition and wellness
GOALS •
Help kids learn to love fresh, whole foods
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Increase access to and consumption of these foods at home
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Inspire families to prepare and share these foods at home
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Encourage community action that supports healthier kids
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Create support tools for educators, who play a vital role in modeling and teaching healthy choices
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End childhood obesity epidemic
WHAT WE DO •
Provide schools with salad bars through our partnership with Let’s Move Salad Bars to Schools 4
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Provide grants for school gardens and related programs
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Offer cooking and nutrition education for school teachers and staff
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Support The Lunch Box online tools, which help cafeterias transition to serving more fresh, whole foods
Whole Planet Foundation, is a private, nonprofit organization established by Whole Foods Market, providing grants to microfinance institutions in Asia, Africa, the Americas and the Middle East, who in turn develop and offer microenterprise loan programs, training and other financial services to the self-employed poor [2]. MISSION •
Whole Planet Foundation’s mission is poverty alleviation through microcredit in communities around the world that supply Whole Foods Market stores with products
IMPACT •
Number of Countries: 61
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Funds Committed: $60,272,284
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Repayment Rate: 97%
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People Supported: 4,203,000
Community Giving Days, or 5% Days, happen several times a year where Whole Foods Market stores donate five percent of that day’s net sales to a local nonprofit or educational organization. The groups that benefit from these 5% Days are as varied as the communities themselves [2]. MISSION •
Becoming part of the neighborhood: Each of our stores has a lot of latitude in deciding the best way to operate that individual store to meet the needs of the local community. That makes community giving really special and fun.
Whole Cities Foundation, a nonprofit organization dedicated to supporting efforts to increase access to nutritious, fresh food and health education in underserved communities [2]. MISSION •
Aims to broaden access to fresh, nutritious food and healthy-eating education 5
IMPACT •
The Foundation has committed $100,000 to ReFresh’s Community Health Outreach Program and will work hand-in-hand with ReFresh, Tulane’s Prevention Research Center and other ReFresh partners on developing, piloting and evaluating the program, including the training and launching of community health workers
Local Producer Loan Program, provides up to $25 million in lowinterest loans to independent local farmers and food artisans [2]. MISSION •
Support small producers who need a hand, not a handout, to help them make their dreams reality.
IMPACT •
Whole Foods Market's Local Producer Loan Program has made over $14 million in loans so far.
RECIPIENTS IN ILLINOIS: •
Bron’s Bees in LaFox, IL
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Farmed Here in Flanagan, IL
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Scrumptious Pantry in Chicago, IL
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Z-Best Bakery in Evanston, IL
D. Product Attributes ● Each and every product offered is carefully evaluated; third party auditors inspect the stores every month to hold the company accountable for their set standards ● Foods featured are free from artificial preservatives, colors, flavors, sweeteners and hydrogenated fats ● Foods are fresh, wholesome and safe to eat ● Provide food and nutritional products that support health and well-being ● Organically grown foods and are sought out and promoted ○ Organic agriculture is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is 6
based on minimal use of off-farm inputs and utilizes management practices that restore, maintain and enhance ecological harmony. "Organic" is a labeling term that denotes products produced under the authority of the U.S. Department of Agriculture's Organic Rule. The principal guidelines for organic production are to use materials and practices that enhance the ecological balance of natural systems and that integrate the parts of the farming system into an ecological whole. ■ 100% Organic = Products containing only organically produced ingredients; products may display the USDA organic seal ■ Organic = Products consisting of ingredients that are at least 95% organically grown, products can display the USDA organic seal ■ Made with Organic = Products consisting of ingredients that are 70 – 95% organically grown; products cannot display the USDA organic seal ■ Natural = Whole Foods Market definition of ‘natural’ is products produced without artificial preservatives, colors, flavors, sweeteners and hydrogenated fats ● Health Starts Here is Whole Foods’ in-house health-program. Within the program, the definition of healthy eating is based on the following four key elements: ○ Plant-Strong ■ Emphasize fresh vegetables, both raw and cooked; fruits; legumes/beans; nuts; seeds and whole grains ■ Eat a colorful variety of plants to ensure you’re getting the best nutrients for your body, which leads to feeling satiated ○ Whole Foods ■ Choose foods that are real, fresh, natural, organic, local, seasonal and unprocessed ■ Eliminate the consumption of refined, highly processed foods and foods void of nutrients, such as artificial flavorings, colors, preservatives, sweeteners and hydrogenated fats 7
○ Healthy Fats ■ Get your healthy fats from plant sources, such as nuts and avocados ■ Minimize extracted oils and processed fats ■ reduce or eliminate consumption of animal products; choose leaner meat and poultry ○ Nutrient Dense ■ Choose foods with a high nutrient density, foods that are rich in nutrients when compared to their total caloric content ■ Build your menus around plant-based foods to emphasize highly nutrientdense meals ■ Choose foods with a wide spectrum of vitamins, minerals, phytonutrients and antioxidants E. Pricing “Our goal is to sell the highest-quality natural and organic products that also offer high value for our customers. High value is a product of high quality at a competitive price. Our product quality standards focus on ingredients, freshness, taste, nutritive value, safety and/or appearance”
- - John Mackey
Competitive Pricing Sarah McColl’s article on ‘Whole Paycheck’ best explains Whole Foods competitive pricing within its market. “Whole Paycheck” may be a thing of the past. The less-than-loving nickname for Whole Foods has been around for at least a decade, but thanks to some changes at the grocery store it may no longer apply” [4]. Price Comparing Whole Foods Market
Vs.
Trader Joe’s
KashiGoLean $3.49
KashiGoLean $3.69
Fage Greek Yogurt $3.00
Fage Greek Yogurt $3.59
Soymilk $1.69
Soymilk $2.19
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○ What to add to your cart: ● Organic Milk ● Shredded Mozzarella ● Cream Cheese ●
Organic frozen vegetables When blogger Lisa Johnson shopped exclusively from Whole Foods using the USDA’s “thrifty” food budget of $16.31 per day for her family of three, she relied heavily on frozen veggies: “We wouldn’t have made it, frankly, without them.”
● Sweeteners Check out the prices on light brown sugar and organic powdered sugar, as well as maple syrup and organic raw agave nectar. ● Organic Chicken Broth ● Organic Coconut Oil ● Olive Oil ●
Grains Not all grains at Whole Foods are cheap, but check the prices on organic quinoa, buckwheat, and jasmine rice.
● Pasta ● Peanut Butter ● Organic Popcorn
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● Roasted whole nuts The bulk bins don’t necessarily mean bargains (look alive, shelled pistachios), but check out the prices on almonds and cashews. ● Energy bars [4] Accessibility Whole Foods Market has 400 stores and still counting spread throughout the regions below. Regions: Florida, Mid-Atlantic, Midwest (Includes Ontario, Canada), North Atlantic, Northeast, Northern California, Pacific Northwest (Includes British Columbia, Canada), Rocky Mountain (Includes Allegro Coffee Company), South, Southern Pacific, Southwest, United Kingdom [8] Catering and Delivery: If you go on the Whole Foods Market website there is an option for catering, whether it is breakfast, lunch, or dinner [11]. Instacart: You can build your shopping cart online and have it delivered. Recent Press Release stated that Instacart is offering Valentine Flowers delivered in as little as an hour across the 15 metros. Prices starting at $25. You can receive free delivery on the first order, after it’s $3.99 for 2 hour delivery or $5.99 for one hour [11]. Pricing Summary Whole Foods Market continues to expand their value offerings across their stores which has in turn narrowed the pricing gap between them and their competitors. Whole Foods products are accessible to people with high incomes to low incomes. The idea of Whole Foods Market as “Whole Paycheck” is fading away because they have prices head-to-head matching prices at other grocery brands such as Safeway [2]. We improved our price image and continue to raise the bar even higher on our standards of transparency. We are the only U.S. public food retailer to date to commit to labeling products with GMO ingredients and we also announced a new rating system for fresh produce and floral to measure performance on important sustainable farming topics, including pest management, farm work welfare, and pollinator protection [2]. Presented below comparison is based on 10 staple type foods like ketchup, apples, pasta sauce, milk, and a loaf of bread, and there is also something for the kids like Tater Tots. F. Promotion 10
Marketing Each Whole Foods Market store has a Marketing Department Team unique to each store - they are responsible for creating the vibe of the store, bringing the personalities of the workers to life, designing the store to fit the community, and incorporating their interpretation of company values into each store. The Marketing Department does sign-making, event planning, and social media for their store [8]. Promotional Programs � Adult and kid’s cooking classes � Health Starts Here Program There are many Health Starts Here offerings online and around the company, including: -
Healthy Starts Here page on the public website, wholefoodsmarket.com, providing recipes, links to getting-started program sites, cooking demonstrations and more
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In-store Healthy Eating Specialists
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Prepared Foods offerings
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Customer and Team Member healthy eating lectures and cooking classes
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Customer and Team Member healthy eating supper clubs, providing opportunities to share food with and learn from like-minded people pursuing similar goals
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Health Starts Here overview brochure (featuring the two getting-started program options)
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Healthy Eating Program core books (in all stores)
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Team Member Healthy Discount Incentive Program
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Total Health Immersion Program [11]
Social Media/Engagement -
Facebook page
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Whole Foods Market App
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Customize your Whole Foods Market page (www.wholefoodsmarket.com) by choosing your store
Advertising
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Whole Foods Market launched its first ever national brand campaign “Values Matter,” on October 20, 2014 to highlight its groundbreaking quality standards, healthy offerings and key milestones as a pioneer in the natural and organic food industry. By communicating the company’s deeper purpose and its history of celebrating food and the people who produce it, the multichannel advertising initiative will demonstrate the values of “America’s Healthiest Grocery Store”.
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“Whole Foods Market has been subtly telling our story for decades, and now is the time to overtly communicate what we’ve spent more than 35 years creating as change agents in the food world,” says Jeannine D’Addario, Whole Foods Market’s Global Vice President of Communications. “We are excited to share our stories, and to have deeper conversations with our customers so they can make meaningful choices about what they decide to buy and support”. “Not everyone knows what makes Whole Foods Market different from other grocers, or the fact that no other retailer has standards as demanding or as
transparent as ours,” D’Addario said. “This campaign will distinguish what makes our brand special,
our food different and our quality superior. It’s our opportunity to reaffirm our
unwavering commitments to our core values, which are at the heart of our brand”. Whole Foods’ Position in the Market -
“America’s Healthiest Grocery Store”
Services Offered -
ApplePay: Apple Pay is the new way of making transactions easier for the customers that are on the go. When the customer adds a credit or debit card with Apple Pay, the actual card numbers are not stored on the device nor on Apple’s servers. Each transaction is authorized with a one-time unique dynamic security code
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Catering and Delivery: If you go on the Whole Foods Market website there is an option for catering, whether it is breakfast, lunch, or dinner.
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Instacart: You can build your shopping cart online and have it delivered. Recent Press Release stated that Instacart is offering Valentine Flowers delivered in as little as an hour across the 15 metros. Prices starting at $25. You can receive free delivery on the first order, after it’s $3.99 for 2 hour delivery or $5.99 for one hour.
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Not Sure if You Want to Commit to Buying? Try it Out: Whole Foods will do an “It’s On Us” for any product that you want to try out. The will also accept products back for full refund if it was not what you were expecting or up to the standard you were expecting .
Brand Equity -
Brand Equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
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Whole Food’s brand equity is all about the “Whole Foods experience.” You experience their motto Whole Food, Whole People, Whole Planet with every trip to the store.
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According to 2014 Harris Poll EquiTrend (EQ) study measured brand equity for more than 1,500 brands across 170 categories, finds traditional grocery store brands rank highest overall in three of the four regions surveyed. The EQ index examines three key factors of brand equity: familiarity, quality and purchase consideration.
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Whole Foods ranked above category average in the Northeast Region Grocery Store as well as in the South Region and West Region.
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In 2012 based on the Store Choice Drivers study run by Nielsen on identifying store characteristics that help build equity with shoppers, Whole Foods Market and Trader Joe's were the only national brands to rank above the category average in all four regions of the US. They managed to keep consistently strong quality and purchase consideration scores. Consumers who are familiar with Whole Foods brand give us strong marks for quality and purchase consideration. We put great emphasis on building a relationship with the customer.
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we want customers to have a confidence in what they find in our store therefore we strive to bring natural, organic and always fresh selection to them in order to ensure excellent customer satisfaction. 13
G. Target Market Approach Mass Market: •
Whole Foods launched their first-ever national brand campaign, “Values Matter,” in October 2014 and did some authentic storytelling about their company beginnings, their innovations, and their quality state of mind.
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TV commercials aired following shows: Modern Family, Scandal, The Tonight Show with Jimmy Fallon, Jimmy Kimmel Live, NFL’s Thursday Night Football.
Segmentation: •
“Millennials, after all, may not remember a time when Whole Foods stood out as the first grocer – save for local food co-ops – to tout its local produce, its commitment to sustainable growing practices and relationships with farmers and ranchers.”
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In the future, Whole Foods looks to increase market segments within singles communities and the LGBT demographic as they are the least targeted out of all shoppers who visit the store.
Differentiated: •
Whole Foods targets a broader demographic, 25 to 49-year-old, “socially conscious” consumers who “care about their health, care about quality products and really want the information about where their food comes from.”
H. Demographic/ Psychographic Profile of Market The Whole Foods brand audience and customers are a multicultural and diverse audience; the key customers being working parents between 30 and 50, mostly women. They are educated to degree level, professionals with mid-to high-level incomes. They are health and fitnessconscious and live in city and suburban areas. Gender: Women HHI Income: $75,000-$149,000 Age: 25-54 Occupation: Professional and Related Occupations Education: Graduated College Plus
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Whole Foods does not focus on income demographics when considering a franchise location and instead focuses on the per capita population that has college degrees.
Family Life Cycle: Now Married, <6 Children Geographic Region: South, Metropolitan Area Lifestyle: Healthy and active lifestyle; concerned with healthy foods for themselves and their children as well as environment and sustainable issues Attitudes: Intelligent, passionate foodies who are looking for premium service and a well-rounded shopping experience Purchasing Characteristics: Whole Foods is their one stop shop, visit 4-5 times a week Characteristics of Targeted Customers 1. Needs/Benefits Sought by Market •
Healthy
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Quality
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Transparency
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Proper Labeling / Signage
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Sustainability
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Corporate Social Responsibility
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Employee Engagement
2. Product Usage •
Shoppers with special diets: Gluten- Free, Dairy Free, Sugar Conscious, Wheat Free, Low Fat, Low Sodium, Vegans, Vegetarians, Pescatarians, Paleos, Organic Only and all kinds of foodies.
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Healthy is a lifestyle and shoppers know Whole Foods promotes transparency and the right to know what is in your food
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Some shoppers visit daily, some visit weekly and bi-weekly
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Whole Foods products “satisfy, nourish, and delight” customers’ body and well-being; they are used to maintain their healthy lifestyle
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Product Positioning 15
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Whole Foods launched their first-ever, national brand campaign, “Values Matter” back in October 2014 with manifesto describing their values.
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Customers associate Whole Foods with “Whole Paycheck”.
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The “Values Matter” campaign highlights the quality state of mind, and tell the story of the relationships built with farmers, growers, and vendors to change the conversation about how basket size adds up at the register.
2. RESEARCH: •
OBJECTIVES
We wanted to explain how important is individualized shopping experience at WFM for shoppers and present what are the ways of extending and leveraging current experience to keep our loyal customers and gain new once. •
FINDINGS & ANALYSIS
80% of our respondents were female. 73.33% of our respondents were between the ages of 3049. 60% of them were married couples with kids and 33.33% were single with no kids. We wanted to see how we are doing if it comes to brand awareness so when we asked respondents how important is to them buying organic foods 40% described it as very important and 33.33% said it is unimportant. We are in organic industry after all. When asked how often they shop at WFM, 6.67% said they shop once a week, 13.33% 2-3 times a week, 13.33% shops there every two weeks and 33.33% shops there once a month and same amount of respondents does not shop there at all. To check our brand equity we wanted to check how do we do in brand recognition so we asked about our competition. Right next to Trader Joe’s, Mariano’s, Kroger, Aldi, Walmart and few others, we asked respondents what store brands are they mostly familiar with. 23.08% said they are very familiar with WFM and shop there regularly while 38.46% said they are familiar and shop there sometimes. In result, next to WFM most competitive were Target, Trader Joe’s and Aldi. When we asked our respondents how familiar are they with WFM 40% answered that they are very familiar and 33.33% that they are familiar. 16
80% our respondents buy organic products. We wanted to find out more about why our respondents buy at WFM and how they could describe it. 64.29% said they like wide selection of fresh organic products. They belong to health conscious group that chooses healthy, natural and organic foods. 42.86% said it is convenient to find everything they need in one store and that the WFM has an excellent quality of products. 50% said they like the fact that company has Eco-friendly store and uses reusable bags etc. 21.43% said they like great selection choices of prepared and healthy foods and 28.57% said that they shop at WFM because of the great customer service and quick checkout. Finally, 35.71% likes to shop at WFM because of clean, colorful and customer friendly store design. WFM has positive image in customers’ minds because 80% of respondents would recommended it to their friends. When asked which brand is associated with the term “organic food: it looks like 60% of respondents said it is WFM and 33.33% Trader Joe’s. We asked our respondents what qualities they look for at WFM and 86.67% answered they look for fresh products, 73.33% healthy, organic and natural products. 40% of respondents look for tasty and healthy prepared foods and wide selection of product brands while 60% perceives clean, esthetic and friendly place as an important quality. It appears that 60% of respondents’ rates product quality at WFM as high while 26.67% thinks it is medium. Going back to customer service 60% of respondents described it as helpful, 40% as informative and 53.33% as friendly. 46% our respondents said they would be very likely to switch their grocery store to a cheaper alternative and also 40% would very likely do it if the new grocery store offered more promotions, deals or added value. This survey tells us what our customers’ value most and shows us direction in which we can develop our growth to maintain all these clients that win and we already this market that buys at the competitive grocery stores. CONCLUTIONS: 17
Customers purchasing at Whole Foods Market already possess the following values and ideas. These are conviction-based decisions. Very often these customers are environmentally minded, leading healthy lifestyles and appreciate company's ethics and beliefs. They view shopping for food as an experience rather than a chore and are willing to pay higher price for better quality and unprocessed, organic foods. Most definitely the customers search for the ingredients information on the products. Customers are very knowledgeable about ingredients and healthy diet that includes organically grown veggies, fruits and other products. Customers buy at Whole Foods on a regular basis. This is already established, healthy-minded group that aside from health appreciates the shopping experience. During buying process the customers know they can always ask questions, replace the products or simply ask for any additional assistance with finding what they are looking for. Their purchase decisions are thought out rather than impulse. They understand their need for healthy food and the benefits to their health that come from consumption of organic products so their purchase choices are quite educated and well thought through. Also, customers' values often align with what the company stands for. It is a user purchase that appreciates shopping experience at Whole Foods Market, which plays tremendous role to satisfy the most demanding clients. The store organization and visual aesthetics as well as excellent customer service are adding to the value and shape the customer perception on the entire buying process at WFM. These consumers present highest level of involvement and often represent group with higher income. The biggest factors influencing their purchasing decisions are organic choices and consequently they are willing to pay higher price to get more in return. They no longer shop for food but for healthy benefits and that is the right mentality to accept. It proves that American society has shifted toward higher expectations in quality of consumed food. Natural, organic and nutritious products play crucial role these days in the whole food chain industry. Many our clients are aware of the difference between natural and organic products and because everyone has to eat, automatically these purchasing choices are easy to make. 18
3. SWOT A. Strengths: •
Experience in the industry
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Whole Foods successfully competes mainly by having a wider selection of foods that are perceived to be healthy
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High quality organic and naturally grown food
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Large, eco-friendly customized stores
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Nationally known organic / natural food seller with established market position
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Address multiple customer segments
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Excellent, passionate about company's philosophy customer service
B. Weaknesses: •
Pricing perception " whole paycheck"
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Perceived as a luxury shopping grocery store
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Location - located in more affluent areas
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Increasing rental expenses
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Weak international operations
C. Opportunities: •
The company is currently operating internationally in the UK and Canada. They have the opportunity to expand in the fastest growing markets (China and South Africa)
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Extend the hype to eat healthier and protect the environment
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Expand promotion programs, deal offers, coupons, reward cards for its customers
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Invest and develop private label
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Invest in buying more local products that people will still pay more for 19
D. Threats: •
Faces threats from mainstream and traditional grocery retailer (Kroger, Target, Walmart, and Trader Joes)
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Competition from local fresh markets, conventional supermarkets with growing organic sections
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Economic downturn impacts consumer spending- high prices in connection with tight economy
4. MARKETING OBJECTIVES •
increase awareness about the product and the brand while breaking stigma of "whole paycheck"
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increase market share by cornering special diet sector
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increase sales
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extending and leveraging current experience to keep loyal customers and gain new once
5. POSITIONING STATEMENT Whole Foods Market changes the conversation about the quality of food consumption entering the dialogue about transparency of healthy choices and staying faithful to its core values expressed in mission statement: "Whole Foods, Whole People, Whole Planet".
6. CREATIVE BRIEF
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7. CREATIVE WORK 8. PRINT ADS;
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IMC OPTIONS (EXPLANATION-JUSTIFICATION) Integrated Marketing Communication - 360 degrees approach: 360 Degree communications approach means bringing a brand to life using all possible contact points and depends upon establishing a series of collaborative partnerships for the brand. It starts with our problem or brand challenge. Our marketing objectives clearly explain what our challenges are. We want to increase awareness about the our healthy product and about Whole Foods Market brand while breaking the stigma of "whole paycheck" explaining the quality of our products. We want to increase our market share by cornering special diet sector (gluten free, nut free, vegan, paleos and other foodies) while increasing sales. Lastly, we want to extend and leverage current shopper experience to keep our loyal customers and gain new once. That is how we found the media and messages that best answer these challenges. 360-degree marketing communications Traditional marketing mix + online tools Online tools: Online Communication. Quality Content - Content is the King therefore we will be delivering powerful engaging and action oriented content to our TA. High visibility with the help of SEO and SEM. Social Media/ Networking: Facebook, Twitter, Instagram, Pinterest. PPC (pay per click). The goal of IMC is to influence or directly affect the behavior of our TA. IMC process starts with the customer or prospect and then works back to determine and define the forms and methods through which persuasive communications programs should be developed. It should consider all sources of brand or company contacts which our TA has with the product or service as potential delivery channels for future messages.
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Print: ads in magazines such as ( Food Network, Cooking Light, Cook's, Food&Wine, Southern Living, weight watchers; Whole Foods Market bags and napkins
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Digital: website enhancement
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Social Media: Facebook, Twitter, Pinterest, Instagram
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OOH: bilboard, guerilla marketing: street view-1 mile colored street "Healthy Mile" ? smth promotional? 24
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-how do we want to extend it?
9. MEDIA •
STATE YOUR MEDIA MIX AND GIVE A RATIONALE FOR EACH CHOICE
Media Objective - During busy periods we want to: •
reach 80% our TA at least 3 times
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Inform TA about features and benefits of the product
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Increase awareness of brand's transparency and core values
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overall increase market, product awareness and sale by 10% Media Strategies - Our strategy is based on TA needs and is built on 3 key elements:
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Reach
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Frequency
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CPM
Strategies: •
Updating website and creating mobile games/activities to engage customers "Healthville" ( possibly partnering with Zynga games)
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In-store events- demonstrative shows on how to prepare healthy food (seasonal specialties).
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We will create :30 seconds TV spot 2015"Enjoy Healthy Living" campaign
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Print ad for magazine
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We will use Social Media such as: Facebook, Twitter, Instagram, Pinterest, YouTube, Snapchat and Meerkat 25
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Creating synergy between online and traditional media
Media Tactics - We will use following media:
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Content- because "Content is the King" we will stress creating powerful content that will tie our website (also mobile) with all platforms together with what’s on Social Media
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Print- focusing on magazines for women who loves to stay connected with the healthy lifestyle/living news, quality food, promotions, sweepstakes: Parents, Eating Well, Clean Eating, Food&Wine, Better Homes. Within Print category we will also create ads on in-store napkins and store bags reinforcing "Enjoy Healthy Living" campaign when away from digital or traditional media.
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OOH- paint flat 1mile of a street "Enjoy Healthy Living" 2015 in busy intersections within the city to focus people's attention; digital billboard placed within the city, billboards placed on local heavy highways, suburbs and the city
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Digital- Social Media connected with our website and blog- creating traffic in-between these platforms to engage with customer and build meaningful relationship Snapchat and Meerkat-to create live experience that will allow customers share their recipes on line that will tie them to Whole Foods Market
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DESCRIBE YOUR GENERAL APPROACH TO SCHEDULING YOUR ADVERTISING
We have chosen most popular channels: Facebook, Twitter, Instagram, Pinterest, YouTube, Snapchat and Meerkat that will be connected to our website.
'Content is the King’ therefore we will have a great team working on content generation so activity on these channels will be connected with everything that 26
will be going on through the year; we will stay connected and we will inform our TA about every deal and news. "Fresh Market" - using the warm months and the season for fresh fruits and veggies to create "fresh and healthy shopping experience"- by painting the streets 1mile long within the WFM areas and inviting them to shop there.
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ARE THERE CONSIDER?
ANY
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TO
Whole Foods Market will have "deals" on a regular basis. Before any bigger holidays we will intensify in-store events on how to prepare "healthy special" for particular holiday and engage the use fo content and Social Media activities to create buzz and then keep customer in the loop inviting them to try for example "World Cuisine Special".
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