Whole Foods Market Research by M. Brock Johnson

Millennials & Whole Foods Shoppers Matthew Brock Johnson, Megan Toffey, Eli Caldwell, Andrea P. Eli Caldwell, Mary Bregenser, Marie Emedi University of Kentucky

Statement of Intent: This report is a collection of research conducted to help understand the relationship between Whole Foods and college students. This research is followed by a

professional campaign recommendation to aid Whole Foods with achieving their goal of targeting college students.

Table of Contents I. Cover letter/Executive Summary…………………………………………1-4 II. Secondary Research: Situation analysis …………………………………….5 Brand Analysis………………………………………………………..5 Product Analysis……………………………………………………...6 Competition…………………………………………………………..8 Direct Competitors…………………………………………….9 Indirect Competitors………………………………………….11 Profile of Target Market……………………………………………..12 Previous ISC Strategies……………………………………………...14 S. W. O. T. Analysis and Rationale………………………………….15 Strengths……………………………………………………...15 Weaknesses… ………………………………………………....1 7 Opportunities………………………………………………....18 Threats………………………………………………………..18 Problems and Opportunities related to Millennials………………….19 III. Marketing Research Objectives…………………………………………….21 IV. Primary Research…………………………………………………………..22 Qualitative Research: Focus Group Interview………………………22 Survey Objectives…………………………………………….22 Sampling Methods and Design… …………………………….22 Data Analysis and Results……………………………………24 Conclusion…………………………………………………....25 Quantitative Research: Survey……………………………………....26 Survey Objectives……………………………………………..26 Sampling Methods and Design… …………………………….27 Data Analysis… ………………………………………………27 Data Results of Survey……………………………………......28 2

Conclusion…………………………………………………....35 V. Overall Research Findings…………………………………………………37 VI. Positioning Statements and Marketing Recommendations………………...39 VII. References………………………………………………….........................41 VIII. Appendices…………………………………………………........................44 Appendix A: Focus Group Discussion Guide………….....................44 Introduction…………………………………...........................4 4 General Questions…………………………............................44 History Questions………………………….............................44 Attitude Questions………………………….............................44 Specific Questions………………………….............................45 Advertisement Questions…………………………...................45 Conclusion…………………………………............................45 Appendix B: Survey Questionnaire………………............................45

Executive Summary

To whom it may concern: The need for this research is very important for Whole foods. The purpose is to conduct marketing research on Whole Foods and to use this research to connect with the target audience which is millennials. They are upper class working women who are around 18-24 years old. We feel that conducting this research will benefit Whole Foods and help them reach their long term marketing goals. The first part our group completed was secondary research on Whole Foods. We analyzed Whole Foods different competitors, their previous ISC strategies, a SWOT analysis, and their target market. Weaknesses being a small international presence and low brand loyalty while some strengths are lowered prices and a very strong variety of items. We did this to understand what college students think about the brand and how we can get them to continue to and start coming to the store. We did this by searching the Internet. Following up our secondary research, we targeted University of Kentucky students to participate in a focus group to determine their current perception of the brand as well as their shopping habits. On Sunday, March 20, 2018 at the Bill Gatton Student Center, 11 participants answered several questions in a group setting. The results of the focus group showed that college students value price and convenience over health benefits and that Whole Foods doesn't have rewards programs or sustainable discounts which are very important to college students. Next, we developed a survey questionnaire to further our research. Every group member sent the survey out by text message or social media. By the end of the survey, we had 33 respondents in total. The responses told us that college students go grocery shopping frequently; location and value for money are the most important factors for college students; college students believe Whole Foods has the best quality and abundance of healthy products; and college students love Whole Foods Instagram feed. A special thanks to professor Baek and the University of Kentucky for helping us complete our research. We would also like to thank everyone who took the time to take our survey and participate in the focus group interview. We all greatly appreciate your efforts and support. Sincerely, Mary Bregenser, Brock Johnson, Megan Toffey, Andrea Paczkowski, Marie Emendi, and Elijah Caldwell

II.

Secondary Research (Situation Analysis)

A. Brand Profile Whole Foods, a registered trademark of Whole Foods Market IP, L.P., is a grocery store with a focus on the “finest natural and organic foods available…” (Company Info, 2018). Whole Foods Market is the 13th largest grocery chain in the U.S. (Whole Foods Market Inc., 2018). Amazon recently acquired Whole Foods Market through a definitive merger. Founded in 1980 in Austin, Texas, its first supermarket was opened by Mackey and Renee Lawson Hardy, owner of Safer Way Natural Foods and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery (Company Info, 2018). Four local businesspeople partnered and decided that the natural food industry needed to be put into a supermarket format. The first store was sized at 10,500 square feet and a staff of 19, which was larger than the average health store at that time (Company Info, 2018). Almost a year later, on Memorial Day, a terrible flood hit Austin and Whole Foods inventory and equipment were destroyed. The losses were estimated at $400,000 and Whole Foods Market had no insurance, but customers and volunteers helped repair the damage (Company Info, 2018). With the help of several investors, vendors and creditors the store was able to reopen only 28 days after the flood. Whole Foods Market started to expand in 1984, first to Houston and Dallas, then to New Orleans with the acquisition of Whole Food Company in 1988 (Company Info, 2018). In the next year a store was built in Palo Alto, California, starting the expansion to the West Coast. Whole Foods Market grew so rapidly because of the purchase of various natural food chains : Bread & Circus of Massachusetts and Rhode Island, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Nature's Heartland of Boston,

Wellspring Grocery of North Carolina, Mrs.Gooch's Natural Foods Markets of Los Angeles and Detroit area Merchant of Vino stores (Company Info, 2018). Coming into the 2000s Food for Thought in Northern California and Harry's Farmers Market stores in Atlanta were acquired. In 2001, Whole Foods Market moved into Manhattan and sparked great interest, while in 2002 it expanded into Canada and in 2004 it expanded into the United Kingdom with the purchase of seven Fresh & Wild stores (Company Info, 2018). Now, Whole Foods Market operates 470 retail stores, of which 448 stores are located in 42 US states and the District of Columbia, 13 in Canada, and nine in the UK (Whole Foods Market Inc. , 2018). The company operates in one segment: Natural and Organic Foods Supermarkets. Whole Foods Market offers a variety of natural and organic products including non-GMO, vegan, gluten-free, dairy-free and other special diet foods (Whole Foods Market Inc., 2018). With a wide range of healthy products, stores in many areas, and customization for convenience, Whole Foods Market is a supermarket that has room to prosper. B. Product Profile Whole Foods Market products are classified into three groups: non-perishables, prepared foods and bakery, and other perishables (Whole Foods Market Inc.,2018). It carries a product range of produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods, and household goods (Whole Foods Market Inc., 2018). Whole Foods Market purchases products from local, regional, national and international wholesale suppliers. The company owns one produce procurement center. It also operates three seafood processing and distribution facilities, and a specialty coffee and tea procurement and roasting operation (Whole Foods Market Inc.,2018). Whole Foods

Market has 11 regional distribution centers which mainly distribute a full range of perishable products to its stores across the US, Canada and the UK (Whole Foods Market Inc.,2018). In addition, the company has three regional commissary kitchens and four bakehouse facilities, all of which distribute products to Whole Foods Market stores (Whole Foods Market Inc., 2018) “If you want to know what goes into the products you buy, our standards make it easy, because if it doesn’t meet the standards, we don’t sell it.”, a quote from their site which establishes that their products are held to the highest standard and that they are credible (Whole Foods Market Inc., 2018). Some product standards Whole Foods Market have is that, all of their products are free of hydrogenated

fats and artificial colors, flavors, preservatives and sweeteners,

they adhere to the Global Animal Partnership 5-Step® Animal Welfare Rating, and they only sell wild-caught seafood from fisheries that are certified sustainable by the Marine Stewardship Council (MSC) or rated either “Green” or “Yellow” by the Monterey Bay Aquarium Seafood Watch and The Safina Center (Whole Foods Market Inc., 2018). When Amazon bought Whole Foods Market they immediately announced the reduction of prices on certain products (Whole Foods Market Inc., 2018). This is another shot at trying to correct the thought of Whole Foods Market being too high. The company is also no longer allowing brand representatives to promote their products or check to ensure they’re stocked and displayed to their liking. The result could be reduced sales for some products that require extra explanation. Whole Foods’ product mix is also likely to shrink as niche brands move on to other grocers (Whole Foods Market Inc., 2018). Since Amazon is in the picture now the limits are endless, many consumers will be on the lookout for what is next for Whole Foods Market after hearing the press.

C. Competition Profile Food retailing is a large, intensely competitive industry. Whole Foods Market competes with local, regional, national and international supermarkets. Also they compete with warehouse membership clubs, natural food stores and smaller specialty stores. Each of these competes with the company on the basis of store ambiance and experience, product selection, quality, customer service, price, convenience or a combination of these factors. Whole Foods Market's key competitors include Kroger, Winn-Dixie Stores, Wal-Mart Stores, Trader Joe's and Weis Markets (Whole Foods Market Inc.,2018). With the abundance of enormous competition, Whole Foods can easily lose their share and their margins can slip. Whole Foods Competitors Whole Foods has a very broad selection of products for customers (Whole Foods Market Inc.,2018). The extensive products they offer grab the attention of various customer segments. This allows Whole Foods to gain customers and retain customers at a very high rate. Also, their high liquidity puts them into position to fund any opening that they are faced with (Whole Foods Market Inc.,2018) . Whole Foods is able to fulfill any short term commitments more effectively than their peers. Lastly, Whole Foods puts major emphasis on expanding their brand nationally and also internationally. They have opened more than 75 new stores in the past three years and it has turned out to be very promising for them (Whole Foods Market Inc.,2018). They are growing through new purchases, store openings and identical store growth. Whole Foods are now tapping into new markets, reaching a wider customer base and spreading their money through different sources (Whole Foods Market Inc.,2018). A prime example is Whole Foods letting Amazon buy them out. While Whole Foods still gets to keep their authenticity, Amazon will allow them to

grow exponentially and gain a multitude of customers they have never seen before. This was an excellent business move and with the advancements of Amazon and the natural & organic business of Whole Food, the possibilities are endless. A. Direct Kroger Kroger is the largest retailer in the U.S. Has a strong three tier strategy in place which helps bring in diverse income groups. Kroger is also the only major US supermarket company to adopt an economical three-tier distribution system (The Kroger Co,. 2017). Based on the total sales, Kroger is one of the largest food retail chains in the country (The Kroger Co,. 2017). Although, they are involved with many lawsuits, have frequent recalls and profitability has gone down over the years (The Kroger Co,. 2017). Walmart Walmart is the largest retailer in terms of revenue in the world. Operating 11,695 retail units in over 28 countries serving more than 260 million customers (Wal-Mart Stores Inc, 2017). Having numerous programs that conquer the everyday lowest prices, encourage convenience and using less time, keeps customers flooding its stores daily (Wal-Mart Stores Inc, 2017). Not to mention, they take the least amount of time to sell their inventory. Being involved in legal matters could taint their brand image, like being sued for selling contaminated food (Wal-Mart Stores Inc, 2017). Trader Joe's Trader Joe's is one of the hottest up and coming retailers in the U.S. It now boasts 344 stores in 25 states and it is headquartered in Monrovia, Calif (Kowitt, B.,2010). These stores are

usually smaller but have a very specific selection of products, with 80% of the store being Trader Joe’s brand (Kowitt, B. 2010). Trader Joe’s has a great amount of organics, while the market for organics is rising now (Kowitt, B.,2010). They pride themselves on staying one step ahead of Americans and providing the right amount of new items. Some believe they're losing their authenticity which in return can make consumers lose brand loyalty over time, others believe it is too much freedom and more control needs to be put into place. Weis Markets Weis Markets, Inc. is engaged in the retail sale of food products in the US. They are focused on energy conservation in their stores, which can attract more customers that really care for the environment (Weis Markets, Inc., 2017). Having promotional deals increases customer visits and that turns into customers spending more money, which increases sales (Weis Markets, Inc., 2017). Also, they have a debt free capital structure so they can move freely with their money and don't have to worry about interest, which takes a toll on many companies (Weis Markets, Inc., 2017). In light of recent recalls, it can tarnish the brand image and discourage customers from shopping. Being concentrated in certain areas around the U.S. and not having any international business can turn out to be bad in the long run because any small occurrence, which they cant control and Weis Markets could lose a very precious customer (Weis Markets, Inc., 2017). Winn-Dixie Stores, Inc. Winn-Dixie is headquartered in Jacksonville, Florida, and employs 47,000 people, of whom 26,320 were part time employees as of June 29, 2011(Winn-Dixie Stores, Inc, 2017). This company operates 484 stores in five states, including Florida, Alabama, Louisiana, Georgia and

Mississippi (Winn-Dixie Stores, Inc, 2017). Winn-Dixie is an established regional retailer which gives them room to bargain and a lot of brand recognition, which attracts customers. With their recent push to relate to customers they have remade stores, added more food and design options, and tailored it to certain neighborhoods of people (Winn-Dixie Stores, Inc, 2017) This entices customers to keep coming back and keeps them interested everytime they come to shop. Winn-Dixie are focused in two areas while others retailers are spread throughout the U.S. and the world (Winn-Dixie Stores, Inc, 2017). This is very risky because Winn-Dixie is subject to the ups and downs of those areas and can hurt their sales. Having recalls on certain products that can cause allergic reactions and medical problems can make consumers shop elsewhere because they don’t know what to expect and they can't trust the product anymore. B.

Indirect

Smaller Speciality Stores These stores provide options that are very particular and can save you from busy supermarkets.. You don’t have to compromise on price and can grab the quality product you want. Last but not least you don't have to worry about impulse shopping, because you came for specific items and there's only so much you can buy. These stores work well but they usually have less stock, and don't have the resources and revenue to gain a substantial share of the market. Natural Food Stores Natural food stores grab a piece of the industry also. Individuals may choose to go here because of their sole purpose of selling a specialized selection of health foods. Whole Foods is focused mainly on selling organic and natural but it also sells other things, whereas natural food

stores focus on that sole thing. Many have started to be built in different areas to maximize their availability and sales. Your health purchase will most likely be customized to your liking or what you prefer, so many consumers will pay the price. With the emergence of organic and natural foods in many supermarkets, the business of natural food stores will have a very hard time gaining any more market share. Warehouse Membership Clubs Warehouse membership clubs are modeled differently than supermarkets. They make their money off of charging an annual membership fee and having much lower markdowns. Warehouse membership clubs have the biggest savings on certain items. While groceries are the main vocalpoint, consumers have access to different services like discounts on movie tickets, insurance, legal services for businesses and much more. They also have great return policies, free samples on the weekends, and one-stop shopping: where you can pack many errands into one. Most warehouse membership clubs don’t accept coupons, and many individuals can’t get past the fact that you have to pay before you even shop there, so it will be hard for this group of stores to gain valuable attention. Profile of Target Market Based on secondary consumer data research, the majority of Generation Y that are potential Whole Foods consumers are upper-class, working women of Asian descent. Generation Y, also known as millennials, are generally between the ages of 18-24 and are the most “apt to embrace foods and beverages with an organic label” (MRI 2017, Shopping: Food Stores, Grocery, & Warehouse/Club Stores - Times Shopped; Roberts, 2017). Women are the basis of this new target market since they are 15 percent more likely to shop at Whole Foods than

men. This particular group of women are 88 percent more likely to have or be working toward a postgraduate degree and 47 percent more likely to have an occupation in Management, Business and Financial Operations in the future. This group is also considered to be upscale since they are 77 percent more likely to have a personal or familial household income of $150,000 or over (MRI 2017, Shopping: Food Stores, Grocery, & Warehouse/Club Stores - Times Shopped). The targeted Asian American women are most likely to watch Bloomberg Television, HBO and tennis, read The New Yorker and commonly make travel arrangements on Airbnb (MRI 2017, Shopping: Food Stores, Grocery, & Warehouse/Club Stores - Times Shopped). They are commonly at the center of street culture, live in the moment and put forth a constant effort to better their lives (VALS, 2018). Whole Foods has implemented an experimental spin-off store, 365, that provides vegan options, craft beer on tap and self-serve organic tea kiosks that directly coincides with the interests of this new target market (La Monica, 2016). This new target market is also tech savvy and focuses on health and self-improvement (Claritas, 2018). Research and surveys performed by the Organic Trade Association show that millennials are now the main consumers of organic goods. “This generation has grown up eating organic, and seeing that organic label. It’s not surprising that they have a greater knowledge of what it means to be organic, and consequently a greater trust of the organic label” (McNeil, 2016, para. 11). According to Forbes, Whole Foods offers “services like in-store chair massages, craft beer bars, and pressed juice samples” and “their emphasis on overall physical and mental wellness hits the sweet spot of millennial desires” (Kusek, 2017, para. 7). The targeted millennials have developed a sense of loyalty to organic products, eco-friendly services and cultural events that provides a viable audience for Whole Foods to reach.

Previous ISC Strategies There’s no doubt that a brand that is perceived as high quality, deserves a strategy that is high quality. The Whole Foods Market Incorporation has explored various types of strategies that fall well under the brand. Whole foods is often described as high-quality and organic, so the advertisements must match those keywords (Company Info, 2018). Whole Foods was recently acquired by Amazon, the online retail center, so pairing with them was an easy choice. To create buzz for both brands, Amazon decided to include a promotion for all Amazon Prime users. For this promotion, users can get deals on products in any Whole Foods store or can take advantage of the two-hour delivery system (Colborg, 2018). This goes along with the special 2-day delivery service through Amazon’s website for prime users. This can be used heavily by the busy consumers who enjoy high quality, organic food, but do not have the time to shop for it. Not only that, but consumers who aren’t yet prime users are then influenced to become a member for the benefits (Colborg, 2018). Besides working with Amazon, The Whole Foods brand is centered on being organic and high quality. Whole Foods teamed up with EARTH University, a school in Costa Rica that focuses entrepreneurship and sustainable agriculture for students (Whole Foods Market, 2012). Chunks of bananas are sold in the Whole Foods store, and all of the proceeds go directly to EARTH university. A lot of the advertisements for this promo feature citizens from Costa Rica or bundles of the actual bananas (Whole Foods Market, 2013). This demonstrates that Whole Foods cares for the environment as well as the products the brand sells in the Whole Foods stores.

Additionally, Whole Foods has invested more than 26 million into advertising in the last year. Nine million of which went toward cable TV specifically. Whole Foods can be found on social media platforms such as Facebook, Twitter, Instagram, and Youtube. Their Twitter covers over four million followers. Although they hold such a large following and reach on social media, Whole Foods only spent a little more than 200 thousand in the last year on mobile advertising (Redbooks, 2018). SWOT Analysis and Rationale Figure 1: SWOT Chart

Strengths

Weaknesses

● Prices have declined

● Small International Presence

● Strong variety in items sold

● Declining Sales/ Low brand loyalty

● New management team

Opportunities

Threats

● Need for private brands rising

● Intense competition in the high end

● New cashierless checkout system

grocery store market. ● Kroger and Target merge

Strengths

Prices have declined

Whole Foods is known for its intense dedication to quality food items. The high end grocery stores offer healthy, private food brands that are exclusive to the store only. The brands offered are known to be relatively expensive and unaffordable but Whole Foods took a major step in becoming more price friendly. Price cuts were applied to many of Whole Foods best selling items like kale, chicken and apples. Many items have seen a price deduction as large as 43 percent (Weinbren, 2017). Whole Foods released a statement stating that “We’re determined to make healthy and organic food affordable for everyone. Everybody should be able to eat Whole Foods Market quality—we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” in order to vocalize their dedication to reasonable pricing on items. Strong Variety in Items Sold According to a survey done in Charlotte, NC in 2015, Americans are willing to spend more money at a store if they can get all their shopping done at that location. Whole Foods variety allows customers to shop for all different types of products. Items sold range from dog food, to your favorite desserts. “You can buy Vegan cheese at whole foods, but you can also buy Cheesecake.” (Kowitt, 2017, para. 8). Whole Foods large range of products offers customers a buying experience that has more product variation than many high-end supermarkets offer. New Managing Team Whole Foods has been singularly owned up until 2017 when a deal was made with Amazon. Amazon bought Whole Foods for 13.7 billion dollars merging two large companies together. Amazon is known for putting customer benefits first. They have implemented memberships programs like Amazon Prime which comes at a low price for students and have

lowered the cost of textbooks as well. With Amazon now owning Whole Foods they have made a promise to lower prices and are dedicating themselves to making Whole Foods grocery stores that fit all people in different income groups. In the short time Amazon has gained ownership prices have decreased and sales have risen. “With Amazon and Whole Foods merging, we’ll see prices dropping for sure, and if the more premium beverages in this space can’t compete at a price point Amazon demands, they will either drop out, go direct to [the] consumer or reformulate to be cheaper,” says Kara Nielsen from Amazon sales and engagement (Harfman, 2017, para. 6). II.

Weaknesses

Small International Presence Many American Supermarkets have gone global and as a result have seen their brand awareness increase. Whole Foods is a successful United States brand but struggles when competing at the global standpoint. With stores like Edeka which have dominated the global market, Whole Foods falls short with locations only in the United States, Canada and the United Kingdom , making for a reach much shorter than its competitors ( Housewares, 2017). Declining Sales/ Low Brand Loyalty Whole Foods has over 400 locations nationwide and stores in more than 25 different states. The large supermarket chain has seen a decline in sales in more than 40 percent of their stores in the last 6 months. Customers who used to shop at high end stores have moved their business elsewhere. A chain in San Diego, CA was the first of many to close its doors to the public due to lagging sales. Soon after stores in Arizona, Colorado, and Georgia, Illinois, New Mexico and Utah followed suit and also were forced to seize business (San Diego, 2017).

III.

Opportunities

Want for Private Brands Rising More than 31 percent of Americans enjoy using brands of products that arenâ&#x20AC;&#x2122;t as accessible to the general public. The product could be one that would be cheaper with a generic brand but Americans would rather spend more because they feel price and quality have a positive relationship to each other. Whole Foods has over 100 brands that are exclusive to specialty stores only and canâ&#x20AC;&#x2122;t be found anywhere else giving them an advantage in the product market(Kowitt, 2017). New Cashierless Checkout System With Amazon and Whole Foods combining one of the many things that Amazon plans to change is the efficiency of grocery shopping. A new cashierless checkout system will be implemented and trialed in Seattle, Washington. This system allows customers to log in to their amazon account from their mobile device and shop for items. Everytime an item comes off the shelf and into their real cart it is also added to their virtual cart. Once a customer is done shopping they can simply leave and will automatically be billed for it mobily. This adds convenience and independence that is not found in other supermarkets (Harfman, 2017). IV.

Threats

Intense competition in high end grocery store market Although Whole Foods is a large and still growing business that offers a variety of items unique to most supermarkets, it still finds competition with stores that aim to do the same things. Trader Joeâ&#x20AC;&#x2122;s is another organic food company that offers healthy foods and shares locations with

Whole Foods in many different states. Whole Foods markets itself as a unique, specialty store but with Trader Joe’s offering prices that are competitive , Whole Foods may see a shift in customer loyalty and sales. Kroger and Target Merge The merging of Amazon and Whole Foods is one of the largest merges in supermarket history. Target and Kroger are looking to do something similar. This new partnership aims to improve Krogers e-commerce skills and Targets grocery market. Kroger is eager to move toward online grocery shopping and Target could be their partner in doing that. The merger between Amazon and Whole Foods changed and intensified competition in the grocery industry but this merger could put Whole Foods at an even playing field (Mcgrath, 2018). Marketing Problems and Opportunities Related to Millennials Millennials are starkly different than other generations before them, and this fact alone makes them more difficult to target through traditional marketing. This is strongly influenced by this generation’s strong ties to technology (Ehlers, 2017). Even though it was found that only 2 percent of millennials change the channel during commercials while watching TV, this lack of channel surfing does not mean they are more engaged with advertisements on the screen because they actually “scored low memorability rates for what they watched” (Ehlers, 2017, para. 5). This large shift in viewing habits is connected to mobile devices, and the alternative form of entertainment they provide during advertisements (Ehlers, 2017). Millennials are also more influenced by non-traditional advertising than other generations have been in the past. Again, their opinions and decisions are strongly persuaded by social media

and online influencers (Ehlers, 2017). In fact, 29 percent of millennials say they have bought a product because it was featured in a blog or vlog (Mintel, 2018). Another struggle advertisers face with this generation is the diversity within it. In fact, 44 percent of millennials are non-white, making them the most diverse generation, to date (Frey, 2018). This immense diversity makes this generation especially difficult to target through marketing because it is no longer a “one-size-fits-all model” (Ehlers, 2017, para. 4). Although there are some struggles related to target millennials, they also present some unique opportunities that have never been afforded to brands in the past. According to Nielsen, 46 percent of millennials are not annoyed by advertisements, and actually understand and appreciate their purpose and need, whereas 75 percent share the same opinion “when the content they are viewing is free” (Ehlers, 2017, para. 6).

III.

Marketing Research Objectives

Based on our research, we have developed a few marketing research objectives. Our first objective is to determine consumer perception of Whole foods in comparison to direct and indirect competitors. Second, we hope to enhance the social media presence and narrow down the spending for ads. Finally, our third objective is to understand why college students choose whether or not to shop at Whole Foods.

IV.

Primary Research

Qualitative Research: FGI Focus Group Objectives 1. To determine consumer perception of Whole foods in comparison to competitors 2. To determine the best way to enhance Whole Foodsâ&#x20AC;&#x2122; social media presence 3. To understand why college students choose whether or not to shop at Whole Foods These objectives were used to collect qualitative data on the perceptions that college students have towards Whole Foods. The data collected from this focus group interview will assist in creating a survey questionnaire that will help pinpoint new strategic recommendations for Whole Foods to target millenials. Sampling Methods On Sunday May 20, 2018, a focus group was conducted on the campus of the University of Kentucky in order to gain information about Whole Foods. The objectives of this focus group interview â&#x20AC;&#x2039;to determine consumer perception of Whole foods in comparison to direct and indirect competitors, to enhance the social media presence and narrow down the spending for advertisementsâ&#x20AC;&#x2039;, and to understand why college students choose whether or not to shop at Whole Foods. The target audience for this study are college students, between the ages of 18-24. The focus group will be conducted in the Bill Gatton Student Center on the University of Kentucky campus and it will include 11 participants, 7 females and 4 males. The participants were selected using the convenience sampling method due to financial, time, geographic and availability restrictions. Each participant was selected because they had a relationship with one or more group members. Selected participants were only required to be college students.

Design This focus group was conducted using 25 pre-written questions in order to provoke conversation among participants of the focus group. One moderator and one assistant moderator led the group through various questions about the general grocery shopping experience, Whole Foods, Whole Foodsâ&#x20AC;&#x2122; competitors, and different advertisements that were promoted by Whole Foods. This focus group was held in a conference room inside the Bill Gatton Student Center in order to provide a secluded, distraction-free environment for both moderators and participants. The moderator began the focus group session by outlining the purpose of the focus group, giving participants information about what the focus group would entail and introducing all of the focus group leaders. The moderators sat at the head of a long table with the participants sitting around the table. Other group members sat behind the moderators to take notes. The focus group interview began with participants entering the room and sitting at a large table with the moderators sitting at the head. The session started with each participant as well as all of the group members going around the room and introducing themselves. They each said their name, year in school, where they were from and why they were in Lexington for the summer. From there, they were asked general questions about their grocery shopping experiences and their general attitudes about the grocery shopping process. This helped the following, more specific questions about Whole Foods and its competitors flow much more naturally and helped the group gauge where Whole Foods stood against its competitors.

Data Analysis and Results The majority of participants in this focus group associated grocery shopping with Kroger. While all of them had heard of Whole Foods, none of them saw it as a primary grocery shopping location. One participant, Allie, age 22, said, “I will sometimes go to Whole Foods to grab specific, healthy things that I can’t find at Kroger, or even to eat at their buffet, but I don’t think of it as my staple grocery store.” Most other participants agreed with this statement, and seemed to think of Whole Foods as a store for “specific” and “healthy” items. One common opinions about Whole Foods was the idea that going there was a “planned excursion” or “experience”. Many participants felt like the location of Whole Foods made it “difficult” and “frustrating” to get to, so they felt as if they had to plan to go there in advance. This was a stark contrast to competitors like Kroger, where participants felt like they could “run in and run out” in a fast and convenient way. When asked further about why participants would choose a brand like Kroger over Whole Foods, the most common response was price. Every participant said that Whole Foods’ prices are too high to make that their go-to grocery store. One participant, Taylor, age 21, said, “I’m a college student, which means I’m poor. I’m fine not paying for the higher quality brands at Whole Foods if it means I end up saving money.” The other factor that influenced participants to shop at Kroger, specifically, is their rewards system. In fact, one participant, Gracie, age 20, said “I will go out of my way to buy stuff at Kroger because I know I’ll get points that I can use on gas and discounts.” When asked about Whole Foods’ social media accounts, there were only a few participants who said they had seen Whole Foods content. Though not many participants were familiar with social media, the ones who had seen it described it as being “colorful”,

“natural” and “satisfying”. When asked about seeing Whole Foods on TV commercials or in the news, none of the participants were able to recall Whole Foods in either context. Conclusion From the focus group interview, the group has a better understanding of Whole Foods in comparison with its competitors and why it might be experiencing certain problems. Through the results of the focus group, we found that college students value convenience and price over health benefits when it comes to grocery shopping. The ability to participate in a rewards program and easily receive discounts is also very important to this age group because of its limited income. In order to gather more information and further learn about the perceptions of Whole Foods, we will conduct a survey compiled of answers from over 30 participants belonging to the same target audience.

Quantitative Research: Survey Survey Objectives After we conducted the Focus Group Interview, we found that Whole Foods wasn’t the most favored grocery shopping store for University of Kentucky students. We found that students did not shop there because the products at Whole Foods can be pricey and they shop for convenience. However, we did discover that the students enjoyed the ads produced by Whole Foods and enjoyed the Whole Foods instagram page. The intent of our survey was to further increase our team’s knowledge regarding UK students overall feelings toward the brand and their shopping attitudes. Learning what incentives and factors that are incorporated in the consumers’ decision to shop at Whole Foods through this information will allow us to gain a better understanding on how to position the Whole Foods brand to college students for more effective sales. The following are the objectives of the survey: I.

Further expand knowledge in understanding how college students shop for groceries.

II.

Discover how college students currently perceive the Whole Foods brand and evaluate the quality of their products.

III.

Understand strategies to further improve the connection to college students.

Sampling Methods and Design The sampling frame used in the survey questionnaire utilized college students, both male and female, of various ethnicities, between the ages 18-24 years old who attend the University of Kentucky. The survey questionnaire was collected from a total of 33 college students (n=33) on the University of Kentuckyâ&#x20AC;&#x2122;s campus. In the end, it seemed that our results fostered more responses from females than males. Our results included 5 males and 28 females and their ages included the following: two 18-year-olds, ten 19-years-olds, four 20-year-olds, twelve 21-year-olds, two 22-year-olds, and three 23-year-olds. The average was 20-years-old. Each researcher was responsible for distributing the surveys to UK students over the course of four days, May 25th, 2018 to May 29th , 2018. The respondents filled out the survey through a link on the qualtrics website. Surveys were distributed to individuals located in campus through text, email, and social media posts by every member in the group. This survey was intended to gain quantitative information from college students to better understand their perceptions and attitudes towards the Whole Foods brand. The detailed survey allowed us as researchers to gain a view into the minds of students through a range of questions in the format of all four scales (nominal, ordinal, interval, and ratio) and all six scaling techniques (categorical, rank-order, constant-sum, Likert, semantic differential, and sample). We are analyzing the brand juxtaposed with their competitors, and the following finds will tell us individual buying behavior for Whole Foods grocery shoppers Data Analysis

To analyze the survey results, a Qualtrics survey was used. Qualtrics calculated and put the data into various graphs manually. This made it easy for our group to interpret the data and export it anytime we needed. Data Results The survey questionnaire provided a lot of valuable information about our target audience for the study as well as grocery shopping behavior in general. A majority of our participants (84.84%) stated that they go grocery shopping several times a month. This shows that grocery shopping is very important for college students. Students indicated that these factors are what drives them to shop at certain grocery stores: Location, In-store coupons or specials, Value for money, Friendliness of staff, and Ready to eat more healthy foods. It seemed that, based on a 1-5 point scale, the most important factors were location (M=4.27; SD= .674) and value for money (M=4.36; SD= .822). In this survey, we found that 15/33 students (45%) said that if income were not a concern, they would shop at Whole Foods two to three times a week. This suggests to us that cost is a factor when college students make purchase decisions. Recalling the data from existing grocery shopping frequency, this does not change much. Those who said they already shop two to three times a week stated that they would shop at Whole Foods instead if they could. In our survey, we wanted to not only judge the concerns of the students, but also their perceptions of the actual products/services at Whole Foods. We asked students to rank four grocery stores based on quality, abundance of healthy products, and their current favorite. They stated that Whole Foods contains the most amount of healthy products, on a scale of one to 5 and one being the best (M= 1.36; SD= .699). These results agree that students may perceive Whole Foods as an expensive grocery, but the products are the best quality.

In order to determine why consumers prefer other grocery stores above Whole Foods we needed to determine the shopping habits of our target audience. So, our first question of our survey prompted the respondents to describe how often they shop at any grocery store. Our results for this question are represented in Figure 1. We found that the mean highest amount of participants (48.48%) go grocery shopping once a week or more often. This means that 15 of the respondents shop quite frequently, and would care a lot about the products they purchase. A dependent variable for this could be how much they buy when they go grocery shopping. The amount of groceries each participant buys could give us a true estimate on the exact spending for the students. Figure 1

In our next set of questions, we wanted to gauge what determines where each participant shop for groceries. We asked the participants what the most important characteristics of grocery

stores were. The participants were requested to rate the importance of location, value for money, in-store coupons or specials, friendliness of staff, and ready to eat more healthy meals. The results for this are below in Figure 2, with 1 being not important at all, and 5 being extremely important. They stated that the most important factors were location (M=4.27; SD= .674) and value for money (M=4.36; SD= .822). This is important to note, because Whole Foods does not have a store close to campus, and the closest one is approximately 2 miles away from the center of campus. The closest grocery store is Kroger, which is the biggest competitor for Whole Foods. Our participants voted that value for money is also important for the fact that they donâ&#x20AC;&#x2122;t always have the income to pay for the best, most healthy products, but do have the money to spend on cheaper Kroger brand items. Figure 2

To efficiently show the position of the Whole Foods brand against competitors, we asked our participants to rank Aldi, Kroger, Trader Joe's, and Whole foods from 1 to 4 for several categories. Those categories include best grocery store, best quality of product, and most abundance of healthy product choices. It turns out that Whole foods was favored in the abundance of healthy food options (M=1.36; SD= .699) and best quality (M= 1.79; SD= .992). In the category of best grocery store, the leader was Kroger (M= 1.97; SD= .918) with Whole Foods coming in second (M= 2.12; SD= 1.023). This data, presented in Figure 3, supports the reasoning that students at UK enjoy the products from Whole Foods. Figure 3

Next, we wanted to get to know more about why our participants enjoyed Kroger above Whole Foods. We asked that the respondents associate words with both brands, and tell their likes/dislikes about both. When we gave the participants the option to speak freely through an open response, we got a lot of the same answers. The thing that most of the respondents said they liked about Whole Foods was the healthy options. Over half of the respondents (66.67%) stated that the healthy options are the best thing, but when we compared that data to Kroger, they responded with answers as positive. Only 15.15% of the respondents mentioned the products being their favorite part about Kroger. Most of them, 39.4%, said that their favorite thing about Kroger is the proximity or location. Whole foods did receive a lot of negative feedback about one subject, and that is the price. Almost all of the respondents (75.75%) stated that the price of the product was the biggest downfall. It can be hard for college students to pay for groceries sometimes, especially at high-end grocery stores like Whole Foods. Therefore, we decided to eliminate the worry of cost by asking students how they would spend their money if it wasnâ&#x20AC;&#x2122;t a variable. Our findings are included in Figures 4 and 5. First, we asked them if they would entertain the idea of shopping at Whole Foods if they didnâ&#x20AC;&#x2122;t have to worry about money. The results showed that shoppers actually wouldnâ&#x20AC;&#x2122;t change their shopping habits. With income being a dependent variable, the frequency of grocery shopping was highest at once a week or more often (48.5%). With income not a variable, the highest frequency stayed the same at once a week or more often, but the percentage dropped slightly (45.5%). We then asked the respondents to provide totals of how much they would spend on certain products if they were given $100 to spend. The options to choose from were fruits,

vegetables, meat, drinks and toiletries. The results for this were quite scattered, but most of the respondents said that they would spend the majority of the $100 on meat (M=28.32; SD= 14.36). Most of the respondents (29.4%) also stated that the most they would spend on meat at Whole Foods was $20. For fruits, the second highest mean (M= 24; SD= 10.5), 29.4% stated that they would spend $20. Vegetables were rather close (M=23; SD= 11.5) with 38.2% respondents saying they would also spend $20. Drinks (M=12.8; SD= 7.71) and toiletries (M=11.47; SD= 18.07) arenâ&#x20AC;&#x2122;t usually expensive, or resort to other means of buying, therefore not many respondents said they would spend the money on them. Figure 4

Figure 5

After the buying behavior was analyzed, we wanted to see what it would take to gain a higher interest in college students. We thought that college students could establish a connection with the Whole Foods by giving the respondents a look at their social media accounts. We snapped a screenshot of Instagram that includes several different products that Whole Foods sells in their stores. Below, in Figure 6, one can see that the means for each characteristic are above 4. The respondents were asked to describe their feelings on if they liked the feed, trusted the feed, thought it was high quality, and desired the products on the feed. The ratings were based on a 1-5 point scale, with 1 being the least amount of each characteristic. According to the data, it seems that college students enjoyed all aspects of the feed.

Figure 6

Conclusion From the Survey Questionnaire, the group has a better understanding of Whole Foods in comparison with its competitors and why it might be experiencing certain problems. Through the results of the survey, we found that a lot of the concerns were similar to the ones in the focus group interview. Those concerns are that college students value convenience and price over health benefits when it comes to grocery shopping. There isnâ&#x20AC;&#x2122;t a Whole Foods close to campus and the prices arenâ&#x20AC;&#x2122;t low enough to motivate students to drive all the way to the summit. The ability to participate in a rewards program and easily receive discounts is also very important to this age group because of its limited income. In order to gain participation from college students Whole Foods must continue to do what they are good at, and thatâ&#x20AC;&#x2122;s their social media content. In our survey, the respondents agreed that they enjoyed the feed. Therefore Whole Foods has the ability to catch that market's eye and hold them until they have the income to spend at Whole Foods.

Overall Research findings

The past several weeks substantial research has been conducted to create a campaign for Whole Foods to target millenials. Primary, secondary and exploratory research was regulated to give a better sense of how Whole Foods can be presented to Generation Y. Collecting data from college students shed an interesting light on income, interests, and buying behavior. Our research has given us the necessary information that we needed to make tactical recommendations that will enable Whole Foods to plan and develop insightful, strategic campaigns for millenials. Our secondary research consisted of a situational analysis on Whole Foods to figure out their problems and any opportunities they have to capitalize on. By conducting this research we found that Whole Foods has many strengths like their lowered prices, strong variety of items sold, and a new management team in Amazon, who are known for putting customer benefits first. Whole Foodsâ&#x20AC;&#x2122; weaknesses are having a small international presence, declining sales and low brand loyalty between customers. Whole Foodsâ&#x20AC;&#x2122; threats are intense competition in the grocery store market and the possibility of Target and Kroger merging. Whole Foodsâ&#x20AC;&#x2122; opportunities include the want for private brands rising in the past year and a new cashier checkout system that doesn't require customers to checkout with an associate. A key marketing problem for Whole Foods is the fact that they spent more than 26 million in advertising in the past year and only a little over 200 thousand went to mobile marketing, when millenials are infamous for their high phone usage. The exploratory research we conducted contained a focus group interview involving students that attend the University of Kentucky. The major takeaways were that college students

value convenience and price over health benefits, and also that rewards programs and discounts are important because of a limited budget. The primary research we conducted contained a survey questionnaire which was sent and answered by 33 college students. The major takeaways were that college students go grocery shopping frequently; location and value for money are the most important factors for college students; college students believe Whole Foods has the best quality and abundance of healthy products; college students would shop at more expensive places than Whole Foods if money wasn't a concern; if given $100 to spend at Whole Foods college students would spend most of the money on meat but the most they would pay is $20: and college students love Whole Foods Instagram feed.

VI.

Positioning Statements and Marketing Recommendations

After collecting and analyzing data and information we have come up with a strategic campaign for Whole Foods to implement in hopes that the company will be able to appeal to the target audience of college students, ages 18 to 22. Two of the most significant issues we found in our research that were deterring customers from shopping at Whole Foods were the location of the store and the high prices. Even though those things cannot be changed, there are ways to work around those problems to make them seem like minor issues. Especially since members of the target audience appreciate discounts and deals, we recommend that Whole Foods creates a strong rewards program that will give customers worthwhile discounts, making them go out of their way to shop at Whole Foods. Currently, Whole Foods focuses on promoting the high quality and health benefits of their products, but since our feedback, from both the survey and the focus group interview, show that customers care more about convenience and cost savings, positioning themselves as a brand who offers meaningful rewards and discounts to loyal customers would help them excel with this age group. Furthermore, it would be beneficial for Whole Foods to spend more time and money promoting their social media accounts, Instagram specifically. The survey feedback reflecting feelings about the companyâ&#x20AC;&#x2122;s existing Instagram account was positive, although in the focus group interview, only a few participants had seen content from Whole Foodsâ&#x20AC;&#x2122; social media accounts. The visuals of the social media are effective and enticing, making customers want to shop there, but there needs to be more exposure as well as more information shared with each post. Because of this, we recommend that Whole Foods creates sponsored posts that can be shared on Instagram and Twitter that can then be used to generate earned media through

continued sharing. These posts should be used to promote a rewards program in order to show customers that they can get healthy, clean, fresh food while still being financially conscious. The goal is to promote two-way interaction between customers and Whole Foods to really emphasize how much the company cares. Using enticing images while promoting a money-saving rewards program will help push Whole Foods toward being synonymous with cost-effectiveness, as well as health.

VII. References Claritas. (2018). 04 - Young digerati: Segment details. Claritas My Best Segments. R etrieved from https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=37&id 1=CLA.PNE&id2=04. Company Info. (2018). Retrieved from https://www.wholefoodsmarket.com/company-info’ Ehlers, K. (2017). May We Have Your Attention: Marketing To Millennials. Forbes. Retrieved from: https://www.forbes.com/sites/yec/2017/06/27/may-we-have-your-attentionmarketing-to-millennials/#3d62df041d2f. Frey, W. (2018). The millennial generation: A demographic bridge to America’s diverse future. Brookings. Retrieved from: https://www.brookings.edu/research/millennials/. Carlborg, G. (2018, March 30). Prime Time at Whole Foods. Retrieved May 14, 2018, from https://www.l2inc.com/daily-insights/prime-time-at-whole-foods. Harfman, B. (2017). A Merger Of Two Giants. Channel Strategies. 1-3. Housewares. (2018). Amazon to Acquire Whole Foods Market. Housewares News. Kowitt, B. (2010). INSIDE TRADER JOE'S. (cover story). Fortune, 162( 4), 86-96. Kowitt, B. (2017). Whole Foods Takes Over America. Business Source Premier. Retrieved from http://eds.a.ebscohost.com.ezproxy.uky.edu/eds/detail/detail?vid=3&sid=6e0ce259-8d014056-8ff2-2d34f0baec50%40sessionmgr4009&bdata=JkF1dGhUeXBlPWlwLHVpZCxjc GlkLHVybCZjdXN0aWQ9czg0NDEwMDgmc2l0ZT1lZHMtbGl2ZSZzY29wZT1zaXRl #AN=95540667&db=buh. The Kroger Co. SWOT Analysis. (2017). Kroger Co. SWOT Analysis, 1-8.

Kusek, K. (2017). Amazon makes Whole Foods mecca for millennials. Forbes. Retrieved from https://www.forbes.com/sites/kathleenkusek/2017/06/17/amazon-can-make-whole-foodsgrocery-mecca-for-millennials/#7fc0fe275a14. La Monica, P. (2016). Whole Foods bets big on urban millennials. CNN. R etrieved from http://money.cnn.com/2016/05/24/investing/whole-foods-365-los-angeles/index.html. MRI (2017). Spring 2017 product report: Shopping. Category: Food stores, grocery, & warehouse/club stores - times shopped. Base: Adults. Target: Shopped in the last 6 months. Whole Foods. Mcgrath, M. (2017). Are Target and Kroger Eyeing a Merger. Retrieved from: http://eds.a.ebscohost.com.ezproxy.uky.edu/eds/detail/detail?vid=4&sid=ecab448a-38e1 4f92-a505-77bf6b8bc06f%40sessionmgr4009&bdata=JkF1dGhUeXBlPWlwLHVpZCxjc GlkLHVybCZjdXN0aWQ9czg0NDEwMDgmc2l0ZT1lZHMtbGl2ZSZzY29wZT1zaXRl [#AN=128656899&db=buh. McNeil, M. (2016). Millennials and organic: a winning combination. Organic Trade Association. Retrieved from https://www.ota.com/news/press-releases/19256. Redbooks. (2018). Whole Foods Market, INC. Redbooks Academic Edition. Retrieved from: https://www-redbooks-com.ezproxy.uky.edu/advertiser/WHOLE_FOODS_MARKET_I NCORPORATED/ Roberts, W. (2017). The natural/organic food shopper - US - July 2017. Retrieved from Mintel Oxygen database, http://academic.mintel.com.ezproxy.uky.edu/display/793957/# San diego. (2017). Closings Show Whole Foods not Immune to Competitive Realities. San diego Business Journal. 2-4.

Wal-Mart Stores Inc. SWOT Analysis. (2017). Wal-Mart Stores, Inc. SWOT Analysis, 1-8. Weis Markets, Inc. SWOT Analysis. (2017). Weis Markets, Inc. SWOT Analysis, 1-7. Whole Foods Market. (2012, August 06). Earth University Banana Chunks. Retrieved from https://www.wholefoodsmarket.com/products/earth-university-banana-chunks. WholeFoodsMarket. (2013, April 01). EARTH® University | WEG | Whole Foods Market. Retrieved from https://www.youtube.com/watch?v=4-YxbEivPcs. Whole Foods Market Inc. (2018). Whole Foods Market, Inc. SWOT Analysis, 1-7. Winn-Dixie Stores, Inc. SWOT Analysis. (2012). 1-8. Mintel. (2018). Millennial statistics. http://academic.mintel.com.ezproxy.uky.edu/insight_zone s/15/. VALS. (2018) Strivers. Strategic Business Insights. Retrieved from http://www.strategicbusinessinsights.com/vals/ustypes/strivers.shtml. Weinbren, E. (2017). Whole Foods Price Cuts just the Beginning Amazon Vows. Grocer. Retrieved from: http://eds.b.ebscohost.com.ezproxy.uky.edu/eds/detail/detail?vid=3&sid= 1797068b-0fb4-46c1-9930-0a2814d5ee70%40sessionmgr101&bdata=JkF1dGhUeXBlP WlwLHVpZCxjcGlkLHVybCZjdXN0aWQ9czg0NDEwMDgmc2l0ZT1lZHMtbGl2ZSZ zY29wZT1zaXRl#AN=124926417&db=b9h.

VIII. Appendices Appendix A: Focus Group Discussion Guide 1. a.

b. c. d. e.

2. a. b. c. d.

3. a. b. c. d. e. f.

4. a. b. c. d.

Introduction We will be recording this for our research use only. I (name) am the moderator. Next to me is the assistant moderator (name). The other people in this room are just observing, so just ignore them. This focus group is very informal, it should be casual and be sure to stay relaxed! There are no right or wrong answers, so speak freely. We ask that you be honest in this focus group, no matter the answer we value your input! Here are the discussion rules ○ Talk one at a time ○ Don’t dominate the Discussion ○ Talk in any order ○ Listen to others Questions?

General attitudes toward grocery shopping Do you shop more or less now that you are in college? What are some advantages of grocery shopping in college? What are some disadvantages of grocery shopping in college? Do any words come to mind when we say “grocery shopping”?

Purchase History for Grocery Stores When and where do you most shop for groceries at? What about the people you live with or know? When you shop for groceries, do you shop for other things? What place would you go to for more than just groceries? Do you prefer any certain grocery stores? Why? What about your family members?

Attitudes toward Whole Foods Have you heard of Whole Foods Market before? Do you have any experiences with Whole Foods? What was your level of satisfaction with Whole Foods? Describe. What did you buy when you were there? 45

e. f. g. h. i.

5. a. b. c. d. e. f.

What words do you associate with “Whole Foods Market” Did you enjoy the aesthetic of the store? What was your favorite part? Would you recommend Whole Foods to someone else? Why or why not?

Whole Foods Advertisement perceptions Have you ever seen any Whole Foods advertisements? What did the ad look like? What did you like or dislike about that ad? Do you have suggestions for ads going forward? Have you heard about Whole Foods in the news recently? Where did you hear it and what did you hear?

Conclusion a. That’s all we need from everyone! Once again, my name is (name) and I was your moderator. My name is (name) and I was your assistant moderator. b. We hope you all enjoyed this discussion and if you have any questions about the brand feel free to let us know.

Appendix B: Survey Questionnaire Dear Participants: You are being asked to participate in a class research study for ISC 321 from the University of Kentucky. The purpose of this study is to examine people's perceptions of grocery shopping experience. This study will contribute to our completion of a class project. This study consists of a survey that will be administered online. You will be asked to provide answers to a series of questions related to grocery shopping experience. There are no risks from your involvement in this study. The results of this research will be presented in the classroom. While individual responses are obtained and recorded anonymously and kept in the strictest confidence, aggregate data will be presented representing averages or generalizations about the responses as a whole. No identifiable information will be collected from the participant and no identifiable responses will be presented in the final form of this study. All data will be stored in a secure location accessible only to the researcher. Your participation is entirely voluntary. You are free to choose not to participate. Should you choose to participate, you can withdraw at any time without consequences of any kind. However, 46

once your responses have been submitted and anonymously recorded you will not be able to withdraw from the study. If you have questions or concerns during the time of your participation in this study, or after its completion or you would like to receive a copy of the final aggregate results of this study, please contact us:

Sincerely,

Brock Johnson: mbjo229@g.uky.edu Megan Toffey: metoffey@gmail.com Marie Emedi: marieemedi@gmail.com Andrea Paczkowski: Apaczkowski001@gmail.com Mary Bregenser: mbregenser@gmail.com Eli Caldwell: ecaldwell24@gmail.com

University of Kentucky

Q1 How often do you go Grocery shopping?

o Once a week or more often (1) o 2-3 times a month (2) o Once a month (3)

o Every 2-3 months (4) o 2-3 times a year (5) Q2 Grocery Shopping is...

1 (1) Unimportan t Personally irrelevant Means nothing to me

2 (2)

3 (3)

o o o

4 (4)

5 (5)

6 (6)

o o o

7 (7)

o o o

Important

Personally relevant Means a lot to me

Q3 Below is a list of characteristics that are a part of grocery shopping. How important is each characteristic to you for grocery shopping?

Location (1)

Value for money (2) In-store coupons or specials (3) Friendliness of staff (4) Ready to eat more healthy foods (5)

Not At All Important = 1 (1)

2 (2)

3 (3)

4 (4)

Extremely Important = 5 (5)

Q4 Please rank the following, with 1 having the best quality of product and 4 having the worst quality, for each grocery store. ______ Kroger (1) ______ Whole Foods (2) ______ Trader Joes (3) ______ Aldi (4) Q5 Please rank the following, with 1 being the best grocery store and 4 being the worst grocery store, by how much you enjoy each store. ______ Kroger (1) ______ Whole Foods (2) ______ Trader Joes (3) ______ Aldi (4) Q6 Please rank the following, with 1 containing the most and 4 containing the least, by how healthy the products are at each store. ______ Kroger (1) ______ Whole Foods (2) ______ Trader Joes (3) ______ Aldi (4)

Q7 Whole Foods is... 1 (1) Bad

Unfavorable

Unpleasant

o o o

2 (2)

o o o

3 (3)

o o o

4 (4)

o o o

Q8 The likelihood that I would shop for groceries at Whole Foods is... 49

5 (5)

o o o

Good

Favorable

Pleasant

1 (1) Very unlikely Impossible

Improbabl e

2 (2)

3 (3)

4 (4)

o o o

5 (5)

o o o

6 (6)

7 (7)

Very likely

Possible

Probable

Q9 What do you like best about shopping at Whole Foods? ________________________________________________________________

Q10 What do you like least about shopping at Whole Foods? ________________________________________________________________

Q11 Kroger is... 1 (1) Bad

Unfavorable

Unpleasant

o o o

2 (2)

o o o

3 (3)

o o o

4 (4)

o o o

Q12 The likelihood that I would shop for groceries at Kroger is... 50

5 (5)

o o o

Good

Favorable

Pleasant

1 (1) Very unlikely Impossible

Improbabl e

o o o

2 (2)

3 (3)

4 (4)

o o o

5 (5)

o o o

6 (6)

7 (7)

Very likely

Possible

Probable

Q13 What do you like best about shopping at Kroger? ________________________________________________________________

Q14 What do you like least about shopping at Kroger? ________________________________________________________________

Q15 Are you aware that Whole Foods has more to offer than just grocery shopping? (e.g. Salad bar, Food Buffet, Bar, Dessert station)

o â&#x20AC;&#x2039;Yes (1) o â&#x20AC;&#x2039;No (2)

Q16 I find the buffet and other amenities to be... 1 (1) Not at all convenient

2 (2)

3 (3)

o 51

4 (4)

5 (5)

Very Convenient

Not at all beneficial Not at all user friendly

o o

Very Beneficial Very User Friendly

Q17 If price was not a concern, how often would you shop at Whole Foods

o Once a week or more often (1) o 2-3 times a month (2) o Once a month (3)

o Every 2-3 months (4) o 2-3 times a year (5)

Q18 If you were given $100 to spend at Whole Foods, how much would you intend to spend on each product? (The sum must equal 100) Fruits : _______ (1) Vegetables : _______ (2) Meat : _______ (3) Drinks : _______ (4) Toiletries : _______ (5) Total : ________

Q19 In terms of percentages, how often do you have buyers remorse after shopping at Whole Foods?

10 0

Click to write Choice 1 ()

Q20 What is your biggest frustration after shopping at Whole Foods Market? ________________________________________________________________

Q21 Please review the pictures taken from the Instagram page of Whole Foods Market. Look at the page carefully, you will be asked to describe your feelings about the page.

Q22 After viewing the items from the Whole Foods Instagram, how likely are you to shop for an item on that page? 1 (1) Not very likely

2 (2)

3 (3)

o 54

4 (4)

5 (5)

Extremely Likely

Q23 Please indicate the extent to which you agree or disagree with the following statements.

I am inspired by the Whole Foods Instagram page (1) I have an emotional connection to the Whole Foods Instagram page (2) I have a sense of belonging to the Whole Foods Instagram page (3) I enjoy the aesthetic of the Whole Foods Instagram page (4)

Strongly Disagree (1)

Disagree (2)

Neutral (3)

Agree (4)

Strongly Agree (5)

Q24 Overall, how do you feel about the Whole Foods Instagram?

1 (1) Dislike

Not at all trustworthy Very low quality Not at all desirable

2 (2)

3 (3)

4 (4)

5 (5)

o o o o

Very trustworthy Very high quality Very desirable

Q25 Overall, how do you feel about Whole Foods?

Likeable (1)

Trustworthy (2) Quality (3)

Desirable (4)

Not at = 1 (1)

2 (2)

3 (3)

4 (4)

Very = 5 (5)

Q26 What is your Gender?

o â&#x20AC;&#x2039;Male (1)

o Female (2) Q27 What is your Age? ________________________________________________________________

Q28 What is your race?

o Caucasian/White (1)

o African American/Black (2) o Hispanic or Latino (3) o Asian (4)

o American Indian or Alaskan native (5) o Bi- or Mixed-Race (6) o Other (7)

This is the end of the survey. Please select the 'next' button at the bottom right of the screen to complete the survey.

Thank you for your participation!