Published by MBA Skool Team, Last Updated: August 14, 2021
Marketing Strategy of Woolworths analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Woolworths marketing mix, help the brand succeed.
Woolworths marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Woolworths Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Woolworths Product Strategy:
The product strategy and mix in Woolworths marketing strategy can be explained as follows:
Woolworths is a leading Australian retailer. Woolworths basically provides all types of grocery items as a part of their marketing mix. They include vegetables, fruits, meat, packaged products. Woolworths have also started selling magazines, DVDs and stationery items. Within each category Woolworths provide a large variety of choice relating to brand, local produce, international cuisine. Thus it doesn’t leave the customer dissatisfied when it comes to choice. The range of products is tested and approved by Woolworth experts to maintain quality. Woolworths have a diversified product range from bags, jewellery, furniture, beddings, housewares to clothing and accessories. This diversified range has helped the company cater the all-around needs of the customers like the one stop store for them.
Woolworths Price/Pricing Strategy:
Below is the pricing strategy in Woolworths marketing strategy:
Woolworths attempts to maintain similar or slightly higher prices than in market.
Having learnt that it offers variety of premium brands in food chain, the prices are kept competitive in the market. Also Woolworths serve the consumer segment preferring low prices as well as premium prices. Frequent shopper club is a reward program at Tasmania stores which offers $20 vouchers for every 2000 points gathered. They also provide with Woolworths shopping card which automatically tracks purchases and also offers fuel discounts applicable so there is no need to retain paper receipts.
Following is the distribution strategy in the Woolworths marketing mix:
Woolworths currently operates 1000 stores in Australia. 950+ are supermarkets and the other are convenience stores. Some of the stores operate as Safeway stores in Victoria, Melbourne. They also operate through online platform. At the same time they have recently developed a mobile app for the purchases. They have following private label brands-Woolworth Homebrand, Woolworth Select, Woolworths gold, Woolworths Fresh. In New Zealand it trades Countdown. The retail chains using the name of this brand are located in Mexico, Austria, Germany and also United Kingdoms. In south Africa Woolworth runs stores like Marks N Spencer.
Woolworths has outlets in this regions and has a wide distribution network.
Woolworths Promotion & Advertising Strategy:
The promotional and advertising strategy in the Woolworths marketing strategy is as follows:
Promotion has always been of keen importance for Woolworths. They have constantly been innovating in the same. Woolworths offers various Loyalty Schemes for customers which include petrol pump discounts. In 1987 they launched a Fresh Food People campaign that went on till 2012. They use online media as well as magazines and newsletters for efficient promotion. Easy accessibility and availability has got them loyal customers. Woolworths offer extensive deals and offers for the shoppers. They also give away gift cards. They carry out extensive promotion via the online media. They also have online stores and offer discounts to attract the crowd. An extensive promotional channel helps the company to reach the target segment and earn profit in the market. The company has revamped its website as an ecommerce online platform, allowing customers to shop online & get their products delivered at home.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Woolworths.
Woolworths currently operates with a workforce of 200,000. Woolworths excellent sales assistants are responsible for its success to great extent. The main motive is customer satisfaction in such service industry and Woolworth is an apt example. Employees are well competent and contribute equally. Woolworths make sure their team bonds well with customers. They follow destination zero policy where zero harm to employees and environment is ensured. Some of the key people of the company include Mr. Charles Woolworth and Mr. F.W Woolworth, who is the founder and CEO of the company.
Woolworths have an extremely customer friendly process and focus on customer satisfaction. Process aspect in supermarkets refer to speedy billing services and acquiring of the goods bought, offline as well as online. Woolworths makes sure that the process is faster through latest billing technology software and efficient support staff. They carefully take the feedback from customers to constantly innovate the process and make it easier. This helps them maintain the competition in the market. The company stopped giving away single use plastic to its customers, as a part of its strategy to protect the environment.
All of the Woolworths stores are clean and attractive. They are easy and customer friendly to navigate through each category of products. Offers are placed such that they attract customers. The Woolworths website design is also very attractive but yet simple and easy to operate. Also they make use of various billboards to make visibility. The Woolworths retail stores it has in itself is the physical evidence of its presence. The various billboards and hoardings are also a means to show its presence in the market. They also distribute bags with its name and logo in the shop. Financial reports are published which are made public. All these cover the Woolworths marketing mix.
Woolworths supermarket is a grocery chain based in Bella Vista, New South Wales, Australia owned by Woolworths Limited. It was founded in September 1924.Woolworths along with Coles accounts for almost 80% market of Australia. Only after 1924,the consumer interest grew and more and more branches started coming up.
In 1985,Woolworths bought American supermarket giant Safeway. It is one of the ,most established company in Australia.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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