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Marketing management at Woolworths


Issue 1: Provide a brief description of this organisation and the industry to which it belongs. You may also want to include in this description any mission statements, value statements or ‘slogans’ that this organisation utilizes to communicate its purpose.

Issue 2: Analyse each of the 5Cs for this organisation:
a. Company – what are the strengths and key resources, what are some of the weaknesses? What are the opportunities and threats?
b. Customers – who is the company serving and what type of behaviour is ‘typical’ from them? c. Collaborators – describe their suppliers, distributors or other partners that help the company to deliver their products to the market? If company doesn’t have any – explain why it is not necessary.
d. Competitors – who are the current main competitors, are there any potential new threats or new entrants to the marketplace?
e. Context – what other factors affect this organisation (e.g., legal, political, technological, etc.)?

Issue 3: How does the firm go about collecting information (e.g., market research, market intelligence, etc.) about the 5Cs? For example, how does it learn about? a. What customers want? b. Which competitors pose a threat? c. How the context of business is changing, if at all? d. What role collaborators play in the process?

Issue 4: Developing marketing strategy. Based on the market analyses, outline potential market segments that are available to the chosen organisation. Recommend and justify: - a choice of target market(/s) - a value proposition for the target market(/s). - a positioning statement for the target market(/s).

Issue 5: Developing marketing tactics. Recommend and justify a detailed marketing mix (4-7Ps) to support the marketing strategy described in Issue 4.



The global marketing has been highly affected by the globalization and liberalization of technological advancement and integrity. With time, there has been a fluctuation within the economic structure due to certain factors that involve, marketing strategy, structure, political and cultural factors. Organization therefore needs to cater to the overall development through proper analysis and examination of marketing application and integration. It is important for company like Woolworths to meet the market and the customer demands while expanding its production within the global market. The report presents the market segmentation, structure of Woolworths and projects essential recommendation that will help the company in curbing the risks and threats within its economy.


The Woolworths Supermarkets is located in Australia that is known for is grocery production that caters to the domestic needs of the customers. It is important for the company in enhancing the quality of the products and fulfills the interest and requirements of the targeted group of customers Ayvaz, Balaban & Kong,2017). It is known as the Australian supermarket that accounts eighty percent of the gross Australian market. The report present the qualitative approach towards the study of the market mix, economic structure and provides an analysis regarding the aspects of consumer satisfaction highlighting the company’s strategies. 

Issue 1-Background of the Company:

The Woolworths is referred to as the Australian supermarket that sells domestic products catering to the global market. It is well known for its production of meat and packaged products. Besides, the company sells domestic food products like vegetables and fruits. At a later phase it started manufacturing DVDs, magazines, stationery essentials for the household needs. As examined, the Woolworths have been establishing around 1000 stores operating within Australia. In the year of 1987, the company launched Fresh Food People campaign in order spread awareness regarding the manufacturing of fresh and goods quality products without harming the health of its community ("Woolworths Supermarket - Buy Groceries Online", 2017)

It was during the campaign that the company had replaced its slogan to ‘Aussie’. However, later in the year of 2014, the company brought back its original slogan that stated “Fresh Food People”.  Woolworths had formulated a reward card that helps in recording price and purchases of the individuals. The reward points help in providing them with discounts and offers. The cardholders are benefited by the company through offers and vouchers, a strategy that is implemented by the company in building relationships and gain consumer loyalty and trust. Woolworth has been planning effective business strategy that will yield to their market structure and add value to their profit. It is important in the part of the company to set its strategy in accordance to its consumer purchasing standards. The three major strategies implemented by the company are price repositioning and segmenting in relation to the consumer’s needs and demands; competitive rating of prices and discounts and offers (Biddle, 2016). Besides, the company has been implementing certain promotional activities utilizing the digital and the print media in advertising its products. 

Figure 1: Woolworths Earning Growth

(Source- Arli et al. 2013)

Issue 2 - 5Cs of the Woolworths: 

a. SWOT analysis:

SWOT analysis help in providing an analysis of the strengths, weaknesses, opportunities and threats of any company. The following SWOT analysis is provided for Woolworths:


The company is known for its huge market and distribution system with thousand stores operating within t Australia. This is the most oldest and popular grocery supermarket that has both offline and online modes of selling catering to the larger mass. The company has more than thirty thousand employees operating within the eight hundred stores (Devin & Richards, 2016). It recently widely entered into the global market expanding its market structure. It is widely profited and its products are globally purchased due to its effective and efficient activities and brand name. 

Figure 1: SWOT analysis

(Source- Ranjan & Read, 2016).


Its weakness however stands less compared to its strengths.  The company is unable to create global appearance and have been facing loss due to its lower prices and late entry into the online mode of selling. 


It has been global making global appearance therefore providing opportunity in tying up with more number of shareholders and investors. It has been promoting its new and existing products through advertisements and sponsorships (Shields et al. 2015). Besides, it’s creating spaces in building its strategic methods within the trending economies. 


There have been several threats and risks posed by its competitors that brought about immediate changes within the work structure and profit of the total production. External factors like recession, economic fluctuations, political factors, change in trade practices affects the market strategy and intensifies tough competition with other supermarkets. 

b. Customers: 

The company has been customer-oriented who have been recording customer issues and queries and strategized in gaining intended outcomes in reducing the customer satisfaction. They have been catering to their needs by providing healthy products. The main challenge of the Woolworths Company is to meet the consumer’s perception without compromising with its product quality; the target group of consumers adheres to the Australian and UK market besides planning in reaching the global audience (Van & Vink, 2013)

c. Collaborators:

BP and Woolworths have partnered with each other in delivering quality fuel and provide convenience to the consumers. The BP helps in rebranding and provides quality fuel to the Australian market that will deliver in attaining store loyalty and gain profit of around $1.3 billion. Besides, the Woolworths group has 445,000 shareholders who help in investing in the matter of distribution and supply. They help in arising funds in marinating infrastructural and technological changes. Teys Australia has been given the gratitude of the best supplier of Woolworths in the year 2016. The others suppliers are Coca-cola, Allied Mills, Maltesers teasers, Hydro Produce and associated that help the company in distributing and marketing of products (Biddle, 2016).

d. Competitors:

Woolworths have been facing tough and rigid competition from its competitors mainly from Wesfarmers and Metcash limited. Wesfarmers have been popular in its diverse retail and marketing strategy that creates a way of tough competition to Woolworths ("Woolworths Supermarket - Buy Groceries Online", 2017). It has been capturing the market with its production of chemicals, metals and fertilizers. It has been successful in overtaking the two dynamic companies BHP Billiton and Woolworths through its revenue and profit (Sacks et al. 2015) Besides, the company has the largest number of employees across Australia of approximately twenty thousand. Metcash on the other hand is the Australian company popular for its groceries, household items, consumer goods, hardware and associated that have catered to the rigid marketing structure affecting the economy of Woolworths. Even though the competition has brought in changes and challenges to the company, it has been able to improve its products towards consumers needs bringing in efficiency in customer service and customer value.

e. Context – PESTEL analysis:

Political factors:

Woolworths is highly benefited from the Australia-New Zealand economic relations and Trade Agreements that has brought about coordination and cooperation among the two. It has facilitated export and import within the Australia and New Zealand (Bailey,2016). There has been political stability in both countries that benefits the distribution and supply of products. However there are certain changes factors like conflicts, terrorism that affects the production process of Woolworths. 

Economic factors:

Woolworths has been trying to increase its economy by strategizing several marketing policies. The economic factors like taxation and economic fluctuations have been affecting the production of the company. Woolworths have benefited the country through its profit earning. 

Figure2: PEST analysis of Woolworths

(Source- Sacks et al. 2015)

Social factors:

It is important for the company to fulfill the needs of the customers that is constantly changing due to globalization. Therefore the customer, stands as the most important aspect of eth organization in driving the work force and reach the profit height.  Sustainability of resources is another social aspect that the company needs to seek towards protection and perseverance. Woolworths have been taking initiative in protecting environment and produce quality and fresh products. 

Technological factors:

Being one of the largest manufacturers of the domestic items and stationery items, Woolworths need to maintain funds and arrangements towards meeting the technological advancements. It is important for the company to improve and modify the equipments and machines. Proper maintenance of its equipments will help in faster production and packaging that will result in work efficiency. 

Environmental factors:

Woolworths have been organizing environmental campaigns towards preserving the nature and its environment and have taken necessary measures like funding for environmental improvement and cleanliness, reducing the utilization of water and natural resources, using renewable sources of materials that can be re-used and re-cycled. 

Legal factors:

The company needs to create confidential accounts of all its policies, records and reports. It is important to in initiate copy right acts on its company’s information and data that do not allow the loss of sources and data. The legal factors also include the permission of government in opening up of new stores and trade tariffs and export activities. 

Issue 3: 

It is important for the company to address the issues and allow the participation of the shareholders and stakeholders towards making decision in generating intended outcomes. Therefore, the stakeholders need to analyze the situations, customer needs, and how far the company will be benefited from the marketing strategies.  From the study of eth secondary sources, it is examined that Woolworths have maintained the marketing concept that entails the selling, marketing, societal, production and product concept and have utilized those concepts in guiding its production process (Urwin, Dwyer & Carr, 2016). However, Woolworths have focused much on the societal and the product concept. According to the product concept, the company has been able to improve its quality and performance of eth product that appealed the customers over time. On the other hand, the company gains success in winning over the needs, desires, wants, interests of the customers, while preserving the nature and the environment around. Woolworths is a customer and product oriented company with better selling and marketing approaches. 

Figure 3: Woolworth’s value analysis

(Source- Kozlenkova, Samaha & Palmatier, 2014)

Issue 4- Developing marketing strategy:
Market segmentation:

It is important for the company to organize its products and position it within the markets structure for enhancing the distribution and supply. It is important that the customers are satisfied by their product quality and supply. The company need to study the demography that is customer’s requirements, attitudes and behavior; geography- that is to which sector is the distribution being taken place and what are the ways the company can expands its supply to a larger geographic channel; study the attitudes and behavior and how far the marketing is being benefited to the consumers in enhancing the profit. All these factors together foster market segmentation. 

Figure 4: Woolworth’s marketing and management structure

(Source- Urwin, Dwyer & Carr, 2016)

Target orientation:

After the market segmentation, the important step is to determine the target customer section. It is essential in the part of the company to understand its customers that will help them in fulfilling their needs (Lawley & Birch, 2014). The study of the analysis and size of the potential market will help in placing the target customers and assess the how each group of customers contributes in the profit earning. For instance, the company has departments that involve packaging, food products, meat, stationery items; it is important to assess which group of customer purchases which products and in this way the prices are fixed towards raising profit of the company. 


The organization needs to make strategic efforts in motivating and influencing consumer perception, demands and requirements in regards to a product. Besides, it is important to assess the relation between the perception of the targeted consumers and competing brands. Market positioning refers to the fact that the company is able to occupy clear and beneficial position that will affect the consumer’s choice (Kozlenkova, Samaha & Palmatier, 2014). The goal of the company is to create an impression in the customer's mind that will affect their choice and purchasing behavior towards the desirable product. 

Issue 5- Developing marketing tactics:

Detailed marketing mix: 

Marketing mix provides the analysis of the four important components of the company that involves Product, Place, price and promotion (Ranjan & Read, 2016). It is important to understand how far the components results in better marketing practices. There are 4Ps that accounts within the marketing mix, however according to the secondary sources, it is examined that Woolworths focuses on the 4Ps. 


Being one of the leading supermarkets Woolworths need to cater towards the production of good quality and healthy food and dairy products. It is through the product quality the company will be able to reach the targeted consumers. The company’s economy depends on its marketing strategy and product quality. In addition, products are tested and examined before they are distributed within the market as finished products. The test of products is done under the guidance of professionals within the Woolworth Experts Group and laboratory (Bailey & Bailey, 2016). 

Place stands as a crucial element that determines the geographical locale and how far does it benefits the distribution and supply channel. Place has been a vital factor, as to eth company is operating in more than nine hundred places. Therefore, it is important for the company to plan its marketing chain and distribution network that will help in enhancing its supply. The stores need to be established within the reach and convenience of the customers. 

Figure 5: marketing mix

(Source- Arli et al. 2013)

Promotion refers to the promotions of goods and service with the utilization of the digital and the print media. The company need to launch its new and existing products in appealing to the consumers therefore promotional activities using radio television or social media channels help in the marketing and purchasing process. Woolworths have shown keen desire towards promoting its new products through various loyalty schemes, ad, campaigns. In order to promote they have been implementing strategic plans like shopping card that provides them with offers and discounts, promotion through magazines and other media in generating efficient form of promotion (Khin et al. 2014).

Woolworths is known for its high prices that gave tough competition to its competitors like Metcash Limited. However, it has been able to reach eth global customers through its quality products.  However, with the offers and discounts provided to the customers have given way to higher purchases.  They have reduced their prices in accordance to the competition it has been facing due to the lower prices by other brands.


Woolworths have been able to fulfill the customer demands through innovating its existing marketing structure and organizational policy in dealing with the changes and challenges. It has implemented certain promotional activities in launching its products that appeals the consumer section and expanding its business eventually. However, the competitive analysis provides a complex data where Woolworths is facing changes in its production due o the competition posed by Wesfarmers and Metcash that is however is overcome by the company by raising public awareness, conducting campaigns in raising the importance of fresh and quality products. Besides, the company’s major cause of success remains in the fact that I has been producing fresh products for eth consumers; protecting value over money. 

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