Unit 5 Whole Foods Case Study Analysis
School of Business
MT460 Management Policy and Strategy
Author: Jonelle Newman
Professor: Dr. Norris
Date: March 29, 2014
Whole Foods Market Case Study Analysis
Whole Foods Market began with a vision from entrepreneur John Mackey and his chain of stores has been successful for 30 years. Whole Foods Market focuses on natural and organic food items. One of the reasons why Whole Foods has been so successful is because their stores are different than its competition and the differentiation “allows them to charge a premium price for premium products.” (Pearce & Robinson, 2013, p. 29-1). Whole Foods ...view middle of the document...
Define the Problem
The strength of the company is also its weakness which is the premium food at premium prices. Based on the ever-changing economy, Whole Foods can become unstable or can profit drastically. Local grocery stores such as Walmart or Publix have also made known that they too can focus on the healthier side and offer organic products for a slightly higher price.
There are alternative solutions to enable the company to remain profitable. First, the company is not known for advertising, but showcasing its products more to the public will show why they should still be the leading supermarket for natural and organic foods. Second, the company should work on marketing their distinct private label brands in other arenas and not keep it solely in their stores. Lastly, the company should pause on opening any new stores until the revenue is where it should be before they expand any further.
Selected Solution to the Problem
Whole Foods Market found a niche to make private label brands that are natural and/or organic and market them in their stores. However, Whole Foods can use these brands to their advantage. Marketing their brands in other arenas such as other grocery stores will raise more awareness to their products. There are some consumers who do not shop at Whole Foods based on the prices, but may be more inclined to purchase an all- natural bag of chips at their local Walmart while they are grocery shopping. This will not only continue to increase the revenue of the company, but also allow for their name to continue to be known.
This strategy requires thoughtful consideration and comprehensive advertising campaign. In addition, contracts would need to be in place with all local supermarkets that will be involved. The products discussed should be piloted in a few local stores to see the success. Advertising is also necessary to familiarize people with the products. The advertising that would need to be conducted would be very similar to that of Domino’s Pizza where taste tests are completed and the “wow factor” is set.
The company should consider the possibility to develop online...