Woolworths established its business in 1924, by opening the first store in Sydney. The outlet which was opened by the company was a bargain basement outlet. In 2012, the company enhanced its market share and is one of the largest supermarket chains in Australia and New Zealand. The company offers various brands like BWS, Dick Smith Powerhouse and Tandy. The company is the largest retailer in New Zealand and Australia. There are approximately 840 supermarkets in Australia and 156 supermarkets in New Zealand. There are various competitors present in the market like ALDI, Coles and Metcash. The main aim of the company is to enhance the satisfaction level of the customers by offering quality products in the market. The founder of the company is Percy Christmas, George Creed and Stanley Chatterton. It has been seen that headquarter of the company is located in Bella Vista, New south Wales. There are more than 20,000 workers who emphasizes on enhancing the overall growth of the company and they work in different departments like support office, stores and distribution center (Woolworths, 2018).
The company also sells the juice product in the market. One of the juice product offered by the company is Nudie Juice. By considering this product overall analysis will be made in relation to the strategies considered by the company to achieve success in the market.
It is important for the company to focus on marketing strategies as it can help in accomplishing the goals and objectives of the company. To promote the products of the company like Nudie Juice there are various marketing strategies considered by the company as it can help in boosting the overall market share of the company in the highly competitive market (Azeem et al., 2018).
One of the best strategies considered by the company is related to offering discounts and offers. The company focused on offering the products at low price in comparison with their competitors like Coles. According to the company, the marketing strategy is related with the fundamental goal of attaining the sustainable competitive advantage and also it has enhanced the sales. For the company there are two competitors, Coles and Aldi (Berman, 2015). So, to compete with these companies the company focused on reducing the price of the products so that large market share can be grabbed in the market. The company also invested million dollars to repair so that its price position and the perception off the customers can be maintained (Newsdaily, 2018).
Also the company focused on larger, neighborhood based supermarket stores so that it can be easy to capture the big family. This is also one of the best strategies that assisted the company in boosting the brand image in the market. Also the company considered subtle advertising messages which boosted the sale of the company. It has been seen that price cannot be one of the factor but to enter into the store and the experience which is derived from there is one of the important factor which is considered by the customers in the market. Woolworth also invested in data mining to having proper understanding of the shopping behavior of the customers and it has also been done so that improvisation can be made on the store presentation (Newsdaily, 2018).
The main aim of the company is to enhance the market share and it has also been done by the company by investing on the digital platform. The main aim of the company is to attract the attention of the customers and on website the products are offered for sale so that customers can purchase it easily (Rundle-Thiele, Dietrich and Kubacki, 2017).
For example: On the official website of the company, the company introduced Nudie juice by giving a discount of $1.50 and also the product is mentioned under the separate column related to “specials”. The best strategy considered by the company is giving product description of very product so that customers can easily take their own decisions. Under the Nudie juice product the company mentioned the detail of the product with an attractive tagline. The tagline used is “Naming your newborn is never easy”. So, this is one of the best strategies considered by the company as it can help in boosting the market share of the company in the competitive market and also it will help in maintaining the brand image.
The main vision of the company is related with building integrity. The company emphasizes on maintaining the value and quality of the products so that it can be easy to attain profits. The company employs 201,000 team members who are serving over 29 million customers across every brand. The company is also the trusted partner with thousands of the local farmers and manufacturer. So, the strategic analysis of the company is related with enhancing the market share so that it can be easy to achieve success (Giacalone et al., 2016). It has been seen that in comparison to the other competitor Coles the company achieved more sales. It is just because of the vision they have to accomplish their set goals and targets in the competitive market. In 2018, the company is achieving the maximum sales of more than 6% whereas Coles achieved the sales of maximum of 4% ( ABC, 2018). So, the overall sales of the company have been enhanced by having proper strategic analysis towards the overall activities.
Bargaining power of the buyers
It has been analyzed that majority of the consumers of the company are the individual buyers who are have strong bargaining power. The company reduced the price of the products so that it can be easy to attract the customers towards the products (Pickles, Barrientos and Knorringa, 2016). The nudie product of the company is reduced by the cost of $1.50 so that customers give more preference to the products of the company. So, discounts and offers are given to the customers as it can help to enhance the market share in the competitive market.
In context to Woolworths it has been seen that the bargaining power of the supplier is low as the company emphasizes on Safeway supermarkets and also they is less dependence on the suppliers. It simply states that the bargaining power of the supplier is weak. The main reason is related with the market share of the retailers in Australia and New Zealand and also the huge products are sold to this sector like nudie product in Woolworths (Grundy, 2017).
It can be stated that threat of new retailers is high as to set a supermarket there is a huge investment requirement and there are many companies who are leading the market. So, the growth of the new entry can be less if comparison is made with the companies like Coles and Woolworths (Steenkamp, 2017).
The company has to have high competition in the market. The substitution of the products can be done easily by the company as there are many supermarkets who are offering the same products. Like nudie juice can also be purchased by the customers from Coles. So, it is important for the company to lower the price so that it can be easy to boost the sales (Kew and Stredwick, 2017).
There are many strong competitors present in the market like Myer and Coles. The highly competitive market is enforcing the companies to consider the effective strategies so that differentiation can be done and also growth can be achieved in the market (Arli et al., 2013).
So, by analyzing the overall factors it is necessary for the company to focus on marketing approaches so that the products like nudie product can enhance their market share. These types of products should be offered by the company at low price so that competition gives preference to company and avail the services offered by them. By reducing the cost of the products in comparison to the competitors like Coles and Myer, it will help the company to boost the customer base in the market.
It has been recommended that company should also emphasize on considering the innovative approaches which are not considered by any competitors. Like vouchers and contests should be arranged in the outlets so that customers get attracted towards the products and services offered by the company. This is one of the best ways that can help to maintain the competitive advantage and will also enhance the market share. It is necessary for the company to consider the technique related to fast billing. In this the customers should not stand in a queue to purchase the products but billing should be done through automatic machine. It will save the time of the customer and also boost the satisfaction level of the customers in the market.
References
ABC.2018.News. [Online]. Available from https://www.abc.net.au/news/2018-03-16/coles-vs-woolworths/9555270.[Retrieved from 15 December 2018].
Arli, V., Dylke, S., Burgess, R., Campus, R. and Soldo, E., 2013. Woolworths Australia and Walmart US: Best practices in supply chain collaboration. Journal of Economics, Business & Accountancy Ventura, 16(1).
Azeem, M.M., Baker, D., Villano, R.A., Mounter, S. and Griffith, G., 2018. Food shoppers’ share of wallet: A small city case in a changing competitive environment. Journal of Retailing and Consumer Services, 43, pp.119-130.
Berman, B., 2015. How to compete effectively against low-cost competitors. Business Horizons, 58(1), pp.87-97.
Giacalone, D., Wendin, K., Kremer, S., Frøst, M.B., Bredie, W.L., Olsson, V., Otto, M.H., Skjoldborg, S., Lindberg, U. and Risvik, E., 2016. Health and quality of life in an aging population–Food and beyond. Food quality and preference, 47, pp.166-170.v
Grundy, T.D., 2017. Dynamic Competitive Strategy: Turning Strategy Upside Down. Routledge.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan Page Publishers.
Newsdaily .2018. How Woolworths is winning over consumers. [Online]. Available from https://thenewdaily.com.au/money/finance-news/2018/02/23/woolworths-half-year-profit-coles/ .[Retrieved from 15 December 2018].
Pickles, J., Barrientos, S. and Knorringa, P., 2016. New end markets, supermarket expansion and shifting social standards. Environment and Planning A, 48(7), pp.1284-1301.
Rundle-Thiele, S., Dietrich, T. and Kubacki, K., 2017. Why We Need Segmentation When Designing Social Marketing Programs. In Segmentation in Social Marketing (pp. 197-214). Springer, Singapore.
Steenkamp, J.B., 2017. Global Brand Strategy: World-wise Marketing in the Age of Branding. Springer.
Woolsworth.2018.Nudie product . [Online]. Available from https://www.woolworths.com.au/shop/productdetails/716767/nudie-nothing-but-breakfast-juice.[Retrieved from 15 December 2018].
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