Discuss about The in Depth Analysis Of Woolworths.
According to Asker, Kumar & Day (2001), the first Woolworths’ Company retail store opened in Sydney the year 1924, which to date remains the most outstanding development that turned into the grocery store in Australia. In fact, Woolworths Company Home Brand entails of a broad scope of essential supply of products in various retail locations across all major towns and markets of Australia. According to the 2012 market statistics, Woolworths’ sales deals summed up to $66.7 revolving around distinct products (Asker, Kumar & Day 2001). Moreover, Woolworths Company management instills the significant assortment product decisions and reasonable cost to their loyal clients. For instance, its advertising shows and posters aim at maintaining an increase multi-alternative retailing and online deals of the company (Woolworth, 2012). This report will entail the procedures used by Woolworths in concentrating on the information of its circumstance in Australia. This includes advertising of their products, full-scale ecological situation and PESTELS and SWOT evaluation strategy to distinguish Woolworth’s real qualities, shortcomings, and opportunities. This report will also analyze Woolworth advertising strategy toward the end of the report.
The research project was conducted in respect to the positivism philosophy know-how, which utilises the scientific and human perspective data to accomplish the essential goals of the research. For example, for Woolworth Company, the collected secondary data for the research project focused on both gathering Quantitative and qualitative secondary data. Singularly, Woolworth Company’s collected quantitative data by conducting online surveys among the new customers of Woolworth Company, while the qualitative data involved direct interviews with different HR managers. In fact, the qualitative and quantitative research methodology turned out effective that propelled Woolworths’ large market grasps boosting its sales at large. Furthermore, Woolworths’ marketing management had the opportunity to learn the consumer tastes, preferences, and feedback, which protect the general public image by improving their services delivery to the customers.
Secondary Data
There are three categories the secondary resources research are divided into
Commercial
This is an incredible strategy for Woolworth Company uses to carry out secondary data collection; it is less expensive compared to arranging an examination group. This strategy assists Woolworth in understanding their strength and weakness.
Public
This is another great method and usually effective to carry out data collection about a certain aspect of a given research. For instance, Woolworth Company relies on public source of secondary data, which enables Woolworth Company fraternity to gain many ideas on the strategies to improve the operational portfolio, business products and strategize on how to out-compete the competitors to remain a strong going concern.
Educational
Like resources pages within Universities in the world, Woolworth Company utilizes educational resources such as a secondary data that is easy to access whether online or within educational library facilities. Ultimately, the main idea behind this strategy is to grasp the core market segmentation, product definition, and products’ modification ideas on consumer expectations and choices
Apparently, the use of Secondary Research for Woolworth Company has been effective to its administrations and of great establishment to a competent marketing strategy that helps in advancing the Woolworth Company in the current world market.
Market Situation
According to Burns and Bush (2000), Woolworths Company market is recognized as the major premise in various Australian locales in the country. In about 840 retail stores, not less than 15 million customers visit the shops in the stores per week. The product composition of Woolworths Company entails giving a broad scope of decisions of crisp sustenance, global stock, and different assortments (Nair 2009). Woolworth Company Fresh Food and Liquor are the biggest contributor to Woolworths business and contribute to 85 percent of the company income.
Figure 1: Woolworth’s General branding strategies
In recent years, Woolworths Company has grown from a single market to the most recommended retail store in Australia. They have various brands in their retail stores across large city states in Australia and New Zealand (Sontakki 2010). In fact, Woolworth company aggregate representatives were 198,206 at the start of the year 2012. The essential business deals were $55.7 billion in 2012. This means that Woolworth Company makes a great share of profit from its business deals. The EBIT expanded from 3.2% to $3,375 billion compared to the year 2011(Burns & Bush, 2000 p. 77).
The below Figure explains Woolworth Sales from 2011-2012
Brand Identification
Woolworths Company has been the primary grocery store industry in Australia over the years. Woolworths has been able to maintain its top position concerning the credit activities in Australian stock markets for scores of the recent years and has managed to have a upper hand in Australia grocery store industry due to its working the size (Burns and Bush, 2000 p. 77).
Woolworths is currently working for an extensive variety of Household unit in the market stocks in Australia. Next to its Fresh Stores, this entails of fresh food and quality home products. This fresh food stores and quality home products are the major contributors to Woolworth success in the world business (Woolworth, 2012).
Attentive services
Woolworth’s Company vibrant managers incorporate online Payment Options (e.g., the use of PayPal and Skrill).Woolworth also offers Home Delivery benefits to it loyal clients which have proved to be very effective to their customers (Woolworths, 2012).
Weaknesses and Challenges
Increase of Debt
Woolworths Company debt has been on the rising in the recent years. The proportion of Woolworths’ Net Debt/Equity was 39% and 44% in the years 2009 to 2012, and it further rose again to 47% in the year 2013. Woolworth’s constant increasing debt level is the major worry for many financial investors of its business activities in the future.
Woolworth Company logic expenditure was at accelerated $133 million to its capital expenditure (Woolworths, 2012). This shows a weak point of Woolworths and may cause the dominance by its competitors. Therefore, it’s necessary for Woolworth to cut down its logical costs to be able to gain larger market proportion.
Opportunities
Demand on growing trend
As indicated by Burns and Bush (2000), the Australian food and beverages industry had an aggregate of more than $115 billion in the previous financial year. The Woolworth company fresh food and grocery contributed $87.64 billion and $7.0 billion deferentially. This business explains almost 27% of the aggregate Australian industry (Sontakki 2010). The information demonstrates that the national monetary is recouping from the budgetary emergency in 2008. Bush and Burns predicate that the demand for food and grocery will increase in the next two years.
Export to China
The present patterns emerging within China persist in making this nation an appealing premise for Australian export products. This shows an open door for Australian producers including Woolworths (Woolworth 2012). A great desire by the Chinese clients for better quality and other Australian products gives Woolworths an opportunity to expand within China (Burns and Bush, 2000 p. 97).
Threats
The sale of Liquor
The sales of Liquor have been a major threat since liquor has many harmful health effects to the lives of the consumers.
The infrastructure deficit
Australia’s infrastructure deficiency is almost $700 billion, which negatively affects Woolworths Company due to the transportation of its products to the clients (Burns & Bush 2000). This badly constructed infrastructure makes the products delivering to the customers a hectic process therefore causing a major deal.
Courtesy and friendliness
|
Option |
Respondents Number |
Respondents Percentage |
Number of the respondents |
|
Believe |
30 |
30% |
100.00 |
|
Strongly believe |
40 |
40% |
100.00 |
|
Neutral |
10 |
10% |
100.00 |
|
Strongly disbelieve |
10 |
10% |
100.00 |
|
Disbelieve |
10 |
10% |
100.00 |
Responding the request
|
Option |
Number of respondents |
Percentage of respondents |
Total respondents |
|
Believe |
30 |
30% |
100 |
|
Strongly believe |
30 |
30% |
100 |
|
Neutral |
10 |
10% |
100 |
|
Strongly disbelieve |
20 |
20% |
100 |
|
Disbelieve |
10 |
10% |
100 |
Product Knowledge
|
Option |
Number of respondents |
Percentage of respondents |
Total respondents |
|
Believe |
50 |
50% |
100 |
|
Strongly believe |
30 |
30% |
100 |
|
Neutral |
5 |
5% |
100 |
|
Strongly disbelieve |
5 |
5% |
100 |
|
Disbelieve |
10 |
10% |
100 |
Servicing speed
|
Option |
Number of respondents |
Percentage of respondents |
Total respondents |
|
Believe |
40 |
40% |
100 |
|
Strongly believe |
30 |
30% |
100 |
|
Neutral |
5 |
5% |
100 |
|
Strongly disbelieve |
10 |
10% |
100 |
|
Disbelieve |
5 |
5% |
100 |
Overall satisfaction
|
Option |
Number of respondents |
Percentage of respondents |
Total respondents |
|
Believe |
30 |
30% |
100 |
|
Strongly believe |
40 |
40% |
100 |
|
Neutral |
10 |
10% |
100 |
|
Strongly disbelieve |
10 |
10% |
100 |
|
Disbelieve |
10 |
10% |
100 |
Evaluation and analysis of the Survey
This survey is almost a good result and Woolworth need to focus on some result as per result of survey.
Conclusion
In conclusion, Woolworth’s grocery store retail has authority position in Australian and New Zealand. Despite that Woolworth’s experiences severe debts challenges; it has its upper hand in increasing consumer market size. In fact, Woolworth has been encountering its efficient business administration set up and prudent advantages for a long time. Furthermore, to proceed with the benefits of its trade execution, Woolworths will depend on its ability to grasp and respond to the changing showcasing environment. Being a pioneering retail and develop specialty unit, Woolworth Company will have a great significant to the world business if they consistently continue to increase the quality of the company products.
Aaker, D., Kumar, V. and Day, G. (2001). Marketing research. New York: Wiley
Burns, A & Bush, R. (2000). Marketing research. Upper Saddle River, N.J.: Prentice Hall
Nair, S. (2009). Marketing research. Mumbai: Himalaya Pub House
Sontakki, C. (2010). Marketing research. Mumbai: Himalaya Pub House
Woolworth. (2012). Marketing strategy Research. Jefferson, N.C: McFarland
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