The Final Project

Whole Food Market

Company Marketing Analysis

Biyin Zhu
COR1-GB.2310 Marketing
December 16th, 2015

Contents
I. Executive Summary.....................................................................................................................3
II. Background.................................................................................................................................3
III. Current Marketing Strategy.......................................................................................................5
Objectives.....................................................................................................................................5
Target Segments...........................................................................................................................6
Value Proposition.........................................................................................................................7
Marketing Mix.............................................................................................................................7
IV. Strategy Evaluation..................................................................................................................10
V. Recommendations.....................................................................................................................10
Expansion...................................................................................................................................11
Similar Store Decisions..............................................................................................................11
Rewards Club.............................................................................................................................12
References......................................................................................................................................13

I. Executive Summary
Whole Foods Market, Inc. has a fondness to environmental and community
receptiveness, with a healthy progression model and highly-respected work practices, which
makes it a long esteemed, state-of-the-art, high quality principled company. On the other hand,
Whole Foods has encountered as of late desperate straits on account of the economic downturn,
up surging competition, and acquisition complications. In order to reinvigorate Whole Foods
from historic lows in the companys most threating years in times past, the company has to
recapitulate its expenses, refocus its amplification stratagems, and call attention to its brand to
contend for the ever deflating middle-class and customer spending currency.
A must for the company is to retain its brand value and its mission in one piece amid its
plans for changes to its strategic programs. Whole Foods is already known for the high ethical
practices, principles and quality; every companys image is in jeopardy when there are possible
changes to its reputation or brand. Without deflating the companys brand image and companys
mission, its important to maintain equilibrium when attempting to augment sales and
cognizance.
If Whole Foods can successfully complete these recommendations, which embodies vital
restructuring at the same time bringing forth public relations chatter that synchronizes with the
companys apparition of goodwill and quality, the natural and organic food retailer should be in a
good position to take part in the expeditious growth when the rest of the economy regroups.

II. Background
Based in Austin, Texas, Whole Foods is an organic and natural foods grocer, including
grocery, seafood, produce, poultry and meat, beer, catering and prepared foods, bakery, cheese,

wine; whats more to the whole body, household products, floral, and pet products. Subsequent to
its launching in 1980, in its industry Whole Foods has kept a steadfast allegiance to viable
agricultural science and a very strict premium criterion. In the early 80s, the organic and natural
foods group had little to no competition not more than six stores concentrated on natural and
organic foods in the U.S. (Haraston, 2005). Since the 80s, natural and organic foods have
acquired momentous recognition and related products have prospered, which gave an advantage
to additional competitors like Wild Oats Markets and Trader Joes Company. Whole Foods
reacted accordingly and realized an enormous amount of expansion, as a result of the companys
mergers and acquisitions. Whole Foods brought Wild Oats Markets, which at the time was a
sizable adversary, in spite of the federal governments attempt to stop the business deal with
concerns that acquiring Wild Oats Markets could ease competition (Fineman, 2007).
The companys Core Values are:

Retailing the highest-quality organic and natural products purchasable

Delighting and satisfying their consumers
Aiding colleagues excellence and happiness
Creating prosperity with growth & profits
Compassionate about their environment and their communities
Creating a long-lasting successful alliance together with their suppliers
The company outlines its objective as Whole Foods, Whole People, Whole Planet,

integrating the loftiest-quality, unadulterated, smallest amount of prepared food with a dispersed,
self-motivated workforce culture with a pledge to help take care of the world by way of its
vigorous support of organic cultivation (Whole Foods Market, 2015). Also helping its global
counterparts by way of its Whole Planet Foundations operations in micro lending, supporting
food banks, donations to domestic non-profit groups and local event sponsorships. By and large,
Whole Foods public charity far exceeds five percent of the companys total net profits annually
(Steverman, 2008).

The store level is where experimentation and innovation occur, the managers are allowed
a choice of around 10 percent of their store merchandise, which permits the stores to
accommodate to community savors and obtainability (Field, 2008). Whole Foods executives
makes 19 times above the average workers wages subject to the companys pay cap, despite the
fact that average Fortune 500 CEOs make 431 times that of average workers.
Whole Foods has also earned a selection of honors for their business conduct, which
embodies Fortunes 2009 100 Best Companies to Work for at the 22 spot and since its
inception has ranked on this Fortunes list. Health Magazine has easily recognized Whole Foods
as its healthiest grocery store of the year. In the midst of the Drug and Food stores group, the
company is listed as number 1 in quality of products social responsibility, and innovation.

III. Current Marketing Strategy

Objectives
The companys current marketing objective is to sway new potential customers even as
they preserve their current customers outstanding shopping experiences. Whole Foods target
market is a consumer that resides in urban localities, who are wealthy and well educated.
Although the company caters to wealthy consumers, Whole Paycheck a stigma that the
company is trying to lose, is a primary objective (Davis, 2014). Another main marketing
objective of this company is to stay in touch with its consumers by way of social media, here the
company can advertise as well as learn about what the consumers needs are. Whole Foods
makes educating consumers on their core values one of the companys most important marketing
objectives.

Target Segments
Whole Foods realizes that there is no way possible to connect with the entire target
market, the best solution in terms of profit would be to organize itself in several major markets.
The main target market is women and men 40-22 (while majority of them are women), who
prefer all-natural products and seem to care more about earths sustainability (Bastian, 2014).
Majority of these consumers fall into the upper-middle class and they have at minimum a
Bachelors degree. The companys brand experience is more of a lifestyle choice and not just a
grocery shopping experience, for these costumers. The Whole Foods customer bases probably
participate in earth sustainability volunteering events and have similar beliefs. People in this
segment probably have children, with whom theyve gotten to share this same experience and
belief.
The health conscious upper class is a secondary target market for Whole Foods. We all
know that Whole Foods is rather more highly priced than their counterparts, its a high cost to
make its mission to make organic foods without chemicals come true. Whole Foods offer this
affluent market the opportunity for shopping for healthier products without concerns of price.
Majority of the consumers of healthy products are celebrities and college students who enjoy a
lavish way of life.
The company divides the United States of America in to 11 sectors to make sure quality
and freshness is found in neighboring food supplies. Whole Foods focus is on provincially
developed items, in conjunction with buyers visiting in person and critiquing sources, renders
value to its customer base in confirming devotion to the highest quality principles. Its focus on
electing suppliers with extraordinary principles concerning sustainable agriculture, which
permits Whole Foods to manage to pay for a level of enablement to separate stores; therefore,

permitting local buyers to search fort regionally grown crops consistent with seasonal, regional
goods.
Value Proposition
Whole Foods value proposition is to nourish, satisfy and delight their customers, hence
the customers are the life line of any company. Exclusively pleasing their consumers is the only
way the company has an opportunity to appease the necessities of their stakeholders (Whole
Foods Market, 2015). The company attempts to exceed all customer expectation with every
grocery shopping experience. Customers who enjoy their shopping experiences usually
advocates for the brand that they like and start spreading the good news to family, friends and
colleagues by way of word of mouth. Whole Foods also tries to educate everyone from their
consumer base by educating them on organic and natural foods, nutrition, the environment and
health. The company offers value to each and every customer by rendering a competitive price,
high quality items and extraordinary service.
Whole Foods believes that they are continuously contested to revamp their value
proposition to their consumer base. The company likes to try new ideas so they raise their retail
standards and innovate with friendly concurs within the establishment, which aides them in
improving their stores. The companys stores try to reflect the community it is in, while the store
environment is fun and inviting.
Marketing Mix
Whole Foods marketing mix allows it to correlate with its customer base. According to
Smithson, 2015, The marketing mix describes the consonant activities and the business
stratagems to carry out the marketing scheme.

Products
Whole Foods as a health food and grocery business, it offers an ample range of products.
This marketing mixes component describes what Whole Foods renders to their target consumers.
In the case of Whole Foods, the main product lines are as follows:
Whole Foods Market Brand
Engine 2 Plant-Strong
365 Everyday Value
The companys Market Brand embodies first-class merchandise. Through the companys
Engine 2 Plant-Strong product line it confronts special dietary and vegetarian preferments. Last
but not least Whole Foods 365 Everyday Value product line is its proposition to price-apprised
customers. Furthermore, Whole Foods utilizes the Whole Trade insignia for merchandise that
comes from merchants accredited beneath the Whole Trade Assurance for viability, acceptable
work practices and correlated criteria (Smithson, 2015).
Place
The company keeps on expanding by way of adding additional sites for the distribution
facet of the marketing mix. The distribution or place component of a marketing mix describes the
site that merchandise is supplied. In the case of Whole Foods, the primary places for distribution
are as follows:
Online Store
Brick and Mortar Stores
The organization has a website where customers can purchase and make orders, and get
their orders delivered. The company takes advantage of the admiration its brand generates to
attract consumers to its augmenting conglomerate of sites located in the U.K., U.S. and Canada,

in this component of the marketing mix. Whole Foods brick and mortar stores are the primary
places for distributing its merchandise. The brick and mortar stores are primarily where the bulk
of Whole Foods sales transactions take place.
Promotions
Most companies including Whole Foods utilizes the various promotional tools at their
exposal, which depends on the industries state and seasons. The promotion part of the marketing
mix is the communication between the company and its target market. The primary activities for
Whole Foods promotional mix is as follows:
Sales Promotions
Advertising
Public relations
Discounts are the companys way of rendering a type sales promotion. The sales
promotion part of the marketing mix is where Whole Foods focus is on developing its brand
conception. The companys advertisements are for the most part provincial; however, the
company also utilizes nationwide campaigns. One of the nationwide campaigns Whole Foods
utilizes is the Values Matter campaign, which emphasizes health. Whole Foods is frequently
participating in different local public relations presentation within localities.
Price
The Whole Foods company utilizes a quality pricing stratagem. Unlike Wal-Mart with its
low price alternatives, Whole Foods products come at a higher price tag. The companys high
price tag is complemented by its standards of high quality products as a guarantee to its customer
base that the products are worth paying the price for.

IV. Strategy Evaluation

The companys advertising and marketing does not get much investment as far as capital
goes, unlike a Wal-Mart. Whole Foods advertising and marketing rely heavily on gossip,
customer testimonials and endorsements. Over the past ten years Whole Foods advertising and
marketing expenses have been not more than 5 percent of sales.
Whole Foods concentrates on appealing to their current customers and enlarging their
brand by rendering additional and unique products. Whole Foods connects with its current
customer base by way of its website, e-newsletters and social media. The company presented its
first nationwide brand campaign, Values Matter in 2014, costing a whopping $15 to $20
million (Bells, 2015).
The company has earned the Whole Paycheck status because of their more than costly
products, unlike its competitors. In the past the company has benefitted from this positioning. On
the other hand, Whole Foods started struggling to keep the companys market share as big
proprietors like Wal-Mart began rendering correlative products for just a tiny portion of what
Whole Foods price was.

V. Recommendations
The companys aim is to augment its fruitfulness in profit margins, revenue, and sales while
not forfeiting its present position as market frontrunner and quality. In essence, the subsequent
stratagems concentrate on divergent applications to make certain the overall triumph of Whole
Foods with all things considered in this report.
Expansion
All of Whole Foods stores can undergo a vast amount of benefits by way of belligerent
worldwide growth. A primary market for the company is the U.K.; furthermore, growth in this

territory renders a large amount of expansion capacity as a result of the enormous inhabitants and
the U.K.s more cultivated organic exchange. In addition, advantages of growth should be
magnificent in the subsequent ten provinces, since these provinces are among the healthiest on
earth: Greece, Italy, Israel, China, Singapore, France, Japan, Sweden, Spain, and South Korea.
In addition, worldwide growth in Asias market may necessitate the company to concentrate in
natural seafood. If completed properly, Whole Foods may propagate augmented profits and turn
out to be a well-recognized organic retailer on a worldwide level.
A few disadvantages this stratagem may have begins with growth expenses at high levels and
profits not realized immediately. Harmful public relations can follow consequent to the
preliminary entrance of a foreign entity in brand-new market, resultant of customers initially
opposing variation. Foreign countries normally have different agencies and government
regulations that they have to encounter.
Similar Store Decisions
Whole Foods permits each store to operate independently in regards to their store layouts
and suppliers. The corporate office should dictate guidelines on each stores layout and suppliers,
utilizing what works best for each stores location, expenses should diminish while operations
work more efficiently. The company should also be able to recognize possible challenges at each
store location, in turn be able to take make quick and more precise corrective actions. A few
disadvantages may embody the reduction of individual authorization and tenacity from each
locations Store Leaders, augmented complexity in provisioning to the requirements of regional
communities, and it could lose its position as one of the best organizations to work for.
Rewards Club
The company always strayed from the rewards card programs that many of its
competitors employ on its customers to make the come back and shop over and over again.
These rewards programs offer discounts and rewards to shopper who come back on a regular
basis. This alone would be a beneficial step for Whole Foods to keep their vision in place. On
the other hand, Whole Foods is in an atmosphere of amplified rivalry and diminishing budgets,

so what better to introduce to the customers than a program that could help them in influencing
consumers to spend their diminishing dollar at Whole Foods instead of the companys lowerpriced rivals.
The company can implement this by rendering rewards tied to their companys mission.
For example, every time one of their customers purchase $150 or more at one of the company
store locations, Whole Foods could donate a specified amount that is essential to grow a tree,
render clean water to drink to children in countries under development, or send meals to children
in countries under development, etc. the customer could choose from the companys current
causes (that receive a large percentage of Whole Foods net profits already). A major benefit of
this magnitude would be the customers thinking their money is spent better at Whole Foods.

References
Bastian, A. (2014). whole Foods Target Market. Retrieved from Storify:
https://storify.com/abastian/whole-foods-target-market
Bells, S. (2015, November 18). Evaluating Whole Foods' Marketing and Purchasing Strategies.
Retrieved from Market Realist: http://marketrealist.com/2015/11/evaluating-whole-foodsmarketing-purchasing-strategies/
Davis, S. (2014, April 30). Whole Foods' Holistic Growth Plan. Retrieved from Forbes:
http://www.forbes.com/sites/scottdavis/2014/04/30/whole-foods-holistic-growth-plan/
Field, K. (2008, December). A Legacy of Sustainability. Chain Store Age. Vol. 84, Iss. 12 p.108.
Retrieved from Chain Store Age.
Fineman, J. (2007, August 28). The Washington Post. Retrieved from The Washington Post:
Harris Teeter Supermarkets
Haraston, P. a. (2005). Whole Market Foods: Will There Be Enough Organic Food To Satisfy The
Growing Demand.
Smithson, N. (2015, Septembber 18). Whole Foods Market's Marketing Mix (4Ps) Analysis.
Retrieved from Panmore Institute: http://panmore.com/whole-foods-market-marketingmix-4ps-analysis
Steverman, B. (2008, November 7). A Big Delivery for Whole Foods. Retrieved from Bloomberg
Business: http://www.bloomberg.com/bw/stories/2008-11-07/a-big-delivery-for-wholefoodsbusinessweek-business-news-stock-market-and-financial-advice

Whole Foods Market. (2015). Core Values. Retrieved from Whole Foods Market:
http://www.wholefoodsmarket.com/mission-values/core-values/we-satisfy-delight-andnourish-our-customers