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Lexi Francis
Sam Clayton
Sabrina Carranza
Sei Kuwahara
One of the main purposes of Whole Foods is to bring together an abundance of diverse individuals that
connect with the same passion for sharing quality foods. This is not just limited to the idea of simply
bringing the consumer organic foods,but is purposeful in establishing an all around community feel
within the store. From the high quality food brands, to the diverse food market inside their stores whole
foods has established a place of reliability and consistency with their customers. In more recent times
Whole Foods is altering their perspectives to focus on having millennial shoppers as a result of the
generations shifting.
Traditional marketing communication is for the traditional customers and it is ineffective to attract the
new target audience. Whole foods wants to bring the same reliability and consistency “home feeling” to
the new generation of millenials. Therefore, they can as well, relish in the quality Whole Foods
provides.Through this proposal, the various tactics and techniques used to emphasize the importance of
a targeted specific niche will be demonstrated. The community that will be researched is the millennial
segmentation. Major issues that will be covered are how to properly reach this market without the
feeling of over compensating for an unnatural feel. What will be highlighted is the importance of
inclusion and establishing a fiduciary between producer and consumer. Major trends that will be
discussed is how to reach this market segmentation, which through studies have shown, is technology.
The Millennial group is one of the most technological up and coming segmentations. With Whole
Foods eye in goal, we want to take advantage of this knowledge and use it in our integrated marketing
communications to further propel the success of this launch. One of their major trends reported from the
millennial group is the focus on the technological advancements. In the June 2018 research article by;
Mitch Barns, Nielsen’s CEO, states, “Millennials basically live their lives through their mobile phones.
It’s this intense form of hyper connectivity. As a result, they have access to so much information. That
increase in information leads to more choice, and increased choice leads to fragmentation, which
informs the way they consume media and their purchasing behavior.” What we need to make note of is
this new way of “purchasing behavior. This is what we want to tackle with how to reach the millennial
segmentation.
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With an innovative and redesigned app in mind, we know it will align with what the statistics of this
generation are going with. Nielsen’s CEO continues to state, “In India, 92% of Millennials prefer
mobile payments, while in China, 51% of Millennials use mobile devices to shop. The preference for
mobile is especially pronounced in younger Millennials and Generation Z, who have grown up in a
smartphone age”. When examining the specifics of this information given, we decided to look at the
differentiated sources in which the technology was used. This includes various social media websites,
and styles of communication that are revealed to be more popular and used than others. Some specific
recommendations that have been offered for this segmentation are devised around smartphones.
According to Nielsen’s 2017 article, “Comparable Metrics Report found that Millennials 18-34 spent
78 billion minutes in the average week using their smartphones (app and web)”. With this information
in mind we examined possible ways they distribute this time and how ads, aps, and mobile shopping
have successfully reached this segmentation. As a result of millennials being heavily involved in social
media, we will use these same tactics to showcase the benefits Whole Foods has to offer. Through our
research we have found millennials use Amazon frequently to save money and time. This in turn has
inspired us to create a more user-friendly app out of the existing Whole Foods app to improve customer
satisfaction and retention. Since the majority of millennials prefer visual ads, we will prominently use
Healthy lifestyle is very important for those millennial generations, however, they also have busy lives.
We will add variations of quick and easy, but healthy recipes to the app and to in-store products to help
different segment customer’s needs. By those marketing strategies, we are aiming to increase
customers to be 30-40% millennial shoppers. The development of this case will be formulated through
the research of the differentiated styles of communication and implementation of tactics to establish
results. In the situation conceived we are looking at challenges involving the direct impact of reaching
Whole Foods started out as one of the first stores to sell organic foods and produce. In the past, this
made them unique and gave them an edge in the market. Today, you can find organics almost
anywhere and with the boom of the internet, marketing has drastically changed. To combat new and
growing competition, Whole Foods is currently using a cause-based marketing strategy with a benefits
strategy as well. Whole Foods sources locally and uses the internet to highlight their local farmers on
their website and their social media also emphasizing these farms are humane. This is their way of
giving back and they use it in their marketing as a cause and benefit to you shopping there. Another
current marketing strategy they are using is Prime deals. Any customers who are members of Amazon
Prime can get additional and exclusive discounts on popular items in the store. In order to better
understand WholeFoods position in the market, we have outlined some of their strengths, weaknesses,
Strengths Weaknesses
limited
-No International
locations
Oppertunities Threats
market)
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Market Competitor Analysis (Threat)
Name of
Number of
487 4769 245 1844
Stores
Average
Basket Size
8.0 11.0 14.8 7.6
(Units)
Average
Basket Size
$42.85 $50.95 $50.59 $46.92
(Price)
Major House
Under 20k to 80k to over
Income Group Over 125k
60k - 125k
60k 125k
Through the strategic competitor analysis, we are able to understand and gather intellectual
conclusions from how Whole Foods may need to react to the surrounding competition. As we can see
through the graphics displayed above the key competitors are retailers such as Walmart and Target
that have an integrated inexpensive attraction to their customers. As a result of the negative
connotation around Whole Foods being expensive, they in turn have less variety among customers.
need to target Millennials. They are the segmentation that lacks the normality of being a regular
Whole Foods has to compete with Target, Walmart and other retailers for these same customers. Both
Target and Walmart have been hopping on the technology trend by looking at competitors such as
Amazon for inspiration. Nathaniel Meyersohn, a CNN reporter, covered these market shifts by stating
in his 2018 article, “Target's moves, including purchasing Shipt last year to speed up same-day
delivery, have helped it remain competitive against Amazon, as well as brick-and-mortar rivals
Walmart and Kroger refocusing their digital efforts. Shipt's member base tripled during the last year,
and Target said customers spend up to three times more when they order off the platform than shop in
stores. Target's digital sales grew 41% last quarter compared to the same time last year.” All of these
benefits for Target were due to the adding of online orders and same day shipment. This is our same
goal when it comes to the future brand for Whole Foods. Though with the prestigious atmosphere,
entertaining family environment, and high quality food, we plan for Whole Foods to achieve their goal
of acquiring their target market of millennials with great success. Through our tactics we will increase
knowledge and confidence about young shoppers and how they can live the “healthy” lifestyle (which
is also a common trend among millenials). With the availability to increase efficiency in their app and
their preexisting connection with Amazon and prime members Whole Foods will be initiators in this
Their current positioning of partnering with Amazon Prime is one of their ingenious solutions being
implemented now to tackle the issues of obtaining millennial customers, advancing technology, and
staying in competition with any culinary opponents within the industry. One of the biggest current
changes Amazon has been making to Whole Foods is price cuts. This was discussed earlier as one of
the challenges they have when it comes to comparisons with competitors. Jason Del Ray, the Senior
Correspondent at Recode, states in his April 2019 release, “Amazon lowered prices on hundreds of
items inside its Whole Foods stores … in its latest move to battle the grocery chain’s “Whole
Paycheck” stigma. The discounts show Amazon’s willingness to trim profit margins to better compete
with more affordable grocery giants.” Another more subtle approach to conquering these goals is
being executed through the environment within the store. Their live music, juice bar, and products
centered around “food trends” (such as their mochi bar), are deliberate actions taken to satisfy and
attract millenials. This focus on millenials is optimal timing due to the market trend of health
awareness. This in turn parallels with exactly what types of foods Whole Foods offers.
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The reason this big “why” is so crucial, is because if Whole Foods doesn't acknowledge or market
themselves in congruence to these new trends, they will not gain millennial approval. Therefore, a
loss in customers, potential customers, and market share. The big issue that is being reorganized was
the problem with the demographic of Whole Foods Customers being targeted to older generations.
Whether done subconsciously or consciously, Whole Foods is working hard to now adapt to market
trends. A reason why this issue could have stemmed subconsciously was the dilemma that their prices
were too high. When our target market description is addressed it will make clear why price is an
obstacle for millennials. With older generations they are more grounded with their current life
stances, are able to invest in more quality foods, and have thet ime to cook. Millennials however,
generally adopt the busy “on the go” lifestyle. Our goal with Whole Foods is to reshape the stigma
that you can not have a healthy lifestyle compatible with a busy one. Whole Foods needs to follow
and take action when up and coming trends are proposed and circulating so that they can stay
competitive among all of these other corporations. Whole Foods must stay tactical and observant on
how it can take what the market is throwing at them, and directly apply it to innovative solutions to
-Demand: The US Organic food industry crossed its threshold since 2000, and it has kept growing
for the last 20 years. Organic food is the most purchased venue in the conventional supermarket than
-Price: Because of the high demand, the premium of the product has been constantly increased, and it
is generally 30% to 60% more expensive than regular goods which are not organic or locally sourced.
The high price makes the consumer hard to realize the social values and services of organic products
-Trend: Since 2005, the title “Organic” didn’t just remain in the fruit and vegetable products but
spread into all food categories. As of 2019, you can find Organic food from any food section such as
beverages, drugs or even towels and pillow covers which are not edible.
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https://www.ers.usda.gov/topics/natural-resources-environment/organic-agriculture/org
It is no secret the rising generation of shoppers are millennials. Millennials are a big mix of young
families and single adults who are very adept with technology and are immersed in the internet. A
general millennial family would look like a mother and a father in their late 20’s, early 30’s with a
toddler. Mom works from home online as a social media specialist for clothing boutiques and Dad
works with the IRS as an accountant. Their interests include: health, family time, and travel. They
both frequently use social media and make short videos for Youtube on the side as a family hobby.
Both Mom and Dad are very aware of the budget and like to stick to it. Paying for student debt, rent,
and baby care, the budget can get tight regardless of both having
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secure jobs. Their family values time together and they often eat dinner at home every night. Both
want to eat healthy and be fit. These wants are largely influenced because of social media whichalso
makes the task daunting and seem difficult to do. We have come up with a comprehensive integrated
marketing plan to target this type of millennial audience at WholeFoods and change the way our
As described above, we know that our target audience of millennials are very technological and price
aware. Specifically we want to change perceptions of Whole Foods being unaffordable to our target
market of millennials.
We hope to raise awareness of the value of Whole Foods by 30% by April 30, 2021 through
upgrading the Whole Foods app to be much easier to use and to be marketed much more
We will measure the increase of awareness through surveying before and after. We will also use
social media engagement insights and keep track of response and engagement over the course of six
months.
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In addition to being perceived as expensive, Whole Foods is intimidating. There are so many fresh and
unique ingredients it can be hard to know where to start shopping. To help change this intimidation to
confidence we want to help them see the realistic application of being able to cook and use whole
foods themselves!
Through recipes and grocery bundles, we want to increase confidence by 40% through
innovating product packaging to include recipes and creating recipe bundles of ingredients
Using social media and billboards we will encourage our customers to come and learn how to use
fresh ingredients.
We will measure the increase of confidence through in-store sales of these specific products, we
will use surveys of before and after use, and social media engagement insights over the course of
six months.
Through our recipes and grocery bundles, we increase parent’s confidence as they realize the
significant impact Whole Foods can have on their quality of life as they eat healthy.
The last perception that we want to change in millennials is that Whole Foods is for an older
Hold a big promotional event on August 15th, 2020 in hopes of attracting 100 new customers
which we will measure through the number of customers that come to the store and buy the new
We will also use analytical and statistical research on up and coming trends in the millennial
market to plan the event and then use insights on social media to track activity, and we will use
email lists and surveys to analyze our customers experiences over the course of six months.
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Finally, because the objective is to attract younger Millennials the event will have events targeting
younger children and will be a family-friendly environment. We will encourage the families to come
together so the older generation doesn’t feel left out, as we want to keep our current customers
To increase awareness of the value and change the way the brand is perceived price-wise by
millennials, we will enhance the WholeFoods app to further promote Amazon Prime deals. So far it’s
hard to locate on the app store and is difficult to navigate. We will be in close communication with
Amazon so that they can promote the app on their platforms as well as our own; mainly social media
and digital media. We will use a promotional video of comparison. There will be two carts checking
out with the same items. One will show the prime price and the other will show the regular price. This
will put a visual in the minds of the consumers about the possibility of affordable shopping in an easy
The Millennial segmentation is highly motivated through access within their smartphone and
technology. Nielsen.com writes, “Millennials already spend more per trip than any other generation,
with an average basket size of $57”. Their profile is highly diversified. As Nielson states they have the
highest potential out of any of the segmentations to reach, “And not only do Millennials hold great
potential as the new wave of parents, they also carry their fair share of weight when it comes to FMCG
(fast-moving consumers goods)—which will grow as they progress in their careers. Therefore,
capturing their attention and spending is of growing importance.” Within millennials we have future
If we can capture the attention of millennials now, we can be providing food for entire families at this
moment, and in the future when the younger portion of millennials start settling down with families.
Their customer lifetime value is so much greater than that of any other segmentation. We want to
ensure that they are receiving that online connection that is needed to reach them. This can be achieved
through snapchat ads, social media ads, and location services that use google analytics to track when
they could use a reference to the Whole Foods website or ad on the screen.
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This will get the audience’s attention even if it is a light-medium approach, it will get them thinking
about Whole Foods subconsciously. What’s important to note is that millennial scroll time on
platforms such as Instagram is extremely fast. This segmentation tends to just scroll, scroll, scroll,
until something grabs their attention. That is why repeatedly having ads on platforms they will use
increases awareness.
To build confidence with the Millennials in using WholeFood products, we want to add recipes to
product packaging and provide grocery bundles that will be built around a these recipes. The will
also be available within the app. To market this we will create ads with Amazon, which will be
placed on both Whole Foods social media and Amazon’s, along with their Prime Video streaming.
This could start off small by using diversified individuals in Whole Foods ads to then lightly
promote the new recipes and bundles. We would have kid friendly recipes, carribean flare, spicy,
sweet, etc... There is still the negative connotation that Whole Foods is simply for an older
generation. This needs to be altered within the ads as well, through having a mix of older
generations and younger generations with an emphasis on millenials appearing in the ads. Nothing
in this situation should feel forced or pushed, or else the segmentation may feel targeted in a
negative outlook. This connotation will also gradually shift as the focus has been changing to attract
millenials. Especially with the price cuts being implemented, millennials will be able to be more
visibly convinced that Whole Foods should be their partner when it comes to shopping. We want to
increase awareness of Whole Foods price reductions by measures distributed through pre campaign
and post campaign surveys. We will hold 3 post campaign surveys that will specifically measure the
impact of price reduction, customer awareness, and how the campaign may have statistically
impacted the target segmentation of millenials. These surveys will take place 6 months after the
campaign launch, 12 months, and then 18 months. With the implementations of combining
increased awareness of the digitally improved app, the grocery bundle features encouraging fast and
easy recipes, and changing the mindset of consumers making our products affordable, the shift from
viewing Whole Foods customers as an older generation will naturally shift to that of the younger
millenial market.
Overall the big focus will be on the online/digital presence since this is what drives the Millennial
market. For the offline and traditional promotion, we can use flyers and billboards that express the
universal inclusion in a non-pushy organic way in areas that are targeted with a higher millennial
population. These types of ads will attract the older generation versus the millennials unless placed
in proper places.
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Sign and billboard proper placement would include but is not limited to, outside of “hot” places to go
to like coffee shops or by highly populated night clubs/ social events. These ads can include a variety
of differing information including Amazon Prime deals, price cuts, our big upcoming social event, an
ad for the live music in store, or even an ad on our ap features that include our easy recipes.
Our big promotional event will involve a lot of family friendly activities! We will hold a big county
fair at one of our local farms. There will be tours, fresh food, games, and live music. We will invite
news stations to the event in order to get some good PR coverage. We will have them interview
farmers, and we will include local and well known chefs to promote the use of the new recipes. There
will be cute decorations to promote social media sharing which will include the hashtag
#welovewholefoods.
We have talked a lot so far about improvements to the Whole Foods mobile application. We hope to
model the app more after its Amazon Prime sister app. In fact, we hope to break down a lot of
Amazon Prime is one of the largest online shopping services available, and its mobile app is used by
many of its customers. Oftentimes Amazon Prime will offer shopping credit or deals for members.
Whole Foods offers similar deals, as well as credit for buying select items, but we feel that this
credit should cross between Prime and Whole Foods. We propose that shopping at Whole Foods
should give customers credit on Amazon Prime, and vice versa. Amazon could even go so far as to
put a Whole Foods section obviously in its own Prime app. Online ads and traditional banners
should have the same look. It should consist of a typical millennial family with “Whole Foods” in
bold lettering with their logo. This will build up the consumers association that Whole Foods is
inclusive of millenials. With the specifics of what will be included on these ads, which will be
referencing our millennial centered objectives, the mindset of customers will be able to recognize the
newfound inclusion. This campaign needs to be natural and organic. With the adoption of
technological strategies, including our innovative app, this process will be just that since we
followed the trends congruent with that of the millenials. We want to condition the customers so that
their perspective is naturally changed without being too “in your face”.
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We also discussed events to attract customers and also an emphasis on the local farmers and how
shopping at Whole Foods can give back to the community. We hope to combine these plans and
create something like a Whole Foods farmers market, or at least to invite 1 or 2 farmers to sell their
produce themselves outside of Whole Foods. This would not be every day, but it could happen once a
week, once a month, or once every other week. As well as one big county fair that would be held at a
local farm. Our slogan that will be distributed on our ads both offline and online, and at our events
will be “Easier than you think to eat healthy”. Our positioning statement to capture our audience will
be, “Fast and Simple”. Both the slogan and positioning statement represent our idea that through our
specific use of technology to attract millenials, the process to eat healthy is simpler and faster than
ever. The app allows you to order the foods you want with giving recipe ideas, tutorials on how to use
The purpose of all of this is to make shopping easy for potential customers, namely millennials. On
top of easiness, we also want to convey meaning in our products too. We feel the healthiness message
is pretty understood. However, the prices are quite high. If we can make shopping easier and more
convenient, then people will be okay with the price to cover the services as well. Also, if we can bring
meaning beyond healthiness into our products, then customers will feel good about the money they
spend.
These will be used to place in "hot" trending areas of Millenials, such as Coffee shops or
promote events.
App
healthy!!
Market/Local Fair"
The company on Wednesday reported that sales at stores open for at least a year increased 6.5%.
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Farfan, Barbara. “The Largest Grocery Retailers in the U.S. and Canada.” The Balance Small
Business, The Balance Small Business, 18 June 2019, www.thebalancesmb.com/largest-grocery-
retailers-2892905.
Greene, Catherine, and Carolyn Dimitri. “Recent Growth Patterns in the U.S. Organic Foods
Market.” USDA ERS, www.ers.usda.gov/publications/pub-details/?pubid=42456.
Greene, Catherine, et al. “Emerging Issues in the U.S. Organic Industry.” USDA ERS,
www.ers.usda.gov/publications/pub-details/?pubid=44416.
Vennamaneni, Mounica. “Whole Foods Market, Marketing Strategies and Programs Analysis.”
Medium, Medium, 15 July 2017, medium.com/@mounicav/whole-foods-market-marketing-
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www.nielsen.com/wp-content/uploads/sites/3/2019/04/millennials-on-millennials-report-aug-
2017.pdf.