woolworths case research Essay Sample


Woolworths may be the largest supermarket string nationwide, and Coles is the main competitor associated with Woolworths. As Australian grocery store is in the progress stage in product lifestyle cycle, Woolworths Supermarket provides to evaluate new technique to maintain its advertising leadership position, such since improve its logical in addition to costumer service efficiency by technology and innovation development. Woolworths has kept the leader position nationwide for more than 80 yrs, so it has a well-known brand recognition, which indicates very low strong market push. Nevertheless , Woolworths’s debt furthermore increase so quickly of which it becomes the main issue of the investors. Additionally , the highly logic expense also make Woolworths are afflicted by a lot of pressure. Since the demand regarding daily use are forecasted to be grown constantly after 2009, Woolworths may consider expand product production line and export to China. After the analysis, our group advise Woolworths demonstrate the advantages plus value of its item to attract the further the consumers. In add-on, Woolworths may think concerning entering into a fresh industry such as China, it will also cooperate with food manufacturers either in those countries because where the labor costs are much more reasonable.

Marketing Objectives

According to the evaluation within the assignment, Woolworths has kept a leader place of supermarkets in Quotes for many years. Therefore, the principal marketing objective is that Woolworths need to be able to keep this strength in the future 12 months. Woolworths requires to find ways to be able to strengthen the strong position of local market 1st in order to reduced the risk when doing additional investment during the future twelve months. In addition. Woolworths may consider to expand its overseas market as a second marketing objective. Given that some oversea market contains a great demand for every day use high quality item, Woolworths posseses an advantage coming into into a new marketplace with its good reputation in the market. Besides, Woolworths can take the advantage of lower work cost in some overseas industry such as China plus India.

Target Markets and Positioning

Market segmentation requires dividing a market directly into groups or segments along with distinct needs and wants. Consumers within an offered market segment are similar to one another with regards to requires and wants and various coming from consumers in other marketplace segments. Customers and businesses purchase and use the particular products provided in Woolworths just for daily use. Therefore customers will not spend quite a long time on choosing and comparing the standard of the products provided by Woolworths, since its components regarding daily use, and these products are easy to locate a substitute goods. Woolworths can segment the marketplaces by both consumer and business type. Since typically the internet business has developed quickly during modern times, Woolworths may possibly consider to spotlight the on-line B2C market. Additionally , typically the oversea markets such as China market will attract a lot consumers.

Woolworths will select on-line in addition to traditional type in Tiongkok because the targets. Our core system is food, laundries, fruits, plus some other goods regarding daily use, and the actual product is the good quality, as well as the increased product is the products with services. Consider typically the situation, Woolworths plan to be able to use market penetration plus market development strategy. Given that Woolworths already has a very good reputation in Australia, it can using the high-quality released from Australia and New Zealand to do ad to attract new clients in China.

Marketing and advertising Mix Strategy

In a practical method, Woolworths may consider to be able to transform the analytical results from the past 12 months into marketing objectives with regard to next year.

Marketing strategic planning

A matrix called Product- Market Growth Matrix, known more as Ansoff Matrix (Igor Ansoff, 1957) is really a basic tool to explain what is marketing proper planning and how to be able to use it. Ansoff Matrix proposes four strategies in between offer (products) and need (markets) with some suggested paths for a controlled development.

Marketplace Penetration

To be able to continue penetrate in the modern marketplaces, Woolworths must control the manufacturing costs and functioning expenses, promote branding pressure, improve customer services, and enhance sales and advertising force. This strategy is usually suitable considering the excellent potential of growth in both Austrlia and exports to overseas such as China markets. Retailing industry will be a capital-intensive industry with a big proportion regarding fixed cost and a large marginal income therefore it is fit for low-price strategy. Woolworths can streamline the manufacturing plus operating operations along with enhance the logic management to regulate the overall costs to develop an expense advantage over its competitors to appeal to more price-sensitive consumers. Logos can be achieved via extensive advertising campaigns and promotions.

Inside Australia, Woolworths has retained a leadership position for a quite an extended time, but in in an attempt to enhancing products’ economic worth in the mind regarding the consumer, Woolworths needs to maintain favorable comments and upgrade after-sales service high quality. Woolworths should try to pay attention to selling daily shopping products such as food plus laundries towards the public, for instance, it needs to lower cost in order in order to boost sales volume. Great supply chain management will be really important for Woolworths, because it can lower the price effectively. For example, Woolworths may consider applying just-in-time inventory policy, which often means booking the inventory when ordered. This will lower the storage expense, however it needs a sturdy supply chain support. In order to build a strong provide chain management, Woolworths must earn a good popularity in order to enhance the creditability with the logistic companies.

Supplying prompt and high top quality customer services not simply strengthen the customer commitment, but also provide a great additional source of revenue along with high margin. Dealer bridges the manufacturers and buyers. Therefore, a strong car dealership increase the coverage of Woolworths’s products, deliver better services to consumers and offer timely feedbacks, which inside turn, boost the sales level of Woolworths.

Market Development

In accordance with bureau of Figure China (2012), the amount of the elderly individuals between 50-70 years older increases dramatically during typically the following a decade. This is usually a new market together with great potential and small competition. Given the fact that aged people usually are cautious in spending, Woolworths’s products are attractively with them plus little improvement, because it has a highly recommended reputation. Next year, Woolworths will certainly target and emphasis upon entering into a wholely new market like China. Woolworths’s goods and solutions can totally attract the customers in China comparing with the other oversea enterprises such Wal-mart in addition to Carrefour.

Cost Leadership

Very first, Woolworths may adapts Just-in-time production, a Japanese philosophy that components are not stockpiled months in advance, but ordered when required. That removes storage costs. Secondly, production activities are within diverse countries and areas to pursue the best expense, for instance, vegetables in addition to fruits from Japan, whole milk from Australia and grain growing in China. Last but not least, Woolworths may use their R& D center to find a more effective way in order to corporate based on a logistic business. In addition, Woolworths also need to integrates worldwide research resources, addresses monetary issues and insufficient technical people in specific places with the aid of R& D centers so as to lower the cost.


Localization makes Woolworths catch taste of local people and takes advantage of local resources. For instance, in order to transfer core competency and specific organization culture in order to subsidiaries, Parent company send technical people to subsidiaries to teach local employees key technology or require older technical people to learn the core competency in overseas factories. Moreover, Woolworths should respects local customs and beliefs. Based on that, it promotes Woolworths’s beliefs and concepts of functioning and management. This tactic is even more likely that core expertise leak out. Change is only consistent thing. As lengthy as Woolworths keeps changing its strategy and merchandise versions to follow the tendency, the risk will be reduced. By the method, employees from overseas specifically should be given lots of trust and responsibility, plus they can be trained to be multi skilled. This specific leads to a higher level of job fulfillment which makes employees job better.


Woolworths’s influences on the local economy good. The transnational strategy creates employment in typically the local areas. Residents become wealthier and spend more and therefore local services and economy benefit. These effects create the money required to enhance the infrastructure plus image of the region, therefore more industry is attracted. In this report, the purpose is to evaluate the operation of Woolworths and set the target market and position for Woolworths. In order to determine the best strategy associated with Woolworths for next 13 months, marketing analysis in addition to strategies are actually important for Woolworths. This report possess faith that these strategies will help Woolworths efficiently to stand out inside the supermarket industry in both local Australia and overseas market.


Ansoff (1957) Ansoff’s Matrix, pain and gain Growth strategies and adaptive learning among small food producers Anonymous. Geelong Marketer [Geelong, Vic] twenty eight Jan 2010: 30. Woolworths Slowdown Bowery, Joanna. Marketing (Apr 20, 2006) Woolworths

Hasell, Nick. The Times [London (UK)] 20 Nov 08: 77. Woolworths Bureau of Statistic China (2012) http://www.stats.gov.cn/english/statisticaldata/yearlydata/