sales and marketing strategy

Woolworth is a midsized grocery supply chain company headquartered in Australia and New Zealand. Founded in September 1924, the company has risen to become a household name in the region, sharing up to 80% of the market with its main competitor Coles. Furthermore, its popularity in Australia has resulted in the establishment of other branches, including the US franchise, which is one of the most profitable in the world. Woolworth has been in the forefront of incorporating the most effective distribution and promotion tactics into its operations (Noyan and Simsek 2011, pp. 2134).
Marketing policy is a philosophy at the heart of an organization's growth and progress. Essentially, this concept implies the methods employed by an organization to increase sales and gain and sustain competitive advantage over rivals. This paper primarily focuses on the marketing strategies employed by Woolworth. The report discusses its nature of orientation in the strategies that the organization utilizes. Besides, the essay establishes the dynamism in the marketing strategies employed by the organization to cope with the changing business environment in the industry. Further, the paper the gives recommendations on how the company can develop the strategies further. Thus, the essay is critical in availing the information that regards the Woolworths marketing strategies.

Marketing Strategy

Price

Woolworth price strategy entails lowering the costs of all their products so that they are price-competitive in the market. The company has a roadmap plan amounting to $500 to massively invest in price-based marketing strategy in a bid to control and increase its market-share (Omar and Sawmong 2007, pp. 20). Additionally, the company has segmented its customers into segments defined by prices. Customers preferring low prices and premium are served both served. The approach has aided the firm because its comprehensive pricing strategy enhances sales activities.

Place

Woolworth has capitalized in place strategy to establish 1000 stores in Australia. The customers benefit from convenience because of reduced proximities from their residence, therefore, save costs they would have incurred to travel and shop in their favourite supermarkets. The firm has also leveraged the advancement in technology to establish an online platform and companion mobile app to tap into the market of a tech-savvy generation.

Promotion

Woolworth utilized promotional marketing strategy to reward its customers, therefore, retaining them. It also attracts crowds and therefore converting others into new customers making the transaction with them. The company runs excellent promotions through numerous media including social media and print media. One of the promotional programs is the gifting of its customers with Loyalty schemes offering discounts to them. The strategy is meant to sustain their purchasing power and loyalty to the brand.

Woolworth has partnered with Tasmania's frequent shopper club to reward its customers. The Tasmania store offers vouchers to customers on points gathered as a result of their shopping. Additionally, the store provides Woolworth shopping cards which track customer's purchases making easy to reward their frequent and loyal clients. The firm provides a wide range of gift cards as an incentive to its customers. The gifts serve as a sales and marketing strategy through attracting new customers and retention of consistent and loyal customers. Some of the gifts in the organization are list below.

Groceries Gift cards which are available with the purchase of groceries in Woolworth supermarkets.

Store gift cards for utilization in a specific Woolworth Group store which includes supermarkets.

Essential Gift cards which are available to use in supermarkets or petrol outlets. The gift targets families and charity donations.

The wish Gift card which can be redeemed at Woolworth supermarkets and franchise

People Resource

The company has employed approximately 2000 workers amongst which are the sales assistants. This team of sales assistant operation is guided by the principle of customer satisfaction which has contributed to the increase and prosperity of the giant grocery supermarket brand. Recruitment process of this role is efficient and credible leading to a professional and competent team in their activities and interaction with customers. Additionally, the team has a value-adding policy of zero harm to both the employee and the environment. This benefits the organization with the positive reputation of environment-friendly process thereby gaining further traction to investors, professionals and other stakeholders.

Process

Technology forms the premise for efficient methods in Woolworth Company. The firm's procedures and operations are immensely customer-centric (Kidman 2009). This implies that the customer preference, tastes and feedback shapes their services through the decision making process. Customer satisfaction is also impacted by heir efficient billing process and smooth, efficient procurement of products cutting incidences of stock outs. Out of stocks situations dent the performance of the company as unreliable thus customers will slowly resort to shopping elsewhere.

Physical evidence

Woolworth facilities and premises comply with the environmental health and safety measures. The stores have enough space for customers to move around while doing their shopping comfortably. The company also utilizes billboards in a continued efforts of enhancing visibility and marketing of the firm. The retail stores also provide visibility across the country making it popular with everyone in different places. Woolworth has also invested in the distribution of company branded bags as part of its marketing strategy.

Product

Woolworth is a leading retailer of all types of groceries in Australia ranging from vegetables to fruits and packed products. The company gains in sales by serving a broad range of customers. It benefits from a diversified range of categories including bags, jewellery, furniture, bedding housewares excreta making it a one-stop solution to virtually all needs of its customers. Moreover, all of Woolworth's products are offered in broad range and specifications thus presenting the customers with adequate choices to make their purchases. This factor is key to attracting customers. Quality of the products is also guaranteed through a vigorous quality check by experts. Image-marketing strategy

Support for human rights

Woolworth Company is committed to ensuring the rights and benefits of all its workers along the supply chain is preserved and respected. This includes a deserving pay or salaries. The company benefits from the positive image of fair and decent dealings with its employees which will make it gain traction for stakeholders and potential professionals.

Ethical processes

Wool worth practices corporate social responsibility. The program is manifested through its care for the environment through an environment-friendly process including recyclability of its products. Additionally, it practices sustainable sourcing through close collaboration with its supply chain partners to curb processes with adverse environmental impact

Diversity and gender equality

Woolworth has positioned itself in the market as a diversified and multi-cultured organization. It has employees from different races and culture united by the common goal and objective of the firm. Additionally, gender equality has been highly considered with women taking up most of the managerial positions.

Packaging

Packaging forms an essential factor in the health and safety of the product. On selling products, Woolworth ensures that proper packaging has been done to protect the items from damages or contamination which gives room for various packaging costs. This process and caution on material handling inspire the confidence of the customers on the quality of services of the firm (Wilkie et al 2015, pp. 424).

Dynamism of the company’s strategies and tactics

Woolworth marketing strategies are founded on the customer feedback and rivals strategies. They can, therefore, be changed to mirror the tastes and preferences of the customers. Suggestion of improvement would include

Price

Initially, Woolworth was enjoying monopoly because of sole dominance in the industry. Later, there was the entry of its main competitor Cole which wrestled the market-share from the giant supermarket. Most recently, Aldi, a German supermarket joined the industry triggering serious price wars. Consequently, Woolworth changed its pricing strategy to adopt a low-pricing strategy for its products. This has enabled it to be reasonably stable amidst stiff competition from competitors

Place

With the increase in competition and need to market the company aggressively, Woolworth has resorted to re-designing this strategy to offer maximum convenience to its customers. Complementing the physical stores, the company has set up websites, mobile application and virtual stores to tap into the segment of customers that prefers online shopping.

Promotion

Customers have gotten sued for discounts which make them prefer to shop for low-priced items with the same quality to the high prices. Woolworth has had stiff competition from its rivals because of these facts. Example, Aldi positioned itself as discount supermarket offering the same range and category of products as Woolworth (Haleblian et al 2012, pp. 1037). Therefore, this necessitated Woolworth to cut its prices or costs incurred by its customers through the introduction of promotional offers including discounts and added services that would otherwise add costs to the customer.

Process

Woolworth started off with less advanced technologies. Virtually all the process were semi-automated costing the company inefficiencies. With the growth of business and dynamic technological environment, the firm adopted the best practice employing technology in virtually all its process from the automated billing system to packaging of products. This development has made the company to achieve a competitive edge.

Product

Woolworth started as a grocery supermarket offering fresh foods including vegetables and fruits sourced from the local farmers. Later, because of the growing expectations and needs of its customers, the company broadened its categories to virtually everything for home and living products. Additionally, the company deals and stocks product from reliable and reputable firms; termed as Trusted Names. The stores are filled with products representing quality thereby marketing the company as reliable and quality conscious. This strategy also generates sales for Woolworth.

Also, Woolworths should consider enhancing variability in its products. The luxury of choice has been considered by the broad variety of categories for customers to shop (Taylor 2015). Also, the company has partnered with other businesses thereby presenting some other emerging brands in the market.

How the current strategies can be developed and improved

At the centre of marketing strategies is the customer. Woolworth made it a culture to be customer-centric making all its changes in business to be customer-focused. Therefore, the company will rely on the customer feedback to continuously develop their processes and strategies. Stakeholders’ involvement is critical also in decision making thus the company will need to engage other players in the supply chain to reach a position that will present value for money for the company’s customers.

Place

Woolworth can leverage technology to introduce drone delivery for faster same day deliveries. This significant enhancement in its delivery services will achieve increased customer experience retain and widens its market share.

Process

The company can enhance its performance through outsourcing non-core process to companies with those competencies. The approach will create room for Woolworth to concentrate on matters core to its operation (Wilkie et al 2015, pp. 424). Therefore, a consideration of the process forms one of the key aspects towards the organization’s achievement.

People

Besides promoting gender equality in its managerial leadership, the company should invest in diversifying its workforce through a robust and credible recruitment system. The company’s recruitment department can headhunt for potential employees from different background, race, culture, and religion.

Price

Besides offering price discounts, the company should randomly gift its customers with presents. The company can integrate pricing strategy of its products to capture most of the customers. In most cases, the customers are attracted towards consuming which are relatively lower in price yet they have a high utility (Baker 2008, pp.27).

Product

Woolworth should make efforts of ensuring that they produce products that are fit and competitive in the market. The company can achieve this goal through scheduling survey processes to ensure that it continuously captures the ever-changing product needs of the customers. The organization should then utilize the information obtained to come up with a suitable product to the market that will meet the customer needs.

Conclusion

In conclusion, different organizations employ different sales and marketing strategies. Woolworth has been on the forefront to ensure that they embrace the marketing strategies that give it a competitive advantage over other players in the industry. Some of the major sales and marketing strategies employed include price, product, promotion, place and the process. The company has been dynamic in the application of these strategies. However, it needs to make a continuous review to ensure that they remain valid and gives the organization a competitive advantage.

References

Baker, M. (2008). The Strategic Marketing Plan Audit. pp. 27

Haleblian, J., Mcnamara, G., Kolev, K. and Dykes, B. (2012). "Exploring Firm Characteristics That Differentiate Leaders From Followers In Industry Merger Waves, A Competitive Dynamics Perspective". Strategic Management Journal. pp. 1037-1052. 

Kidman, A. (2009). "Woolworths Goes For Phones With Everyday Mobile". Life hacker Australia.

Noyan, F. and Simsek, G. (2011). Structural Determinants of the Customer Satisfaction in the Loyalty Models, Turkish Retail Supermarkets. Social and Behavioral Sciences, pp. 2134-2138.

Omar, O. and Sawmong, S. (2007). Customer Satisfaction and Loyalty to British Supermarkets. Journal of Food Products Marketing, pp. 19-32.

Taylor, J. (2015). "Woolworths revives mobile reselling with Telstra". CBS Interactive.

Wilkie, D., Johnson, L. and White, L. (2015). "Overcoming late entry: the importance of entry position, inferences and market leadership". Journal of Marketing Management, pp. 424