Saturday, February 29, 2020
A Food Supermarket Chain Marketing Essay
A Food Supermarket Chain Marketing Essay INTRODUCTION Whole Foods Market is a food supermarket chain founded in 1980, which emphasizes in Ã¢â¬Å"natural and organic productsÃ¢â¬ , based in Austin, Texas. John Mackey, founder of Whole Foods Market, has currently 331 supermarket stores in both the United States and Europe. In this report, PEST analysis and PorterÃ¢â¬â¢s 5-Forces would be used to analysis the general environment of Whole Foods Market. Using the above mentioned analysis, a value chain would then be recommended to identify which areas or stages of the product would need to be changed in order to improve Whole Foods Market market value, allowing it to remain competitive and ensure business sustainability. ADDED VALUE IDENTIFICATION Whenever a customer intends to patronize Whole Foods Market, the first thought that comes into majority of customerÃ¢â¬â¢s minds is that foods sold there are healthier choices. And with the presence of Whole Foods MarketÃ¢â¬â¢s house brand, 365, customers would be able to purc hase healthier foods at affordable prices. As compared to Whole Foods MarketÃ¢â¬â¢s competitor, Kroger Supermarkets, Kroger does not emphasize on selling healthier foods, in fact they emphasize more on selling produces at affordable prices. Majority of customers patronizing Kroger Supermarkets have the idea that itÃ¢â¬â¢s a one-stop shopping place. Both companies also give their customers the idea that poultry, meat and other fresh produces are of the freshest and highest quality. PEST ANALYSIS The PEST analysis is a business tool used for measuring market growth or decline, hence allowing the business to identify its position, potential and direction. PEST analysis comprises of Political, Economic, Social and Technological factors shown in (fig1.1): (fig. 1.1) POLITICAL Before June 2011, body care products sold at Whole Foods Market need not comply with U.S. Department of Agriculture (USDA) standards for sale as being organic. After June 2011, body care products are needed to c omply with USDA standards to be labeled as organic. ECONOMIC Economy in the U.S has been declining due to its global huge debt incurred. Recession has set in causing high unemployment rates and failed businesses. The same situation has been experienced in Europe, Euro Crisis, due to GreeceÃ¢â¬â¢s huge debt incurred. Fall in value of the U.S. dollar and Euro currency has been experienced until present day. SOCIAL Consumer trends have also changed. Modern day consumers tend to go for Ã¢â¬Å"healthier choiceÃ¢â¬ foods, especially organic products. Consumers also tend to shun away from foods, especially poultry and meat, where animals have been treated inhumanely. Organizations actively involved in Corporate Social Responsibility (CSR) are more welcomed by consumers. TECHNOLOGICAL Present day consumers are more engaged in on-line shopping from the internet. Compared to other sectors, the supermarket sector has fewer technologies being implemented in its day to day operations. CONCL USION The supermarket industry is being regulated regularly with new legislations being imposed to improve quality of foods sold. This industry needs to constantly adapt to the needs of consumers which are ever changing based on population, lifestyle, and buying power of consumers. This industry would continue to see growth due to consumers welcoming organic foods.