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HI5004 Marketing Management: Strategy of Woolworths Ltd

Issue 1

Provide a brief description of this organisation and the industry to which it belongs. You may also want to include in this description any mission statements, value statements or ‘slogans’ that this organisation utilizes to communicate its purpose. In describing this organisation, please also identify its orientation towards marketing and provide relevant, detailed and factual supporting evidence to substantiate why you have identified this specific orientation. Finally, include a brief description of the product(s) this organisation offers the market. And comment on what role the brand has in this organisation’s marketing strategy.

Issue 2

Analyse each of the 5Cs for this organisation:

  1. Company – what are the strengths and key resources, what are some of the weaknesses? What are the opportunities and threats?
  2. Customers – who is the company serving and what type of behaviour is ‘typical’ from them?
  3. Collaborators – describe their suppliers, distributors or other partners that help the company to deliver their products to the market? If company doesn’t have any – explain why it is not necessary.
  4. Competitors – who are the current main competitors, are there any potential new threats or new entrants to the marketplace?
  5. Context – what other factors affect this organisation (e.g., legal, political, technological, etc.)?

Issue 3

How does the firm go about collecting information (e.g., market research, market intelligence, etc.) about the 5Cs? For example, how does it learn about?

  1. What customers want?
  2. Which competitors pose a threat?
  3. How the context of business is changing, if at all?
  4. What role collaborators play in the process?

Issue 4: Developing marketing strategy

Based on the market analyses, outline potential market segments that are available to the chosen organisation.

Recommend and justify:

  • a choice of target market(/s)
  • a value proposition for the target market(/s).
  • a positioning statement for the target market(/s).

Issue 5: Developing marketing tactics

Recommend and justify a detailed marketing mix (4-7Ps) to support the marketing strategy described in Issue 4.

In all cases, please remember to justify your argument(s) in this assignment by explaining and providing reasoned arguments for why you have formed your views. Please ensure that you support your arguments by explicitly applying and drawing insights and conclusions from relevant marketing models, concepts and theory covered in the course to date. Do not simply rely on offering personal conjecture or opinions.


Issue 1 

The marketing strategies are most important for the business organizations as these help in sustaining the existing customers base as well as increasing the customers base. Hence, the marketing strategies support the sustainable development of the business of the organizations. In this matter, the leading Australian retailer Woolworths Ltd can be a good case for the discussion. The retail industry in Australia is the severely competitive industry with the top retailers like Woolworths, Wesfarmers, Aldi, which operate in this segment. Woolworths with it glossary items leads the industry. The mission of the organization is to provide high value and quality to its customers and perform a sustainable business (Appannaiah and Reddy, 2010). The company's slogan is "Australia fresh food people" that indicates that the company provides fresh food to the people. The company has the wide range of foods and grocery products.         

Issue 2 

a. Company

The company is one of the leading retailers in Australia with its many supermarkets, malls, etc. where the company offers the customers quality foods and grocery items. However, the company is performing efficient business operation throughout the years; the company has some important drawbacks also that hinder the further growth of the organization. In order to recognize the current situation of Woolworths, the environmental analysis of this organization is necessary (Baines, Fill and P

age, 2011). Moreover, in this matter, the SWOT analysis is effective as it gives knowledge about the internal strengths and weaknesses of the organization as well as the external opportunities and threats of the organization.


  • Pioneer as well as one of the oldest retailers in Australia
  • Leading retailers in this country
  • Huge skilled workforces
  • Several popular brands like Lady Bird, Chad Valley
  • Powerful brand image and brand name
  • Efficient operation


  • Minimal presence in global market in comparison to the competitors
  • Unsuccessful is sustaining competitive advantages
  • Late entry in the online market  


  • The company can apply strategic acquisition plus franchise model to grow the business
  • Brand promotion through effective advertisement, promotion, and sponsorship


  • Elevating cost of raw materials impact on overall profitability
  • Stringent competition from the rivals
  • Economic recession may impede the growth strategy  

b. Customers

The customers of the company are mainly the huge population of Australia who requires foods and grocery items. The upper middle-class population and the working class people are mainly targeted by the company. The customers are mainly loyal customers of the company who want quality products from the company (Doole, 2016). Hence, the company provides assurance for the quality products. Besides this, the customers also want the quality products at competitive price, and the company Woolworths provide great emphasis on providing its customers quality products at reasonable price.

c. Collaborators

The company has several suppliers, who supply quality raw materials to the organization and with the raw materials, the company produces the end products for the customers. The suppliers are as the partners of the company and also fascinated about the quality as the company. There are farmers of different categories like egg farmers, the potato farmer, spinach farmer, etc. (Ferrell, 2016). Besides this, master chocolatier and pickle fish suppliers are the important associates of the company.    

d. Competitors

The retail industry is harshly competitive with the top retailers like Tesco, Wesfarmers, Aldi operating in this industry. The entire competitors put great emphasis on developing strategies; hence the rivalry is very strong. The food regulation is stringent; thus, the new entrant is tough in this market (Fifield, 2016).

e. Context

The food policy and laws are stringent that impact on the business of the company. Besides this, the taxation policies and recruitment policies also have the significant impact on the company.   

Issue 3 

a. Customer’s need and demand

There is wide range of customers of the company who buys various products from different outlets of the company. The company mainly targets the upper middle class as well as working class people; hence the products from the company are also of that specific quality. The customers of the company actually need high quality of products, basically the food products. The product must be made in the environment-friendly and sustainable way (Justin, 2016). For this reason, the company Woolworths has introduced herbal products which have lower environmental impact. The company has a distinct segment that comprised with the wide range of organic products in order to meet the need and demand of the customers. The company is liable to provide quality food product to the customers in order to meet their needs. The customers need quality products with reasonable price; hence the company keeps the price of its products competitive in the market as well the company offers various discount and rebate to the existing and new customers in order to improve loyal customers base for the organization (Marketing and management sciences, 2010).       

b. Competitors threats 

The retail business industry is stringently competitive, and the top retail companies all over the world operate in this industry that improves the competition in the market. There are retailers such as Tesco Plc, Aldi, Walmart, Wesfarmers, Macro Wholefoods Ltd operate in this retail market in Australia along with Woolworths. Hence, the market competition is increasingly growing over the years (Peter and Olson, 2010). Besides this, many other global companies, as well as new companies from the domestic region, intend to make the entry in this retail market that increases the market competition inevitably. Hence the market experiences severe market competition.         

c. Changing business context

With the globalization and arrival of advanced technologies have brought significant changes in the market. The business world is revolutionized with this changes, and the business perspectives are also changed. The globalization has given the opportunities to expand the business operation across the globe; hence the business organization can be able to search adequate resources (human resources and other raw material) from all over the worlds, so that improve the efficiency of the business organization (Ramachandra, Chandrashekara and Shivakumar, 2010). Besides this, due to the globalization policies, the economies from all over the globe introduce more favorable laws that allow the companies from other countries to initiate business operation. Hence, the companies with minimal legal needs can expand the business activities across the globe. The technological advancement makes the work simple and easy, and improve the efficiency and accuracy of the core business activities.   Hence, the new entrants are also encouraged to operate in this business sectors. In this context, the market is changed considerably, and the competition in the market improves harshly.

d. Collaborators roles

The collaborators or associates of the business organization "Woolworths" are mainly the suppliers and distributors of the company. The company has a wide range of suppliers, who supplies the required raw materials to the company and as per the company's requirement, the suppliers try to provide quality products or raw materials from those the Woolworths company make their end products. With quality raw materials and quality people, the end products of the company easily gain excellent quality standard (Scarborough, 2014). The suppliers are mainly supplying raw materials like eggs, crops, potatoes, fish, chicken, and meat from those the company uses to make high quality of end products. Hence, the company plays important role to the society as it provides high-quality products with reasonable and in this matter the collaborators of the company play the important role.       

Issue 4 

a. Selection of target market 

In order to develop an efficient marketing strategy, it is important to perform the STP analysis of the undertaken business organization as it provides required knowledge and information about the large segment of the customers whom the company offers its products and services. Apart from this, it also helps in recognizing the target market of the company and the positioning strategy help in placing the products and services to the targeted customers. The company mainly operates in life style and retail sector in Australia. The main category of the company is food retail where the company Woolworths is operating. The company has several departmental store chain from where the company serve and target upper middle-class people along with the working class people in Australia.   The people want quality products in the reasonable price; hence, the company has to take care of the quality of the products and services it offers to the customers. In addition to this, the company has to look at the price of the products and services also as the customers want the reasonable price. The company, for this reason, provide great emphasis in developing quality products and services to the customers in competitive price (Sheehan, 2011). The company produces the products and services for medium range hence the company target the upper middle class and working class people who can afford its products.  

b. Value proposition for the target market

The company Woolworths has taken important plans to provide adequate value to the customers' money. The company has valuable brands, and the brands have reasonable values that help in providing great value to the customer. The company offer quality products and services to the customers as well as the company offer the competitive price in the industry that helps in providing adequate value to the customers of the company (Verbeke, 2013). The company put great emphasis on building strong and profitable customers relationship that help in operating the business of the companies. The high quality of food and products help in providing adequate value to the target market of the company.   

c. Positioning statements 

The company put great focus on effective positioning its products to the target market. It is important to select in what position the company will operate for a long term in order to occupy the target segment of a market. The position of the product and services is important as by effective positioning strategy the customers can detect the products based on their various important features like the place of product in the mind of the targeted customers in comparison to the products from other organizations. The company Woolworths aim in providing quality products to the customers, and it is considered as the Australian retailers (Winer and Dhar, 2014).  Moreover, it positions as the fresh food in the mind of the target customers. Hence when they need fresh food, they will come to Woolworths stores.     

Issue 5 

The marketing mix help in describing the marketing strategies of the company more efficiently:


The company is the leading retailer in Australia provides all types of foods and grocery items to their clients. All types of vegetable, fruits, packaged foods products, meat available in the stores of the company. A wide range of product items with different types of foods products offered by the company. The company is also offering the organic food products, which are of the utmost quality that helps in improving the products range of the company (Sheehan, 2011).

Apart from the extensive range of food items the company also offers magazines, DVDs, stationery items, bags, jewelry, furniture, etc.


Woolworths tries to maintain the price of the products, and the rate of the products are very much competitive in the market. The company tries to keep the price similar to the market. Beside this, in few segment, the company offer relatively low price that attracts a large number of the customers. Besides this, the company provides extra discount and rebates for the loyal customers having Woolworths shopping card.


Woolworths company is presently operating in more than 1000 stores in Australia among them more than 950 are supermarkets, and the other stores are convenience stores. In the important location across the important cities, the company has stores and a wide distribution network help in its business.


The promotion strategy is important for the company. The company constantly brings innovative promotional strategies to attract its target customers. The company offers discounts and rebates seasonally. It helps in improving its business. The promotional strategies help in developing the loyal customers base of the company as well as help in attracting new customers.   


Appannaiah, P. and Reddy, D. (2010). Business Management. Himalaya Publishing House.

Baines, P., Fill, C. and Page, K. (2011). Marketing. Oxford: Oxford University Press.

Doole, I. (2016). International Marketing Strategy. Cengage Learning.

Ferrell, O. (2016). Marketing strategy. [S.l.]: Cengage Learning.

Fifield, P. (2016). Marketing strategy. [Place of publication not identified]: Routledge.

Justin, L. (2016). Small Business Management. Cengage Learning.

Marketing and management sciences. (2010). London: Imperial College Press.

Peter, J. and Olson, J. (2010). Consumer behavior & marketing strategy. New York: McGraw-Hill Irwin.

Ramachandra, K., Chandrashekara, B. and Shivakumar, S. (2010). Marketing management. Mumbai [India]: Himalaya Pub. House.

Scarborough, N. (2014). Effective small business management. Pearson.

Sheehan, B. (2011). Marketing management. Lausanne: AVA.

Verbeke, A. (2013). International Business Strategy. Cambridge: Cambridge University Press.

Winer, R. and Dhar, R. (2014). Marketing management. Harlow, Essex: Prentice Hall.      

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