Emily, Katie, Luciana, Matt, Nicole

Brand Assignment #2

COMM 211 September 17th, 2019

SWOT ANALYSIS

Strengths:

• Largest natural and organic food market in the US
• Partnership with Amazon and their increase in online shopping for produce
• Positive brand recognition with a clear message
• Unique grocery experience (cooking classes and hot food)

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Weaknesses:

• Seen as overly expensive (No Promotions)
• The cost of supplying organic, non GMO and dietary substitute products

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Opportunities:

• Amazon Support
• The increase in online shopping
• Capitalizing on the healthy trend
• Hooking Gen Z students into using our product
• Using celebrities to influence the younger generation

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Threats:

• Competitors like Kroger and Walmart and their increase on healthy products
• Online competitors like BlueApron and Hello Fresh
• Connection with Amazon and their reputation of being a sustainable company
• Rise of competitors like Trader Joe’s

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QUALITATIVE

QUANTITATIVE

Nearly 44% of U.S. consumers go first to Amazon when they want to make a purchase. However, the vast majority of purchases we make (about 92%) still occur in brick-and-mortar stores, not over the Internet. The value of this acquisition will be in how effectively and broadly Amazon is able to utilize the new physical platform it is buying.

Amazon’s overall grocery sales nearly doubled in 2018-19, the first full year to include Whole Foods results, vaulting the primarily online retailer to the number nine spot on the list. Amazon’s online consumables sales rose by 31%, according to Supermarket News, from $8.6 billion to $11.2 billion.

People who bought organic foods in last 6 months: 55% are age 25-54, 60% are at least graduates and 53% have Income over $50,000 - help Whole Foods define their target market

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The Numbers

TARGET AUDIENCE AND CURRENT BUSINESS PROBLEMS

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• PRIMARY TARGET: Men and women 18-23 (more women), who care about the sustainability of the earth and prefer all-natural products
• Students who use Uber Eats, are online
• Aesthetic girl, the girl who wants to be trendy
• CURRENT PROBLEMS:
• High price stigma
• Whole foods needs to have clearer communications about what they offer (discounts, rewards, prime student)

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Sharpening The Target

Demographics: Men and women between the ages of 18-23, college student.

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Psychographic: Wanting to be cheap but also healthy, wanting to be sustainable, and wanting fast and easy

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Geographic: Urban/city, college towns

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Behavioral: People who are active, want to stay healthy, avoid the freshman fifteen, find healthier alternatives, learning to cook for the first time, need fast/simple/easy

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Physical traits: Physically fit (or trying to be fit)

College aged men and women who are seen as stylish.

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Consumption: People who online shop regularly, people who use uber eats, people who think they need the best brand (apple).

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NEW TARGET AND POSITIONING STATEMENT

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• Have a team travel to colleges to promote Amazon Prime student accounts and communicate Whole Foods on Amazon.

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• Capitalize on growing trend of sustainability and ethical consumption choices among younger people (18-23) through social media ads.

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• Reposition WH into the most “ethical” grocer and offer discounted prices for college students.

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• Making the shopping experience convenient for college-age students with cheaper online shopping.

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• Introduce an initial discount program for new students who sign up.

Solutions

• Comes with free two day shipping, prime video, prime deals, and then 10% off at whole foods on sale items
• Introduce an increased student discount for Prime Members when they shop at Whole Foods (15%).
• Free delivery/Pickup within a two hour window if your order is over $35
• Study while getting your groceries
• Make both parents and students feel like getting the Prime Student Discount is a must have.
• Have promotion team create a fun way to promote Prime Student and WF at colleges (15% off opposed to 10%, BOZO buckets with fake fruit and Give away fresh produce/ coupons)
• Track the success of signups in the target demographic within 2019/2020.

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CITATIONS:

Cusumano, Michael. “Amazon and Whole Foods: Follow the Strategy (and the Money).” Communications of the ACM, vol, 60, no. 10, October 2017, pp 24-28, Loyola Online Library, doi:10.1145/3132722. Accessed 15 September 2019.

Fernandes, Lawrence, and R. Srinivasan. “A Consumer Analysis of Whole Foods Market.” International Journal of Latest Engineering and Management Research, vol. 03, no. 02, Feb. 2018, pp. 37–41.

Statista Survey. "Share of People Buying Most of Their Groceries at Whole Foods Markets in The United States in 2018, by Age." Statista, Statista Inc., 30 Jun 2018, https://www.statista.com/statistics/228450/people-in-household-that-bought-most-of-their-groceries-at-whole-foods-market-usa/

Statista Survey (Global Consumer Survey). "Share of People Shopping at Trader Joe's Grocery Stores Regularly in The United States in 2018, by Age." Statista, Statista Inc., 30 Jun 2018, https://www.statista.com/statistics/228447/people-in-household-that-bought-most-of-their-groceries-at-trader-joes-usa/

Supermarket News, “2019 Top 75 Retailers & Wholesalers”/Mintel

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