MKTG3000 Strategic Marketing Management

Marketing Strategy of Woolworths South Africa

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Table of Contents

Introduction. 2

Discussion. 2

Conclusion. 6

References. 7

Introduction

In this assessment, the company chosen is Woolworths which is based in South Africa. It is a multinational retail company. It sells food products, beauty, and fashion products, and also home-related stuff. Marketing strategy helps the company to develop their products and also helps them to identify the target market which is helpful for this company to spread out its business.

Discussion

Current position and product analysis

Product: This organisation sells different food products including desserts, pastries, and different drinks. This organization also provides quality products to customers (Biyela, 2018). This organization also sells different beauty products which help to update the wardrobes. This company also practices food safety challenges through which it becomes able to develop (Boatemaa et al., 2019)). This organization also follows the government rules which help the company to run the activities in an efficient way (Boatemaa et al., 2019). Household products and lifestyle products are also included in their business. This company also sells products on online platforms.

Position: Woolworths Limited runs its activities in a congested market. The headquarters of this company is in Cape Town. The private level things are approached by this company to the middle-class people and this company also targets the customers who have a high-income source. This organization has more than 500 stores in South Africa in different locations.

Figure 1: Share price of Woolworths

Source: (Buys et al., 2020)

Marketing Strategies

Marketing management is the confines strategy that helps the organization to develop a marketing plan which maximizes the profits for the organization.

Product development strategy: In This section, the development strategies of the products of Woolworths holding groups are discussed through which they are able to provide good quality products to the customers. Woolworths provides FMCG products that satisfy the customers and also develop their purchase intention which is helpful for the company (Buys et al., 2020). This organization needs to modify their products and also give some offers on their products so they can attract the customer. FMCG products also help to develop the gear value which changes the dynamics of the business (Buys et al., 2020). Woolworths now focuses on providing products that are grown organically and this approach helps to satisfy the customers (Wekeza & Sibanda, 2019). This organization also provides offers and discounts for buying organically grown products to customers (Wekeza & Sibanda, 2019). They should be concerned about the quality and the quantity of the products they deliver. This organization also designs products which also attract customers to their platforms and help to expand the business. Product development also helps this company to maximize profits.

Promotional strategy: Advertising is needed to promote the business in a large market which also helps to expand the business. Online entry of Woolworths helps them to understand the interface and also helps them to adopt the technology in their business (Goga, Paleo & Nyamweya, 2019). Currently, Woolworths holding group also sells products on online platforms so advertisements are needed to provide information about the products and the services to the customers. Maintaining relations with the customers and making professional calls are also important promotional strategies that help the customers to get information about the delivery process of the company.

Pricing strategy: This organization focuses on the pricing strategy which is cost based on products. Dynamic pricing is not so helpful for this company. At the time of launching new products, this company should provide the products at a low cost as this strategy helps the organization to attract the customers. The value-based pricing helps Woolworths to improve the strategy and also helps this organization to get the knowledge to the demand and also provide the effective supply to the customers which helps them to expand the business in the international market level. Market penetration strategy also helps this company to understand the value of launching a product with a low margin into the market to improve its popularity.

Positioning strategy: Distributing the channels is the important positioning strategy that helps to run different stores in an efficient way and also attract a large number of customers. Marketing channels help to fulfil the purpose through which the organization is able to meet the objectives. Availability of various products in different stores helps to deliver products to the customers.

The strategy of applying an appropriate business model

Applying appropriate business models helps to develop the business and also helps to expand the business process. Woolworths holding group applies B2C business models through which they are able to approach the customers in a direct way and also able to understand their preferences and feedback

Benefits of Woolworths after implementing the marketing strategies

Identify the target market and customers: Marketing strategies help Woolworths to identify the target market and the customers. High-income people are the target customers for Woolworths. This sophisticated company targets the supermarket concept in which they want to provide the products and the services.

Identify the competition and current problems: Marketing strategies help Woolworths to identify the competition level in the international market. Spar and Shoprite are the major competition for the food business of Woolworths holding group (Buys et al., 2020). Mr. Price Company and Foschini groups are the fashion side competitors for Woolworths. Marketing strategies also helps Woolworths holding group to identify the running problems.

Identify the resource and utilize it: Marketing strategy also helps this organization to identify the resources which are locally available. This organization has available local resources and has sufficient capabilities to handle the resources in an efficient way.

Improve sustainability: Marketing strategies help to improve the sustainable environment of Woolworths which also builds the trust of the customers and also attracts them in large amounts to their platform.

Develop mission and vision: Marketing strategy helps to develop the mission and the vision of Woolworths which helps for this company. This organization believes to share the valuation techniques and also focus the fundamental programs which help to achieve the goal of this organization within the time limit.

Conclusion

Marketing strategies help this organisation to handle the competition level in the international market and also help this organisation to expand its business process. This strategy also helps this organization to improve the products and services which satisfy the customers and also attracts them into their platform which is also helpful for the company.

References

Biyela, S. M. (2018). Marketing mix strategy adaptation in response to global economic crisis at Woolworths in KwaZulu-Natal (Doctoral dissertation). Retrieved from: https://ukzn-dspace.ukzn.ac.za/handle/10413/17275

Boatemaa, S., Barney, M., Drimie, S., Harper, J., Korsten, L., & Pereira, L. (2019). Awakening from the listeriosis crisis: Food safety challenges, practices and governance in the food retail sector in South Africa. Food Control, 104, 333-342. DOI: https://doi.org/10.1016/j.foodcont.2019.05.009

Buys, H., Hawinkels, P., Shaw, T., & Pillay, P. (2020). The impact of Retailer Xs’ consumer-based brand equity on the intention of its consumers to purchase meat products: a survey of FMCG stores in the southern suburbs of Cape Town. The Retail and Marketing Review, 16(2), 45-63. Retrieved from: https://journals.co.za/doi/abs/10.10520/ejc-irmr1-v16-n2-a5

Goga, S., Paleo, A., & Nyamwena, J. (2019). Strategies for adapting to online entry: the case of retailers in South Africa. Working Paper 2019/3. Johannesburg: CCRED. Retrieved from: https://www.compcom.co.za/wp-content/uploads/2021/07/CCRED_Goga-Paelo-2019_Strategies-for-adapting-to-online-entry-the-case.pdf

Wekeza, S. V., & Sibanda, M. (2019). Factors influencing consumer purchase intentions of organically grown products in shelly centre, port shepstone, South Africa. International journal of environmental research and public health, 16(6), 956. DOI: https://doi.org/10.3390/ijerph16060956