Title: marketing issues and its evaluation: case of Woolworths

Executive Summary
Organisational scenarios are getting complex day by day and the ever changing consumer
demands are the core reason that organisations have to enhance its level of competition and
services delivery as well. The report has explained the market failure and influence of
marketing strategy inefficiencies on the business operations considering the case of
Woolworths, one of the renowned retail brands in Australia. The company has been formed
in 1924 in Australia by Percy Christmas, but presently it has manifested its ability to acquire
more and more consumer attention. Along with this, Woolworths is also associated several
renowned brands in Australia and cerebrates its success as well. The challenges encountered
by the organisation could be realised in terms of the losing grip from the market due to
certain wrong decision making in the past. The organisation has concentrated on USB driver
market and failed in it. But it has also been suggested that the organisation could acquire
success through developing strategies to enter drinking market along with modification of the
food market. Thus, the marketing issues and its impacts are discussed in the below manner.
Table of Contents
Executive Summary ................................................................................................................... 2

Introduction ................................................................................................................................ 4

Background of the company ...................................................................................................... 4

Company objectives and marketing challenges ......................................................................... 5

Research objectives and research questions .............................................................................. 6

Evaluation of potential data sources .......................................................................................... 6

Conclusion ................................................................................................................................. 8

References .................................................................................................................................. 9
Introduction
Marketing and business practices are significant elements for any business operation to
acquire success and sustainability in the targeted industry. Issues in marketing practices could
influence the impact as well as market present of an organisation. Here, the report has
explained the market failure and influence of marketing strategy inefficiencies on the
business operations considering the case of Woolworths, one of the renowned retail brands in
Australia. Moreover, the report has presented a thorough understanding of the company
background, its objectives and present marketing issues (Supermarket.co.za., 2018). Apart
from this, with the detailed evaluation of relevant data sources different aspects related to the
marketing issues and practices would be analysed for understanding the origin of the
challenges. Hence, the below discussion would be able t provide answers to the intended
research questions and attain the objectives as well.

Background of the company

One of the Australia’s renowned retail organisation, Woolworths has gained quite popularity
in the recent years in Australian retail industry. The company has been formed in 1924 in
Australia by Percy Christmas, but presently it has manifested its ability to acquire more and
more consumer attention. Along with this, Woolworths is also associated several renowned
brands in Australia and cerebrates its success as well. The company has more than 998 retail
stores all across Australia and it is purely consumers led. Apart from this, the organisation
has also invested in the social commitment through which it has gained sustainable
development as well (Australian Food News, 2015). The Corporate social responsibility has
helped in involving goals and commitments to implement FY’20 strategy and gain as much
as possible competitive advantages in the long run. The annual turnover of the company is
recorded with $AU1.6 billion.

Hence, the company has focused on the aspects that could deliver sheer opportunity to gain
success and act promptly with the required situation and circumstances as well. The report
would be able to deliver a clear insight regarding its current marketing issues and how it
could be rectified with the relevant data sources.
Company objectives and marketing challenges
The main objective of the company is to place itself in a first position for consumers across
all brands in Australia. On the other hand, other objectives of the organisation could be
realised in the below manner.

 Form a team that would be consumers and company culture oriented

 Incorporating a successful and sustainable sales momentum in the food retail section.
 Concentrating on the drink business in order to deliver more brand value to the
consumers.
 Most importantly, becoming a lean retailer through involving end to end process and
system value.

Instead of the objectives and goals incorporated within the business strategies of the
organisation, the company has encountered certain challenges and difficulties in its marketing
practices. In order to deliver a clear insight regarding the marketing issues faced by the
respective organisation, its market position and present market environment should be
depicted in a brief. At present, Woolworths has considered the high income population along
with LSM as their prime target market and also targeted the lower LSM and developing black
middle class people with the hope that these groups will start buying from stores in the
coming future (ABC News, 2018). The challenges encountered by the organisation could be
realised in terms of the losing grip from the market due to certain wrong decision making in
the past. The respective organisation had contributed in the USB driver’s market which was
a drastic fail. On the other hand, the due to the lack of focus on the retail market in the mean
time, retail competiveness has increased with intensity. Most importantly, in accordance with
the analysis of Australian investment banking, the supermarkets will be benefiting from the
increased competition in the coming future, but Woolworths may not gain its part due to lack
of its attention towards the retail market (Pehrsson, 2014). Therefore, four main problems
have been detected in the context of Woolworths marketing practices and strategies.

 Slowing market growth for the company as it has not concentrated to the retail growth
for some years.
 Market discounting
 Aldi’s market entry in south and west Australian supermarkets
 Weak and inconvenient staff morale in the company.
The above mentioned issues are quite influential and dominant for the organisation which has
caused certain inconvenience to the retail markets and supermarkets of Woolworths and have
also influenced the consumer’s behaviour towards the brand.

Research objectives and research questions

Research objectives and research questions are significant aspects through which the report
would be able to deliver a certain goal or direction to the research. On the other hand, it has
also the ability to form a strong base for the organisation to understand its drawbacks and
where it has lacked. Therefore, the research objectives for the respective report could be
delivered in the following terms.

i) To understand the current marketing practices conducted by Woolworths.

ii) To assess the potential market threats to the company.
iii) To analyse the future possibilities of market position enhancements and gain more
sustainability.
iv) To deliver clear insight about the issues and its original sources of the challenges.

Apart from the research objectives, research questions behold the same importance as it has
the ability to direct the research to a right direction. Hence, the research questions are
mentioned in the below manner.

i) What are the current marketing practices adopted by Woolworths?

ii) What are the potential market threats resides for Woolworths?
iii) What are future possibilities for the organisation to gain sustainability?
iv) How the issues have been originated?

Thus, through the above objectives and research questions relevant and required information
could be incorporated within the report. Besides, the scholarly resources would help in
understanding the issues and strategies that Woolworths have practiced.

Evaluation of potential data sources

In the context of delivering a clear overview of the present market situation of the respective
company few data sources could be evaluated and analysed. For understanding the marketing
issues and its impact selected scholarly journals and articles related to the discussion topic
would be analysed and presented in the due course. Therefore, the article called “Strategy for
Successful Entry into a Concentrated and Highly Competitive Market” has manifested how
the Australian grocery markets has flourished with sheer efficiency and at presents two most
renowned retail brand Woolworths and Coles Myers are controlling 76% of the total retail
market, but with the entry of ALDI’s in the Australian grocery market, the competition has
increased and providing major challenges for Woolworths to deliver its expected business
outcomes. Instead of the attractiveness of the Australian grocery industry and the reliance of
the domestic brands to gain competitive advantages, but foreign based companies like
ALDI’s have dominated and occupied the market and influenced buyers to invest in the brand
as it included quality in their services.

On the other hand, another article called “How Australia’s retail sector is being transformed
by competition and the changing tastes of shoppers” has manifested how the Australian
grocery market ad industry has been affected due to increasing competition and
unpredictability of the economic condition of the region. Apart from this, the new market
entrants have also enhanced the risk of overcapacity for the old brands. New entrants are
coming with new strategies to attract consumer’s base and the brands like Woolworths and
Coles Myers have to put their extra investments in overpowering their ability to deliver
services. Such difficult situation has been raised due to the continuous changing of demands
and requirements of consumers. The challenges encountered by the organisation could be
realised in terms of the losing grip from the market due to certain wrong decision making in
the past. The respective organisation had contributed in the USB driver’s market which was
a drastic fail. On the other hand, the due to the lack of focus on the retail market in the mean
time, retail competiveness has increased with intensity. Hence, the above data source has
manifested how the ever-changing retail industry and the consumer demand created
difficulties and challenges for Woolworths in the Australian market to attain its desired
business outcomes.

Moreover, as an additional informational source another article has contributed in this regard
and provided insight about the processes and strategies which are adopted by Woolworths to
regain its market sustainability. In the article called “Woolworths announces new strategies
to win over grocery shoppers, AFN reveals full detail” the aspects related to the future
strategies and actions taken by the respective company has been provided and discussed as
well. It explained how the company has concentrated on developing a base market to regain
its lost sustainability. In order to increase its competitive advantages, Woolworths have
focused on shifting its min channel of work to food retailing. As believed by the organisation,
food retailing and grocery stores would be able to restore the consumer trust in the domestic
market and it has the possibility to enhance future commitment of consumers towards the
brand. Hence, the data sources have provided a basic idea about the origin of market
challenges for the respective company. Here, through the above evaluation, it could be stated
that the market challenges are originated from the entry of new companies in the retail and
grocery market in Australia. People are getting habituated by the advance option in terms of
purchasing services and goods. As a result, it is realised that the brands like Woolworths
have to face challenges and marketing issues while the strategies also seems non influential
as well. Apart from this, it is also observed that as the company has concentrated in USB
driver market, their attention towards the grocery and food market decreased and started
losing its ground. Therefore, it is quite evident with the investments in the food and drinking
industry Woolworths could utilise the opportunity to deliver its required action and strategies
and rectify its drawbacks at the same time. Therefore, the data sources have highlighted the
fields for Woolworths to concentrated while it could be suggested to the organisation to
reconsider its marketing strategies through thorough assessments of every facts of business
activities.

Conclusion
In conclusion, it could be stated that organisation practices and strategies are at the core of
any business outcomes and it is also evident that such actions could also result in dire failure
for the organisation as well. Here, the study has concentrated on the case of Woolworths, one
of the renowned retail brands in Australia. The company has been detected with issues in its
marketing practices and it could be defined as a major challenge for the organisation to face
negative consequences. Such difficult situation has been raised due to the continuous
changing of demands and requirements of consumers. The challenges encountered by the
organisation could be realised in terms of the losing grip from the market due to certain
wrong decision making in the past. The organisation has concentrated on USB driver market
and failed in it. But it has also been suggested that the organisation could acquire success
through developing strategies to enter drinking market along with modification of the food
market. Another reason for such situation is new entrants are coming with new strategies to
attract consumer’s base and the brands like Woolworths and Coles Myers have to put their
extra investments in overpowering their ability to deliver services Therefore, through the
study, present situation and future possibilities of Woolworths in market could be realised
and assessed as well.
References
ABC News, 2018. Woolworths shares more likely to fall than rise: UBS. [online] ABC News.
Available at: <http://www.abc.net.au/news/2016-07-26/woolworths-supermarket-struggle-
not-over-yet-ubs/7660804> [Accessed 10 Aug. 2018].

Australian Food News, 2015. Woolworths announces new strategies to win over grocery
shoppers, AFN reveals full detail. Australian Food News. [online] Available at:
<http://www.ausfoodnews.com.au/2015/05/06/woolworths-announces-new-strategies-to-win-
over-grocery-shoppers-afn-reveals-full-detail.html> [Accessed 10 Aug. 2018].

Pehrsson, A., 2014. Strategy competence: a successful approach to international market

entry. Management Decision, 42(6), pp.758-768.

Supermarket.co.za., 2018. Woolworths' nightmare in Australia. [online] Supermarket.co.za.

Available at: <https://www.supermarket.co.za/news-article.asp?ID=6743&CatTags=13-
Retailer%20trading%20results> [Accessed 10 Aug. 2018].