Presenting

Whole Foods
Market
GROUP 1

Name
Mazed Hossain Mahin
Md. Yasir Arafat
Sadman Shariar Biswas
Shamima Nasrin
Nipupurni Biswas
Hasan Asif

ID
13164080
12264057
12264004
13164074
12364006
12264069

WFM At a Glance
Founded

in 1980 in Austin, Texas

John Mackey, the cofounder and CEO
$ 6.6. billion sales in 2007
276 stores in USA, Canada and GB
Revenue growth 30% in 1991, 20% since
2000
Growth Objective: by 2010
400

stores
$12 billion sales

Marketing Philosophy
Marketing

high quality natural and

organic foods to more and more
consumers
Whole Foods, Whole People, Whole
Planet
Help the customers to live longer,
healthier, more pleasurable lives.

Natural & Organic Food- What is

it?
Product

containing no artificial ingredient

No added color
Minimally processed
Fresh fruits, vegetables, meats and
processed foods
Why natural?
Environment friendly agricultural practices

Industry Analysis

Natural and Organic Foods

Industry
Represent

3% of the total US retails sales of

food & beverages
$17 billion sales in 2006 alone in United States
Sales growth is 7-9% since 2000
Projected sales is $33 billion in 2008
Farm production is 4.1 million acres in 2005,
increased by 2 million acres farm land since
2001
8,400 certified organic farmers, other 9,000

Sales Channel
Sales of organic foods

Supermarkets
29%

40%

31%

Leading natural
foods supermarket
chains
Independent grocery
retail chains

Leading Organic Firms

Kraft,

General Mills, Groupe Danone, Deans

Food, Kellog
Heinz- organic ketchup
Campbell Soup- organic tomato juice
Starbucks- organic coffee
Coca-Cola- Odwalla juices
Tyson Foods- organic chicken

Coming back to
WFMs Values

WFMs Core Values

Whole Foods, Whole People, Whole
Planet

Selling the highest quality natural and organic

products available
Satisfying and delighting our customers
Team member happiness and excellence
Creating wealth, through profits & growth
Caring about our communities and our
environment

Introducing the
Growth Strategy

Growth Strategy
Combination

of New Venture & Acquisition

Opening 10-15 times bigger stores in
metropolitan areas
Why Acquisitions?

Additional bargaining power with suppliers

Full utilization of companys facilities
Reduce general and administrative expenses
Renovating and rebranding

Environmental Forces
14,500

superstores moving towards natural

and organic products marketing
Healthy eating concept- leading superstores
have special organic & health food sections
Consumer demand is growing 20% annually
Intense price competition from the rivals
Customers prefer avoidance of pesticides
(70.3%), freshness (68.3%), and health &
nutrition (67.1%)

Product, Pricing &

Marketing

Product Line Strategy

Fresh Produce
Meat and Poultry
Fresh Seafood
Daily Baked Goods
Prepared Foods
Coffees and Teas
Body Care and Nutrition
Grocery and Household
Floral Department
Educational Products

Pricing Strategy
Advantages:

Offer Premium Customers

Premium Products
Niche Products

Disadvantages:

Price Level High

Price Sensitive Consumers

Marketing and Customer

Service
Advertising
Word of Mouth Recommendation
Store Signage
Store Events
Community Outreach Programs

Store Size & Location

Open

Format
Sweet Spot Footprint 45000 SFT-60000
SFT
Located In Upscale urban metropolitan
centers
Avg. capital cost for new store $15.1
million in 2007
Total 276 stores in 36 states

Store description and

Merchandising
No standard store design
Management want to give a view to
customer store as Third Place
Variety of category (Seafood ,Juice Bar etc.)
Experimenting in Merchandising like to take
best ideas and incorporate it to other stores.
Introduced brochure signage to informing
shopper about Five step Animal rating
program

Store Operations
Decentralized

Team and Management process

Highly dependent on team members & associates
Empowering team members

Different

team members for different category

Team Leader screen candidates for job openings if
2/3 of team members had to agreed.
Team Leaders report to regional presidents
3rd Party administered Team leader survey
Customize product display & product mix
considering TG .
In 2008 employed 54000 employees 85 % full time .
Benefit plan ,Health Insurance plan

Compensation & incentive

Gain

Sharing Program
Encouraged stock Ownership
Surprise inspection & reward
Salary Cap (wages plus profit incentives bonuses)
The Use of Economic Value added measure
Performance
Promoting Employee within as much as possible

Purchases and Distribution

 Whole foods used regional

and national suppliers.
Some perishable products,
from some distant supply
sources.
The company operated
nine regional distribution
centers to supply its store.

Community Citizenship &

Social Activism

The Animal Compassion

Foundation in January 2005

Eliminating disposable plastic

grocery bags
Donating at least five percent
of its annual net profits to
charitable causes.
In 2005, the company created
two foundations designed to
effect solutions to global
problems

Financial Performance

16.00%
14.00%
12.00%
10.00%
8.00%

Column2

6.00%
4.00%
2.00%
0.00%
2004

2005

2006

2007

Year

Store

Difference

Sales
Growth

2004

163

14.9%

2005

175

12

12.8%

2006

186

11

11.0%

2007

276

90

7.1%

Balance
sheet Ratio

2004

2005

2006

2007

Current Ratio

1.45

1.61

1.22

0.86

Debt to equity

0.6

0.4

0.5

1.2

3.10

2.95

2.70

2.25

Total asset
turnover
6

Total asset
turnover

Debt to equity
Current Ratio

2004

2005

2006

2007

Income
statement
ratio
Gross Profit
Net Profit
Margin

2004

2005

2006

2007

34.7% 35.1%

34.9
%

34.8
%

5.6%

5.7%

4.5%

4.9%

40
35
30
25
Gross Profit
Net Profit Margin

20
15
10
5
0

2004

2005

2006

2007

Competitors

Wild Oats Market

Companys 109 stores in 23 states and

British Columbia, Canada
Combines sales of about $ 1.2 billion
Cofounder of wild oats was Mike
Gilliland
Product line includes- dairy, meat,
seafood and baked goods etc

Fresh market
Headquarter

in Greensboro, North Carolina

Founder of Fresh market was Ray Berry
During the 1982-2000 period, sales
revenue grew at a 25.2% compounded rate
Product line includes-meats, sea food, 300
fresh produced items, fresh baked goods,
prepared foods, 40 varieties of coffees, a
section of grocery and dairy items, bulk
products, cheeses wine, beer, gift items
etc.

Trader Joes
It

was a super market chain more than 315

stores in 22 states
It is based on Pasadena, California
CEO of Trader Joes was Dan Bane
Product line includes-backed goods, organic
foods, fresh fruits, vegetables, imported
and domestic cheese, gourmet chocolates
and candies, coffees, fresh salads,
meatless entrees, low fat products, frozen
fish, sea food etc

Sunflower Farmers Markets

Entered

in market in 2003
Establishes four stores- two in Phoenix, one in
Albuquerque and one in Denver
Founder and President was Gilliland
Annual sales in 2013 was $500 million
Product line includes-meats, sea food, cereals,
nutrition bars, health drinks, pastas, frozen
meals, trial mixes, coffee, nuts, candy, salads,
cheeses, breads, vitamins, supplements,
medications, soaps, shampoos, books etc

Fresh & Easy

Neighborhood markets
It

was newly established subsidiary of British

supermarket giant Tesco,
The worlds largest retailer and sales $51.86
billion for fiscal year Feb 23,2008
Additional 38 stores in Las Vegas, San Diego
and Los Angeles
Product line offering ranged from gourmet
items and included natural and organic
foods, fruits, vegetables, meat, fish, poultry
etc

Independent natural
and health food
grocers
In

2005, there were approximately

14000 small independent retailers
natural and organic foods, vitamins,
supplements, beauty and personal care
products
Combined sale were $ 18 billion range
in 2007

Recommendation

Configure the most profitable combination of price.

Develop a detailed marketing plan that supports
product strategy success.
Can use specialized software for inventory
Increase store location in more geographic location
like in Asia or Australia or some others markets.
Can go for KPI for employee performance evaluation
Can go for solar panel instead of electricity which will
be cost effective and environment friendly.
Develop contract farming for organic chicken and beef
productions.

Q???
THANKS!!!