Marketing Positioning of Woolworths

Introduction

            Effective marketing helps to ensure that an organization is well positioned in the industry and its products are reaching and attracting the right customers in the market. Having been in the industry for over a period of 90 years, Woolworths has succeeded in the in the retail industry in Australia for engaging various measures including having an effective marketing strategy. The positioning strategy employed by Woolworths Company focuses of scientific decision-making attracting different customers from across the country.

This essay examines the marketing strategy employed by Woolworths food retailer Company focusing on its positioning in the market, segmentation and targeting of customers.

The consumer market

            The customers are the center of every business operations which is why it is important for the management to put customers into perspective. The company uses grading strategies whereby the products are categories in terms of high, medium and low. This is a strategy that is used by the company to reach clients of different economic class. For instance in the regions with relatively low income, the company provides low grade goods and provides the company pays much attention to improve the corporate image. Woolworths has experienced tremendous growth since it established it first shop in Pit Street and has managed to expand and open new shops and supermarkets in different parts of the country to becoming one of the largest food retailer company in the world.

Market Segmentation

            According to Solomon, (2014), the price of a product is one of the factors that influence the decision of customers. To attract the customers using pricing strategy, Woolworths ensure that both high-end and low-end customers are considered when formulating prices of the products. Woolworths positions high prices for high-end customers and relatively low prices for low level customers. Price position conducted by setting different prices for different regions based on the economy or average income of the residents. High-priced position strategy is based on the psychology held by high-end customers that high priced products are of better quality. This line of thought resonates well with the high level customers because it makes them to purchase from the company terming them as quality.

Age Demographics

On the other hand, the low-cost position strategy is an ideal strategy that the company employs not only to win low level customers but also counter its rivals using a price competition strategy. Additionally, low cost strategy is effective in helping Woolworths Company to maintain its competitiveness in markets with low different and stiff competition from its rivals such as Target and Wal-Mart.  

Family life cycle

            In company should be well positioned to ensure that all the family members have different goods available to shop from the stores. In the market positioning strategy, Woolworths takes different factors into consideration including demographics, geographic and behavior of the target customers. The demographic analysis used by the retailer company is based on the population composition and economic factors. The company targets both densely and sparsely populated regions based on their propensity to purchase the products offered by the company. Chen and Uysal (2002) explains psychological perception as one of the factors that contributes to the decision making process. Woolworth capitalizes on this idea by designing creative advertisements, product promotion techniques and campaign to tune win potential customers. For instance, the campaign slogan ‘cheap every day’ that was used by the company to promote its products helped to win new customers as well as increased customer loyalty.

Marketing Positioning

            Woolworth should use the marketing mix to ensure that it is well positioned to win potential customers and effectively compete with its rivals. According to McDonald (2013), marketing mix is the best strategy that companies can use to engage the necessary requirements when formulating a marketing plan. Woolworths should ensure that it has the right personnel to implement the project of the organization. This means, the human resources management should seek to recruit staffs that are talented and experienced in the industry.

Product

            First and foremost, the company should examine the type of products that are in high demand in the target regions. Woolworths should ensure that the target markets are provided with the right products that meets the desires of the customers. This may include different employing different packaging, branding and product promotion. The company should focus incorporating the different factor that will help in making its products different from the products from the rival companies (Morgan et al 2003).

Demographic segmentation

Family life cycle

            The pricing strategy employed by a company can dictate its performance in the industry. In this regard, Woolworths Company should structure its prices to win new customers and achieve loyalty from the existing customers. Strategizing on prices requires taking into consideration different factors such as the cost of production, economic position of the target market and price of the compactors.

Psychographic

            Place refers to the different distribution channels and location of its stores. Woolworths can increase its effectiveness by adopting supply channels that will promote quick delivery of products. In addition, to selling products in physical stores, the company should also focus on capitalizing on online sales to win the customers beyond the geographical boarders (Batt 2002).

Age Demographics

            The company should strategize on improving its customer service to align with the desires of the customer. To increase the operation of people in the organization, the company should also incorporate new technology that will allow fast delivery of products to the customers.  The company should also invest in effective communication that will allow the customers to engage with the organization in addition ensuring that complains are handles at timely basis. The company should embrace different product promotion techniques in order to win more customers and favorably compete with the rival products in the market. Apart from advertising, Woolworth should also invest in social media marketing to win the online customers. This will be a good strategy for winning rivals that have establishing strong sales such as Wal-Mart. In addition, Woolworths should focus on acquiring some of its competitors take a wider market of the share (Kim and Ko, 2012).     

Behavior towards product

            The process involved in acquiring the products by the customers can contribute to the success of the company in the industry. The process involved can be made more effective by incorporating technology that allows quick and efficient shopping process. The physical evidence of the process can be enhanced by ensuring making various adjustments such as installing new systems in the company.

Conclusion

            The increase in competition in the industry means that it is important for Woolworth to strategically position its operations to win more customers. This means, the retail company should engage in pricing and target new markets that it has not fully dominated. This can be achieved by engaging in effective product promotion such as advertisement, public rations and strategic pricing. The company should also focus on investing in online sales in order to expand its operation beyond the physical boarders. The company should target people of different ages by providing products that favor their consumption.      

Bibliography

Batt, R., 2002. Managing customer services: Human resource practices, quit rates, and sales growth. Academy of management Journal, 45(3), pp.587-597.

Chen, J.S. and Uysal, M., 2002. Market positioning analysis: A hybrid approach. Annals of Tourism Research, 29(4), pp.987-1003.

McDonald, M.H., 2013. Ten barriers to marketing planning. Journal of Product & Brand Management.

Morgan, R.E., Strong, C.A. and McGuinness, T., 2003. Product-market positioning and prospector strategy: An analysis of strategic patterns from the resource-based perspective. European Journal of Marketing, 37(10), pp.1409-1439.

 Kim, A.J. and Ko, E., 2012. Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), pp.1480-1486.

Solomon, M.R., 2014. Consumer behavior: Buying, having, and being. Engelwood Cliffs, NJ: prentice Hall.