Woolworth Business Success

Question: Discuss about the Woolworth Business Success. Answer: Introduction Woolworth Limited is a widely diverse business, so it is very importance to group and make segments for the distinct needs and wants. Woolworth can deal in the segmentation of both the consumer and business types. Segmentation Woolworths mainly operates in consumer markets. It has a connection with both resources and intermediate markets. Its various segments are: Supermarkets: Woolworths and Progressive (NZ) Provides wide range of quality foods at competitive prices. Big W Provides high range of products for men, women and kids including toys, electronics, gaming, home and DVDs at low prices. Dan Murphy Australias highly demanded liquor store. Hotels (services sector):ALH Provides hospitality experiences restaurants, cafes, nightclubs, bistros, electronic gaming and accommodations. Dick Smith Electronics Deals in electronic goods, electronic project kits and hobbyist electronic components. Woolworths Ezy Banking Provides a range of financial services what ensures current needs and financial needs (Commonwealth Bank of Australia,2002). Targeting Targeting means to make a choice of which and how many segments of market the company shall enter into. Woolworth should target that market which is large enough to specify that particular segment. Target Market Segment Justification Supermarkets: Woolworths and Progressive (NZ) Segment size and growth In a decade, its value soared from R6bn to R51bn. Existing Competitors Shoprite and Pick n Pay are the existing competitors of Woolworth Supermarket as they also deal in the retailing of great quality food. Capacity of Woolworths to meet these need profitably as compared to its competitors Woolworth Supermarket is following a new pricing policy to attract more customers leading to high profitability. This policy includes lowering price, better range, target customers by offering them reward for loyalty and by improving its own brand. Positioning Positioning is a technique which includes brand, price and product. It is a marketing strategy to aim at occupying a distinct position as compared to its competing brands. A good marketing strategy relating to positioning helps a buyer to get knowledge about the product and can make purchase (Lauren, L, 2016). Competitive Advantage Woolworth has a good brand name so it can maintain customer loyalty. They follow Adaptation Strategy to satisfy the dynamic needs and wants of the consumers. Efficient Strategy used in promoting the products, sponsorship and advertising etc. Offering good quality products at low prices. Woolworth uses slick marketing so they can change peoples perception from an unaffordable rich man shop to the one that provides good quality products at affordable prices. Woolworth is successful in creating a name for itself as a soft luxury unlike its competitors who are often referred as luxury markets (Shevel, A, 2014) Positioning Strategy Woolworths offer more for less, this is their main strategy to attract more customer. They have been successful in positioning their product as fresh food people. They bring life to the people as they provide fresh food from farm to the consumers to resolve the issues related to sourcing and quality; and related to freshness. Due to this they have been able to gain trust from the people as they are not only supporting Australian companies but also Australian farmers and suppliers (Marketingmag.com.au, 2012). Conclusion Woolworth is greatly influencing the local economy by providing employment. As a result of this local people are being able to spend more and meet their wants. It is not only performing effectively in supermarket industry in Australia but also doing well in overseas market. References Shevel, A. (2014). Woolworths little secret to big success, Viewed 19 September 2016 from https://www.bdlive.co.za/business/retail/2014/02/16/woolworths-little-secret-to-big-success Commonwealth Bank of Australia.(2002). Ezy Banking Account available for all Australians, Viewed 19 September 2016 from https://www.commbank.com.au/about-us/news/media-releases/2002/220502-ezy-banking.html Marketingmag.com.au. (2012). Woolworths refreshes positioning amid supermarket wars, Viewed 19 September 2016 from https://www.marketingmag.com.au/news-c/woolworths-refreshes-positioning-amid-supermarket-wars Lauren, L. (2016). What is positioning in a Marketing Plan? Viewed 19 September 2016 from https://smallbusiness.chron.com/positioning-marketing-plan-22983.html