Introduction
Woolworths supermarket is a chain of markets that provides goods and services for the Australian people. The companyâs main products are foodstuffs such as groceries, electronics, and clothing as the main products. The business has thrived for many years in the field of the retail industry and ensures that it makes a profit through the different phases of the economy (Haskins et al., 2020). Woolworths is influential in the business since it is a key player in the market. The business has exploited many opportunities in the arena to create a thriving economy. Woolworths company has a diversified product portfolio which helps it to maintain its operation and helps the business to make high profits. The business earns high profits since it has many items in its line and hence serves many business needs. Woolworths sells groceries, toiletries, bakery products, confectionery, home furnishing, kitchenware, clothes, footwear, and other miscellaneous items. The business has employed many people to aid in the effective delivery of items to the customers. This report aims to explain different electronic commerce models that Woolworths may use to promote its sales.
Industry
Woolworths supermarket lies in the retail industry where the main products that they sell include groceries, foods and beverages, toiletries, and electronics among others. The Australian retail industry has experienced growth in the last decade until 2020 when the COVID-19 pandemic emerged. The industry contributes significantly to the growth of the Australian economy by influencing the amount of Gross Domestic Product (GDP). The increasing GDP from the retail industry surged in 2020 after the awakening of COVID 19 a pandemic that swiped over the whole world. Restricted movement of people and loss of jobs by most citizens led to a decline in their purchasing power hence the reduction in buying of products from retailers. However, despite the decline in purchasing power, purchasing of toiletries, foods, and other basic products increased since people purchased these items in bulk and due to the closure of many businesses.
The Australian economy relies on the industry as a source of revenue through tax payments both directly and indirectly. The direct tax arises when the retailers pay them directly to regulators to seek permission to operate whereas the indirect tax is through the creation of jobs that allow people to pay income taxes to the government. Employment for the citizens creates a good opportunity for the government to extend its services to the community by providing social amenities through the money it receives as revenue (Haskins et al., 2020). The retail industry is critical for society since it eliminates poverty and provides it with goods and services. The main participants in the retail business in Australia are Woolworths, Coles, Aldi, and Metcashm. They control the largest market share, pay the highest taxes and employ the largest audience in the industry hence identifiable as the critical decision influencers in the market (Roy et al.m 2020). The industry has continued to prosper after the economic recovery phase from the depression of the COVID-19 pandemic. The industry has regained its profits after the government reopened the economy and discovery the vaccines to aid in the elimination of the virus. Hence, the industry continues to thrive and impact the economy
Situational Analysis
The government plays a critical role in determining the nature and scope of the economy since it has the duty of providing a free and fair environment for businesses to operate. It controls major aspects of the country such as the security department which guarantees business people protection from terrorists and other groups that may interfere with their rights to conduct business activities. Political stability determines the level of an investorâs interest in operating in a specific region of the country. Political environments influence investment choices in businesses and determine the nature of the competition. The Australian government has played a critical role in determining the nature of businesses by protecting consumers, the environment, and the community by improving fair trade and competition (Smith et al., 2019). The government creates laws that conserve businesses and govern the relations between suppliers and the business (Prentice et al., 2020). The Australian Constitution gives the government the mandate to protect and defend the affairs of the business. The government protects consumers from receiving substandard goods and protects them from exploitation from businesses and greedy firms. Therefore, understanding the governmentâs role in business is important since it helps them to cope in their industry.
Economic Environment
Businesses develop based on the nature of the economy and determine how businesses relate to one another. Australia is a greatly developed country and enjoys a mixed economy. It contains mainly urban centers and the service sector mainly dominates the service sector. The Australian economy mainly depends on the consumption of food products and beverages. The retail industry contributes to the growth of the economy and accounts for over 4% of the Gross Domestic Product (GDP) (Smith et al., 2019). The retail industry contributes to the economic growth by such a huge amount since it deals with the distribution of basic commodities like food substances and clothing. Thus, the retail business is essential for the smooth operation of the economy.
The awakening of COVID-19 and its extension in 2020 to many countries led to a decrease in operations in the retail industry. The government advised people to cease operations to prevent the further spread of the virus (Wang, 2022). The pandemic led to a reduction in the operating stores and a decline in the number of people physically visiting the stalls. A reduction in the number of customers led to a decrease in the demand for labor hence some people lost their jobs. An unbalanced economic effect occurred and contributed to the sabotage of business operations in the industry since many firms went ceased operation. The government thus received a decline in the amount of revenue it earns from the industry. Woolworths underwent similar challenges in the decline of operating power and an increase in the number of online purchases and delivery items. A transfer in operational costs from one segment to another contributed to a decline in economic progress. However, after the discovery of the vaccine against the disease in the later days of 2020, the Australian economy has slowly progressed and regained form with most businesses reviving.
Social Environment
The social environment may influence investment decisions for many firms operating in the retail environment. It helps investors to determine what products to focus on and motivates them to provide items that improve the social welfare of the community. The retail industry plays a critical role in supplying products that motivate people to interact with one another by determining the ways they relate. It influences investment decisions by helping the retailers to determine what products to supply and in what quantities (Smith et al., 2019). The social environment focuses on the interaction between people and determines where the firm will locate its outlets. The social environment consists of the customs, traditions, and beliefs of a particular group of people. The target audience determines the nature of the products that the business will sell. For instance, the alarming rate of the demand for healthy lifestyles in Australia influences the nature of food items that Woolworths company supplies. The social environment relies on the nature of consumer behavior concerning their taste and preferences to determine how the market develops.
The COVID-19 pandemic affected the interaction between people in 2019 hence affecting the general performance of the industry. COVID-19 restricted movement from one region to another hence negatively affecting the consumerâs buying behavior (Wang, 2022). Reduced travel from one region to another contributed to the decline of buyers in the outlets and encouraged the delivery of products to the buyers. Additionally, the pandemic discouraged the interaction of workers in the outlets leading to many of them preferring to retire from their positions. The fear of contracting the virus negatively influenced people to minimize interaction and demand more healthy foodstuffs. The pandemic encouraged firms to create more inventive advertisement strategies to improve their sales (Wang, 2022). A decline in the physical interaction of people affected minimized business referrals since people could not share their experiences with others. Therefore, businesses had to create counter strategies to ensure that their businesses do not fail such as online marketing to create awareness.
The social environment promotes business relations and helps businesses to determine the marketing strategies to use to promote their products. The strategy must be influential and must be relatable to the target audience. The approach must be coherent with the societal standards and must be cautious of the social beliefs of the customers. Woolworths company has determined that there is an upcoming business trend where the customers are demanding health cautious products for their consumption. Thus, it shifted its focus on providing more fresh fruits and groceries in its outlets to ensure that there is customer retention and protection of their lives and demands. The social environment studies the way people interact and how they influence each other to consume products based on their ages, gender, and their demography. It is a vital area that a company must understand clearly before joining the market to determine their direction of investment and how they will behave to acquire the attention of the target group. The social environment helps the business in decision-making on the major areas to focus on to obtain high-quality products for their customers.
Technological Environment
Technology keeps changing from time to time due to more recent updates from innovators. Technology influences the milestones in the development of faster customer care units and service delivery in businesses. A higher technology influences how the packaging team prepares items for delivery to the rightful owner. It helps the department to operate at high speed and efficiency to ensure that the customers receive their products in time. A high packaging technology promotes business development by motivating employees and attracting more workers. High technology makes the packaging process easier and encourages the firm to serve more customers in a specific period. Moreover, it ensures that the workers package the products safely and affirm the businessâ intention of making the customer feel satisfied. Proper handling of facilities during packaging eliminates damage to products and ensures that the customer receives them in the right condition. Technology is important for the business since it helps the workers to save time and energy during working hours, reduces damage to properties, and helps the service delivery to be efficient.
Another benefit of having a strong technology is that the quality of products is guaranteed to be high. The machines eliminate mistakes that people may perform when conducting the work with mere hands. The technology may help the company to detect the faults in their products and push them to proceed in remaking them and improving the quality by removing the disorders or recreating them. Technological development facilitates Woolworths to improve its security by incorporating surveillance cameras in the business premises to protect against theft and other malpractices that may deter the companyâs progress into becoming the leading supermarket in the country. The technology secures premises and promotes the brand image since the customers feel safer from terrorist attacks while shopping. Technology is important for the business since it improves the customer experience in the industry.
Another application of technology in the region is through the improvement of the customerâs shopping experience by helping them to enjoy purchase and delivery services where they purchase the items in the comfort of their rooms whether office or home and receive delivery for their orders at any specific time. The technology simplifies the buying process and ensures that the consumer saves on time and attention. The process targets at making the buyer experience more worthwhile and comfortable. It creates a conducive environment for the business to operate in and allows customers to make purchases at any time. The customer makes their orders through the website and waits for the delivery agent to get the commodities to them. Proper communication channels favor easy business penetration into the foreseeable market and facilitate a good relationship with the customers.
Another benefit of the technological environment is that it makes communication between the buyer and the seller ease. Technology helps the buyer to reach the customer care unit of the company without strain. The customer care desk receives complaints from customers through their social media accounts and delivers them to the concerned department for correction. Technology helps businesses to expand operations through the promotion of advertisement techniques. The business earns a huge number of loyal customers through the social media platforms where they advertise their products and services (Njarambaet al., 2018). Social media platforms are vital for a strong penetration into the desirable market since it creates awareness among customers. The process helps the business to update customers about the recent changes in operation and helps them to expound and exploit the market share. In addition, Woolworths has acquired integrated communication systems that help the business in passing information from one department to another hence quick response when the need arises. Woolworths is a great business that uses technology to create a strong communication bond between the customers, the management, and other stakeholders.
SWOT Analysis
Strengths
Woolworths enjoys a variety of benefits that strengthen its operation in the market. The areas help in unifying the business activities and provide a competitive advantage to it by giving specific advantages over the competitors.
A strong brand image and name is one of the many benefits that Woolworths owns over its competitors. The two help it in proper positioning in the market since it creates awareness in the market and provides a good reputation for the company. The business enjoys a huge following due to the high-profile brand image and name that its management has maintained after many years of operation (Benzaghta et al., 2021). Additionally, people respect veteran brands in the market since they are experienced in their duties and enjoy a numerous following hence assuring that the quality of their products is exceptional.
Another benefit is a deep understanding of the scope of the market hence aiding in the market segmentation and penetration. Woolworths enjoys a high market penetration since it clearly understands how the market segments. Therefore, its main management understands the demands of people within a specific region and provides their desires appropriately. Market segmentation helps the business in determining the price that they will charge on items and encourages the management to conduct more research on the market segmentation strategies. The ability to alter the prices at different markets helps the business to retain customers by charging prices based on their purchasing power. Woolworths has a strategic plan for segment penetration.
Additionally, the business possesses employee policies that determine the conduct of the workers. The policies maintain a reasonable relationship between the buyers and the seller hence making the trading process more effective. The policies are important since they define the roles of each individual towards the businessâ prosperity and equip them with the mandate to ensure that each department that the management allocates to them is prosperous. A proper employee management policy plan ensures that the workers are content with what the company offers. A motivated workforce gives the company a competitive advantage over rivals who do not pay attention to the employeesâ satisfaction.
Weaknesses
However, despite the success in understanding the market and possessing a strong brand name, the business suffers from a few challenges. First, the company suffers from confused positioning. The market positioning is critical for businesses since it helps them to determine the nature of products to supply and the prices to charge for these products (Benzaghta et al., 2021). Woolworths faces the problem of confusing positioning since targets multiple customers using the same products. Segmentation is a benefit to the business only if it utilizes the available resources wisely and if it knows the demography of the people. Targeting different income earners using similar products creates inefficiency in the market penetration and prohibits the businessâ success. The business must reevaluate its market segmentation strategy to avoid failure in supplying the commodities.
The second challenge that the business faces is that its management has partial behavior towards specific markets. Though the company offers similar products to its audience, it has failed to relate with the low-income earners and pays more attention to people with higher salaries. Underestimating low-income earners creates an understanding gap between the groups hence contributing to failure in effective penetration of the market.
Another weakness is the existence of price wars between Woolworths and its closest competitor, Coles. The two businesses have closely competed to obtain the largest market control by creating price undercuts. The process has frequently resulted in the rise of price undercuts that cost Woolworths hugely. The company has undergone different failures by making price blunders resulting in losses. It is Woolworthâs mandate to ensure that it conducts market research to identify other strategies that may win more customers for them without undergoing price sanctions.
Threats
Some of the threats that the business goes through include high competition and the current trend focusing on health. Competition from rival companies has been observable for a while due to the existence of rival companies such as Coles. Competition reduces the number of loyal customers and shifts the attention from the main company to its rivals hence altering the brand image and name. Woolworths has to create counter strategies to ensure that they regain the market share it loses to the competitors. The strategies must ensure that there is minimal market size drop and high accommodation of new customers (Benzaghta et al., 2021).
The other threat is the rising campaign about the consumption of healthy foodstuffs to prevent health-related problems.
Woolworths is facing the threat and has since begun to create plans on how they overcome the trajectory by selling more fresh agricultural products.
Opportunities
Woolworths has a beautiful future if it incorporates its focus on its experience in serving the customers. A long-time service to people may be one of the strongholds that the managers have to emphasize to reassure the customers about the quality of the products it offers.
E-Marketing Strategic Plan
There are different forms of market segmentation that Woolworths uses to categorize its market base. They include demographic, geographic, behavioral, and psychographic segmentation. The four categories vary from one another and influence the business in many forms such as determining the products to sell and the prices to charge for each item. Geographically, Woolworths serves different areas of Australia. The company has had wide market control since its formation in 1924 and has utilized its understanding of the local market for segmentation and positioning. Geographical segmentation has played a vital role in identifying the areas with the highest population and has helped in the locating of Woolworths stores. Every business must evaluate the best region to place its outlet to gain popularity and serve the highest number of customers.
On the other hand, demography focuses on the distribution of population among the society based on vital aspects such as gender, age, ethnicity, income, religion, and level of education among others. The focus on these aspects of societal and cultural divides influences the consumerâs buying behavior hence the company may use them to determine the kind of goods to supply to specific groups of people. Woolworths has used these demographic aspects to determine how it treats its customers, the nature of the goods and services it provides, and the location of its stores to ensure that they do not contradict the demographic distribution of its target group. Thus, the business has secured many prosperous acts through strategic demographic positioning and targeting.
Conversely, behavioral segmentation focuses on the beliefs and culture of the constituent market group. The business ensures that it provides items that bring contentment to its target groups and ensures that it does not go against peopleâs culture. Every business must understand its customers perfectly before bringing products into the market. A proper analysis of the market will aid in determining what products customers prefer and those that are against their culture hence eliminating losses that may arise due to forfeiture in purchasing from the company. In addition, the business will create a positive brand image and protect itself from losing customers. Behavioral segmentation researches consumer preferences and choices and uses the findings to determine the most sellable products to specific audiences.
Differentiation
Woolworths company has used differentiation over the years to promote its sales. There are different forms of product differentiation that the company employs to separate its products from other rival firms. It is mainly through packaging, unique experience, pricing, and emotional response. The business bulk breaks some of its products to accommodate people who cannot afford the cost of entire initial amounts and those who demand the items in low quantities (Hermans & Reyes, 2020). Another approach is by placing contents into unique bags and sacks. Bulk breaking and unique placement of items in different containers are some of the packaging approaches that the company uses to distinguish its services from others. Conversely, the company may offer unique prices to different audiences through price segmentation to maintain them. Unique customer experience and focus on the emotional response of legal help Woolworths to preserve customers while attracting new ones.
Positioning
Marketing positioning is a strategy that Woolworths uses to ensure that it remains in the customersâ vicinity and mind as the best brand available in the market. The company utilizes deep research of the market to emphasize its position in the customerâs brain. High efficiency in product delivery in business helps it to retain customers and influence them to offer free advertisements by recommending the brand to other people. Product positioning plays an s vital role in influencing the customerâs approach towards any product that the business offers. It improves the customer trust in the brandâs items and motivates them to consume more of them. Woolworthsâ consumer base understands that the brand has been in existence for many years and has boosted consumer trust in the products the company offers.
E-Marketing Objectives
The goal of electronic marketing is to increase the number of customers believing in the brandâs image and name. Another objective is to create credibility for the property that Woolworths supplies. The move aims at attracting new customers and maintaining old ones. The E-marketing objective is to build the brand into a more reliable and approve its products by creating more awareness within the regions of Australia. E-marketing focuses on what the consumer perceives about the business and distinguishes the products that Woolworths offers from those of competing brands. The campaign will educate the consumers on key security features that separate the products from others.
E-Marketing Strategies
Product differentiation focuses on creating uniqueness between Woolworths and rivalsâ products. The process involves strategies that emphasize more the outward outlook of the commodities. The uniqueness in form of new shapes, new quantities, and coloring create an observable difference. Woolworthsâ strategy creates products that are unique and more diversified and hence have a higher competitive advantage over its rivals. Product differentiation empowers the brand to perform better in comparison to its competitors.
Sustainable Packaging
Woolworths is very keen on ensuring that there is proper elimination of single packaging plastic bags and cans. The process affirms that there is minimal exposure of plastics to the environment. The current mobilization about environmental conservation. The company has tried its best to validate the packaging processes and maintain a reputable image from its packaging systems. Sustainable packaging is vital since it minimizes pollution and maintains a good reputation for the business. The business applies strategies that minimize environmental pollution and are cost-saving.
Price
Pricing is very critical for businesses since it determines business performance. Price moderation helps Woolworths to preserve customers and expands the business operations since more customers purchase the products. The pricing model in Woolworths is conservative and emphasizes consumer satisfaction since there is price differentiation at different market segments based on the income of the regions. On the other hand, premium pricing helps the business to create a perception about the quality of its products. Premium pricing protects the brand image and ensures that there are fewer complaints from customers since they respect the brand name. This strategy eliminates doubts that consumers may have about the products that it supplies. Woolworths employs the premium pricing mechanism in regions where high income exists.
Place
The company has engaged in many business operations through its website and has frequently encountered system failure under different circumstances. The company should create optional strategies to counter the problem in advance to prevent any losses from occurring. Woolworthsâ latest incidence in August 2021 left many customers in shock as they could not make purchases leading to a loss of income and resources. Woolworths must conduct frequent system upgrades to prevent future failures and maintain a reputable image. The management must set aside funds to compensate in case of similar occurrences in the future. The website must be easy to access and navigate through for customers to fasten the ordering process. Integrated communication systems are vital for the organization since they will heighten service delivery.
Promotion
Social media marketing creates awareness among the younger generation since they spend most of their time on the walls for entertainment and other activities. The business must understand that most of its customers are millennials and Generation Z. These groups are easily accessible in large magnitudes through social media platforms. Posting images of the available products on the Instagram pages while quoting the prices will incite the generation to gain interest in the companyâs products and motivates them to make purchases (Li et al., 2021). The Instagram comment section will facilitate the business to receive complaints from the customers and respond to them immediately at personal levels hence preserving a reputable relationship between it and the customers. Instagram is one of the most influential platforms currently and will help the business to evaluate its performance and the level of interest it draws by indicating the number of followers and comments. The platform aids the business to identify the items that draw much attention hence aiding in the stock selection process.
Paid Advertisements on Social Media
Paid advertisements on social media platforms like Facebook and Twitter will create a continuous awareness strategy. These social media platforms help businesses to share information and advertisement programs under specific costs per advert. These platforms are essential since they equip people with information regarding products and companies by educating them. The advertisements create awareness and emphasize the important aspects that people must understand before purchasing items like the cost, quality, and security of the products under sale (Li et al., 2021). Social media advertisements help people to access much information within limited timelines and reach wide audiences since there is an effective transition of information from the sender to the responder hence helping in answering important questions. The entire process allows brands to select specific goals before displaying their contents and helps control the target audiences by creating restrictions for people who do not qualify to meet the requirements of accessing the information. Paid advertisements are more effective in businesses that target social people. Woolworths must thus incorporate these activities into its advertisement plans since the target audience is young people and the public in general.
Content Development
Facebook Post
Justification
The main objective of conducting a social media post is to expound on the viewerâs understanding of the company and to create awareness among new members. The social media posts contain information about the products the company offers and educates the viewers about how to use the products in-store. The posts create anxiety among the audience and incite them to make purchases through the website to acquire the property soonest (Li et al., 2021). Social media posts are effective since they relay information to a wide audience at a high speed. The information reaches the target audience at any time of the day provided they are logged into their accounts. It is cheap for the business since the costs that surround the process are cheap and more organized.
Implementation Plan
Budget and Evaluation
References
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