According to the Organic Trade Association (OTA), Americans purchased $35.9 billion of organic food in 2014, which is 4% of total food sales in the states (Nierenberg & Nink, 2015). It is a good sign that more and more people realize the importance of having organic food in their life and this planet, and the organic food market is becoming an emerging trend in the states. According to the chart (Greene, 2014) below, the organic food sales had grown almost 200 percent in the past one decade, and fruit and vegetables are on the top of the selling categories.
(Picture retrieved from http://www.ers.usda.gov)
The OTA estimated that 93 percent of organic sales occurred through supermarkets and chains and the rest through farmers’ markets
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The key reason of why Whole Foods Market is leading the organic food market is that it sets the standards of excellence in food producing and provides a transparent food information, in order to gain loyal customers.
Marketing Strategy
Growth Strategy
Whole Foods Market is hoping to expand its brand through opening more stores and making acquisitions with small food chains, and the store area range is from 20,000 to 75,000 square feet (Whole Foods Market, 2015). According to the chart below, Whole Foods Market opened new stores each year, and the growth speed stays high in recent years. (Source from Whole Foods Market Annual Report 2015)
Pricing Strategy
Whole Foods Market launched its second growth vehicle, 365 by Whole Foods Market, for expanding the brand in 2015. While Whole Foods Market is selling its premium food at its main stores, 365 chain is keeping prices lower by providing cheaper food and locating in some small towns (Kowitt, 2015). This strategy helps Whole Foods Market compete in the organic market without watering down its high-end brand.
Meet Customers’ Needs
Whole Foods Market knows that only proving high-quality foods cannot meet all customers’ needs, so it invests in developing its online and digital platforms in order to improve its customer experience. Whole Foods Market will adopt a new unified point-of-sale system that
Whole Foods has been adaptive in fitting its competitive strategy to its situation. The store first grew to prominence by being a stylish antithesis to the crunchy mom-and-pop organic grocery stores, providing a relatively normal but
Whole Foods Market has evolved into one of the largest retailers of natural and organic foods. This company 's rapid growth and market success has to do with being a mission-driven company. Whole Foods is highly selective about what they sell and are dedicated to their core values. Whole Food 's integrated strategy consists of growth, differentiation, merchandising, and customer service. This strategic plan was aimed at expanding its operations to offer high quality and nutritious foods to more and more customers. It was also aimed at promoting organically grown foods, food safety concerns, and sustainability of the entire ecosystem.
The company’s greatest goal is to provide customers with food that is free of preservatives, oil, sugar and other ingredients that are often found in processed foods. Whole Foods can also attribute much of its success to strategic acquisitions. Whole Foods bought a lot of companies and we went into cities where we would be successful. Such acquisitions included companies like North Carolina-based Wellspring Grocery, Massachusetts-based Nature’s Heartland and Boulder-based Wild Oats Market. The biggest challenge Whole Foods faces in the future is to continue innovating ahead of the competition. (Hendee, N.d.) Although contrary to the previous growth strategy this shows that Whole Foods is not subject to maintain the new store openings rather than acquisition idea. This option is available and necessary for different regions.
Whole Foods Market, Inc. is the "world's leader in natural and organic foods, with more than 310 stores in North America and the United Kingdom" (Whole Foods Market.com. About. 2012. PP. 1). From its roots as a one store operation based in Austin, Texas the company under the direction of its founder and CEO John Mackey has "unquestionably transformed the way Americans produce, buy, and eat food" (Paumgarten, N. January 4, 2010. PP. 1).
Whole Foods Market Inc. is known as America’s healthiest grocery store. The company has been recognized as “Most Admired 2015 Companies” and “Top 100 Companies to Work For” by Fortune for eighteen years, stating, “The supermarket chain has redefined grocery shopping in the U.S”. The establishment has been also been ranked at number 3 on the list of America’s most reputable companies in the retail industry. The recognitions and awards represent the decades of passion and dedication of the Whole Foods Market’s
Whole Foods Market is a supermarket chain that specializes in natural and organic food and is considered the largest retailer of natural and organic foods in the United States. Whole Foods was incorporated in 1978 and came into existence on September 20th 1980 with a Grocery Store/ Health Food Store industry. Their product line includes meat, poultry, prepared foods, seafood, bakery, coffee etc. The company has only one operating supermarket segment that is natural and organic foods. In the year 2003, Whole Foods became the first national “certified organic” grocery store. One of the company’s missions is “to promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available.” Their
The Whole Foods Market is the key to increasing brand placement, it is one of the largest natural foods retailer in the world with 200 stores and generates annual sales exceeding $5.6 billion. The Whole Foods benefits from its national reputation and name recognition.
Whole Foods is using a competitive and strategic approached to set themselves apart from their rival in the retail grocery industry. By using a broad differentiation strategy, they could break through the industry by providing both a unique product and service, simultaneously. Due to all the scientific studies of healthy living, consumers are more conscious about what they buy and how they eat. Therefore, one of the chief element that Whole Foods has taken advantage of is providing sustainable and natural food. Although they are selling the same type of food as other retail grocery stores, another element of this strategy is that they are providing an alternative in terms of life style.
When analyzing Whole Foods Market, it is apparent that the firm aligns strategies with the organization’s eight core values. Whole Foods product strategy brings consumers an assortment of high-quality organic, natural products that bring nourishment to customers and made it possible for the company to be environmental stewards. The companies merchandising strategy creates a delightful experience by positions goods and services appropriately for each location. The growth strategy of Whole Foods has helped them create wealth and grow into different areas locally and globally. The supply strategy has given local suppliers the ability to provide products to stores in their region and has helped to uphold Whole Foods commitment to serving and supporting local communities. Whole Foods has also been able to improve partnership with suppliers through their loan program that helps local partners
Fortune 500, 2012 ranks Whole Foods Market as the 264th best company in the United States, and Fortune 100, 2012 ranks Whole Foods as the 32nd best company to work for. Whole Foods Market is a global leader in the natural and organic foods. The company operates within the natural and organic segment, which include seafood, meat, poultry, bakery and grocery. The company also prepares specialty food such as wine, coffee, vitamins, nutritional supplement and body care. Whole Foods Market also produces educational products such as books, and other products such as pet products, floral, and household products. In September 2010, the company has 299 stores in the United States, Canada and the UK. The rapid growth of Whole Foods Market has been attributed to the selective products that the company offers and its dedication to the quality standard. The company was formed in 1980 and completed its public offering in 1992. The Whole Foods Market is dedicated to promote wellbeing of all people by supplying high quality and wholesome food. Whole Food's mission statement is to "promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available."( Meador 2010, P 1). Whole Food strategy is to open large new stores measured 50,000 square feet or larger. The company also dedicates in acquiring small chain
Whole Foods Market is one of the most innovative food retailers. It introduces the organic foods and provides many different kinds of organic products for the consumers to choose from.
Over the last few years, awareness of organic food has risen. Due to this, the demand for organic food is a factor which is influencing the farmers to switch to use this technique, and it is being sold in specialty stores and conventional supermarkets. Organic products contain numerous marketing claims that it is healthier, it offers more value, and the farming is more environmentally friendly than traditional foods, so, how does one determine if organic is the way to go? Some argue that there is evidence that supports and demonstrates why organic foods and farming are better overall, while others insist that conventional foods and agriculture can offer the same benefits as going organic. There is no right or wrong answer. Within this
“The better you eat, the better you feel”, we hear that a lot but did you know that since 2012 the number of families buying organic products had increase drastically. Over the last few years’ people’s awareness of health problems as a result of consumption of chemicals and hard metals in non-organic foods is forecasted to increase by over 16% by 2020 (Burnaby, 2015). The health benefits that natural and organic food provides has become number one criteria in making product choices for the whole family. Further examining the global market we will look into key behaviors in buyers and factors effecting their decisions when it comes to price, benefits, limitations and expansion. This paper will discuss the supply and demand of natural and organic
Whole Food Market is one of the most successful organic food grocery chains. Health consciousness among the Americans is increasing day by day, with that Whole Foods supplies organic foods which satisfies their demand and makes it a successful brand (WholeFoodsMarket, 2014). The fiscal year 2013 was the best year for the company as the sales of the company touched 13 billion dollars. Expansion in 10 new markets with 32 new stores shows how the company has been successful. (Wholefoodsmarket, 2013)
Whole Foods Market offers value for the clients through the mission of whole foods-whole people- whole planet concept. It is through this chain of activities that company manages to differentiate the products as well as attending to customers’ requirements in a swift manner. The chain also allows the company to strengthen the whole food market brand. Clients can purchase an organic tomato or onion from different alternative shops, but with