Whole Foods actually seeks to distinguish and differentiate itself by producing organic products. Now, Whole Foods is bearing an intensive competition. It is required to maintain a mutually beneficial relationship between farmers and the Whole Foods Grocers to compete the entire market. It is important to give more benefits to the farmers as they are suffering from the impact of the intense competition that is facing Whole Foods. This severe competition from other stores like Walmart and Costco, etc; providing the food without the tag names of farmers have turned Whole Foods from growth to maturity phase. This can be an initial threaten phase to revise the next strategy, this threat can be determined by a decrease in the sales and profit margins. The new trend of involving producers into environmental friendly programs and complying with the governmental standards that are not difficult to follow as it is observed in the organic procedures makes enable farmers to easy ways of production. Now consumers can switch the brand because the switching cost has decreased and there are more stores to provide the same things like organic food. The company is now focusing on the geographic expansion and a little diversification in their products by launching a 365 store for consumer easy access. This store will also sell other national brands, Whole Foods is planning to target younger shoppers as Robb said that while 365 is inspired by younger generations, and it is intended to attract anyone who wants a quick, handy way to shop. Whole Food has to be very creative while planning, marketing strategies because of the very intense completion.
It are going to be very conscious about quality standards of the chains of its stores in new areas, thus it needs to create inspirational advertisements to meet the competition demand. Whole Foods is planning a value proposition strategy that will create a brand loyalty that can be inculcated in valued customers by the strategies like keeping an open kitchen and other services and also focusing on keeping costs at minimum. Within differentiation strategy, it is trying to focus on low cost leadership that can benefit to compete competitively. Whole Foods is now working on a multisegment approach in which it is trying to attract buyers in more than one segment through offering their variety fresh products that will appeal to different needs.
Currently, Whole Foods is working on a ‘differentiation’ strategy with the goals of gaining a competitive advantage within the increasing organic food market. The most important goals of using differentiation strategy are creating value for the customer as Whole Food is trying to build an open kitchen in the new chains, brand loyalty by fulfilling all quality standards and certifications, and no perceived substitute that is the main focus of devising marketing strategy of Whole Foods in current scenario by involving renowned and certified organic farmers. It will help to create a competitive advantage for Whole Foods by keeping in mind the goals of this strategy. While talking about the supply chain strategy Whole Foods is providing a clear connection and integration of all related members from farmers to end consumers by adding value in their products with innovative ways of services. Stability, trust, and cooperation are needed to create a successful supply chain. Whole Food is following a path of business to consumers by maintaining their own stores as Whole Food is working on opening between five and ten stores around the country. The main supplier of Whole Food is the farmers who are also getting affected by the increasing competition in the organic food industry. The aim of using business to consumer strategy is to develop a long term loyal relationship with customers. When the product mix of Whole Foods is examined, they are providing organic cereals, organic biscuits, organic vegetables and fruits, organic ice creams, and many other organic diets. Whole Foods is working with suppliers to innovate and in research and development with the use of advanced technology. Whole Foods is also trying to include other national brands on its new shopping chains to increase revenue and promote shopping. On the other hand with increased competition Whole foods is trying to provide the products at a suitable minimum price so that new customer’s mass can be attracted. Health programs and other environmental friendly programs can be adapted to increase the competitive advantage.
References
STROM, S. (2015, June ). Organic Farmers Object to Whole Foods. The New York Times.
THE ASSOCIATED PRESS. (2015, June 11). Whole Foods: New Chain to Be Named for. The New York Times.
