Whole Foods Market

The organic food industry has seen a huge spike in growth that is expected to continue into the future due to an increase in consumption. This will provide Whole Foods Market with huge opportunities. In addition, a wave of ethical and responsible consumption has swept across America. Whole Foods’ decision to pursue sustainable activities will certainly give consumers an added incentive to purchase its organic products.

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

Sales of organic food have risen steadily over the past couple of years, reaching nearly $30 billion in 2011, or 4.2% of all U.S. food and beverage sales, (Adams). Many people believe that organic foods are ultimately the better choice when it comes to health due to the absence of pesticides and hormones. But other people—especially those whose food budgets may be more defined—wonder if organic food is really worth the inflated price tag. Despite the price, Organic foods are worth producing and consuming rather than conventional foods due to the immense benefits they provide.

Today an increasing desire from consumers is to have healthy and organic product offerings. While

Whole Foods will need to research and figure out marketing strategies to keep the customers loyal to Whole Foods. One of the main reasons customers will go to different supermarkets that have organic foods is because of the different department stores inside the grocery market. For instance, some grocery stores sell organic vegetables, but also have regular vegetables. Some of the larger grocery stores have banks, photo stores, insurance companies that make your stop at the larger grocery store

On averaged their stores are roughly 38,000 square feet and their locations typically carried 21,000 SKUs. They make two-thirds of its revenue by selling bakery, perishable items, and prepared foods. (Ager & Roberto, 2014). Peoples tend to shop at Whole Food Market because of their high-quality natural and organic food. In today’s world peoples are more concern about health concise and effect of pesticide products, more people choose to have organic fruits and vegetables. Whole Foods get most of their produces from local people which are natural and organic, which will help them gain more customer than other company because of increasing demand of organic food (Whole Foods Market History, n.d). They also have a strong brand image and they were the first supermarket who commit to completely eliminating disposable plastic grocery bags to help protect the environment. They also sell many USDA-certified organic

* Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. In 2009, the sales total $8 billion and had 289 stores in the U.S. The Whole Foods Market plans to come up with strategies to help improve the company but to do so understanding the core values plays a major role in the company’s planning. The strategies

Consumers view Whole Foods Markets as being very expensive and have given the retailer the nickname “Whole Paycheck”. Whole Foods carries a wider variety of organic foods and healthier brands besides their private brands. Whole Foods is experiencing a decline in sales due to other stores; like Wal-Mart, who are stocking organic foods at much lower prices; which has decreased differentiation (Lutz, 2014). Its decentralized business model decreases efficiency in procurement, distribution, and marketing efforts.

Whole Foods is a supermarket that has successfully become the leader in the organic food segment of the grocery industry. While traditional markets have low brand loyalty and recognition, Whole Foods has focused almost entirely on its brand image, causing their strategy to be one of differentiation over cost leadership. Whole Foods is known as being far more expensive than other chains, due to this brand recognition. In their press release for the Q4 2014 results, they describe their vision and sum up what helps them develop that brand recognition. “We hold the idea of “food” to a higher standard, banning more than 75 ingredients commonly found in other stores, and we believe our unparalleled quality standards

Additionally, it sought to offer the highest quality, least processed, most flavourful and naturally preserved food available. It has thus marketed them in appealing store environments that have made shopping at Whole Foods an interesting and enjoyable experience. The company uses strategies with respect to their growth, store location, product line, pricing, merchandising and even it’s social responsibility and community citizenship initiatives that have helped tremendously in its success.

1.2 Executive Summary Whole Foods Market opened its doors in 1980 in the city of Austin Texas. The idea was clear Whole Foods Market wanted to sell natural and organic products, and with only 19 people working for Whole Foods Market, they were launched into the adventure of opened a supermarket focusing only on natural products regardless of price. One of the main reasons for Whole Foods Market is to have the best supermarkets, with the widest range of organic and natural products, while the goal is to have international presence as a brand in the natural products of higher quality. In a short time the chain of Whole Foods Market has had a most important growth in the supermarket industry in terms of natural and organic products.

An important industry driving force is marketing innovations. "In October 2002 the U.S. Department Agriculture (USDA) officially established labeling standards for organic products, overriding both the patchwork of inconsistent state regulations for what could be labeled as organic and the different rules of some 43 agencies for certifying organic products." By establishing labeling standards for organic products concerning what could be called organic insures that people are receiving pure organic products. "The new labeling program was not intended as a healthy or safety program (organic products have not been shown to be more nutritious than conventionally grown products, according to the American Dietetic Association), but rather as marketing solution." By creating stricter standards it made it harder for growers, processors, exporters, importers, shippers and merchants to prove that their product were

1.2 Executive Summary Whole Foods Market, Inc. is been respected as a pioneering company for their quality values, a commitment to community and eco-friendly awareness, a healthy growing model and widely admired employment performs. Nevertheless, the business has confronted current problems as a consequence of the economic recession, growing competition, and difficulties from acquisitions. To renew the company from past lows in its hardest year in history, Whole Foods Market must reconsider its expenses, relocate its development strategies, and encourage its brand to participate for the falling customer spending dollar. Throughout the fluctuations in strategic initiatives it’s imperative for the business to preserve Whole Foods Market’s core values and its brand image integral.

Over the past decades, natural and organic food and products have influence retail sales in mainstream supermarkets and grocery stores. The evolvement of consumer’s preferences and the challenges of creating a natural and organic environment are forcing

With the world’s population continuing to increase, the demand for food is higher than ever. This increase in food demand also calls for more efficient ways of growing and providing the food. Two methods that are very controversial are the organic and conventional method. While many people support the organic method because of its known benefits, others feel that it is an over inflated industry that cheats consumers out of their money. But recently many studies have disproved those critics. These studies prove that Organic food is a better choice than conventional because it is better for the environment, avoids the use of chemicals, and is generally more beneficial.