Essays on Marketing Mix Critique, Masters Home Improvement - Woolworths Case Study

Download full paperFile format: .doc, available for editing

The paper "Marketing Mix Critique, Masters Home Improvement - Woolworths" is a perfect example of a marketing case study.   Masters Home Improvement is one of the chains controlled and managed by Woolworths. In order to diversify its Australian presence, Woolworths decided to venture into the hardware industry by establishing Masters Home Improvement in 2011 (Cadeaux, 2016). However, after registering some initial improvement and opening up more than sixty branches in the country, the chain has experienced turbulent times including making losses of more than three hundred thousand dollars. Consequently, the management of Woolworths decided to close the Masters by December 2016 if there will be no interested buyers.

The following paper analysis-marketing strategy of Master Home Improvement under Woolworths. Marketing Environment Analysis – MicroTrends In January 2015, Woolworths announced that it would surrender its attempt of entering into the hardware and home improvement business by offloading its Master's chain (Cadeaux, 2016). According to the statement issued to the stock exchange, the company announced that it would start the process of “ orderly” exiting the Masters Home Improvement and Home Timber & Hardware business through either selling or shutting it if there was no interested buyer.

Under the micro perspective analysis of the Woolworths’ situation, there are different reasons that made the company decide to shut down its Master's chain. Firstly, the company entered a poorly thought-out strategy, which was dubbed “ project oxygen” . Secondly, the location of the business was wrongly situated. Evidently, although Masters had already opened sixty-two sites around the country, experts observed that the location of the stores was questionable since the company opened establishments in places where even its competitor, the Burnings, had already rejected.

Thirdly, Masters was also selling off the wrong products at the wrong time of the year compared to its competitors, which was admitted by its senior management (Cadeaux, 2016). Further, Masters through Woolworths had flawed and poor workplace culture which made it perform badly. Finally, Woolworths failed to replicate its shopping experience in its new Master Chain, whereby this retailer was unable to employ the customers' experience even after recognizing that the layout of the store was unsuccessful with customers. Poor Organizational Culture Although Masters was able to expand exponentially a short period, one of the main reasons why the project has failed is due to a poor culture where employees felt less motivated which also affected the service delivery to customers (Cadeaux, 2016).

Unlike its competitor Bunnings (Bunnings Warehouse), which has developed a strongly and warm organizational culture where employees feel empowered, Masters employees have reported poor working relationships with their bosses who are not approachable. Wrong Location Location is one of the key considerations for any business entry. Business entry into an industry or a given market segment plays a critical role in its future success.

In fact, poor location of a business indicates a wrong entry strategy, which leads to failure. In the case of Woolworths, most of its sites did not have the potential of creating a market base, as is the case with Bunnings (Cadeaux, 2016). Consequently, unlike the previous plans of opening up more stores, the company was unable to keep up with its competitors.


Cadeaux, J. (2016). Why Masters was a disaster for Woolworths. Business Think.

Ferguson, R. (2014). The Woolworths Chains. London: Bloomsbury Publishers.

Gerg, A. (2015). Marketing Theory. London: Bloomsbury. Amazon Publishers.

Knox, M. (2015). Supermarket Monsters: The Price of Coles and Woolworths' Dominance.

Collingwood: Schwartz Publishing Pty, Limited. Woolies pulls the plug on Masters. Business retail. Bunnings Warehouse. Home: History.

Download full paperFile format: .doc, available for editing
Contact Us