Woolworths Company - Environmental, Customer and SWOT Analysis, Goals and Objectives - Example

rkеting Rероrt Name Marketing Report Course: Institution: Date: Table of Contents Table of Contents 2 1.0 Executive Summary 4 2.0 The Vision and Mission 4 3.0 Environmental Analysis-PEST Analysis 5 3.1 Political Analysis 5 3.2 Economic Analysis 5 3.3 Social Cultural Factors 6 3.4 Technology 6 4.0 Competitor Analysis 7 5.0 Customer Analysis 8 6.0 SWOT Analysis 9 6.1 Internal Analysis 9 6.2 External Analysis 10 6.3 SWOT Analysis Impacts 11 7.0 Goals and Objectives 11 7.1 Organizational Objectives 11 7.2 Organizational Goals 11 7.3 Corporate Strategy 11 7.4 Product/Service Objectives 12 7.5 Financial Objectives 12 7.6 Market Share Objective 13 8.0 Target Market 13 8.1 Market Positioning 13 8.2 Market Segment Strategy 14 9.0 Marketing Mix Strategies 15 9.1 Product 15 9.2 Distribution/Place 15 9.3 Price 15 9.4 Promotion 16 9.5 Budgets for Promotion 16 9.6 Break Even Analysis 16 9.7 People Related Strategy 17 10.0 Execution and Implementation of the Plan 17 11.0 Major Limitations of the Report 19 12.0 Concluding Remarks 20 References 21 1.0 Executive Summary The report offers a strategic review on the Woolworths Company. The organization is an Australian based retail industry supplying diverse brands both in the Australian and New Zealand markets. The organization is at the verge of adopting the increased global markets presented opportunities in the retail market both offline and online platforms. In this case, the report seeks to establish a strategic alternative through which the organization can increase its strategic industry competitiveness. The report offers a review on the Australian retail industry through a PEST in which it establishes that the market has increased market success rate due to favourable political and economic factors. However, technology change and social, cultural changes present industry challenges. Moreover, the report develops a SWOT analysis both internal and external which reveals that, despite organizational strengths in customer service quality and market expansion opportunity, it faces increased weaknesses in its reduced stores presence as well as the changing market buying behaviours. In addition the report reviews the organizational customer, competitors, target market and organizational goals and objectives. Finally, the report offers recommendations on the ideal marketing mix approaches based on the established organizational findings. 2.0 The Vision and Mission Woolworths Company mission statement is to provide increased variety offering its customer base an increased products variety. On the other hand, the organization has a vision statement that seeks to offer value for money through increased services quality. These strategies enhance increased organizational performance and success (“Woolworths Limited”, 2014). 3.0 Environmental Analysis-PEST Analysis 3.1 Political Analysis A major political influence for Woolworth Company in the market is the development of trade relations between Australia and New Zealand. In this regard, the trade agreement allows for free trade conduction between the two organizational economies. As a result, the organization faces an increased market access. Australia and New Zealand entered into a trade agreement under the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA). In this case, the market provided for the development of free trade between the two economies. As such, the agreement provided for the harmonization of trade policies and regulations allowing for increased organizational seamless functioning that is paramount to enhancing efficiency and increased market profitability. Therefore, the trade agreement provided a conducive political environment in which Woolworth’s organization could increase its profitability levels in the industry (Rumley, 2001, p.254). 3.2 Economic Analysis The economic standards in both the Australian and New Zealand economies are favourable for the establishment and development of economic structures through which organizational performance is enhanced through increased sales and subsequent revenues increase. A stable economic condition provides for two important organizational performances. On one hand, a stable improving economy increases the overall disposable income available in the economy. In this case, the market has increased disposable income. As such, the economy and the customer base are willing and able to pay high prices for availed quality products. As such, organizations in these markets, can increase and raise the products selling prices. As such, this serves as a profitability enhancement tool. On the other hand, increased disposable income in the economy increases the overall spending rate allowing for increased sales. A report developed by the International monetary fund for overall global gross domestic products (GDP) across the globe established that the Australian and New Zealand economies were increasingly developing. As such, the report recorded that the Australian GDP ranking rose to a global tenth position while the New Zealand one rose to the twenty third positions globally. Consequently, this analysis is an indicator that the two economies are ideal for increased business ventures. As such, Woolworth’s organization faces a conducive marketing opportunity allowing for increased business expansion through increased sales as well as the profitability margins. Therefore, this presents a strategic expansion opportunity for the organization (GlobalData, 2011). 3.3 Social Cultural Factors The Australian market has faced an increased lifestyle and buying behaviour changes. In particular, the environmental sustainability concept emergence in the economy has increased the overall organizational functioning. In this case, as Newell (2008, p.523) argued, the Australian market adopted the green tag buying approach. As such, customers, developed a biased preference to products and organizations utilizing the sustainable and green production techniques. This changed market buying behaviour change implicated on Woolworths Company market performance. As such, the organization adopted a sustainable production strategy. As such, the organization developed its famous strategic sustainable production framework under implementation in the years running between 2007 and 2015. The initiative sought to ensure sustainable production processes adoption in the overall organizational supply chain. 3.4 Technology In order to retain market competitiveness in the retail industry, Woolworths Company retains relevant market competitiveness in the market. As such, the organization instituted two key technological aspects namely the self check-out approach as well as a service oriented architecture (SOA) software. On one hand, the adoption of the self check out system allowed for customer self service and payment systems to allow for increased service speed. On the other hand, the SOA system evaluates and highlights any established system inefficiencies to allow for the establishment of relevant proactive measures. 4.0 Competitor Analysis The company faces an increased market analysis in this case; the organization faces its market competition both in the local and international market platforms. This is due to the emergence of the global marketing strategies and international trade aspects. In this case, key among the organizational competitors includes Wal-Mart and Tesco Retail Companies. On one hand, Wal-Mart Company has its increased market competitiveness in the industry. The organization enjoys a strong distribution chain. In this regard, the organization has a strong distribution chain that allows for increased international presence in the global market Australia included. As such, the organization has its store outlets competitively and strategically placed to allow for increased market influence and competitiveness. This is a major threat to Woolworths Company in the market. In this case, the organization as already outlined in its SWOT analysis, the organization, through an established venture in the industry, fails to establish absolute market presence. Consequently, its stores are not readily available to its Australian and international market customer base. This leads to reduced market competitiveness against competitors such as Wal-Mart (Kumar, Eidem and Diana, 2012, p.806). In addition, an extra threat is posed by other multinational retailers’ such as Tesco based and headquartered in the UK. Tesco poses an international market threat to the organization due to its branding market strategy. On its part, Tesco adopts the product branding approach. In this case, the approach allows for increased profitability ratios. In this case, the organization acquires branding rights n some of the products it distributes, s such, this allows for selling of products under the organizational brand name. Such brand name allows for increased market expansion in the industry through increased profitability margins as the organization acquires brand loyalty rights. Consequently, this offers the organization an increased competitive advantage over others in the industry. In this case, profit margins increase leads to increased and eventual market success rates as the organization enjoys low product prices in the market providing for increased sales. With the increasing economic challenges in the global markets, consumers disposable incomes are reduced leading to an increased preference for reduced costs in the market. 5.0 Customer Analysis A geographical customer base analysis for the organization reveals that its clientele is spread across the Australian market and beyond in the European and American markets. In this case, the customer base dispersion is diverse allowing for increased market diversification strategy adoption. In addition, the age analysis on the customer base establishes that the organization has a diversified market base. In this case, the adoption of market diversification and offering of diverse products increases the overall industry success rates in the market allowing for increased success criteria in serving the diversified market workforce. The Woolworths Company is a retail organization serving a wide range of customers in the Australian market and beyond. In this case, the organization serves an increased customer base in the customer supply chain. In this case, the organizations supply the department stores in the market. The organization has its customer target in the middle and lower customer base. The retail outlets serve as an ideal one stop shop avenue. Unlike the manufacturer outlets that avail specific brands, Woolworths Company provides the market with an increased brands variety through its increased supply chain management channels and partnerships with diverse brands bases in the market. Therefore, the target market is a customer base, with diversity in needs. Moreover, the customer base is comprised of average income earners with minimal ability to acquire and purchase goods in bulks. Consequently, the customer base relies on the organizational core role on breaking product's brands availed by the brand manufacturers (Sumathi and Sivanandam, 2006, p.462). 6.0 SWOT Analysis 6.1 Internal Analysis Woolworths Company strength analysis establishes that the market faces an increased success rate in the industry due to its customer service quality approach in its services provision. An analysis developed by Pride (2011, p.51) established that the organization offers quality customer care services. Quality customer care services are an imperative success factor in organizations. In this case, it is argued that customer care services are directly linked to customer satisfaction and retention rates. In this case, it is argued that customer satisfaction is facilitated by increased service quality which in turn propagates increased retention rates. As a result, organizations adopting increased customer services in the industry acquire increased customer satisfaction and success. In this case, Woolworths Company with its increased customer services quality services in the market has an increased its market success in the retail industry. Therefore, the presence and adoption of an ideal strategic option in customer services, in the market, serves as an ideal organizational strength in the market. On the contrary, the organization faces increased weaknesses in its reduced brand presence, in the global market as compared to global market leaders in the industry. In this regard, the organization although a competitive retailer in the Australian industry lacks the appropriate market expansion and establishment structures. Consequently, the economy is faced with increased reduced market sales as a result of store's availability challenges. As a result, this approach considerably reduces the overall organizational effectiveness and profitability levels. Thus, reduced global and local market store outlets presence serves a major Woolworths Company operational weakness (“Woolworths Limited”, 2014). 6.2 External Analysis On one hand, the organizational opportunities available for Woolworth Company are in the adoption and utilization of technology in the organizational management systems. Technological developments in the market have increased the use of the online marketing platform such as the use of the social media. Ketter and Avraham (2012, p.286) conducted a study to evaluate the implications of social media advertising in organizational success. In its analysis, the study established that the use of social media increased marketing success in the industry. Consequently, it established that the use of social media increased the market success rates through targeting an increased customer base on the young and technology reliant generation. In the case of Woolworths Company, the organization has a diverse customer base that is geographically dispersed. As such, the organization can benefit and expand its marketing ability through the adoption and inclusion of social media marketing in its operations. Moreover, it has an expansion opportunity through technology incorporation in operational activities such as customer service, distribution and information management functions. 6.3 SWOT Analysis Impacts It is apparent that the organization faces an increased market threat in the economy as a result of changing customer buying behaviour and trends. In this regard, the consumer market behaviour is changing with the changing market challenges in the economy. In this regard, the consumer buying behaviour has shifted with the emergence of online retail store. Brand manufacturers have in the recent past instituted and developed online retail stores. As such, the retail outlets due to the adopted direct supply chain offer the products at reduced prices. Consequently, customers are increasingly shifting to buying directly from the brand manufacturers’ websites. As such, the organization faces an increased market threat due to declining customer base as a result of the changed purchasing trends and the emergence and increased spread of the manufacturers’ retail outlets in the market. 7.0 Goals and Objectives 7.1 Organizational Objectives i. Breakeven and make profits ii. Develop a new business portfolio to increase shareholders values 7.2 Organizational Goals i. Increase overall global presence ii. Increase departmental profit margins 7.3 Corporate Strategy The organization has an overall corporate objective on expansion. Currently, the organization is established in the Australian and New Zealand markets. In this case, the organization can increase its overall market presence in the global market. In this case, the organization acknowledges that the retail industry is increasingly growing competitive. As such, in its corporate strategy, the organization adopted the sustainability production strategy operating between 2007-15 in the market. In this case, the organization seeks to enhance its supply chain sustainability in the market (Evans, Lindsay and Evans, 2008, p.232). Consequently, it seeks to strategically increase its market competitiveness through the sustainability approach. 7.4 Product/Service Objectives The organization targets to strategically increase its product line and the variety. In this case, the organization acknowledges that the retail industry is increasingly growing competitive. As such, it is imperative for organizations in this industry to diversify their activities and operations (Evans, Lindsay and Evans, 2008, p.232). In this regard, the organization has developed a strategic product and products diversification objective. It intends to venture into new market ventures inclusive of the hotel and petrol/ gas industry. Diversification into these ventures will diversify competition as well as reducing market concentration risks. As such, organizational risk losses will be devolved across the sections allowing for an increased risk reduction. Moreover, reduced market competitiveness for the organization will allow for increased profitability margins. 7.5 Financial Objectives Organizational, financial objectives incorporate the development of strategic financial forecast. These forecasts, act as organizational benchmarking values through which the organizational processes and functions performances are evaluated against. Historically, the organization has experienced increasing financial gains. To this effect the organizational 2013 financial statements forecast for the next five years establish a forecasted increased organizational profitability expected to rise to 10.9% (“Woolworths Limited”, 2014). 7.6 Market Share Objective In its marketing strategies, the organization has established market competitiveness in the food suppliers’ retail sector. In this case, with its brand reputation and increased customer loyalty, the organization has established sustainable market competitiveness. Consequently, as among its market share objectives, the organization seeks to retain and defend this competitiveness. Consequently, the organization has established budget allocations through which it will finance and fund its promotional and marketing approaches in the customer segment. Moreover, the organization intends to venture into online marketing strategies. In this case, it has a marketing objective to incorporate technology platforms such as social media to enhance its overall market success (“Woolworths Limited”, 2014). 8.0 Target Market 8.1 Market Positioning Ballantyne and Aitken (2007, p.364) conducted a study to evaluate the role and rationale for organizational branding as a key marketing tool. In its analysis, the study established that organizations faced increased market success as a result of increased management profitability in the industry. In this regard, it attributed branding to increased market success to appropriate organizational positioning, and a resultant improved organizational perception in the market. In this case, branding allows for increased market performance through the establishment of a designate market structure. In this case, Woolworths Company, in a bid to enhance its market positioning in the market, enhances increased market success through increased promotional activities. In this case, the organization adopts increased promotional services. As such, it markets the various brands sold under the organizational brand name. Thus, this promotes increased organizational branding in the industry allowing for the establishment of a strong brand name with which the customers can identify with (“Woolworths Limited”, 2014). Consequently, this allows for increased customer satisfaction and loyalty to the company thus providing for its strategic expansion needs. 8.2 Market Segment Strategy Market segmentation is an imperative business and marketing success possibility. In this regard, market segmentation allows for the grouping of customer needs about their needs and approaches. In order to establish the role and relevance of market segmentation, Hassan and Craft (2012, p.356) conducted a study to evaluate these concepts. In this regard, the study sought to establish the nature and extent to which organizations are adopting this approach acquired increased market performance techniques. In this case, the study conducted a comparison between organizations with segmented markets against those that lacked such an operational marketing strategy. In its analysis, the study established that organizations adopting market segmentation strategies registered increased market performance and success levels. Consequently, the study argued that in order for organizations to enhance increased customer satisfaction and subsequent loyalty they should adopt market segmentation strategies based on the diverse customer base qualities such as age, social status, geographical location as well as income levels. In the realization of the subsequent merits, the organization adopts increased market segmentation strategies. In this case, the market is segmented based in the product lines and brands such as the foodstuff's segment and the electronics market segment. 9.0 Marketing Mix Strategies 9.1 Product In its marketing approach and as already established in the analysis, the organization has adopted a product diversification approach to market and establish a market position in the retail industry. This analysis recommends and supports the adoption of this strategy as it allows for reduced competition as well as reduced overall loss risks. Therefore, in order to enhance its overall strategic goals achievements, it should stick to the implementation of this approach (“Woolworths Limited”, 2014). 9.2 Distribution/Place Currently, the organization adopts a direct market distribution approach. As such, it has opened up retail outlets to serve its diverse customer base. However, the adoption of this marketing mix has resulted to reduced organizational performance levels. Consequently, in order to achieve the established goals and objectives, the organization should seek an alternative in the use of joint ventures and alliances. In this case, it should establish relationships with existing retail outlets to allow for selling of their products through the venture business models, as well as structures. This would reduce the overall distribution costs. 9.3 Price The pricing approach determines an organization's overall market performance. Woolworths Company adopts a price maximization approach. In this case, it charges relatively high prices (“Woolworths Limited”, 2014). Consequently, this locks the organization out from the expansive low earning income in the economy. Thus, this report establishes that it is imperative for an organization to change to a relatively affordable pricing scheme to allow for increased sales and profitability. 9.4 Promotion Currently, the organization relies on the print media to promote and market its products. Moreover, it relies on its quality customer services to serve as a key marketing tool. Consequently, this locks out the organization from increased market success as it fails to reach out an expansive customer base. This as its strategic marketing plan reveals that the organization has strategic plans to incorporate social media marketing in its operations. This will increase its overall functioning considerably. 9.5 Budgets for Promotion Based on the established need for expansive strategies expansion in marketing, it is imperative for an organization to set aside funds to finance marketing and promotional activities. In this regard, as evidenced in the organizational strategic financial objectives report, the organization allocates funds to this venture. In the long run, this will enhance increased market success. 9.6 Break Even Analysis The organizational analysis reveals that the market faces an increased market challenge in regards to funding. In this case, it is imperative for an organization to establish a remedy through which the marketing costs are evaluated against the achieved benefits (“Woolworths Limited”, 2014). In this case, the report recommends that each marketing activity be evaluated against its direct returns to establish strategies and activities justification and rationale. 9.7 People Related Strategy The organization enjoys a large pool of organizational resources inclusive of its employee’s base. In this case, the organization enjoys an increased customer base rationale in the market. This is evidenced by the presence of a qualified workforce that has resulted to increased customer service quality. This strategy is in congruence with the organizational corporate objective on environmental sustainability production. Therefore, the strategy is an ideal approach that is worth retention in the organizational functioning. 10.0 Execution and Implementation of the Plan In the execution of the proposed marketing plan, it is imperative to develop and establish appropriate organizational and systems evaluation structures. Karim and Arif-Uz-Zaman (2013, p.172) argued that the strategy development process is incomplete in the absence of appropriate strategy evaluation structures. In this regard, strategy evaluation structures and approaches incorporate aspects through which organizations evaluate if the proposed and adopted strategies meet the desired outcomes. In this case, tools common in this approach include strategy outcomes against expected outcomes evaluation as well as benchmarking mechanisms and tactics (“Woolworths Limited”, 2014). On one hand, the organization can adopt the outcome's analysis tool. In strategy formulation, each strategy is designed and developed to remedy an existing organizational challenge. In this regard, the market develops an approach through which the structures and systems deficiencies are remedied. In this case, the developed strategies outcomes are evaluated against the forecasted outcomes. In this case, for a strategy to be effective and successful in its implementation, its outcomes should exceed the overall expectations. In such a case, an outcome's surplus establishes a situation in which a strategy meets the expected outcomes in excess. However, a deficiency of actual strategy outcomes as evaluated against expected outcomes establishes a situation in which the developed strategy fails. Consequently, the adopted strategy should be improved or changed as a whole. In this regard, this marketing report recommends the adoption of these strategies in the development of the proposed systems. Consequently, the report recommends that the system meets a minimum threshold below which the adopted strategies can be evaluated. As such, the organizational processes will be based on an approach through which the system can be evaluated on a regular basis such as on a quarterly basis. On the other hand, an imperative control system deal in organizational management and performance evaluation is the adoption of benchmarking approaches. Anderson and McAdam (2004, p.468) conducted a study to evaluate the contribution and role of benchmarking in enhancing organizational success in the market. In this case, the study revealed that, through benchmarking, organizations achieve and adopt best practices in the market. Consequently, the adoption of these approaches allow for increased market success and performance efficiency. Benchmarking compares an organizational performance with best performing peers in the market. In this case, in order to enhance increased marketing efficiency, it is imperative for an organization to compare its performance with those of best performing organizations in the global platform. As such, through benchmarking of global retailers such as Wal-Mart and Tesco retailing companies. As a result, this would allow the organization increased market competitiveness and the establishment of a sustainable competitiveness through the development of hybrid strategies emanating from the benchmarking approaches in the industry. 11.0 Major Limitations of the Report Despite the numerous recommendations developed in this report, the report development and analysis encountered an increased number of challenges. A key report limitation is its reliance on secondary data to deduce conclusions on the study organizations. The research analysis and subsequent report conclusions and deductions are as a result of secondary data obtained from the library and other online avenues such as the organizational website. In this regard, the report lacks any element of primary data use. The reliance on secondary data in conclusions formulations though a convenient and easy to conduct faces an authentication challenge. In this regard, secondary data authentication is based on the tools and methodologies adopted by the data collectors. Consequently, the use of secondary data falls at the verge and risk of data bias. Therefore, unlike the primary data sources that are at zero bias data risk, the adopted analysis bases, creates a limitation of bias on the developed report (Robinson, 2013, p.172). In addition, the developed report is based on historical data in the industry. As evidenced all data both theoretical and financials adopted in the report are one year old. Consequently, the report does not capture the recent trends, processes and practices in the retail industry that have emerged and grown in popularity in the last one year. Consequently, this risk and raises an irrelevance issue on the developed report. In its analysis, the report develops industry conclusions and recommendations based on the analysed data contents. As such, the conclusions and recommendations relevance is based on retained status quo between the last date of data collection and the current industry status. Therefore, any radical changes in the Australian and global retail industry as well as the organizational, operational changes would render this report analysis and recommendations irrelevant. 12.0 Concluding Remarks In summary, this report offers a review on the organizational performance in the market. In this case, the report reviews the organizations PEST, SWOT and strategic objectives analysis. In this case, it establishes that, despite the increasingly competitive retail industry both in Australia and on a global platform, the organization has a strategic growth potential. In this regard, the report offers a review and recommendations on the appropriate marketing mix that will allow for increased strategic objectives. Conclusively this report argues that through the establishment of the development strategic recommendations Woolworths Company will strategically expand and increase in its operations. References Anderson, K. & McAdam, R. 2004, "A criqique of benchmarking and performance measurement: Lead or lag?” Benchmarking, vol. 11, no. 5, pp. 465-483. Ballantyne, D. & Aitken, R. 2007, "Branding in B2B markets: insights from the service-dominant logic of marketing", The Journal of Business & Industrial Marketing, vol. 22, no. 6, pp. 363-371. Evans, J. R., Lindsay, W. M., & Evans, J. R. (2008). Managing for Quality and Performance Excellence. 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