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Strategic Management Of Woolworth Shop In Australia

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Choose a Company and Critically Analyse its Current Marketing Strategies and Market Performance. Consider the Company’s Positon against its Main Competitor and Discuss the Successes and Failures of this Selected Company and its Marketing approach in Competing in this Marketplace.



Woolworth, which is colloquially identified as Woolies, is considered as one of the most successful retail shops of Australia. The reputation of the organization is becoming stable due to the services and remarkable products provided by the organization. The organization is working from past many years and also possesses its various outlets in the nearest areas of Australia. The first store of Woolworth was laid down in Sydney. The achievement of the organization is remarkable and after that, their various other stores opened in the nearby areas. In a week around, nearly 28 million customers are visiting to the retail stores. These  stores are successful in delivering the most promising products to the customers. Apart from this, the organization also possesses some factors related to the improvements. There are various competitors of the organization, who are giving then a very tough competition. The report shown below mainly covers the situational analysis and g mix related to the organization. In the formal report, the topics that are covered are shown below:

The situational analysis is the section in which the current situation of the organization can be identified. The current market strategy and the performance related to the organization can be identified with the help of this section.

The comparative study of marketing mix in contrast to other organizations are also identified with the help of the report defined below.

The discussion related to the success and failure defines the major aspects in context to the organization.

The report ends with a suitable conclusion along with the recommendations.

Situational Analysis

The situational analysis is considered as one of the major factor which helps the managers to identify the internal and external factors in the context of the organization. The situational analysis also helps in defining various growth factors for an organization. For managing the growth in a definite manner, some specific agendas related to the marketing are essential to be discussed. To define the situational analysis, the points which are covered are shown below (Wood, 2010). The current market strategies and market performance of the organization are identified as the major points which needs to be discussed in reference to the current market scenario.

Current market Staretgies of Organization

By performing a suitable analysis of the organization, it is considered that Woolworth is having a smooth marketing strategy which can be changed according to the current scenario. The organization doesn’t focus on a single strategy. There are various marketing frames, which can be adjusted according to the current demand related to the market. The marketing strategy of the organization is divided into definite types, which are identified as the long term and short term marketing strategy. The short term marketing strategy mainly focuses on the products and services that are being provided to the customers. The short term strategy will also provide various aspects of providing nutritious and tastier products to the customers. There are various outlets which are opened on an international level (Ferrell, et al., 2014). Apart from this, the long term objectives are related to managing the employment opportunity for Australian. The promotion to sell organic food and contributing with 31% of market share is identified as one of the basic aspects which can assist in providing suitable market strategy for the organization.


Currently, recent marketing strategies related to the organization are defined below: -

The internal management or forces related to the organization are very strong and manageable. The organization currently provides facility of the reward system to its customers. According to this system, the points system is introduced in the organization. This may aid in introducing the concept of discounts too. The customers can easily attract towards the offers provided by the organization. This factor also acts as an improvement actor for the organization too (Uddin, 2012).

The second arrangement is related to the external management. Through external sources, the management is suitable in providing definite guidelines to the customers. The expansion of the franchises in different areas of the country is a live example. Due to this expansion of the organization, the profit ratio will get increase with a rapid rate.

Woolworth is identified as one of the organizations which is famous for selling the products at low cost. The marginal products and products with nominal rates are sold with a rapid speed. This will help in providing better facilities to the customers.

Various promotional factors and advances approach towards selling the products are also identified as one of the additional aspect in context to the organization.

Market Performance of Organization

The study reveals that the current market performance of the organization is outstanding. The products like packed and canned products, dairy and milk products and products related to daily needs are liked by the customers on a definite level. Due to the different type of approaches and promotional strategy, the organization is successful in delivering the best services to the customers. Woolworth possesses the segmentation approach. Due to the help of this approach, the different options are provided to the customers, so that they can select the best aspect for them on a regular basis. Apart from this, being a successful team player, the organization also provides various discounts to the customers, which may aid in providing them assistance (Emerson-Drake, 2012).

Marketing mix strategy

Marketing mix strategy is identified as one of the major strategy which may help in defining the consumer’s requirement and targeted approach in a broad sense. The marketing mix is mainly formed from combination of 4p’s. These P’s are considered as the people, place, price and promotion. There are various competitors of the Woolworth, who are giving very tough competition to the organization in different modes (Business Review Australia, 2014). But, here Coles is selected for the discussion. The tools related to the marketing mix are helpful in providing suitable assistance for generating the better approach to the market (Keith, 2012). The tabular structure for the marketing mix with the competitive organization is defined below: -

Marketing P’S




·The organization has categorized the products into two parts which are identified as the consumer product and the business products (Haymarket Media Group, 2011).

·The basic product selling strategy of the organization is designed according to the need of the consumers.

·For managing the products, different criteria are defined. The name of products are core, actual and augmented (Langley, 2015).

·The categorization of the product is totally different in comparison to the Woolworth.

·The organization also offers liquor, beef and baby products for sale.



·As other organizations are fluctuating the pricing policy, Woolworth possesses a constant pricing policy. According to nearest areas, the pricing policy is increasing continuously (Ferrell, et al., 2014).

·The organization adapts different policies related to the improvement of the organization. These strategies are penetration, skimming, competition, product line and many others.

·The Coles is identified as the cost leader. Various discounts are being offered to the customers, but only on the weekend basis (Sunday & Bayode, 2011).




·For marketing, the firm uses maximum tools for the promotion. This will help in providing suitable assistance to the  organization.

·Some of the specific tools for promotion are identified as the direct marketing, selling products, social media and advertising.

·The promotional strategy of the organization is very simple. To mange the defining aspect, the publicity is done with the help of advertisements, pamphlets and online process.


·Woolworths places its stores in the area where the reachability of the common people is identified.

·Being the supermarket chain, Woolworths is expanding its small stores too, so that the products related to the daily needs can be managed by the consumers.

·In numbers, there are at least 2300 stores that are distributed on a wide range across Australia, but Coles lacks in providing small outlets or stores for the reachability (Dunford & Palmer, 2012).

Success and Failure of organization

Though the organization is considered as the top most market players and have its own identity in definite circle, but the organization is still facing some sort of failure and success in an appropriate form. There are various aspects due to which success and failure is being noticed in the organization. Some of the specific types of success and failure of the organization are mentioned  in the market. These successes and failures are defined below in the print format. On the part of success, the organization can able to improve and on the part of failure, the improvements are still required. This will also help in framing  the actual structure of the organization.


Success of the organization

The organization follows a definite pattern of strategy for the market and stability in a competitive environment is also considered in the definite mode. It may also help in defining the success of the organization in a structured form.

The technical aspects of the organization are very strong. The Woolworth is considered as the first organization which is adopting the technical perspectives to be stable in the market. The GEMMNET is the stable technical concept of organization.

The organization also possesses specific brand value and suitable reputation which may help in providing suitable assistance to the products. To be stable in the market, the Woolworth is also providing  a wide range of food products, which may aid in managing the image of the products in the market  (Company Report, 2007).

Apart from this, the organization is also successful in providing different types of food stuff and material to all the age groups. This will help in increasing the sale of the products in markets. The location and situation of the outlet are also defined as per the sale of production in the market.


Failure of the organization

As it is defined in the paragraphs above that there are some success factors which make as the brand image of the organization. But apart from this, there are some failure aspects too due to which the organization faces issues which are shown below:

The global presences are negligible in comparison to the persistent competitors. The local market is completely acquired by the organization, but on an international level, the organization lacks in providing the definite identity (Wood, 2010).

The planning and strategic approach towards the competitive market also lacks. To make the sustainability, the approaches should be changed accordingly.

The organization lacks in selling the online products on a wide level. The late entry of the organization in the market is also identified as the failure of the organization (Woolworths Limited, 2012).

To manage the success and failure in a definite manner, the defined set of recommendations will be provided to the organization. This will help in making the survival possible.



On the behalf of a suitable set of information provided above, some of the common recommendations are defined on definite level. They are defined below: -

The strategy should be planned in a definite manner. It is essential for the organization to prepare the suitable research, before entering into the global market.

The identification of competitors should be identified at an initial level. By this, the planning can be done in a strategic manner (Paulson, 2015).

The organization has to focus more on an international expansion. This change will be help in bringing a suitable change in an organization.

Apart from this, there are various recommendations mentioned for improvement (Arli, 2013).


The report shown above is successful in delivering the specific marketing mix related to Woolworths. There are various success and failures related to the organization which are identified. This will aid in improving the existing position of the organization in the local market. The improvement is required in the organization on an international level. Apart from this, the situational analysis also helps in framing the basic developmental aspects related to the organization. The comparative analysis is also proved as an additional aspect for the improvement of the organization.



Arli, V., 2013. Woolworths Australia and Walmart us: best practices in supply chain collaboration. Journal of Economics, Business, and Accountancy Ventura, 16(1), p. 27 – 46.

Business Review Australia, 2014. Marketing strategies bolster Woolworths profits, Available at:

Company Report, 2007. Woolworths, Ltd. SWOT Analysis. Woolworths, Ltd. SWOT Analysis, Available at:

Dunford, R. & Palmer, I., 2012. Strategy for successful entry into a concentrated and highly competitive market, Available at:

Emerson-Drake, J., 2012. The rise of supermarket house brands: a marketing case study

Ferrell, O., Niininen, O. & Lukas, B., 2014. Marketing Principles: Cengage Learning Australia, Available at:

Haymarket Media Group, 2011. Marketing Mix: We'll call you - Woolworths, Available at:

Keith, S., 2012. Coles, Woolworths, and the local. The Australasian-Pacific Journal of Regional Food Studies, Volume 2, pp. 47-80.

Paulson, E., 2015. Marketing Mix Woolworths, Available at:

Sunday, A. & Bayode, B., 2011. Strategic influence of promotional mix on organisation sale turnover in the face of strong competitors, Available at:

Uddin, M. M., 2012. Woolworths Ltd - A Case Study Report, Available at:

Wood, L., 2010. Research and Markets: This Woolworths Limited - SWOT Analysis Company Profile Is the Essential Source for Top-Level Company Data and Information, Available at:

Woolworths Limited, 2012. Strategy and Objectives. [Online]
Available at:


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