wholefoods social media marketing

Emma Wimhurst Yan Hu Jennifer Kesik Emma Wimhurst Yan Hu Jennifer Kesik

MBA Bournemouth University 13 December 2013

MBA Bournemouth University 13 December 2013

Overview Overview

Aims and objectives

The company

Importance and power of blogging in marketing

Critical analysis of the social and digital marketing strategy

Conclusion

Aims and objectives

The company

Importance and power of blogging in marketing

Critical analysis of the social and digital marketing strategy

Conclusion

Whole Foods MarketWhole Foods Market

Founded in Austin, Texas in 1980 with $45k opening capital

One of the first companies to sell natural food in a supermarket format

Turnover $11.7 billion with operating profits of 6.4%

Employees 2013: 73,000

Ranked 32 in Forbes list of top 100 companies in 2012

Founded in Austin, Texas in 1980 with $45k opening capital

One of the first companies to sell natural food in a supermarket format

Turnover $11.7 billion with operating profits of 6.4%

Employees 2013: 73,000

Ranked 32 in Forbes list of top 100 companies in 2012

(Whole Foods 2012; Forbes 2012)Appendix 1

Global presenceGlobal presence

US & Canada presence: 356

Stores

UK presence: 9 stores:

Clapham, Kensington, Richmond, Piccadilly, Stoke Newington, Camden,

Cheltenham and Giffnock

Target by 2020: 1000 stores (Whole Foods 2012)

Differentiation Strategy Differentiation Strategy

Cost Leadership Differentiation

Cost Focus Differentiation Focus

(Source: Adapted from Porter 1985)Appendix 2

Core Values Core Values

• Selling the HIGHEST QUALITY natural and organic products available

• SATISFYING and DELIGHTING our customers

• Supporting team member HAPPINESS and EXCELLENCE

• Creating WEALTH through profits and growth

• Caring about our COMMUNITIES and our environment

• Creating on-going WIN-WIN PARTNERSHIPS with our suppliers

• Promoting the health of our stakeholders through HEALTHY EATING EDUCATION

(Wholefoods 2012)

• Selling the HIGHEST QUALITY natural and organic products available

• SATISFYING and DELIGHTING our customers

• Supporting team member HAPPINESS and EXCELLENCE

• Creating WEALTH through profits and growth

• Caring about our COMMUNITIES and our environment

• Creating on-going WIN-WIN PARTNERSHIPS with our suppliers

• Promoting the health of our stakeholders through HEALTHY EATING EDUCATION

(Wholefoods 2012)

Whole Planet Whole People.png

“Whole Foods, Whole People, Whole Planet”

“Whole Foods, Whole People, Whole Planet”

Customer Demographics

Customer Demographics

Age 18-39

(ABC1)Live healthy lifestyle

Concerned with eating natural/ healthy

foodsMotivated by interesting and unique

foodsSeek an all round exciting experience when shopping

(Whole Foods 2011)

Strong connection with the environment Strong connection with the environment

Customer SegmentationCustomer Segmentation• “Conscionables embody the Core Values of Whole Foods

Market; they support social and environmental initiatives and are frequent shoppers who spend the largest proportion of their monthly grocery bill with Whole Foods”

• “Organics buy organically grown food as a way to maintain their personal health and for food safety reasons”

• “Foodies equate food with love and are frequent shoppers who shop at Whole Foods stores for selection, value and convenience”

• “Experientials are driven to Whole Foods Market for unique products and special occasion items”

• “Conscionables embody the Core Values of Whole Foods Market; they support social and environmental initiatives and are frequent shoppers who spend the largest proportion of their monthly grocery bill with Whole Foods”

• “Organics buy organically grown food as a way to maintain their personal health and for food safety reasons”

• “Foodies equate food with love and are frequent shoppers who shop at Whole Foods stores for selection, value and convenience”

• “Experientials are driven to Whole Foods Market for unique products and special occasion items”

(Whole Foods 2011)(Whole Foods 2011)

Whole Foods’ Marketing ObjectivesWhole Foods’ Marketing Objectives

“We spend only 0.4% of total sales on advertising and marketing . We are successfully utilizing social media as a powerful way to gain positive exposure and connect with our internet -savvy customers on a global and local level . We rely heavily on word-of mouth advocacy .”

– John Mackey, 2012

“We spend only 0.4% of total sales on advertising and marketing . We are successfully utilizing social media as a powerful way to gain positive exposure and connect with our internet -savvy customers on a global and local level . We rely heavily on word-of mouth advocacy .”

– John Mackey, 2012 (Whole Foods 2012; Forbes 2012)

Purpose of Marketing Communication

Purpose of Marketing Communication

• Create a need

• Create, build and maintain awareness, image and reputation

• Educate

• Inform

• Provoke a response

• Reinforce competitive advantage

• Influence

• Build a relationship

• Increase profits

• Create a need

• Create, build and maintain awareness, image and reputation

• Educate

• Inform

• Provoke a response

• Reinforce competitive advantage

• Influence

• Build a relationship

• Increase profits

(Palmer et al. 2007)

Live? Text? Sound? Picture? Video? Interactive?

Print No Yes No No No No

Radio Yes No Yes No No No

Television No No Yes Yes Yes No

Internet Yes Yes Yes Yes Yes Yes

“Traditional media has been accused of being on its deathbed while the internet is being lauded as a better communication tool due to its versatility

and superiority at targeting customers”

Marketing ShiftsMarketing Shifts

(Source: Wergin and Muller 2005, p.85)

Social Media LandscapeSocial Media Landscape

Discussion

Review

Share

Location

Blogs

Commerce

Gaming

Networks

Social Media

(Source: Adapted from Taprial and Kanvar

2012)

Social Media

800 million users

500 million users

238 million users

1.15 billion users

Social Media Reach Social Media Reach

67%

33%

Users Non-Users

(Source: Pew Research Centre 2012; Social Media Today 2013)

The Power of BloggingThe Power of Blogging

“The key question is NOT WHETHER TO

DEPLOY INTERNET TECHNOLOGY-

companies have no choice if they want to stay

competitive - but HOW TO DEPLOY IT”

(Porter 2001, p.64)

BLOGGING

Empower customers

Serve Social

purpose

Enable two- Way

communication

Enable knowledge sharing and

education

Attract the new traffic to

the site

Increase brand

credibility

(Source: Adapted from Signh et al. 2008)

Gain better understandin

g

Customer EngagementCustomer Engagement

• Most socially engaged companies grew revenue by 18% over previous 12 months

• Least engaged companies saw revenue sink by 6% over the same period

• ROI is to increase sales not recruit fans

• Most socially engaged companies grew revenue by 18% over previous 12 months

• Least engaged companies saw revenue sink by 6% over the same period

• ROI is to increase sales not recruit fans

(Altimeter Group and Wetpaint 2009)

“Conventional marketing wisdom long held that a

dissatisfied customer tells ten people. But...in the new age of social media, he or she has the

tools to tell ten million.”

(Source: Harvard Business Review Analytic Services 2010, p.1)

Digital Communications Objectives

Digital Communications Objectives

• Winning customers: customer acquisition and activation

• Keeping customers: customer retention and maintenance

• Developing customers: customer penetration/share of wallet, improving the gross value produced by customers

• Efficiency in customer management: reducing costs

• Winning customers: customer acquisition and activation

• Keeping customers: customer retention and maintenance

• Developing customers: customer penetration/share of wallet, improving the gross value produced by customers

• Efficiency in customer management: reducing costs

(Woodcock and Stone 2012)

Four pillars of Social Media

Four pillars of Social Media

(Safko and Brake 2009)

Philip Kotler Philip Kotler

“Integrated marketing communications is a way of looking at the

whole marketing process from the viewpoint of the

customers”

(Kotler 2003, p.563)

Social & Digital Marketing Strategy

Social & Digital Marketing Strategy

Marketing BudgetMarketing Budget

Whole Foods Whole Foods

Communication Collaboration

Education Entertainment

Custom

er

Global v LocalGlobal v LocalGLOBAL

30% LOCAL

70%

• Focus on lifestyle • Inspiration• Information• Engagement between visits

• Focus on transactions• Local products• Local promotions• Local events

(Wholefoods 2012, Red Door Interactive 2013, Information Week 2013)

Global and Local Synergy

Global and Local Synergy

Brand Lifestyle

Local Shoppin

g

Shared Customer Experien

ce

Global Local: UK

Social Media Reach Social Media Reach

(Facebook 2013,; Twitter 2013; Whole Foods 2013)(Facebook 2013,; Twitter 2013; Whole Foods 2013)

• 47% visit Facebook daily

• 31% visit Twitter daily

Facebook Fans Twitter Followers

Whole Foods 1,447,437 3,000,000

Ocado 210,500 22,800

Sainsbury's 819,000 211,800

Waitrose 142,000 100,300

PinterestPinterest

@wholefoodslondon @wholefoodslondon

Education- Recipes ideas TWIITER/ FACEBOOK - Skin analysis FACEBOOK - Supplements FACEBOOK - Chocolate FACEBOOK- Pomegranate FACEBOOK

Entertainment- Local community events FACEBOOK

- Pumpkin curving TWITTER/FACEBOOK - Local in store demonstrations FACEBOOK

Communication- Hiring staff TWITTER- Global product launch TWITTER- Lunch/ Supper Ideas FACEBOOK - Locally sourced products FACEBOOK - Discounts and promotions FACEBOOK - Local and National events FACEBOOK

Collaboration-With local suppliers FACEBOOK/ TWITTER

- With customers requesting feedback at an event TWITTER

- With customers online TWITTER/ FACEBOOK

Richmond Customer

K

Purpose: Hiring Staff

Social Media: Local Twitter

COMMUNICATION

K

Purpose: Lunch/ Supper Ideas

Social Media: Local Facebook

COMMUNICATION

K

Purpose: Locally Sourced Products


COMMUNICATION

K

Purpose: Discounts/ Promotions


COMMUNICATION

K

Purpose: Local/ National Events

Social Media: Local Facebook/ Twitter

COMMUNICATION

K

Purpose: Global Product Launch

Social Media: Global Twitter

COMMUNICATION

K


Social Media: Blog

COMMUNICATION

K



COMMUNICATION

K

Purpose: Local Suppliers


COLLABORATION

K

Purpose: Direct Feedback


COLLABORATION

K

Purpose: Recipe Information


EDUCATION

K

Purpose: Skin Analysis


EDUCATION

K

Purpose: Information on Supplements


EDUCATION

K

Purpose: Benefits of Chocolate


EDUCATION

K

Purpose: Community Events

Social Media: Local Facebook/Twitter

ENTERTAINMENT

K

Purpose: Community Events


ENTERTAINMENT

K

Purpose: Local Community Events


ENTERTAINMENT

(Source: Safko and Brake 2009; Woodcock and Stone 2012)

Opportunities- Introduce local marketing to each store- Improve CRM systems- Offer personalised news letters

Threats- Competitors may use target profiling more

effectively

Strengths- Integrated with corporate core values- Localised marketing (70%) - Real time dialogue - Interested in health not just food- Engaging and compelling- Personable - Enticing use of images

Weaknesses- Local marketing officer will require training

- Local marketing officer has autonomy- UK/ London treated as one

- No personal details requested on sign up to news letters

Richmond Customer

Corporate Objectives & Strategy

Marketing Strategy

Internet Marketing Strategy

Competitor Strategies

Market Structure &

Demand

Emerging Opportunities & Threats

(Source: Chaffey 2013)

“Embracing social media is no longer a strategic business option, but a

necessity and a huge opportunity”

“Embracing social media is no longer a strategic business option, but a

necessity and a huge opportunity”

(Argenti 2011, p.61)

THANK YOU THANK YOU

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http://www.sas.com/resources/whitepaper/wp_23348.pdf

http://www.informationweek.com/how-whole-foods-handles-social-media/d/d-id/1106145

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