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Wholefoods Social Media Marketing

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What is social media marketing? Why social media marketing and blogging is important for companies? How companies implement those strategies to better engage with customers?

What is social media marketing? Why social media marketing and blogging is important for companies? How companies implement those strategies to better engage with customers?

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  • 1. Emma Wimhurst Yan Hu Jennifer Kesik MBA Bournemouth University 13 December 2013
  • 2. Overview Aims and objectives The company Importance and power of blogging in marketing Critical analysis of the social and digital marketing strategy Conclusion
  • 3. Whole 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 (Whole Foods 2012; Forbes 2012) Appendix 1
  • 4. Global 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)
  • 5. Differentiation Strategy Cost Leadership Differentiation Cost Focus Differentiation Focus (Source: Adapted from Porter 1985) Appendix 2
  • 6. 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)
  • 7. Whole Planet Whole People.png “Whole Foods, Whole People, Whole Planet”
  • 8. Customer Demographics Age 18-39 (ABC1) Live healthy lifestyle Concerned with eating natural/ healthy foods Motivated by interesting and unique foods Seek an all round exciting experience when shopping Strong connection with the environment (Whole Foods 2011)
  • 9. Customer 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” (Whole Foods 2011)
  • 10. Whole 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 (Whole Foods 2012; Forbes 2012)
  • 11. 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 (Palmer et al. 2007)
  • 12. Marketing Shifts “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” 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 (Source: Wergin and Muller 2005, p.85)
  • 13. Social Media Landscape Review Networks Discussion Share Social Social Media Media Commerce Location Blogs Gaming (Source: Adapted from Taprial and Kanvar
  • 14. Social Media Reach 1.15 billion users Users 500 million users 33% 238 million users Non-Users 67% 800 million users (Source: Pew Research Centre 2012; Social Media Today 2013)
  • 15. The 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)
  • 16. Empower customers Increase brand credibility Attract the new traffic to the site Enable two- Way communication BLOGGING Gain better understanding Serve Social purpose Enable knowledge sharing and education (Source: Adapted from Signh et al. 2008)
  • 17. Customer 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 (Altimeter Group and Wetpaint 2009)
  • 18. “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)
  • 19. 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 (Woodcock and Stone 2012)
  • 20. Four pillars of Social Media (Safko and Brake 2009)
  • 21. 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)
  • 22. Social & Digital Marketing Strategy
  • 23. Marketing Budget $ 30% GLOBAL Marke ng Budget $ 70% LOCAL
  • 24. Whole Foods Communication Collaboration Customer Education Entertainment
  • 25. Global v Local GLOBAL 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)
  • 26. Global and Local Synergy Brand Lifestyle Shared Customer Experience Local Shopping
  • 27. Global Local: UK
  • 28. Social Media Reach • 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 (Facebook 2013,; Twitter 2013; Whole Foods 2013)
  • 29. Pinterest
  • 30. @wholefoodslondon
  • 31. 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 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
  • 32. COMMUNICATION Purpose: Hiring Staff Social Media: Local Twitter K
  • 33. COMMUNICATION Purpose: Lunch/ Supper Ideas Social Media: Local Facebook K
  • 34. COMMUNICATION Purpose: Locally Sourced Products Social Media: Local Facebook K
  • 35. COMMUNICATION Purpose: Discounts/ Promotions Social Media: Local Facebook K
  • 36. COMMUNICATION Purpose: Local/ National Events Social Media: Local Facebook/ Twitter K
  • 37. COMMUNICATION Purpose: Global Product Launch Social Media: Global Twitter K
  • 38. COMMUNICATION Purpose: Global Product Launch Social Media: Blog K
  • 39. COMMUNICATION Purpose: Global Product Launch Social Media: Blog K
  • 40. COMMUNICATION Purpose: Global Product Launch Social Media: Global Twitter K
  • 41. COLLABORATION Purpose: Local Suppliers Social Media: Local Facebook K
  • 42. COLLABORATION Purpose: Local Suppliers Social Media: Local Twitter K
  • 43. COLLABORATION Purpose: Direct Feedback Social Media: Local Twitter K
  • 44. EDUCATION Purpose: Recipe Information Social Media: Global Twitter K
  • 45. EDUCATION Purpose: Skin Analysis Social Media: Local Facebook K
  • 46. EDUCATION Purpose: Information on Supplements Social Media: Local Facebook K
  • 47. EDUCATION Purpose: Benefits of Chocolate Social Media: Local Facebook K
  • 48. ENTERTAINMENT Purpose: Community Events Social Media: Local Facebook/Twitter K
  • 49. ENTERTAINMENT Purpose: Community Events Social Media: Local Facebook K
  • 50. ENTERTAINMENT Purpose: Local Community Events Social Media: Local Facebook K
  • 51. ENTERTAINMENT Purpose: Local Community Events Social Media: Local Facebook K
  • 52. (Source: Safko and Brake 2009; Woodcock and Stone 2012)
  • 53. Weaknesses 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 - 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 Opportunities - Introduce local marketing to each store Improve CRM systems Offer personalised news letters Threats - Competitors may use target profiling more effectively
  • 54. Corporate Objectives & Strategy Marketing Strategy Market Structure & Demand Internet Marketing Strategy Competitor Strategies Emerging Opportunities & Threats (Source: Chaffey 2013)
  • 55. “Embracing social media is no longer a strategic business option, but a necessity and a huge opportunity” (Argenti 2011, p.61)
  • 56. THANK YOU
  • 57. References Argenti, P., 2011. Digital strategies for powerful corporate communications. The European financial review. 61-64. Altimer Group and Wetpaint, 2009. Deep brand engagement correlates with financial performance. [online] Available from: http://www.altimetergroup.com/2009/07/engagementdb.html [Accessed 25 November 2013]. Chaffey, D., 2012. Digital Marketing Strategy. Implementation and Practice. 5th edition. Harlow: Pearson Education Limited. Forbes, 2012. Marketing spend on the rise: three trends worth watching. [online] Available from: http://www.forbes.com/sites/christinemoorman/2012/10/18/marketing-spend-on-the-rise-three-trends-worth-watching/ [Accessed 5 December 2013]. Harvard Business Review Analytics Services , 2010. The new conversation: taking social media from talk to action. [online] Available from: http://www.sas.com/resources/whitepaper/wp_23348.pdf [Accessed 2 December 2013 ). Information Week, 2013. How Wholefoods handle their social media? [online] Available from: http://www.informationweek.com/how-whole-foods-handles-social-media/d/d-id/1106145 [Accessed 25 November 2013]. Kotler, P., 2003. Marketing management. 14ed. Harlow: Pearson Education International. McAfee, A. and Brynjolfsson, E., 2012, Big data: the management revolution. Harvard business review. 90 (10), 64. Miletsky, J., 2008. Principles of Internet Marketing. Oxford: Butterworth-Heineman. Palmer, P., Cockton, J. and Cooper, C., 2007. Managing marketing: marketing success through good management practice. USA: Elsevier. Pew Research , 2012. Social media in 2013: user demographics for twitter, facebook, pinterest and instagram. [online] Available from: http://blog.bufferapp.com/social-media-in-2013-user-demographics-for-twitter-facebook-pinterest-and-instagram [Accessed 27 November 2013]. Porter, M., 1985. Competitive advantage: creating and sustaining superior performance. London: The Free Press.
  • 58. Porter, M., 2001. Strategy and the internet. Harvard business review. 79 (3), 62-76. Red Door Interactive. 2013. Event recap – Whole Foods Market’s healthy strategy for social media. [online] Available from: http://www.reddoor.biz/event-recap-whole-foods-markets-healthy-strategy-for-social-media [Accessed 25 November 2013] Safko,L. and Brake, D.K., 2009. The social media bible. New Jersey: John Wiley and Sons. Signh, T., Veron- Jackson, L. and Cullinane, J., 2008. Blogging: a new play in your marketing game plan. Business Horizons. 51, 281—292. Social Media Today, 2013. Social media in 2013: by the numbers. [online] Available from: http://socialmediatoday.com/jonathan-bernstein/1894441/social-media-stats-facts-2013 [Accessed 2 December 2013]. Stone, M. and Woodcock, N., 2013. Social intelligence in customer engagement. Journal of strategic management, 21 (5), 394-401. Taprial and Kanvar, 2011. Understanding Social Media. [online] Available from: http://books.google.co.uk/books?id=g2RjpWcCyTAC&pg=PA34&dq=social+media+landscape&hl=en&sa=X&ei=WWcUrXxPOqh7AaCz4GoAQ&redir_esc=y#v=onepage&q=social%20media%20landscape&f=false [Accessed 20 November 2013]. Wergin, R. and Muller, R., 2005. A case study in marketing communications: traditional vs. e-media advertising. International journal of the academic business world. 6 (1), 85- 94. Whole Food Demographic Analysis, 2011. Form 10k Whole Foods. [online] Available from: http://www.wholefoodsmarket.com/sites/default/files/media/Global/Company%20Info/PDFs/WFM_2012_10K.pdf [Accessed 8 November 2013]. Whole Foods., 2012. Green Mission Report. [online] Available from: www.wholefoodsmarket.com [Accessed 25 October 2013]. Whole Foods, 2013. 2012 Annual report. Whole Foods Market: Texas, USA.