Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Whole Foods Market   goes global   Entry market strategy for         Brazil & Italy
Company overviewAMERICAN ORGANIC FOODS SUPERMARKET CHAIN BASED INAUSTIN, TEXAS• 312 stores spread in the USA (297), Canada...
Financial HighlightsCHART 1:                                           CHART 2:10.1 billion US$ revenues in 2011          ...
Strengths and Weaknesses                Strengths                               Weaknesses          Strong ethical values ...
Positioning  +Brand awareness     -                                     +                          Ethics                 ...
Highest                                        quality                                       products             Caring f...
Branding            Advertising         Less money spentBudget   on advertising and    ADV   Word-of-mouth recommendations...
Branding                                         Brand identity                                                High qualit...
Why WFM in Brazil?   • Organic food sales grew by +40% (350 M BRL) in 2010   • 1.8 Billion ha of agricultural land (2nd la...
Market analysis       BERI analysis                                                    ATTITUDEPOLITICAL       ECONOMIC   ...
Market analysis                       Porter’s 5 Forces                                                                   ...
Market analysis                       Porter’s 5 Forces                                                                   ...
PESTLE Analysis                           Environmental:                           • 1.8 M ha of              Technologica...
PESTLE Analysis                           Environmental:                           • 1.8 M ha of              Technologica...
Hofstede Cultural Analysis                                                      100Individualism vs. collectivism         ...
Cultural framework          Diffusion Rate                           Fast   SlowContext            High                  B...
Cultural framework    Social organisation:                   Values and attitudes:    • Wide gap between rich and poor    ...
Why WFM in Italy?   • Market of organic goods grew by +8.9% in 2011,     whereas goods consumption is decreasing (-4,2% in...
Market analysis       BERI analysis                                                     ATTITUDEPOLITICAL       ECONOMIC  ...
Market analysis                  Porter’s 5 Forces                                                                    Mode...
Market analysis                  Porter’s 5 Forces                                                                    Mode...
PESTLE Analysis                            Environmental:                            • North and South                    ...
PESTLE Analysis                            Environmental:                            • North and South                    ...
Hofstede Cultural Analysis                                                     100Individualism vs. collectivismIndividual...
Cultural framework          Diffusion Rate                           Fast   SlowContext            High                  I...
Cultural framework          Social organisation:                 Values and attitudes:          • Masculine society       ...
Market trends                         & Opportunities                   BrazilIndustry market opportunities          Key t...
Market trends                        & Opportunities                   ItalyIndustry market opportunities        Key trend...
Market segment                                                                                    ... ANDGEOGRAPHY ITALY  ...
Entry mode strategy              Objectives                      Monetary                      • < 2 years: 30% organic pr...
Entry mode strategy   Managing information                                 Relevant and “usable”                          ...
Entry mode Strategy• SEPTEMBER (BRAZIL):                                           2014            • BRAZIL: NEW STORES   ...
Market entry                 The 7 ‘P’s                       Price:                                              Standard...
Market entry                                        Medium-high                                                           ...
Entry Mode Strategy                Marketing MixThe ‘P’                   Brazil                                      Ital...
Entry Mode Strategy                Marketing MixThe ‘P’                   Brazil                                       Ita...
Entry Mode Strategy                    Marketing MixThe ‘P’                        Brazil                                 ...
Entry Mode StrategyThe 7th ‘P’: Promotion – Key Factors                                        The public’s right      Str...
Entry Mode Strategy                          The 7th ‘P’: Promotion          Target                                       ...
Entry Mode Strategy                  The 7th ‘P’: Promotion – Activities                                                  ...
Entry Mode Strategy         The 7th ‘P’ – Customization                                                            Brazil ...
Conclusions   Whole Foods Market can successfully enter and survive            both Brazilian and Italian markets   Market...
Thank you
NoteThis presentation was designed to present a group project developed in October 2012 by SaraBelardi, Anthony Majekodunm...
Upcoming SlideShare
Loading in …5
×

Whole Foods Market goes global

18,228 views

Published on

Entry market strategy for Brazil and Italy

Published in: Business
  • You can hardly find a student who enjoys writing a college papers. Among all the other tasks they get assigned in college, writing essays is one of the most difficult assignments. Fortunately for students, there are many offers nowadays which help to make this process easier. The best service which can help you is ⇒ www.HelpWriting.net ⇐
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I'd advise you to use this service: ⇒ www.WritePaper.info ⇐ The price of your order will depend on the deadline and type of paper (e.g. bachelor, undergraduate etc). The more time you have before the deadline - the less price of the order you will have. Thus, this service offers high-quality essays at the optimal price.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • If you’re looking for a great essay service then you should check out ⇒ www.HelpWriting.net ⇐. A friend of mine asked them to write a whole dissertation for him and he said it turned out great! Afterwards I also ordered an essay from them and I was very happy with the work I got too.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I would HIGHLY recommend the bulimia recovery program. Shaye and the girls on the site are beyond amazing. Without even meeting anyone, I have felt kindness, love, and incredible support. For that reason alone it is worth it. But the guides, information, meal planning tools, binge tracker, blog, forums, and vidoes are more reasons to join. I truly think that if you struggle with an eating disorder this program will help you overcome it and change your life for the better. ♥♥♥ https://tinyurl.com/y88w4b6s
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • The community has truly come to feel like a family, somewhere I can be open, honest and myself. For me it has taken the battle out of my head and instead to somewhere I can get advice or simply tell about my daily struggles and triumphs. And be understood! Shaye's guide and her support and advice on the site are invaluable tools in this recovery journey, for which I am truly grateful :-) ★★★ http://t.cn/A6Pq6OB6
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Whole Foods Market goes global

  1. 1. Whole Foods Market goes global Entry market strategy for Brazil & Italy
  2. 2. Company overviewAMERICAN ORGANIC FOODS SUPERMARKET CHAIN BASED INAUSTIN, TEXAS• 312 stores spread in the USA (297), Canada (8) and the UK (7)FOUNDED IN 1980 BY JOHN MACKEY• Annual revenues in 2011: US$ 10.1 billionENTERED THE UNITED KINGDOM IN 2004• London (2007): first full-size store• Glasgow (2011): first Scottish store• Cheltenham (2012): last UK storePRODUCTS• Seafood • Grocery • Bakery• Meat and poultry • Prepared food & catering• Specialty (beer, wine & cheese) • Coffee and tea • Books• Nutritional supplements • Vitamins • Body care• Floral items • Pet products • Household
  3. 3. Financial HighlightsCHART 1: CHART 2:10.1 billion US$ revenues in 2011 8.5% comparable store sales growth, highest result in 5 years (WFM Annual Report 2011)
  4. 4. Strengths and Weaknesses Strengths Weaknesses Strong ethical values High cost in expansion Community involvement Large perishable inventory Premium prices & High inventory costs Finest quality of goods Shortage of inventory in certain Minimal level of expensive advertising categoriesOrganic products retail leader in the USA Geographic limitations Strong WFM-supplier collaboration Low brand awarness outside the USA Good distribution system Well trained staff with specialized skills Value price private-labels
  5. 5. Positioning +Brand awareness - + Ethics + Price - + Quality
  6. 6. Highest quality products Caring for Food safety the concerns environment Organic market leader Ranked #32 Whole Planet SatisfyingCommunity “100 Best Foundation &delighting involved Companies (created customers to work for” 2005) Whole Kids 6 EPA* Green Foundation Power Healthy Creating (created Awards eating health 2011) (2004-2010) education Supporting Organically- employees grown foods
  7. 7. Branding Advertising Less money spentBudget on advertising and ADV Word-of-mouth recommendations marketing than and testimonials from customers other supermarkets Approximately Marketing budgets allocated among 0.4% of total sales national and regional programs & in fiscal year 2011 individual stores Engage with customers through social media websites, e- newsletters and blog Over 725,000 fans on Facebook and over 2 million followers on Twitter
  8. 8. Branding Brand identity High quality Brand Equity • Lifestyle brand • Environment friendly Feelings Judgment • Ethical • Value service •Healthy • Quality • Active • Community involvedUsers’ profile Performance • Middle to upper class • High quality provider • Healthy eating • Supporting • Families, Partners and employees Couples • Quality awards Core brand • Professionals winner values • Satisfying and delighting customers • Creative wealth through profits and growth • Caring about communities and environment • Creating on-going win-win partnerships with suppliers
  9. 9. Why WFM in Brazil? • Organic food sales grew by +40% (350 M BRL) in 2010 • 1.8 Billion ha of agricultural land (2nd largest in south America) • 332 M ha: soil devoted to organic agriculture and farming (APEX-Agência Brasileira de Promoção de Exportações) • 74.5% of organic products’ consumers believe that they taste better, are safer in terms of health and hygiene and look better than conventional products
  10. 10. Market analysis BERI analysis ATTITUDEPOLITICAL ECONOMIC LABOUR COST/ TOWARDS MONETARYSTABILITY GROWTH PRODUCTIVITY FOREIGN INFLATION INVESTORS 9 10 8 4 4.5 One of the High, but in Same party fastest 2012 High inflation rules since growing decreased to Open to rates, +5.4% 2003. Next emerging 153.57 Index foreign inflation in elections in economies in Points to investments 2012 2014 the world: 155.35 index GDP 2476.65 points billion US$ Evaluation: LOW RISK 64.5
  11. 11. Market analysis Porter’s 5 Forces Moderate Potential Entrants • High barriers to entry • Importance of branding & reputation Moderate • Profitable industry Low • Open to foreign investment Suppliers Rivalry Buyers• Many suppliers • Huge range of organic producers • Low buying power• Localize market (work with local • Use international/ foreign • Price insensitivesuppliers) identity to increase brand • Like to bargain, will switch if• Deal with high levels of awareness unhappy with priceBureaucracy • Growth in organic food market Substitutes • Non organic food Moderate High • Unhealthy food (junk food) • Price of substitute plays important role • Perceived level of product differentiation
  12. 12. Market analysis Porter’s 5 Forces Moderate Potential Entrants • High barriers to entry • Importance of branding & reputation Moderate • Profitable industry Low • Open to foreign investment Suppliers Rivalry Buyers• Many suppliers • Huge range of organic producers • Low buying power• Localize market (work with local • Use international/ foreign • Price insensitivesuppliers) identity to increase brand • Like to bargain, will switch if• Deal with high levels of awareness unhappy with priceBureaucracy • Growth in organic food market Substitutes • Non organic food Moderate High • Unhealthy food (junk food) • Price of substitute plays important role • Perceived level of product differentiation
  13. 13. PESTLE Analysis Environmental: • 1.8 M ha of Technological:Economic: agricultural land • More than 242 M• 6th biggest economy • Rich in natural mobile phones (2011)(World) resources (2nd largest • Broadcast media: more• High GDP growth rates producer of iron-ore) than 1,000 radio stations• Biggest economy in • One of the largest and more than 100 TVSouth America offshore oil discoveries channels (2007)• 5.40% unemployment • 75.982 M internet users (2009) Legal: • CorruptionSocial: Political: • Complex tax rules• Gap between higher • President of Brazil:and lower class • Slow legal process Dilma Rousseff (since• Hierarchy of class 2010 up to 2014)• High consuming culture • Same party rules the• Family orientated country since 2003 (Source: CIAa)
  14. 14. PESTLE Analysis Environmental: • 1.8 M ha of Technological:Economic: agricultural land • More than 242 M• 6th biggest economy • Rich in natural mobile phones (2011)(World) resources (2nd largest • Broadcast media: more• High GDP growth rates producer of iron-ore) than 1,000 radio stations• Biggest economy in • One of the largest and more than 100 TVSouth America offshore oil discoveries channels (2007)• 5.40% unemployment • 75.982 M internet users (2009) Legal: • CorruptionSocial: Political: • Complex tax rules• Gap between higher • President of Brazil:and lower class • Slow legal process Dilma Rousseff (since• Hierarchy of class 2010 up to 2014)• High consuming culture • Same party rules the• Family orientated country since 2003 (Source: CIAa)
  15. 15. Hofstede Cultural Analysis 100Individualism vs. collectivism 90Collectivist Power Distance 80 Inequality accepted 70Uncertainty avoidance 60 BrazilHigh Uncertainty- rules and elaboratelegal systems to structure life. Rules and 50laws important 40 United States Masculinity vs. femininity 30 MasculineShort term and long term 20Long term (accept change as part of life) 10 Official language 0 Brazilian (Portuguese) PDI IDV MAS UAI LTD
  16. 16. Cultural framework Diffusion Rate Fast SlowContext High Brazil Low
  17. 17. Cultural framework Social organisation: Values and attitudes: • Wide gap between rich and poor • Family orientated • Hierarchy of class • Relaxed and tend to live life in slower pace • High crime rates • Enjoy socializing • Fashion conscious Technology and material culture: Aesthetics to food: • Huge amount of foreign products • Staple foods to Brazilian diet are root • High consuming culture vegetables, seafood and meat • Food tends to be sweet rather than spicy • The cuisine is welcoming like the people Diffusion Rate • Health is most important issue in relation to organic food Fast SlowContext High Brazil Low
  18. 18. Why WFM in Italy? • Market of organic goods grew by +8.9% in 2011, whereas goods consumption is decreasing (-4,2% in 2012) • Demand for healthy food • €550 M: the turnover for organic products estimated in 2011 • 1.11 M ha of soil devoted to organic agriculture • Consumers already aware of the benefits of organic food
  19. 19. Market analysis BERI analysis ATTITUDEPOLITICAL ECONOMIC LABOUR COST/ TOWARDS MONETARYSTABILITY GROWTH PRODUCTIVITY FOREIGN INFLATION INVESTORS 6 5 4 6 3 Political Recession elections in ongoing. IMF Open to 2013. Labour tax foreign (April 2012): Inflation in Temporary and investments the Italian 2012: +3% government contributions Good economy will (Banca of are 43.4% relation- shrink by d’Italia) technocrats (World Bank, ships with -1.9% in 2012 (PM Mario 2013a) Anglo-Saxon and by -0.3% Monti) in 2013 companies Evaluation: typical industrial economy risk 76
  20. 20. Market analysis Porter’s 5 Forces Moderate Potential Entrants • Purchasing locally produce goods • Diversifying stakeholders Moderate to Moderate • Loyal consumer base high • Financial investment Suppliers Rivalry • NaturaSì (organic supermarket Buyers• Moderate power • Low buying power• Need to focus on brand chain) • Focus on Product, price and • Price insensitiveawareness • Like to bargain, will switch if• Localize market product differences • Location unhappy with price• “What’s new” about WFM Substitutes Moderate • COOP (food supermarket chain) High • Easily switch to organic range or non organic • Price of substitute plays important role
  21. 21. Market analysis Porter’s 5 Forces Moderate Potential Entrants • Purchasing locally produce goods • Diversifying stakeholders Moderate to Moderate • Loyal consumer base high • Financial investment Suppliers Rivalry • NaturaSì (organic supermarket Buyers• Moderate power • Low buying power• Need to focus on brand chain) • Focus on Product, price and • Price insensitiveawareness • Like to bargain, will switch if• Localize market product differences • Location unhappy with price• “What’s new” about WFM Substitutes Moderate • COOP (food supermarket chain) High • Easily switch to organic range or non organic • Price of substitute plays important role
  22. 22. PESTLE Analysis Environmental: • North and South Technological:Economic: suitable for cultivation • 29.235 million (2009)• 4% GNP from • Cost advantage of internet usersagriculture having cultivable environment • 92.3 million (2011)• 1% economic growth mobile userssince millennium • Organic agriculture keeps environment •2 media giants: RAI and• 10.7% unemployment Mediasetrate until July 2012 (on healthyrecession) Legal: Political:Social: • Legal procedures • Current PM Mario• Rich culinary tradition required Monti nominated after• Savour typical regional • Time cannot estimated Berlusconi motion of nocuisines confidence• Strong food regulations •New PM election by 2013 April (Source: CIA)
  23. 23. PESTLE Analysis Environmental: • North and South Technological:Economic: suitable for cultivation • 29.235 million (2009)• 4% GNP from • Cost advantage of internet usersagriculture having cultivable environment • 92.3 million (2011)• 1% economic growth mobile userssince millennium • Organic agriculture keeps environment •2 media giants: RAI and• 10.7% unemployment Mediasetrate until July 2012 (on healthyrecession) Legal: Political:Social: • Legal procedures • Current PM Mario• Rich culinary tradition required Monti nominated after• Savour typical regional • Time cannot estimated Berlusconi motion of nocuisines confidence• Strong food regulations •New PM election by 2013 April (Source: CIA)
  24. 24. Hofstede Cultural Analysis 100Individualism vs. collectivismIndividualist (North)Collectivist (South) 80 Power Distance Inequality accepted 60Uncertainty avoidanceHigh Uncertain- Formality is important, not Italy 40comfortable in unknown situation USA Masculinity vs. femininity 20 MasculineShort term and long term 0Short term Oriented, Great respect for historyand culture PDI IDV MAS UAI LTO Official language Italian
  25. 25. Cultural framework Diffusion Rate Fast SlowContext High Italy Low
  26. 26. Cultural framework Social organisation: Values and attitudes: • Masculine society • Family oriented • Inequality in standard of living • Religious between North and South of Italy • More materialist • Sluggish economy • Interest in money and economy • Organized crime and corruption Technology and material culture: Aesthetics to food: • Interested in new technologies • High food regulation • High consuming culture • Consume more fruits and vegetables, milk and dairy product and Diffusion Rate wine • Keen about traditional food and cuisine Fast SlowContext High Italy Low
  27. 27. Market trends & Opportunities BrazilIndustry market opportunities Key trends & opportunities Consumers:• Organics Brazil: a program • Obesity on the rise (48.5%) • Enjoy good quality livingsupporting and marketing organic (AFP, 2012) • Convenienceproducers in Brazil • Open to foreign investment • Price consciousness• Organic products sales up +40% • Attraction for tourists (grows • Brand loyaltyin 2010 (Organics Brazil, 2011) +7.8% in 2012) • Shopping integrated in the• Price difference organic Vs. non- • Growing economy (largest in lifestyle of Braziliansorganic products is decreasing south America): +5.5% expected • Spend more than save due to(30% in 2010, was 70% in 2006) GPD growth in 2013 (Bloomberg, high rising inflation rates(APEX, 2011) 2012)• Functional foods market • Boom of middle class (54%)growing +10% each year biggest official class • Attracts global companies like Nestlé, Coca Cola, AIG and etc.
  28. 28. Market trends & Opportunities ItalyIndustry market opportunities Key trends/ opportunities Consumers:• The market for organic • Enjoy fashion • Old brands respectedfood grew from 700 to 800 M • Most organic food producers • Seek approval from familyEUR (+ 14%) in 2010 (Organic in Europe - over 47,000 before making decisionFood Info, 2011) • Tourist attraction - Travel & • Value getting a good deal• Organic products in the Tourism to GDP in 2011 was • Appreciate high qualityconventional trade also grew EUR 51.4bn (3.3% of GDP) • Enjoy comfortfrom 450 to 500 million EUR(+11%) (Organic Food Info, 2011) (WTTC, 2012)• In 2010, there were 47,663 • Obesity on the rise, growingfarmers, processors and traders +0.5%/year. In 2011, 35% of• Over 40% people understand overweight. By the age ofbenefits of healthy living eight, 36% children will be obese/overweight (The Independent, 2011)
  29. 29. Market segment ... ANDGEOGRAPHY ITALY DEMOGRAPHY NICHE TOURISTS Income level: • Northern and Central Parts Middle & Surge in Upper class demand and • Population 1.3 costumer needs M (Milan) and 2.7 M (Rome) Cultured (ISTAT, 2012) & • Growth and BRAZIL Educated change in market • Mid-West and South-West •Families, • Diversify the parts Partners and market couples • Population (30-50) 2.5M (Rio de Janeiro) and • Young 11.3 M (Sao Professionals Know the Paulo) (25-35) costumer (IBGE, 2010 (a) • Students and (b)) (18-25)
  30. 30. Entry mode strategy Objectives Monetary • < 2 years: 30% organic products market share in São Paulo and Rio de Janeiro (Brazil) and in Milan and Rome (Italy) • 2-5 years: 30% organic products market share in Brazil and Italy • ≤ 5 years: become market leader of organic products retail in Brazil and ItalyBrand positioning• Build and reinforce a strong brand equity for WFM• Make WFM the top brand for organic products retailing in Brazil and Italy
  31. 31. Entry mode strategy Managing information Relevant and “usable” information Before While entering the market being in the market PURPOSE: ISSUES: DATA: PURPOSE: ISSUES: Know and • Market needs Mostly “control and • Marketunderstand the • Patterns Quantitative foresee” response market • correct and • Threats + readjust • Potentials Qualitative • improve the offer Mostly Qualitative + Quantitative
  32. 32. Entry mode Strategy• SEPTEMBER (BRAZIL): 2014 • BRAZIL: NEW STORES 2016 RIO DE JANEIRO, 1 OPENING FLAGSHIP STORE (FRANCHISING) IN SÃO• ALLIANCES & • JANUARY (BRAZIL): SÃO PAOLO & RIO DE • BRAZIL: STORES PARTNERSHIPS PAOLO, 1 FLAGSHIP STORE JANEIRO OPENING IN NEW (ORGANICS BRAZIL) • BRAZIL: WORLD CUP • JANUARY (ITALY): TOWNS (FRANCHISING) 2014 (SPONSORSHIP) ROME, 1 FLAGSHIP • BRAZIL: OLYMPICS • JANUARY (ITALY): STORE 2016 (SPONSORSHIP) MILAN, 1 FLAGSHIP STORE • ITALY: EXPO MILANO • ITALY: STORES OPENING • ITALY: ALLIANCES & PARTNERSHIPS 2015 (SPONSORSHIP) IN NEW TOWNS (COLDIRETTI) (FRANCHISING) 2013 2015 Budget: 200 million US$ per country
  33. 33. Market entry The 7 ‘P’s Price: Standardization Process: Place: Standardization Standardization Our karma: Physical Think Product: evidence: global, Act Standardization + Standardization local customization + customization People: Promotion: Standardization + Standardization customization + customization Approach: mostly(Keller, 2008) Geogentric
  34. 34. Market entry Medium-high prices The 7 ‘P’s Price: Standardization Process: Place: Standardization Standardization • Local suppliers • Flagship stores • Owned stores • Kiosks Our karma: Physical Think Product: evidence: global, Act Standardization + Standardization local customization • Pleasant shops + customization • In-store • High quality experience (Italy) • Wide offer People: Promotion: Standardization + Standardization customization + customization The • Integrated “right staff” • Customized(Keller, 2008)
  35. 35. Entry Mode Strategy Marketing MixThe ‘P’ Brazil Italy Approach • Category: medium-high • Category: medium-high Standardization Price • Same as in the USA converted into BRL • Same as in the USA converted into EURO (slightly lower than in UK) • High quality standards • High quality standards • Wide range of products and labels: • Wide range of products and labels: “generalist”, 365 Everyday Value®, “generalist”, 365 Everyday Value®, StandardizationProduct Exclusive, Whole Trade® Guarantee, Exclusive, Whole Trade® Guarantee, + customization Premium Body Care, own brand Premium Body Care, own brand • “Top in store”: greengrocery, • “Top in store”: greengrocery, milk and butchery, fresh fish dept. diaries dept.
  36. 36. Entry Mode Strategy Marketing MixThe ‘P’ Brazil Italy Approach • 1 Flagship store in each town (São • 1 Flagship store in each town (Milan, Paolo, Rio de Janeiro) Rome) • central and touristic areas • central and touristic areas Place Standardization • Kiosks and “Pop-up stores”: venues of • Kiosks and “Pop-up stores”: venues of main events (Fifa World Cup and main events (Expo 2015 Milan) Olympics) • Suppliers: mostly local (partners) • Suppliers: mostly local (partners) • Long-term contracts • Long-term contractsProcess • Distribution: direct-control (owned • Distribution: direct-control (owned Standardization stores) + franchising (after 3 years) stores) + franchising (after 2 years)
  37. 37. Entry Mode Strategy Marketing MixThe ‘P’ Brazil Italy Approach • The “right staff”: keen about organic • The “right staff”: keen about organic products, trained products, trained • Customer oriented • Customer oriented - focus on products Standardization People • Brazilian (mother tongue) + English information + customization (proficiency) • Italian (mother tongue) + English (proficiency) • Pleasant shop environment • Pleasant shop environment • Shopping + dining (restaurant) • Shopping + dining (restaurant) Physical Standardization • In-store activities and events • In-store activities and events (didacticalexperience + customization (didactical activities, food tastings, free activities, food tastings, free samples) samples) • In-store “consumer corner” (info)
  38. 38. Entry Mode StrategyThe 7th ‘P’: Promotion – Key Factors The public’s right Strong type ofemotional bonds Costumers’ Key factors: experience with customers experience is the Emotional (thoughts, are a crucial in pilaster of the the general brand equity feelings, involvement perceptions, & customers’ process of building process opinions) is experience branding (Keller, 2008) essential (Hollis, 2008) (Keller, 2008)
  39. 39. Entry Mode Strategy The 7th ‘P’: Promotion Target Budget • Age: 20-55 • (year 1): 20% of total lunch budget • Gender: mostly women • (year 1-5): 5% of annual profits in each country • Job: (young) professionals, committed students • Social class and education: middle to high income| Middle to high education Key messages: • Interests #1: • “Whole foods, Whole people, Whole planet” health, environment, quality food and • Healthy lifestyle lifestyle • Respect the environment • Interests #2: • Sustainability fashion, sport, wellness, beauty, culture, art • Costumer education • Spread happiness(De Olivera Lima-Fihlo, 2012; Pellegrini, 2009)
  40. 40. Entry Mode Strategy The 7th ‘P’: Promotion – Activities EMOTIONAL INVOLVEMENT & CUSTOMERS’ EXPERIENCE APPROACH: MAINLY STANDARDIZED CONVENTIONAL SPONSORSHIPS, ADV: UNCONVENTIONAL ATL+BTL ACTIVITIES: EVENTS, TESTIMONIALS AMBIENT EDUCATIONAL MARKETING, PROJECTS SOCIAL MEDIA FLASHMOBS(Burcher, 2012)
  41. 41. Entry Mode Strategy The 7th ‘P’ – Customization Brazil Italy Experts opinions/suggestions• Focus on in-store activities• Didactive and informationalevents • TV/Radio/Newspapers • Specialized daily programmes and editorials“Try our whole world”:Sampling and free tasting Famous/relevant testimonials: • professional sportspeople • experts• WoM• Buzz Healthy lifestyle
  42. 42. Conclusions Whole Foods Market can successfully enter and survive both Brazilian and Italian markets Markets Core ethical Past experience opportunities values
  43. 43. Thank you
  44. 44. NoteThis presentation was designed to present a group project developed in October 2012 by SaraBelardi, Anthony Majekodunmi, Anca Marinescu and Kabita Sunuwar.The project was developed for the “Global Marketing” module taught by Cheryl Johashen at the Universityof West London (MSC Corporate Communication – Academic year 2012/2013).Clearly the developed market entry strategy merely represents a trial and a "scholastic" exercise.The parts of the project and the group members’ roles have been organized as follows:CONTENTS • Sara Belardi: BERI Analysis for Italy; Information management system; Market Entry Strategy (objectives, timeframe, “the 7 ‘P’s”, Marketing mix, Promotion) • Anthony Majekodunmi: market analysis for Brazil (BERI analysis, PESTLE analysis, Porter’s 5 Forces analysis); cultural analysis for Brazil; market trends and opportunities for Brazil and Italy • Anca Marinescu: Company overview (market positioning, values, brand analysis); Market Entry Strategy (objectives and timeframe) • Kabita Sunuwar: market analysis for Italy (PESTLE analysis, Porter’s 5 Forces analysis); cultural analysis for Italy; market segment (Brazil and Italy)EDITING and DESIGN • Sara Belardi and Anca MarinescuGROUP COORDINATION • Sara Belardi

×