FINAL MARKETING PLAN

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Whole Foods Market
MKTG 3161- Section 03
Meghan Brieck, Nathaniel Vanginkel, Brittany Wear, Destiny Wright
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Table of Contents:
 Executive Summary…………………………………………………………3-4
 Situation Analysis
 The Company………………………………………………………..4-7
 The Industry.…………………………………………………………..7-9
 The Market…………………………………………………………10-12
 The Competition………………………………………………….12-17
 Current Marketing Mix…………………………………………..17-19
 Current Product Mix…………………………………...…………19-23
 Current Pricing Policies……………………………………………...23
 Current Promotions………………………………………………24-25
 Current Distribution Strategy…………………………………...26-27
 External Environmental Factors………………………………..28-29
 SWOT Analysis……………………………………………………..30-36

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 Marketing Plan Objectives……………………………………………..36-38
 Marketing Strategy………………………………………………………39-40
 Action Plans……………………………………………………………….40-51
 Appendices
 Proposed drafted Radio Script…………………………………….51
 Storyboard…………………………………………………………….52
 Works Cited………………………………………………………..53-54
Executive Summary:
Over the past decade Whole Foods has solidified themselves as the
natural food retailing industry leader. We hold our success to providing the
most value to our customers. At Whole Foods, we hold ourselves to high
standards and base all decisions on what’s best for the better of our
environment and our consumers.
We have 414 stores found within the United States, Canada, and the
United Kingdom and are continuing to expand our locations. We sell over

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2,600 different products and have numerous global and local foundations. The
combination of all these attributes and our loyal consumer base have brought
us to the success we now hold. While our current competitors are growing,
we still remain ahead because of our well-known name in the market.
Our target market is largely compiled of upper class, 18-35 year old,
employed individuals and families. Therefore; we build our marketing
strategies to reach our target market. We define our objectives on the
principle that we always provide valuable and healthy products in order to
retain customer loyalty. In today’s society technology is part of our everyday
lives, and at Whole Foods part of our marketing strategy is to utilize this
advancement.
After doing extensive research on the market, we have created two
separate action plans our company can implement in order to reach these
objectives. The first one is an “Online shopping” tool that brings together
technology and a brand new shopping experience to consumers. Our second
one is a customer rewards program. With these two new plans, we predict

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future success for our company, with increased profit and increasing our
number of customers.
We believe these programs will increase our customer loyalty by giving
new incentives to shop at Whole Foods. Our continued success and profits
depend on our consumers. It is important that with new competitors popping
up, we continue to grow our customer base. We need to continue to promote
our unique products and shopping experience, maintaining a superior level
above all other competitors.
Situation Analysis:
The Company:
History:
What started off in Austin, Texas in 1980 as a dream of taking the
natural foods industry to the supermarket level has since then erupted into
not only Whole Foods Market, but also an entire new market for natural and
organic foods. At the time of that first store opening, there were less than half

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a dozen natural food supermarkets in the United States. Through expansion
of its products, stores, and target market, Whole Foods is now the world’s
leader in natural and organic foods, with more than 414 stores in North
American and the United Kingdom.
Mission Statement:
Our mission statement significantly reflects the views of our company.
"With great courage, integrity and love – we embrace our responsibility to co-
create a world where each of us, our communities and our planet can flourish.
All the while, celebrating the sheer love and joy of food.”-Whole Foods
Market
Corporate Objectives and Strategies:
Profitability-
Whole Foods has greatly increased its profitability within the past few
years. According to Whole Foods Market’s 10-K form for the fiscal year

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ending on September 28, 2014, gross profit totaled approximately $5.0 billion,
$4.6 billion and $4.2 billion in fiscal years 2014, 2013 and 2012, respectively.
The basic EPS (earnings per share) has increased from $.72 in 2010 to $1.57 in
2014, doubling in just four years. Similarly, the ROIC (returns on investment
capital) has increased from 12.9% in 2012 to 14.6% in 2014. All of these
financial statistics are proving that Whole Foods has been steadily increasing
its profit at greater intervals each year. This increase is assumed to be
associated with the “healthy” attitude that has grown in the U.S.; being
conscious of health decisions has become widely popular.
Community Image/Society involvement-
We are well known for our involvement within communities. The Whole
Trade® Guarantee labels products that are sourced from developing countries
and meet our high quality standards. This provides more money to producers,
ensures better wages and working conditions for workers, and utilizes sound
environmental practices (10-K 2014). Along with this program, Whole Foods
also has a commitment to buying from local producers, which boosts local

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economies and contributes to responsible land development and the
preservation of viable green spaces. We are also dedicated to promoting
animal welfare on farms and ranches. The Global Animal Partnership’s 5-
Step® Animal Welfare Rating Standards program is currently in all of our
stores in the U.S. and Canada. All beef, chicken, pork and turkey come fresh
from producers who meet or exceed the requirements of this certification.
Organizational Philosophy-
Due to our extensive community involvement and goal to better lives
through our products, it is easy to see that we have a clear focus on societal
marketing. No, you don’t see many advertisements for Whole Foods in
magazines, on television, or on billboards. What you do see, however, is a
company that is openly operating with a vision of a sustainable future, where
implementing this new vision begins with changing the way one thinks about
the relationships between our food supply, the environment, and our bodies.
Whole Foods Market makes it clear that we make marketing decisions based
on our consumers’ wants and society’s long-term interests—essentially, a

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sustainable future with health and the environment as top concerns of the
consumers (10-K 2014).
Growth Strategies-
The majority of the recent growth for Whole Foods Market is primarily
due to store expansion and new store openings. We have a disciplined,
opportunistic real estate strategy, opening stores in existing trade areas as
well as new areas, including international locations. Product development is
also essential to the growth of Whole Foods Market. Because food retailing is
such an intensely competitive market, our company must continuously design,
create, and market new products and services in order to keep valuable
customer relationships and customer loyalty.
The Industry:
Defining the Industry:

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According to the North American Industry Classification System, Whole
Foods Market is included in the supermarket and other grocery (except
convenience) stores (44511).
Growth patterns within the industry:
Demand Situation:
Demand in Whole Foods Market’s industry has been growing in the past
5 years along with the economy. Since the economy has been growing
recently, people have more disposable income, which has lead them to spend
more money on healthy and organic food rather than the cheaper alternative.
Per Capita Consumption:
Because food is essential to life, everyone is going to eat one way or
another. Because this is the case and demand is growing in the supermarket
industry, the per capita consumption in this industry is very high.
Growth Potential:

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The Supermarket industry’s potential for growth is extremely great due
to rising disposable income in the next few years although it will be at a
lower rate than the previous few years. Whole Foods Market’s growth is going
to be as great or even greater because demand for healthy and organic food
is growing.
Characteristics of the industry:
Distribution patterns and traditional channels:
In the supermarket industry, distribution is often taken care of exclusively
by the company. The specific companies ship directly from their warehouses
to their stores from their own trucks. This distribution system has evolved in
the past few decades—previously, other third party companies shipped it.
Regulation and control within the industry:

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The United States prides itself on having the safest and cheapest food
supply in the world mainly due to all of the regulations. The supermarket
industry and really any industry dealing with food is very strictly controlled.
Regulations by the government have added costs that are increasingly
burdensome to the industry.
Public pressures/Societal concerns:
For the past few years there has been a movement in the country to
move towards healthier and safer foods. Society has become concerned about
how responsibly the food they consume is grown and how it will affect their
health. This movement has helped grow our company and customer base.
The Market:
Physical Descriptors:

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Whole Foods was the first nationally certified organic grocery store in
the United States. We have over 2,600 natural and organic products sold
within our stores (Fast Facts). Whole Foods Market is best known for a wide
variety of natural and organic products, which include: produce, meats, other
foods, cleaning products, dietary supplements, and body care products. Our
mission is to provide the highest quality natural and organic products to our
customer. Our customers and the planet are Whole Foods’ main concerns (We
Satisfy, Delight and Nourish our Customers).
Behavioral Descriptors:
Organic and natural foods and products are becoming more popular.
As the desire for organic and natural foods and products increase, so does
the demand for the products sold at Whole Foods. Unfortunately, economic
factors also contribute to the demand for our products. Since organic and
natural foods and products are more expensive, when the economy is down,

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the demand for these products also decreases. This is because these types of
goods are inferior goods.
Positioning in the Mind of Customers:
Customers see Whole Foods as a high-end grocery store that carries
only organic and natural foods. Whole Foods is viewed as more expensive
than a typical grocery store, but you are paying for better quality food.
Compared to their competitors, they offer the highest quality products, but
also, the most expensive. So the customer is paying a higher price for a
higher quality product. Consumers know what to expect before even walking
in and make a conscious choice to spend more money.

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(Perceptual Map- Google)
Product Alternatives:
Product alternatives for Whole Foods would be nonorganic products
sold by their indirect competitors, organic food sold by generic grocery
stores, is also a product alternative. With generic grocery stores starting to
carry more organic and natural products, this means more competition for
our products.
Shopping Alternatives:

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There are several different shopping alternatives for Whole Foods.
These alternatives include a wide variety of stores. Some alternatives are other
organic grocery stores, such as, Trader Joes and Sprouts. Other shopping
alternatives are typical grocery stores, such as, Ingles, Publix, and Kroger. Also
stores like Wal-Mart and target. Warehouse stores such as Costco’s and Sam’s
Club are also shopping alternatives.
The Competition:
Identification/Descriptors of Competitors:
The competition within the food retailing industry is highly intense. The
main competition for Whole Foods includes many other companies who offer
organic and natural products. These competitors include markets, warehouses,
supermarkets, and more that are local, regional, or national and are
competing for customers, products, and locations. These competitors will offer
a similar experience and in some way, promote a healthier lifestyle as well.

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The real competition lies within the pricing differences and the number of
locations each competitor has. Customers are the factor most at risk, for they
look at these aspects greatly. As competition increases, it is important to
remember our advantages.
Direct Competition-
The direct competition for Whole Foods includes other companies with
a similar product assortment including: Sprouts Farmers Market and Trader
Joe’s Company. Trader Joe’s is privately held. Our direct competition has
shown in recent years that they are growing very aggressively, specifically
Sprouts Farmer’s Market. Other industry grocery stores, such as Kroger and
Publix offer competition as well but these two companies listed are our main
competitors.
The natural foods’ retailing industry leader is Whole Foods. Currently
Whole Foods has 414 active stores found within the United States, Canada,
and the United Kingdom ever since starting up operation in 1980. Having
been established over 30 years ago, we know our way around the food

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retailing industry and have had both positive and negative experiences.
Research done within this industry indicates that as of 2008, revenues
increased to $7.9 billion and stock price increased by 800%. This increase
shifted the stock price from $10 to $80 per share, (INDUSTRY LEADERS.)
Because Whole Foods is the market leader, we are able to get away with
offering slightly higher prices than our competitors. We pride ourselves on
offering premium products, and our customers know they are getting the best
of the best when they walk through our doors.
The biggest Natural Foods’ retailing industry challenger against Whole
Foods is Sprouts Farmers Market. Sprouts Farmers Market was founded in
2002 and currently has over 200 stores across the United States. This
company is expanding quite aggressively and seems to be implementing
themselves very successfully in the industry. They have been growing rapidly
and offer prices that are slightly cheaper than our company. In addition to
that, they show no signs of slowing down their growth and continue to move
across the country, (WFM Competitors.)

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The food industry’s market follower would be Trader Joe’s. Trader Joe’s
does not have near the number of locations as we do and has not grown as
aggressively as Sprouts has over the years. Trader Joe’s tends to be much
smaller than Whole Foods.
Indirect Competitors-
Our indirect competitors include generic grocery stores like Publix and
Kroger and warehouse chains such as Sam’s and Costco. But our main indirect
competitor is Kroger. Kroger is not centralized to organic and natural foods
like we are, but they offer a high selection of specific natural brands, the most
of any of our other indirect competition. Kroger has 2,625 stores, meaning
their number of locations is highly greater than ours. Kroger may be more
convenient to some of our customers, location wise, however; we specifically
target our stores to where we know we are reaching our target market.
Market share by company-
Whole Foods is currently the leader in the natural food industry. We
have been able to successfully charge premium prices to consumers due to

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the image we have projected of organic products. We as a company have in
turn created profitability much higher than companies with non- natural
products. Whole Foods holds a huge share of the market, (WFM.)
Strengths of competition:
All of our competitors are highly respected in the natural food industry,
selling value products to their consumers. Our biggest competitor being
Sprouts is our direct competition that provides us with pricing competition,
competing for our consumers. Sprouts, being a more recent company tends
to price their products lower than we do. In addition, they have shown
tremendous growth over the past years. This gives us worthy opposition and
encourages us to promote our value even more. This competition encourages
us to improve our current stores and also to expand even more and do all of
this successfully.
Kroger, our main indirect competition, is highly marketed. Kroger has
over 2,000 locations and offers low prices all around. They are known for their

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dedication to saving consumers money. Kroger offers heavy promotion and
has taken several measures to prove they are committed to giving customers
the best prices around. They offer a Kroger Plus card and a fuel points system
that saves customers money every time they shop. Kroger has more recently
built up their organic and natural choices sold in store, even having small
store sections with only organic and natural products.
Weaknesses of competition:
Along with our competition’s strengths, come their weaknesses. The
biggest weaknesses for Sprouts are their lower number of locations, lack of
global awareness, and newness to the market. Whole Foods is known globally
and we have created numerous efforts to keep our awareness current and
frequent. While Sprouts does offer lower prices, they do not necessarily offer
the same quality we do, nor do they have near the experience we have
achieved. One key difference is Whole Foods has a full service hot bar with a
variety of food options for breakfast, lunch, and dinner. When our customers

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come to shop, they can also sit down and have a freshly cooked hot meal.
While Sprouts has an olive bar and sushi area, they do not have this in depth
service in their stores and this is a weakness we benefit from.
While Kroger has low prices and numerous locations, they also do not
provide the same quality organic and natural products that we do. Kroger is
not specifically designed to sell only these types of products like we are. Due
to that, their selections are limited and this is not their main source of profit.
Customers do not go to Kroger for all their specific organic and natural
needs.
Extraordinary marketing mix activities of competition:
All of our competitors’ offer unique and successful marketing mix
activities. Sprouts has had excellent promotional efforts. They add customers
to email lists, keeping them up to date on all savings they can find in store. In
addition to that, they have “Deals of the Month,” monthly specials. Kroger

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does similar sales promotions, but also has their “Kroger Plus” card, which
saves their customers money every time they come in to shop.
The Current Marketing Mix:
Current service and/ or product:
Goods Classification-
Our goods at Whole Foods are consumer goods. Consumer goods are
goods that are purchased by an average person for their own consumption.
All of our products are goods, which are to be bought and consumed. Since
the majority of our products are food, they are non-durable. At Whole Foods,
we do offer some services such as, cooking classes. Whole Foods offers other
retail goods, such as; clothing and shoes, which are also specialty products.
Our products are specialty products, because they can only be bought from a
limited number of stores.
The Product Life Cycle-

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Right now Whole Foods is at the maturity stage. Whole Foods was
introduced in 1980, with the first store opening in Austin, Texas. From there
we continued to grow our company and built more stores. Now, in 2015, we
have reached the maturity stage. Whole Foods has been up and running for
thirty-five years (Whole Foods Market History). Our company is a well-known
name and so are the products we sell. We have 414 stores in the United
States, the United Kingdom, and Canada (The Numbers).
Sales for the fiscal years 2011, 2012, and 2013 have continued to
increase. 2011 sales were $10.1 billion, with a 10.4% increase. Sales for 2012
increased by 15.7%. Sales for 2013 were $12.9 billion dollars, with a 12.2%
increase from the $11.7 billion dollars of sales from 2012. Whole Foods
continues to increase in revenues, and shows no sign of slowing down (Whole
Foods 10k).

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Product Mix-
Whole Foods offers a wide variety of products. Our main product is our
organic and natural foods. There are more than 2,600 different natural and
organic products sold in our stores over the United States, United Kingdom,
and Canada. (Fast Facts) We have a large product length. We have an
assortment of different kinds of foods, including frozen foods, fresh meats,
and fresh produce. We also sell other products such as, drinks, shampoos,
soaps, cleaning supplies, and supplements. In addition, we offer cooking
classes.
Our product depth is deep. We have our own product line, which is
365 Every Day Value. This line was developed to make eating organic and
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2011 2012 2013
SalesinBillionsofDollars
Fiscal Year
Sales Line Graph
sales

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natural foods more affordable. Whole Catch brands, Whole Foods Market,
Engine 2 Plant Strong ®, and Whole Trade ® are some of our own product
lines. We sell a wide variety of different brands and product lines (Featured
Products).
Brand Equity-
Whole Foods is a well-known brand in the United States. Whole Foods
is viewed as a high-end grocery store, which sells all natural and organic
products. We are seen as a different type of grocery store. Other than the fact
that it is high end, the products we sell are not in most other stores. Recently
other companies have started to become popular, also selling natural and
organic products, but they are not as well known. Even though grocery stores
are starting to carry more organic and natural products, Whole Foods entire
store is filled with organic and natural products.
Another way we differentiate ourselves, is through our cooking classes,
salad bars, and our little “restaurants” within the store. This sets us apart from
our many competitors.

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Product Research and Development-
The organic industry continues to develop with more research. In 2003
Whole Foods was the first “national certified organic” grocery store in the
United States (Whole Foods Market is America’s first national Certified
Organic grocer). We continue to research natural and organic foods, so that
the customers get the best food. Even though the government does not
require that products containing genetically modified organisms (GMOs) to be
labeled, we want our consumers to know what is in the foods they are eating.
We now have set a goal that by 2018 all of our products will be labeled to
indicate if there are GMOs in it. This goal makes us the first grocery store, to
set a deadline to have all of our products labeled if they contain GMOs (FAQ
on GMOs).
Packaging/ Atmospherics-
Whole Foods sells many different brands of products, so each company
has their own packaging for their products. Whole Foods own brands, keep
the packaging simple and recyclable. Our products normally come in green

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packaging, with the name of the brand and product on it. Our products will
state the benefits of the product and that the packaging is recyclable.
Currently we do not offer customer benefits, but we are in the process
of developing and testing our new customer loyalty program out in select
stores in Pennsylvania. With this loyalty program, customers will sign up to
get a Whole Foods card. Every time they shop at Whole Foods they will gain
points. These points can be redeemed for products and rewards. We believe
that this program will help us sell more of our products (Rewards).
Whole Foods has many different programs to help deal with societal
problems. We have Whole Planet Foundation, Whole Kids Foundation, Whole
Cities Foundation, and a Green Mission. Each of these programs focuses on a
particular societal need. Whole Planet Foundation helps with poverty,
internationally. We employ people who are less fortunate, to help harvest our
plants in their country (Whole Planet Foundation). Whole Kids Foundation is
geared to getting children to eat healthy foods, and enjoy it (Whole Kids
Foundation). Whole Cities Foundation is our newest foundation. It is a non-

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profit organization, to help get healthy foods to the underserved. Just like
Whole Kids Foundation, Whole Cities Foundation wants to increase healthy
eating (Whole Cities Foundation).
Product’s Share of the Market-
(Supermarket Chains Fail HFCs Survey)

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Current Pricing Policies:
Price History-
At Whole Foods Market we have had to charge higher prices than
some of our competitors. Higher prices have been a result of us only selling
the highest quality of food possible. We feel that people recognize the value
of the products they are receiving, thus they are understanding of our slightly
higher prices.
Price Objectives-
As a company, our goal is to always maintain, if not increase, our
market share. Recently, we have had more players come into our market
segment. This increased competition has taken some of our market share. We
hope to keep our market share sufficient by continuing to offer top of the
line products and experiences at competitive prices.
Applicable Discounts and Allowances-

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On our website, we have a section called “The Whole Deal” where we
list ways to save money. That section contains a subsection with delicious
recipes made with our quality foods. We also have a coupon subsection right
there with coupons applicable to locations near the specific customer using
the site. We don’t stop there, though. There is another subsection where we
have other various tips to help our customers save money.
Current Promotion:
Allocation of promotion mix-
Generally, Whole Foods invests less in paid media and marketing than
other supermarkets. We allocate their marketing investments among strategic
national and regional programs and our individual stores; and we benefit from
valuable earned media, social media and word-of-mouth advocacy. Social
media is an important part of this promotion mix—Facebook, Twitter,
Instagram, and Google+ have over 9,000,000 friends, followers, etc. The
company itself has the main global brand accounts, along with most

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individual stores having accounts also, to help build deeper community ties
and cater to the local customers wants and needs.
Predominant Type of Advertising-
As previously mentioned, we do not typically use media to advertise.
We are more concerned with our customers’ first-hand experiences, which is
why we have in-store product sampling. Booths are set up and samples are
given out to make customers more aware of the products available to them.
We also count on word-of-mouth advertising. If there is someone in our store
who is loyal to us, we hope that they are also telling their friends and family
about their experience with us. We also have the in-store “restaurants” to
further this positive in-store experience.
Sales Promotion Techniques-
At Whole Foods, we offer quite a few different techniques for sales
promotion. First, we offer sampling. Allowing a customer to try a product
before buying it will allow them to make their shopping decisions based on

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things they know they like. It also gives the customer a chance to buy
something that they may not have bought had it not been available for a free
sample. This method keeps the customers happy and willing to try new
things, in hopes of them purchasing more and continuing to return to our
store.
We also use special pricing. Occasionally, we will offer products that are
discounted if bought together or in greater quantities such as spices, granola
bars, etc. These prices only last a limited time, so it encourages the customer
to buy these products because they are getting a deal.
Types of Personal Selling-
We use personal selling a lot within our stores. We keep employees on
the floor well informed on our products so they can answer questions and
give suggestions to curious customers. Sometimes, as with free sampling, the
employees can even give a demonstration of the product. Personal selling at
Whole Foods benefits us because we create relationships with our customers
and fulfill their wants and needs so that they will return to our stores.

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Current Distribution Strategies:
Channel of Distribution-
Whole Foods channel of distribution is a combination of the
conventional and contractual distribution channels. We purchase at both
regional and national levels, with the majority of purchasing coming from
local vendors. Our stores are dedicated to purchasing local products, with the
purpose of stimulating the local economies, while also maintaining a
community oriented feel. The products we purchase are sent to our own
distributing sites. Whole Foods owns our own produce procurement centers,
four seafood distribution facilities, a specialty coffee and tea procurement and
roasting facility, 11 regional distribution centers that focus on our perishable
distributions, and 3 regional commissary kitchens and 5 bakehouses. All of
these centers are responsible for distributing products to our stores. Products
that are not distributed from our centers come from a combination of
specialty wholesalers and direct distributors, (Whole Foods 10K Form.)

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How Distribution is Accomplished-
We are in a long-term contract with our third party supplier, United
Natural Foods Inc. that will last until the year 2020. This contract alone
accounts for 32% of our company purchases. United Natural Foods Inc. is our
primary supplier of dry and frozen foods (Whole Foods 10K Form).

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Using both these channels of distribution is appropriate for Whole Foods. Not
only do we rely on our company to distribute our products, but we also work
with a number of local vendors. By using both contractual and conventional
systems, we are able to incorporate both our vendors and ourselves. We use a
vertical system of distribution, which allows us to incorporate numerous and
specific distributors. This has made our distributors and our company highly
profitable.
External Environmental Factors:
Economic Factors-
Many people may believe that due to the recession we faced in 2008,
and the ongoing economic turmoil, that Whole Foods has suffered
economically. This is surprisingly on the contrary. While consumers in general
tend to spend less during economic hardships, Whole Foods has continued to

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grow rapidly. New locations have been opened and our target market is still
shopping with us. It is predicted that Whole Foods will continue to grow and
continue to solidify our position as the industry leader.
Political/Legal Factors-
Whole Foods is highly dedicated to being globally responsible. Each
year we donate 5% of our after-tax profits to non-profit organizations found
all over the world, however; our international operations do hold some risk.
There are political and legal factors in countries abroad that can affect our
company. These factors include: fluctuations in foreign currency, government
regulations, and any significant changes brought upon by economic, social,
and geographic factors. Government regulations in the food industry are
growing tighter and this can bring about legal issues that we could potentially
face if we are not careful, (Whole Foods 10K Form.)
Demographics-

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When selecting location areas, Whole Foods places stores in upper
middle class areas to appeal to this demographic. The stores are targeted
towards upper middle class employed people and each store is distinctively
designed for the area it is going into, (Whole Foods 10K Form.) Careful
consideration is taken when building a new Whole Foods and as long as we
continue to place them in these types of areas, we will still be successful with
our demographic. We place several locations in cities to reach out to a
diverse grouping of consumers. This remains successful. In addition to that,
the current health trends as promoted by countless celebrities and
organizations, keep our consumers wanting to come back and try the more
natural lifestyle.
Technological Influences-
As technology continues to improve, we are better able to spread our
mission to the entire world. We are also better able to transport and deliver
our products to the multiple regions we are located in. In addition to that,
newer technology including phone applications and advancements in website

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design appeal to our customers. We are better able to promote ourselves and
engage our consumers. This has been a true advantage to us considering our
target market is all about the Internet and convenience. Technological
advances are helping us and will continue to do so.
SWOT Analysis:
Column 1 –
Statement of Internal Strength
Column 2 -
Performance
1= Minor 5 = Major
Column 3 –
Importance
1 = Low 5 =
High
Column 4 -
Strength
Index
Number

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1. Organic and natural products are the main reason Whole Foods was
established. Their main purpose is to provide their customers with organic
and natural products, keeping in mind the main goal of a healthier lifestyle.
This is Whole Food’s greatest strength.
1 2 3 4 5 1 2 3 4 5
1. Organic and natural products X X 25
2. Green Mission X X 16
3. Whole Kids Foundation X X 6
4 Whole Planet Foundation X X 12
5. Online ordering and catering X X 8
6. Free store tours X X 6
7. Offer a list of gluten free foods per
store
X X 9

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2. One of Whole Foods programs is the Green Mission. Recycling is becoming
more popular, and Whole Foods does an excellent job incorporating recycling
within their company. They have clearly marked trashcans to put specific
items in such as; glass, plastic, and paper, which gets the customer involved in
their green mission (Green Mission).
3. Whole Kids Foundation is working to get kids to eat healthier and enjoy it.
This is a strength because many parents want their kids to eat healthy, but
they struggle to do so (Whole Kids Foundation).
4. This foundation helps those in poverty by providing developing countries
opportunities for work. This shows Whole Foods dedication to global
problems (Whole Planet Foundation).
5. Whole Foods has a potentially great strength of online ordering and
catering. Since people are becoming busier, utilizing online services are
becoming more popular. Having online ordering and catering attracts the very
busy adults, who strive to eat healthy (Online Ordering and Catering).

Whole Foods 42
6. Offering free tours gets the potential customer into the store, and shows
them how to make shopping at Whole Foods affordable. It also helps
customers with food allergies learn to shop for their dietary restrictions (Store
Tours).
7. For customers with a gluten free diet, an online list is a huge benefit for
them. They no longer have to search the store for their specific product to
find that it is not sold there. This will attract a large amount of customers who
eat a gluten free diet (Gluten Free Product List).
Column 1 –
Statement of Internal
Weakness
Column 2-
Performance
1= Minor 5 =
Major
Column 3 –
Importance
1 = Low 5 = High
Column 4
-
Weakness
Index
Number
1 2 3 4 5 1 2 3 4 5
1. Government does not subsidize
organically grown corn.
X X 12

Whole Foods 43
1. Currently, the U.S. government subsidizes corn growers, but not those who
do so organically. This encourages the farmers to grow their corn non-
organically. With fewer farmers growing organic corn, the price goes up
tremendously and also restricts the supply in the market.
2. The supply chain for organically grown food is very weak at the moment.
Since this is a fairly new movement in mainstream society, it will take some
time for the supply chain to develop enough to meet the needs of Americans.
3. With organic food taking more time to grow and also being more costly,
this leads to Whole Foods having to charge higher prices to make profits.
2. Supply chain for organically
grown food cannot support
American needs.
X X 20
3. Pricing. X X 25

Whole Foods 44
When the supply chain catches up, the prices may go down some but it
might not be enough.
Column 1 –
Statement of External Opportunity
Column 2 -
Performance
1= Minor 5 =
Major
Column 3 –
Importance
1 = Low 5 = High
Column 4
-
Opportun
ity
Index
Number
1 2 3 4 5 1 2 3 4 5
1. Less competition than normal grocery
stores
X X 9
2. Whole Trade® Guarantee Program X X 9
3. Changing the attitude that healthy
food is expensive
X X 6
4 Promote/build brand identity with X X 16

Whole Foods 45
1. Because Whole Foods is an organic food distributor, they have less
competition than stores such as Walmart, Kroger, Publix, etc.
2. The Whole Trade ® Guarantee Program ensures that each item marked
meets the following criteria: Meet our strict product Quality Standards,
Provide more money to producers, ensure better wages and working
conditions for workers, Care for the environment, Donate 1% of sales
to Whole Planet Foundation® (Whole Foods Website).
organic foods, when people think
“organic” they think “whole foods”
5. Promoting local farmers, people will
pay more for local
X X 8
6. Exposing the company overseas X X 12
7. Advertising/promotion/rewards X X 15

Whole Foods 46
3. Yes, sometimes, organic foods can be more expensive. We need to change
the negative attitude about this, you pay for your value and those that shop
at Whole Foods are being insured value, which customers should appreciative.
4. Brand identity is important—we want people to think Whole Foods
whenever they hear “organic” foods.
5. People will support local—their friends, family, and others in their
Column 1 –
Statement of THREATS
Column 2 -
Performance
1= Minor 5 =
Major
Column 3 –
Importance
1 = Low 5 = High
Column 4
-
Strength
Index
Number
1 2 3 4 5 1 2 3 4 5
1. Competitors X X 20
2. Government Regulations X X 16

Whole Foods 47
community. If Whole Foods promoted more local farmers, many people would
be more willing to pay the higher prices.
6. We help workers overseas where we receive products from—but why not
extend our brand to other countries in Europe, Asia, etc.?
7. Advertising/promotion/rewards is one of the most important parts in
helping to build customer relationships. We want our customers to be loyal
and show them how much we appreciate them, as well as bring more in.
1. Other grocery stores and supermarkets are now selling organic foods.
Stores such as Kroger, Wal-Mart, and Publix are now engaging in more
environmentally friendly products. In addition to that, other organic stores are
now popping up including Sprouts and Trader Joes. The problem here is that
one of these stores could be more convenient to consumers and thus they
will choose their products over Whole Foods. Organic food is becoming
increasingly popular making the competition tighter. Companies have seen

Whole Foods 48
Whole Foods have success with higher prices and are now trying to mimic the
technique.
2. If the government were to change any regulations on organic food, this
could affect pricing. More regulations create higher prices. In addition to that,
if Whole Foods were to not follow specific regulations they could face a
lawsuit. Organic foods come with many regulations that are very specific and
have many needs that must be met. In addition to food regulations, Whole
Foods being international must also face differing government regulations
outside of the United States.
Marketing Plan Objectives:
Description:
From a financial perspective, the goal of Whole Foods Market is to
become secure to continue enriching the lives of our employees, consumers,
and the Earth. This can be achieved by making our brand known and

Whole Foods 49
respected. We want to become a more visual store and hope to do so by
increasing the number of our stores across the country. We are lacking in
locations in the mid-west and northwest United States. We plan to take steps
to change this by testing the market in those areas as well as figuring out the
logistics of planting new stores there.
Financial Objectives:
Return on Investment-
We tend to be below the average in our sector in Return on Investment
(csimarket.com). The last quarter of 2014 we had a ROI of 12.90 percent. This
was an increase of .52 percent from the previous quarter. We are headed in
the right direction and intend to stay on that path. We would like to see a
jump of 4 percent on our ROI this year. This is a big goal, but it is very
attainable.
Profitability-

Whole Foods 50
By all quantitative aspects, Whole Foods Market continues to be a
profitable company. We plan on maintaining this reputation by continuing to
increase our profitability. To do this we want to increase our ROI and ROA
while decreasing our Asset Turnover Rate. If we achieve these goals, we will
be in a fantastic position.
Cash Flow-
We want to make sure to maintain a positive cash flow by always
having enough cash on hand to take care of any possible foreseeable
expenses. The specific amount of money is not important, what is important is
the fact that we cannot invest more money than we are willing to lose. If we
stick to this philosophy, our company is sure to maintain its financial security.
Marketing Objectives:
Average Unit Price-

Whole Foods 51
As is essential in increasing profits, we desire to decrease expenses. As
expenses decrease, we will have more room to decrease the average unit
price. With a lower unit price, we expect higher sales volume.
Sales Volume-
Obviously sales volume is one of the easiest ways to value how well a
company is doing. In the fiscal year of 2014, we had $14.2 in sales. We hope
to increase these figures for the fiscal year 2015. Previously stated plans for
marketing and expansion will help us achieve these goals.
Consumer Awareness-
We believe there is still a massive consumer population we haven’t
reached. In order to reach these consumers we want to focus on advertising
and doing research on the target market.
Market Penetration and Coverage-
We believe we have penetrated our target market sufficiently as
evident by Whole Foods Market being the World’s leading retailer in natural
and organic foods. We are also the leader in our market segment. This being

Whole Foods 52
said, contentment is not an option. There are always more customers to reach
and improvements to be made.
Marketing Strategy:
Description:
Whole Foods Market is dedicated to reaching customers dedicated to
being responsible for themselves and the Earth. We want to extend our
customer base as far as possible. The world we live in does not do enough to
promote a better tomorrow for consumers and the world at large, this is
where Whole Foods Market steps in. The following will detail how we expect
to broaden our market and increase the worth and reach of our company.
We want to offer consumers the best grocery shopping experience
available. At Whole Foods, we believe busy lives cause people to sacrifice their
health for unhealthy fast food. We are working on a way for consumers to
submit their grocery list to one of our stores online and come in to pick it up

Whole Foods 53
at their convenience. If we can make consumers lives easier while promoting
our brand, it is all worth it. This program is expected to be extremely
successful as we plan on testing it in stores nation wide.
As we grow, we are making plans for customers not accustomed to our
stores. For customers who are new to Whole Foods, we are starting a project
to encourage loyalty by offering services based on their purchases. We realize
a Whole Foods Market can be intimidating. To address this issue, brand new
customers will get a free personal tour of their local Whole Foods Market just
for signing up for our loyalty card.
Action Plans:
Action Plan One:
Whole Foods is the leader in the Natural Foods Industry amongst its
competitors. We offer a wide variety of organic and natural products ranging
from all foods to hygienic products. Whole Foods already offers intangible

Whole Foods 54
services such as cooking classes and store tours. We also offer an online
shopping option, which is not fully developed. The online shopping has a
limited amount of options and we can expand this service even further. We at
Whole Foods believe this is a unique opportunity that will add to the
shopping experience we provide to our customers. We plan to implement a
new, more personalized online shopping service, which will save the customer
time. By implementing this plan, we will increase customer loyalty and thus
sales revenue.
Objectives-
1. Offer a time saving shopping method
2. Reach a target market of individuals between the ages of eighteen to
thirty and households in the upper class demographic
3. Implement the program by starting with the ten locations in Georgia to
test the market
4. Have revenue success and expand the program to all four hundred and
fourteen stores in The United States, The United Kingdom, and Canada.

Whole Foods 55
5. Raise money for our foundations
Product-
In this case our product is a service. Our customers will be able to go
online, select the online ordering tab, and then choose their location and
store. From there, they will be able to create their own personalized grocery
list from the complete list of products within that specific store. This tab will
simply be called “Online Grocery Shopping.” The customers can add a
minimum of ten items to their list and a maximum of fifty. They will be able
to save their list and return to it periodically before submitting it to Whole
Foods. There will also be the option of selecting one of our online recipes and
adding the ingredients to the shopping list. Once the grocery list has been
submitted, a Whole Foods employee will then be designated to gather the
items on the customer’s list. They will properly store the items based on
whether they need to be frozen, refrigerated, or kept at room temperature.
Our customers who participate in this “Online Grocery Shopping” tool
must order three hours before set pick up time. In addition to that, customers

Whole Foods 56
will be able to order two weeks in advance. Once the customer is ready to
submit their order, they will be prompted to provide their email and phone
number. A receipt of their order will be sent to their email. The customer will
also be asked how they would like to be reached in case an item is out of
stock, there is a question about their order, and when their order is ready for
pick up. They will be able to choose if they want to be reached through text
message, email, or phone call. They will only need to submit this information
once and it will save automatically. From there, customers then choose their
method of payment. Customers have the option of paying online or paying
when picking up. All of this information will be listed on our website so
customers know exactly what to do. We will provide a video tutorial teaching
customers how to use this service and what to expect from it.
In addition to customers being able to go online and use this service,
we will have created a phone application to make it even more convenient to
use. The application will be separate from our other applications in order to
test the market in the simplest way possible. After evaluation, it will be

Whole Foods 57
compiled into our existing “Whole Foods” application. The application will be
called “My Whole Foods Shop,” and on this application customers will have all
the same features that are on the website tab. They will be able to set their
location, compile ongoing grocery lists from store products and recipes, make
a payment, and complete service reviews. Customers can create their account
on either this application or online and the information will automatically sync
to the other. Our customers will be able to utilize both methods without
having to start over.
Price-
There will be a ten percent service charge placed on all orders. This
money will go towards our global foundations: Whole Kids Foundation, The
Green Mission, Whole Planet Foundation, and Whole Cities Foundation.
Customers can select which foundation they would like their fee charge to go
to when paying for their order.
On the other hand, we as a company will need to potentially hire a
minimum of two new employees per location, specifically designed to gather

Whole Foods 58
the shopping items and distribute them to the customer. We will start the
service by training current employees. Based on how successful this goes, we
will conclude whether or not new employees need to be hired. When it comes
to the customers’ items, all items will be placed in the back storage area
where there are freezers and refrigerators.
Place-
We will begin this program in the ten locations within Georgia. With
the intent that our plan is successful, other stores will adopt this service. From
Georgia, we will begin our expansion by locating in different regions. Based
off customer feedback and our profits, we will conclude whether or not to
continue this service. From that, we will be able to make adjustments to
perfect the service and prepare it for expansion.
Promotion-
We will promote our new service by taking advantage of social media,
including: Instagram, Facebook, email, and twitter. By using all of these social
media outlets, we are highly likely to be successful at reaching our entire

Whole Foods 59
target market. We will upload photos and announcements that detail this
exciting new service. In addition to social media promotions, we will have
signage placed at the front of the store where customers walk in and also at
the checkout areas. This will ensure all customers will have seen and heard
about the new shopping opportunity before leaving one of our stores. Adding
to that, we will have multiple hanging signs in each of the ten locations,
dispersed throughout the stores.
Our largest promotional tool will involve a customer discount on their
first use of the online service. When customers check out and are given their
receipt, there will be a promotional discount code provided at the bottom.
This code will encourage customers to test out the “Online Grocery
Shopping,” by giving them a ten percent discount on their final total when
checking out. This gives the customer an incentive to try out the new service.
We are hoping this will reach our upper middle class target market.
Timing-

Whole Foods 60
We will begin by building onto our website and create our “Online
Grocery Shopping” service. At the same time as doing this, we will begin
training employees for this specific service. Once the service has been
finalized online and our employees are trained, we will begin our promotional
efforts. After one month of promotion, we will open the service to our
customers.
Each week, we will collect our customer feedback and evaluate our
online sales but will not make adjustments. These weekly evaluations serve
the purpose to give us suggestions on improvement when we re-evaluate in
three months. Customers will receive an automatic follow-up email after
picking up their groceries and/or a notification from the application if they so
choose to download it. If they complete the survey they will receive at five
percent discount off their next online order. At the three-month mark, we will
then compare the results to last years’ sales to gage if this service has been
successful with meeting our objectives.
Contingency Plan-

Whole Foods 61
We will begin by looking at how the online grocery shopping is being
utilized. Our goal is to have the use of the service grow by five percent each
month, because one of our objectives was to offer a time saving shopping
experience to our customers. We will also look to see how many repeated
users there are. We will evaluate this progress after three months of the
service running. If there is not a five percent increase in usage per month we
will have to adjust our service to better fit the needs of our customers. We
will go about this by analyzing the feedback customers filled out throughout
the past three months.
If we find that we are not obtaining new customers, we will increase
promotional efforts in order to reach new customers. If we find that we are
not having success, we will implement a “reward.” At this three month mark
we will reward repeated customers by offering them an in-store “prize,” if you
will. This reward will be a free cooking class. With this reward and increased
promotional efforts, we plan to increase customer loyalty and grow our
customer base.

Whole Foods 62
Action Plan Two:
At Whole Foods, customer loyalty and happiness are an important factor in
making decisions for our company. Because we are the leader in the natural
foods industry, we take pride in having customers that frequently visit and
spread the word whether it be word of mouth, social media, etc. To increase
customer loyalty and satisfaction, we are planning to create a customer
rewards program with a points system that can be redeemed for different
rewards at the customers’ discretion.
Objectives-
1. Offer a rewards program with redeemable “points.”
2. Points can be redeemed for discounts on products and in-store
shopping guides to help guide customers on products that fit their
diets, routines, etc.

Whole Foods 63
3. Create a smart phone app/website for customers to track points and
redeem them for the rewards.
4. As customers receive their rewards, they will continue to be loyal
customers and hopefully encourage others around them to do the
same.
5. Revenue and sales increase, thus expanding growth.
Product-
The “product” of this action plan is more of an intangible product, or a
service. In creating a customer loyalty program that offers rewards, we are
ensuring that customers feel appreciated and know that they are receiving the
best value for their money. The program will work by having customers scan
their rewards card during checkout, and upon doing so, their rewards points
will be automatically updated to their account, which can be view and tracked
through the smart phone application. Customers must wait at least 24 hours
to redeem points received from the current checkout.

Whole Foods 64
The points system will not be based on the products that are bought,
but more by the money that was spent. Some products are more expensive
than others, and we want customers to realize that in buying these products,
they are receiving value that parallels with the price. For every $10 spent, a
customer will receive 1 rewards point. The idea is that the customer lets the
points add up over a period of time so that they can receive a larger discount
when used.
There are two options for which points may be redeemed: 1) Dollars off
a total buy at checkout or 2) in-store shopping guides. For the first option,
every point represents $1 off. For example, if someone spends $60, they
receive 6 points, thus $6 would be the total dollar amount off they receive
onto their account to be used whenever. The in-store shopping guides would
be employees specially trained to help a customer with any dietary restrictions
or preferences. These employees would provide a consultation with the
customer for 15-20 minutes before beginning their shopping. They would
then escort the customer around the store helping them pick out products

Whole Foods 65
that meet their needs and give them the best value. These tours would be
100 points. This may sound like a lot, however an average family of 4 spends
anywhere from $100-$300 per week on groceries, so the $1000 for 100 points
adds up faster than one may realize.
Price-
The price of this customer rewards card will be $50 per year for the
first three years, and then the card will go down to only $10. This will provide
an incentive for a customer to keep using the card so they are ultimately
receiving a vast amount of rewards for only $10 a year. Many competitors
give loyalty cards to customers for free, however at Whole Foods, we provide
more savings than other companies; we feel that charging customers for a
rewards card would ultimately pay off very quickly for them, and we would
use the profit from each card to go towards our global foundations.
Place-

Whole Foods 66
We want this system to be one that is universal across all Whole Food’s
Market locations. This being said, the program is going to be very effective
when linked to the Whole Food’s app. With this compatibility, our customers
can view how many points they have, how many points they need, and the
closest Whole Food’s Market location. We feel that this will be very essential
to retaining our customer base. The appeal of an app and the discounts from
the points will be even greater motivation for our consumers to stay loyal and
promote our brand.
Promotion-
Promoting this new points reward system is essential to the success of
the program. To achieve maximum visibility and availability to the consumers,
we hope to have signs and ads in all of our stores and on local television
stations. This will assure that loyal customer and new customers alike will see
the advantages to be had from the new system. We are sure that once our
present customers realize the usefulness of the app that they will share it with
their friends, which will grow our customer base even further.

Whole Foods 67
Timing-
We are hoping to have our plan in effect within the next year. We will
first have our app developers go in and modify/update the current app to
include the rewards program. This may take a few months, and we are
prepared for that. Once the app is ready to be released, it will just be a
matter of getting the rewards cards out to our customers. We will advertise
them soon so that when the program is ready, customers will already be
informed about it and deciding to purchase it. We are hoping that our plan
will be in full effect with many customers enrolled in it within the next three
years.
Contingency Plan-
If the program does not take off within the time we are hoping for, we
will have to make a few changes to the program. The first change we would
plan to make would be to decrease the price of the rewards card for a certain
amount of time, so that we could get some customers enrolled. The second
idea we would have would be to make the card free for a limited time,

Whole Foods 68
encouraging customers to get it while they can. This time would be very
short, as in less than a week. We are hoping that because this is a rewards
program to help customers receive discounts and other rewards, that we will
not have a problem getting it started and working.
Appendices:
Radio Script:
“Attention! This message is for anyone who eats food!
Have you ever wanted to eat organic and natural foods, but did not know
where to start?
Are you worried you cannot afford it?
Well Whole Foods has a solution for you. With our new rewards system we
make eating organic and natural foods easy and affordable.
When you sign up for a Whole Foods reward card you get a 15-minute tour.
We will show you all the ins and outs of our store and you will be ready to
shop in no time.
Every time you purchase food at Whole Foods you receive points to put
towards more food.

Whole Foods 69
Now there are no more excuses for not getting healthy!
Stop by your local Whole Foods today to sign up for your Whole Foods
rewards card. “
Storyboard:
Mom gets home from work and realizes The daughter is not very happy about this
she doesn’t have groceries for dinner! She says, “But Mom, we had take out the
She says to her daughter, “Looks like we past three nights”. The mom replies saying,
are getting take out again.” “I’m sorry sweetie, but I am so busy with
work that I don’t have time to go grocery
shopping”.

Whole Foods 70
The mom is suddenly remembers The mom shares the news with her
one of her coworkers was telling her daughter! They both are very excited and
about how you can order your groceries cannot wait to have home cooked meals.
online from Whole Foods. She runs over The mom says, “Whole Foods online
to the computer to order her groceries. ordering makes it possible for working
She says, “This is so easy and so simple. parents to get healthy groceries, without
We won’t have to eat take out every taking up their time”.
night now”.
Works Cited:
 http://www.wholefoodsmarket.com/mission-values/environmental-
stewardship/green-mission 1/28/15
 https://www.wholekidsfoundation.org 1/28/15
 https://www.wholeplanetfoundation.org/about/ 1/28/15
 https://www.wholefoodsmarket.com/online-ordering 2/15/15
 http://www.wholefoodsmarket.com/service/store-tours 2/15/15

Whole Foods 71
 http://www.wholefoodsmarket.com/service/gluten-free-products-list
2/15/15
 http://www.wholefoodsmarket.com/company-info/whole-foods-market-
history 3/23/15
 http://media.wholefoodsmarket.com 4/2/15
 (Spring 2012). Perceptual Map. Retrieved from
https://www.coursehero.com/file/6974348/perceptual-map/
 https://www.wholefoodsmarket.com/about-our-products/our-product-
lines 4/2/15
 http://media.wholefoodsmarket.com/news/whole-foods-market-is-
americas-first-national-certified-organic-grocer 4/2/15
 http://www.wholefoodsmarket.com/about-our-products/product-
faq/gmos 4/2/15
 https://rewards.wholefoodsmarket.com 3/1/15
 (October 17, 2013). Supermarket Chains Fail HFCs Survey. Retrieved
from http://www.environmentalleader.com/2013/10/17/supermarket-
chains-fail-hfcs-survey/
 http://www.wholefoodsmarket.com/careers/our-values-and-mission
3/28/15
 http://media.wholefoodsmarket.com/fast-facts/ 2/15/15

Whole Foods 72
 http://www.wholefoodsmarket.com/mission-values/core-values/we-
satisfy-delight-and-nourish-our-customers 1/20/15
 Whole Foods 10K Form. Retrieved April 10, 2015, from
https://www.wholefoodsmarket.com/sites/default/files/media/Global/Co
mpany%20Info/PDFs/WFM-2013-10-K.pdf
 http://www.wholefoodsmarket.com/online-ordering 2/1/15
 http://www.wholefoodsmarket.com/service/store-tours-1 2/1/15
 INDUSTRY LEADERS. (n.d.). Retrieved March 30, 2015, from
http://naturalfoodsinvestor.com/industry-leaders/
 WFM Competitors | Whole Foods Market, Inc. Stock - Yahoo! Finance.
(n.d.). Retrieved April 13, 2015, from
http://finance.yahoo.com/q/co?s=WFM
 Whole Foods Market (WFM). (n.d.). Retrieved April 11, 2015, from
http://www.wikinvest.com/stock/Whole_Foods_Market_(WFM)
 Whole Foods 10K Form. Retrieved April 10, 2015, from
https://www.wholefoodsmarket.com/sites/default/files/media/Global/Co
mpany%20Info/PDFs/WFM-2013-10-K.pdf
 Whole Foods Market Inc. (2015, January 1). Retrieved April 20, 2015,
from http://financials.morningstar.com/ratios/r.html?t=WFM
 WFM's ROI over the last five Years. (n.d.). Retrieved April 20, 2015, from
http://csimarket.com/stocks/WFM-Annual-Return-on-Investment-
ROI.html

Whole Foods 73
 Newsroom. (2015, January 1). Retrieved April 20, 2015, from
http://media.wholefoodsmarket.com/fast-facts/

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