Whole Foods Market Brand Audit

Brand Audit:
Whole Foods Market

Agenda
 Overview
 Brand Inventory
 Trademarks and Labels
 Brand Elements
 Brand Attributes
 Market Segments
 Marketing Communications
 Distribution Channels
 Competitive Market
 Brand Research
 Research Map
 Methodology
 Research Results
 Consumer Perceptions
 SWOT Analysis
 Strategy
 Recommendations

Overview
 Founded in 1980 as one small store in Austin, Texas, Whole Foods
Market is now the world's leading retailer of natural and organic
foods, with 181 stores in North America and the United Kingdom. In
order to increase profitability, Whole Foods also offers name brands.
 Mission driven: they're highly selective about what they sell, dedicated
to stringent Quality Standards, and committed to sustainable
agriculture. Their motto--Whole Foods, Whole People, Whole Planet
—positions Whole Foods as food retailer with ethical values.
 They offer value to their customers by providing them with high quality
products, extraordinary service and a competitive prices.
 Known as the best Fortune 100 company to work for, its dedication to
the environment, and local and larger community support.
 “Changing the way we think about the relationships our food supply, the
environment, and our bodies”.

Trademarks and Labels
Whole Foods Market®
365 Everyday Value™
365 Organic Everyday Value™
Whole Kids Organic™
Whole Foods™
Whole Body™
AFA™
Authentic Food Artisan™
Allegro Coffee Company®

Brand Elements
Name:
 Meaningful implies the products are healthy and good supporting the company
philosophy to sell “Food and Nutritional products that supports health & well
being”.
 In comparison to their competitors (Trader Joe’s, Safeway) the name is
associated more with organic or natural products.
Logo:
 Evokes the feeling of completeness
 Not completely relevant or versatile in regards to some of their own private label
product lines. Example: whole foods = cosmetics. Whole Foods Market does not
come to the consumer mind when thinking about cosmetics.
 Award wining corporate identity system
Packaging:
 Bright colorful. Color palate of 365 Everyday Value ™ and 365 Organic Everyday
Value™ copied by Safeway for their O® Organics product line.
 Word “Whole” appears on 9 out of 12 private label packages.
 Whole Foods Market Logo: Green color evoke nature and cleanness and the
White one evokes peace. The logo is clear and neat.
In Store Environment (presentation):
 Inviting colors, use of green & natural colors like beige. Natural materials used in
construction.
 Food stands and displays outside of store - mostly fresh produce and flowers.
 Plays 80’s and 90’ music, retro style, jazz music, classical.

Brand Attributes
 Largest natural and organic foods supermarket
 The first and only organic foods made especially for kids
 Convenience and nutritional value
Clean Safe
Quality
Reliable
Body
Food
Environment
Core Attributes
 Highest quality products featuring freshness, safety, taste, nutritive value and
appearance
 Different (Organic means different things to different people)
 Inviting and fun store environments
 First major grocery chain to adopt humane animal treatment standards

Marketing: Segments
 Age 25-50+
 Middle-Upper Class
 Urban Centers
 Health Conscious
 College Educated

Marketing:
Communications
 Celebrity endorsement - Martha Stewart TV show
 Website
 Word of Mouth
 Cook Books, Health & Organic Magazines
 Point of Sale - In-store communications
 PR announcements
 Permission marketing – through e-mail
 Consumer events (cooking classes)
 Giving back to the Community- local & global
(Hurricane Katrina, Animal Compassion Foundation, Whole Planet
Foundation, Local initiatives such as donating food to a women's
shelter, donating labor to build a playground, etc).

Distribution Channels
Procurement
 Procurement can be divided into the following
categories:
 Tropical products: coffee, cocoa, tea, some vegetables, spices, herbs,
dried fruits and nuts from developing countries.
 Off-season products: fresh fruit and vegetables have unmet demand,
potential suppliers are from the southern hemisphere.
 Novelty and specialty product: high quality wines, certain ethnic foods,
retail-pocket food products come from European suppliers. Most of the wine
exporters are from Argentina, Chile and South Africa
 Owns two produce procurement centers
 Owns three seafood processing and distribution facilities.
 Owns specialty coffee roaster and distributor.
 United Natural Foods is the single largest supplier - 20%.

Distribution Channels
Suppliers and distributors
 Albert’s Organics, Los Angeles, CA
 CF Fresh, Sedro-Woolley, WA
 Forestrade, Inc., Brattleboro, VT
 Global Organics, Ltd.
 Mercantile Food Company, Philmont, NY
 American Roland Food Corp., New York, NY
 Tree of Life, Inc. (owned by the Dutch food company
Koninklijke Wessanen)
 Blooming Prairie Cooperative
 Warehouse www.bpco-op.com and Northeast Cooperatives
 Eden Foods
 Frontier Natural Products Co-op

Competitive Market
Natural & Specialty Food Retail
Natural & Specialty Food Retail: Companies that retail specialized lines of foods, including organic
and natural produce and other foods; also kosher meats and other specialty products.
Brand name/
Market Facts
Whole Foods Trader Joe's Wild Oats Markets
Market (trade)
name
Public (NASDAQ: WFMI) Private Public (NASDAQ: OATS)
Overall Industry
Rank
#1 #2 #3
Revenue Rank
(Fortune 500)
#449 Not listed Not listed
Target Market
Healthy-nutritional and
enviromentally
conscious people.
People looking for
unique high quality
products at great value.
Source: Hoovers.com, specific company websites, Fortune 500 (Year 2006).
People looking for
Natural and Organic
supermarket.
Mission/ Vision
They are highly
selective about what
they sell, dedicated to
stringent Quality
Standards, and
committed to
sustainable agriculture.
Often called "a store of
stories," we travel the
culinary seas to bring
our customers unique,
high quality products for
great value.
Founded on the vision of
enhancing the lives of
our Customers and our
people with products
and education that
support health and well-being.
Annual Sales 4,701.30 4,000.00 1,124.00
Employees 38,000 -- --
Market Cap ($ mil.) 9,204.00 0 519.7

Competitive Market
Grocery Retail
Grocery Retail: Companies that retail a general line (wide range) of food products such as canned and
frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.
Brand name/
Market Facts
Whole Foods
Market
Kroger Albertson's Safeway Publix Wal-Mart
(NASDAQ/NYSE) Public (NASDAQ: WFMI) Public (NYSE: KR) Public (NYSE: ABS) Public (NYSE: SWY) Private Public (NYSE: WMT)
Overall Industry
Rank
#6 #1 #2 #3 #4 (#1 retailer)
Revenue Rank
(Fortune 500)
#449 #21 #47 #50 #104 #2
Target Market
Healthy-nutritional and
enviromentally
conscious people.
People that like to shop
at a one-stop
supermarket.
People who appreciate a
good customer service
and competitive prices.
People who appreciate a
good customer service
and competitive prices.
People that prefer good
service and family-friendly
environment
rather than price.
People looking for a one-stop
store and for good
quality products at the
lowest prices.
Mission/ Vision
They are highly
stringent Quality
Standards, and
committed to
To be a leader in the
distribution and
merchandising of food,
pharmacy, health and
personal care items,
seasonal merchandise,
and related products
and services.
To create the world’s
number one food and
drug retailer in the
areas of market value,
scale, profitability,
customer service and
associate satisfaction.
To give the customers
value and to expand by
keeping a narrow profit
margin. Strong sense of
customer value.
To be the premier
quality food retailer in
the world.
They emphasize in
service and in a family-friendly
image rather
than price.
To improve the quality
of life for everyday
people around the
world. To offer vast
variety of products at
lowest prices.
Annual Sales 4,701.30 56,434.00 40,358.00 38,416.00 20,744.80 312,427.00
Employees 38,000 289,000 241,000 201,000 128,000 1,700,000
Market Cap ($ mil.) 9,204.00 14,640.20 9,486.30 11,390.90 0.00 194,026.40

Competitor Brand Profile
Brand name/
Market Facts
Logo
Name Whole Foods Market,
Inc.
Trader Joe's Company,
Inc.
Wild Oats Market, Inc.
Competitive
Attributes/
Advantage
Highest quality and
wider variety of organic,
natural products,
including
environmentally friendly
products.
There are more than
2000 unique grocery
items in their label, all
at competitive prices.
The #3 natural foods
supermarket chain in
the US in terms of
sales.
Character None
Pirates, explorers,
adventurers, scientists
None
Mantra/ Slogan
"World Leading Natual
and Organic Foods
Supermarket"
"Trader Joe's: A Unique
Grocery Store"
"Better Food. Pure &
Simple"

Competitor Brand Profile
Grocery Retail
Brand name/
Market Facts
Whole Foods
Market
Logo
Name
Whole Foods Market,
Inc.
The Kroger Co. Albertson's, Inc. Safeway Inc.
Publix Super
Markets, Inc.
Wal-Mart Stores,
Inc.
Competitive
Attributes/
Advantage
Wider variety of
organic, natural
products, including
products.
Is the nation's #1 pure
grocery chain. All in one
inclusive store.
The #2 US supermarket
chain. Focus in
(On site Starbucks)
Safeway is one of North
America's largest food
retailers. Is introducing
own 150 new "O
OrganicsTM" products.
Focus in product quality
and customer service.
Is the world's #1
retailer. Wide variety of
products at lower
prices.
Character None Regular people
Patricia Heaton, regular
people
Regular people buying
fresh food. They show
fresh flowers and fuits
and baked foods.
Regular families sharing
food. They show
children preparing
special breakfast to
their parents.
Happy yellow face, the
roll over icon.
Mantra/ Slogan
"World's Leading Natural
and Organic Foods
Supermarket"
"Making Lives Better" "Helping make life easier."
"Safeway, Ingredients
for Life'
"Where shopping is a
pleasure"
"Always Low Prices"

Competitive Matrix
Brand name/
Market Facts
Founded
By John Mackey, Renee
Lawson Hardy, Craig
Weller and Mark Skiles
In 1980 in Austin, TX.
By Joe Coulombe in
1958 in the Los Angeles,
CA.
By Libby Cook and Mike
Gilliland, husband-and-wife
founders in 1987 in
Boulder, Colorado.
Core Business Organic Foods Unique Foods, Organic Organic Foods
Mission/ Vision
They are highly
stringent Quality
Standards, and
committed to
Often called "a store of
stories," we travel the
culinary seas to bring
our customers unique,
high quality products for
great value.
Founded on the vision of
enhancing the lives of
our Customers and our
people with products
and education that
support health and well-being.
Competitive
Advantage
Highest quality and
wider variety of organic,
natural products,
including
products.
There are more than
2000 unique grocery
items in their label, all
at competitive prices.
The #3 natural foods
supermarket chain in
the US in terms of
sales.
Pricing $$$ $$ $$$

Competitive Matrix
Grocery Retail
Brand name/
Market Facts
Whole Foods
Market
Founded
By John Mackey, Renee
Lawson Hardy, Craig
Weller and Mark Skiles
In 1980 in Austin, TX.
By Barney Kroger In
1883 in Cincinnati, Ohio.
By Joe Albertsons In
1939 in Boise, Idaho.
By M.B. Skaggs in 1915
in American Falls,
Idaho. In 1926 merged
his company with
Safeway (formerly
Selig) stores.
By George W. Jenkins in
1930 in Winter Haven,
Florida.
By Sam Walton in 1962
in Rogers, Arkansas.
Core Business Organic Foods
Conventional
supermarket, all
inclusive
Conventional
supermarket,
conviniently located
Conventional
supermarket,
Conventional
supermarket,
# 1 Retailer, always low
prices.
Mission/ Vision
To remain leaders in
Organic Market. They
are highly selective
about what they sell,
dedicated to stringent
Quality Standards, and
committed to
To be a leader in the
distribution and
merchandising of food,
pharmacy, health and
personal care items,
seasonal merchandise,
and related products
and services.
To create the world’s
number one food and
drug retailer in the
areas of market value,
scale, profitability,
To give the customers
value and to expand by
keeping a narrow profit
margin. Strong sense of
customer value.
To be the premier
quality food retailer in
the world.
They emphasize service
and a family-friendly
image rather than price.
To remain #1 retailer
worldwide. To improve
the quality of life for
everyday people around
the world. To offer vast
variety of products at
lowest prices.
Competitive
Advantage
Wider variety of
organic, natural
products, including
products.
Is the nation's #1 pure
grocery chain. All in one
inclusive store.
The #2 US supermarket
chain. Focus in
Safeway is one of North
America's largest food
retailers. Is introducing
own 150 new "O
OrganicsTM" products.
Focus in product quality
and customer service.
Is the world's #1
retailer. Wide variety of
products at lower
prices.
Pricing $$$ $$ $$ $$ $$ $

Competitor Distribution
Brand name/
Market Facts
Number of stores 180 265 110
States located 30 20 25
1-Year Sales
Growth
1-Year Employee
Growth
Grocery Retail
Brand name/
Market Facts
Whole Foods
Market
21.60% 60% (est) 7.20%
18.40% N/A 5.10%
Number of stores
in the US
180 4300 2500 1554 875 6000 in total, aprox.
1330 are Superstores
States located 30 31 37 22 5 50
1-Year Sales
Growth
21.60% 4.90% 1.20% 7.20% 10.30% 9.50%
1-Year Employee
Growth
18.40% -0.30% 13.70% 5.20% 2.40% 13.30%

Competitive Positioning
Industry Family Tree
• Retail
• Grocery Retail
• Natural & Specialty Foods Retail
Natural &
Specialty
Retail:
Whole Foods
Market
Wild Oats
Trader Joe’s
Grocery Retail:
Albertson’s
Safeway
Publix
Kroger
Retailers – Super Centers:
Wal-Mart
More
Specialized,
Focused
Less
Specialized,
All Inclusive

Brand Research Map
San Francisco, CA
New York, NY
Miami/Aventura, FL
Dallas, TX
Houston, TX

Brand Research Methodology
Books / Magazines Face to Face Interviews
Interviews with employees
and grocery shoppers
Open ended questions
Getting In-Depth Responses,
Free Association
Observations
Store Audits
Internet Telephone surveys
Intercept Interviews
Online Surveys
Brand- Awareness, Image,
Purchase Intentions,
Relationships, Quality of
Brand Interaction
Qualitative
Quantitative
Secondary Primary

Research Results:
Points of Parity
 Belongs to the Natural & Specialty Foods Retail Industry
• Industry Family Tree:
 Retail
 Grocery Retail
 Natural & Specialty Foods Retail
 Similar to traditional grocery stores
 Distribution Chain
 Customer Service
 Grocery section sells produce, seafood, meat, prepared foods, cleaning
products, house wares, pet food, frozen foods, dairy products, etc.
 Private label/store brand products: every day low pricing strategy
 ATM/debit card acceptance

Research Results:
Points of Difference
 Grocery
 A commitment to selling the highest quality natural and organic
products available.
 America's first national "certified organic" grocer
 Environment
 Unique corporate philosophy of investing in and sustaining the
environment
 Distribution
 The only supermarket that owns and operates a seafood processing
and distribution facility
 Merchandizing
 No slotting fees
 Employee Relations:
 Employees get stock options and the salaries of top execs are
capped at 14 times the average pay.
 Special Services
 Catering, massages, supplement consulting

Consumers comments:
What I like about Whole Foods Market…
 “I respect Whole Foods for their organic farming and political stance. Everything that
I get there is top notch. I would buy more things if the prices were better”.
 ”It's a complete sensorial experience”.
 “When I buy at Whole Foods Market it feels as I am doing something good for
myself”.
 “I like the uniqueness of the Whole Foods Market because you can find products you
can't find at any other store.”
 “Whole Foods Market is not just a shopping environment where consumers buy food
but it is also a lifestyle. They are buying into the idea that they are part of a
community.”
What I dislike about Whole Foods Market…
 “I haven’t been there in a long time but I will go there to buy a treat. I go to
Whole Foods to buy something a little special but I do not do my everyday shopping
there.”
“Not many locations, a bit pricier than regular stores.”
“I would prefer it to be a bigger store with more aisle and parking space. I would
also prefer it to be less expensive.”
““Don't know brands, need to read all labels and IT'S TIME CONSUMING”.

Consumers Comments cont:
My ideal shopping experience would be…
 “My ideal shopping experience would be in a supermarket similar to Whole foods
Market but with more affordable prices.”
 “ My ideal shopping experience would be in a Whole Foods Market that's near my
place and has a membership card program.”
 “All inclusive, combination of a regular supermarket and an organic supermarket.”

Research Results
CBBE Pyramid
Resonance:
Trustworthiness,
High standard
Consumer
products,
Lifestyle
Judgments:
Best in organic
products field,
Brand
Expensive,
Inconvenient
locations, Good
customer service,
Not spacious
Brand Performance:
Well organized,
Aesthetic, Clean,
Expensive, Good Service,
Authentic
Consumer
Feelings: Clean,
High Self-esteem,
A
Discovery, Unique,
Trustworthy,
Likeable, Yuppie,
Fun /Enjoyable
Brand Imagery: High
quality food, Freshness,
Luxurious, Upscale,
Trendy, Gourmet, Green
Brand Salience: Seller of high quality organic and natural food

Research Results:
Consumer Perception
Inexpensive
Handcrafted Mass Produced
Expensive

Research Summary
(SWOT)
Strengths Weaknesses
- Expensive or at least it is
perceived as expensive
- Inconvenient Location
- Narrow aisles and limited
parking facilities
- Decentralized Marketing
Opportunities Threats
- Strong competitors starting to sell organic
products (Wal-Mart and regular Grocery Retail
Chains)
-Natural & Speciality Foods Retail and Grocery
Retail Competitors selling at lower prices:
Trader Joe’s and Wal-Mart
-Over expansion too quickly
- High Quality Organic/Natural
Standards
- Best Organic/Natural Products
(USP)
- Excellent Customer Service
- Unique products
- Pleasant shopping environment
-Good Employee Relations
- Expansion of Organic Industry
- Organic/Natural, health conscious
consumers trend
-Very popular among people from 25-45
-Integrated Marketing Communications
Program
-International Global expansion
- Online Retailing Market

Strategy:
Recommendations
Strength: Relationships
 Continue stock options for store employee.
 Continue to focus on quality and service – Do not compromise core values when
facing competitors with lower prices.
 Continue distribution strategies like owning distribution chains and investing in
organic farming.
Weakness: Decentralized Marketing/Perceived as overpriced and locally
inconvenient
 Centralize marketing communications so company message & philosophy is relayed
uniformly and clearly to the consumer.
 Strategically expand in urban markets to keep current distribution channels and
employees structure intact.
 Carefully communicate competitive prices without compromising core values. Despite
its reputation as a high priced alternative, Whole Foods frequently matches prices
with its competitors. Some prices are even lower.

Strategy:
Recommendations
Opportunity: Integrated Marketing Communications
 Reach through education all potential consumers who are health and environmentally
conscious with medium income (target audience characteristics).
 Increase Budget for Marketing Communications – National and local campaigns in
TV, print, radio, outdoors and online mediums.
 Direct Communication: News papers, weekly circular, POS- focused on top selling
products with special prices.
 Customer Relationships Programs: Create Loyal Membership Programs for distinct
segments.
Threat: Strong Competitors entering the Organic Market
 How to compete - Whole Foods Market can remain the #1 organic/natural food
retailer in the US market by strengthening their main weaknesses – strategically
expanding in urban markets and carefully communicating competitive prices.
 Market opportunity - Competitors, specially Wal-Mart, entering the organic business
- Instead of stealing customers away from Whole Foods right away they could
successfully expand the natural food market to low and moderate income shoppers.
Once consumers decide to lead an organic lifestyle, they'll come to Whole Foods for
greater variety and quality of products.

Whole Foods Market Brand Audit

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