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

1. Emma Wimhurst
Yan Hu
Jennifer Kesik
MBA Bournemouth University
13 December 2013

2. Overview
Aims and objectives
The company
Importance and power of blogging in
marketing
Critical analysis of the social and
digital marketing strategy
Conclusion

3. Whole Foods Market
Founded in Austin, Texas in 1980 with $45k opening capital
One of the first companies to sell natural food in a supermarket
format
Turnover $11.7 billion with operating profits of 6.4%
Employees 2013: 73,000
Ranked 32 in Forbes list of top 100 companies in 2012
(Whole Foods 2012; Forbes 2012)
Appendix 1

4. Global presence
US & Canada presence: 356 Stores
UK presence: 9 stores:
Clapham, Kensington, Richmond, Piccadilly, Stoke Newington, Camden,
Cheltenham and Giffnock
Target by 2020: 1000 stores
(Whole Foods 2012)

5. Differentiation Strategy
Cost Leadership
Differentiation
Cost Focus
Differentiation
Focus
(Source: Adapted from Porter 1985)
Appendix 2

6. Core Values
• Selling the HIGHEST QUALITY natural and organic products available
• SATISFYING and DELIGHTING our customers
• Supporting team member HAPPINESS and EXCELLENCE
• Creating WEALTH through profits and growth
• Caring about our COMMUNITIES and our environment
•
Creating on-going WIN-WIN PARTNERSHIPS with our suppliers
• Promoting the health of our stakeholders through HEALTHY EATING
EDUCATION
(Wholefoods 2012)

7. Whole Planet Whole People.png
“Whole Foods, Whole People, Whole Planet”

8. Customer Demographics
Age 18-39 (ABC1)
Live healthy lifestyle
Concerned with eating natural/ healthy foods
Motivated by interesting and unique foods
Seek an all round exciting experience when shopping
Strong connection with the environment
(Whole Foods 2011)

9. Customer Segmentation
•
•
•
•
“Conscionables embody the Core Values of Whole Foods Market;
they support social and environmental initiatives and are frequent
shoppers who spend the largest proportion of their monthly grocery
bill with Whole Foods”
“Organics buy organically grown food as a way to maintain their
personal health and for food safety reasons”
“Foodies equate food with love and are frequent shoppers who
shop at Whole Foods stores for selection, value and convenience”
“Experientials are driven to Whole Foods Market for unique
products and special occasion items”
(Whole Foods 2011)

10. Whole Foods’ Marketing Objectives
“We spend only 0.4% of total sales
on advertising and marketing . We
are successfully utilizing social
media as a powerful way to gain
positive exposure and connect with
our internet -savvy customers on a
global and local level . We rely
heavily on word-of mouth advocacy
.”
– John Mackey, 2012
(Whole Foods 2012; Forbes 2012)

11. Purpose of Marketing
Communication
•
Create a need
•
Create, build and maintain awareness, image and reputation
•
Educate
•
Inform
•
Provoke a response
•
Reinforce competitive advantage
•
Influence
•
Build a relationship
•
Increase profits
(Palmer et al. 2007)

12. Marketing Shifts
“Traditional media has been accused of being on its
deathbed while the internet is being lauded as a better
communication tool due to its versatility and superiority
at targeting customers”
Live?
Text?
Sound?
Picture?
Video?
Interactive?
Print
No
Yes
No
No
No
No
Radio
Yes
No
Yes
No
No
No
Television
No
No
Yes
Yes
Yes
No
Internet
Yes
Yes
Yes
Yes
Yes
Yes
(Source: Wergin and Muller 2005, p.85)

13. Social Media Landscape
Review
Networks
Discussion
Share
Social
Social
Media
Media
Commerce
Location
Blogs
Gaming
(Source: Adapted from Taprial and Kanvar

14. Social Media Reach
1.15 billion users
Users
500 million users
33%
238 million users
Non-Users
67%
800 million users
(Source: Pew Research Centre 2012; Social Media Today 2013)

15. The Power of Blogging
“The key question is NOT WHETHER TO
DEPLOY INTERNET TECHNOLOGY- companies
have no choice if they want to stay competitive - but
HOW TO DEPLOY IT”
(Porter 2001, p.64)

16. Empower
customers
Increase brand
credibility
Attract the new
traffic to the site
Enable two- Way
communication
BLOGGING
Gain better
understanding
Serve
Social purpose
Enable knowledge
sharing and
education
(Source: Adapted from Signh et al. 2008)

17. Customer Engagement
•
•
•
Most socially engaged companies grew revenue by 18% over
previous 12 months
Least engaged companies saw revenue sink by 6% over the
same period
ROI is to increase sales not recruit fans
(Altimeter Group and Wetpaint 2009)

19. “Conventional marketing wisdom
long held that a dissatisfied customer
tells ten people. But...in the new age of
social media, he or she has the tools to
tell ten million.”
(Source: Harvard Business Review Analytic Services 2010, p.1)

20. Digital Communications
Objectives
•
Winning customers: customer acquisition and activation
•
Keeping customers: customer retention and maintenance
•
•
Developing customers: customer penetration/share of
wallet, improving the gross value produced by customers
Efficiency in customer management: reducing costs
(Woodcock and Stone 2012)

21. Four pillars of Social Media
(Safko and Brake 2009)

22. Philip Kotler
“Integrated marketing
communications is a way
of looking at the whole
marketing process from
the viewpoint of the
customers”
(Kotler 2003, p.563)

23. Social & Digital Marketing
Strategy

24. Marketing Budget
$
30%
GLOBAL
Marke ng Budget
$
70%
LOCAL

25. Whole Foods
Communication
Collaboration
Customer
Education
Entertainment

26. Global v Local
GLOBAL
30%
•
•
•
•
LOCAL
70%
Focus on lifestyle
Inspiration
Information
Engagement between visits
•
•
•
•
Focus on transactions
Local products
Local promotions
Local events
(Wholefoods 2012, Red Door Interactive 2013, Information Week 2013)

27. Global and Local Synergy
Brand
Lifestyle
Shared
Customer
Experience
Local
Shopping

28. Global
Local:
UK

29. Social Media Reach
• 47% visit Facebook daily
• 31% visit Twitter daily
Facebook Fans
Twitter Followers
Whole Foods
1,447,437
3,000,000
Ocado
210,500
22,800
Sainsbury's
819,000
211,800
Waitrose
142,000
100,300
(Facebook 2013,; Twitter 2013; Whole Foods 2013)

30. Pinterest

31. @wholefoodslondon

32. Communication
- Hiring staff TWITTER
- Global product launch TWITTER
- Lunch/ Supper Ideas FACEBOOK
- Locally sourced products FACEBOOK
- Discounts and promotions FACEBOOK
- Local and National events FACEBOOK
Collaboration
-With local suppliers FACEBOOK/ TWITTER
- With customers requesting feedback at an event
TWITTER
- With customers online TWITTER/ FACEBOOK
Richmond Customer
Education
- Recipes ideas TWIITER/ FACEBOOK
- Skin analysis FACEBOOK
- Supplements FACEBOOK
- Chocolate FACEBOOK
- Pomegranate FACEBOOK
Entertainment
- Local community events FACEBOOK
- Pumpkin curving TWITTER/FACEBOOK
- Local in store demonstrations FACEBOOK

33. COMMUNICATION
Purpose: Hiring Staff
Social Media: Local Twitter
K

34. COMMUNICATION
Purpose: Lunch/ Supper Ideas
Social Media: Local Facebook
K

35. COMMUNICATION
Purpose: Locally Sourced Products
Social Media: Local Facebook
K

36. COMMUNICATION
Purpose: Discounts/ Promotions
Social Media: Local Facebook
K

37. COMMUNICATION
Purpose: Local/ National Events
Social Media: Local Facebook/ Twitter
K

38. COMMUNICATION
Purpose: Global Product Launch
Social Media: Global Twitter
K

39. COMMUNICATION
Purpose: Global Product Launch
Social Media: Blog
K

40. COMMUNICATION
Purpose: Global Product Launch
Social Media: Blog
K

41. COMMUNICATION
Purpose: Global Product Launch
Social Media: Global Twitter
K

42. COLLABORATION
Purpose: Local Suppliers
Social Media: Local Facebook
K

43. COLLABORATION
Purpose: Local Suppliers
Social Media: Local Twitter
K

44. COLLABORATION
Purpose: Direct Feedback
Social Media: Local Twitter
K

45. EDUCATION
Purpose: Recipe Information
Social Media: Global Twitter
K

46. EDUCATION
Purpose: Skin Analysis
Social Media: Local Facebook
K

47. EDUCATION
Purpose: Information on Supplements
Social Media: Local Facebook
K

48. EDUCATION
Purpose: Benefits of Chocolate
Social Media: Local Facebook
K

49. ENTERTAINMENT
Purpose: Community Events
Social Media: Local Facebook/Twitter
K

50. ENTERTAINMENT
Purpose: Community Events
Social Media: Local Facebook
K

51. ENTERTAINMENT
Purpose: Local Community Events
Social Media: Local Facebook
K

52. ENTERTAINMENT
Purpose: Local Community Events
Social Media: Local Facebook
K

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

54. Weaknesses
Strengths
-
Integrated with corporate core values
Localised marketing (70%)
Real time dialogue
Interested in health not just food
Engaging and compelling
Personable
Enticing use of images
-
Local marketing officer will require training
- Local marketing officer has autonomy
- UK/ London treated as one
- No personal details requested on sign up to
news letters
Richmond Customer
Opportunities
-
Introduce local marketing to each store
Improve CRM systems
Offer personalised news letters
Threats
- Competitors may use target profiling more
effectively

55. Corporate
Objectives &
Strategy
Marketing
Strategy
Market
Structure &
Demand
Internet
Marketing
Strategy
Competitor
Strategies
Emerging
Opportunities
& Threats
(Source: Chaffey 2013)

56. “Embracing social media is no longer a
strategic business option, but a necessity
and a huge opportunity”
(Argenti 2011, p.61)

57. THANK YOU

58. References
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