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Millennials & Whole Foods Shoppers

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Millennials & Whole Foods Shoppers Millennials & Whole Foods Shoppers Matthew Brock Johnson University of Kentucky Statement of Intent: This report is a collection of research conducted to help understand the relationship between Whole Foods and college students. This research is followed by a professional campaign recommendation to aid Whole Foods with achieving their goal of targeting college students. 1 Table of Contents I. Cover letter/Executive Summary…………………………………………1-4 II. Secondary Research: Situation analysis …………………………………….5 Brand Analysis………………………………………………………..5 Product Analysis……………………………………………………...6 Competition…………………………………………………………..8 Direct Competitors…………………………………………….9 ​ Indirect Competitors………………………………………….11 ​ Profile of Target Market……………………………………………..12 Previous ISC Strategies……………………………………………...14 S. W. O. T. Analysis and Rationale………………………………….15 Strengths……………………………………………………...15 ​ Weaknesses…………………………………………………....1 ​ 7 Opportunities………………………………………………....18 ​ Threats………………………………………………………..18 ​ Problems and Opportunities related to Millennials………………….19 III. Marketing Research Objectives…………………………………………….21 IV. Primary Research…………………………………………………………..22 Qualitative Research: Focus Group Interview………………………22 Survey Objectives…………………………………………….22 ​ Sampling Methods and Design……………………………….22 ​ Data Analysis and Results……………………………………24 ​ Conclusion…………………………………………………....25 ​ Quantitative Research: Survey……………………………………....26 Survey Objectives……………………………………………..26 ​ Sampling Methods and Design……………………………….27 ​ Data Analysis…………………………………………………27 ​ Data Results of Survey……………………………………......28 ​ Conclusion…………………………………………………....35 ​ V. Overall Research Findings…………………………………………………37 2 VI. Positioning Statements and Marketing Recommendations………………...39 VII. References………………………………………………….........................41 VIII. Appendices…………………………………………………........................44 Appendix A: Focus Group Discussion Guide………….....................44 Introduction…………………………………...........................4 ​ 4 General Questions…………………………............................44 ​ History Questions………………………….............................44 ​ Attitude Questions………………………….............................44 ​ Specific Questions………………………….............................45 ​ Advertisement Questions…………………………...................45 ​ Conclusion…………………………………............................45 ​ Appendix B: Survey Questionnaire………………............................45 3 I. Executive Summary To whom it may concern: The need for this research is very important for Whole foods. The purpose is to conduct marketing research on Whole Foods and to use this research to connect with the target audience which is millennials. They are upper class working women who are around 18-24 years old. We feel that conducting this research will benefit Whole Foods and help them reach their long term marketing goals. The first part our group completed was secondary research on Whole Foods. We analyzed Whole Foods different competitors, their previous ISC strategies, a SWOT analysis, and their target market. Weaknesses being a small international presence and low brand loyalty while some strengths are lowered prices and a very strong variety of items. We did this to understand what college students think about the brand and how we can get them to continue to and start coming to the store. We did this by searching the Internet. Following up our secondary research, we targeted University of Kentucky students to participate in a focus group to determine their current perception of the brand as well as their shopping habits. On Sunday, March 20, 2018 at the Bill Gatton Student Center, 11 participants answered several questions in a group setting. The results of the focus group showed that college students value price and convenience over health benefits and that Whole Foods doesn't have rewards programs or sustainable discounts which are very important to college students. Next, we developed a survey questionnaire to further our research. Every group member sent the survey out by text message or social media. By the end of the survey, we had 33 respondents in total. The responses told us that college students go grocery shopping frequently; location and value for money are the most important factors for college students; college students believe Whole Foods has the best quality and abundance of healthy products; and college students love Whole Foods Instagram feed. A special thanks to professor Baek and the University of Kentucky for helping us complete our research. We would also like to thank everyone who took the time to take our survey and participate in the focus group interview. We all greatly appreciate your efforts and support. Sincerely, Mary Bregenser, Brock Johnson, Megan Toffey, Andrea Paczkowski, Marie Emendi, and Elijah Caldwell 4 II. Secondary Research (Situation Analysis) A. Brand Profile Whole Foods, a registered trademark of Whole Foods Market IP, L.P., is a grocery store ​ with a focus on the “finest natural and organic foods available…” (Company Info, 2018). Whole Foods Market is the 13th largest grocery chain in the U.S. (Whole Foods Market Inc., 2018). ​ Amazon recently acquired Whole Foods Market through a definitive merger. Founded in 1980 in Austin, Texas, its first supermarket was opened by Mackey and Renee Lawson Hardy, owner of ​ Safer Way Natural Foods and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery (Company Info, 2018). Four local businesspeople partnered and decided that the natural ​ ​ food industry needed to be put into a supermarket format. The first store was sized at 10,500 square feet and a staff of 19, which was larger than the average health store at that time (Company Info, 2018). Almost a year later, on Memorial Day, a ​ ​ terrible flood hit Austin and Whole Foods inventory and equipment were destroyed. The losses were estimated at $400,000 and Whole Foods Market had no insurance, but customers and volunteers helped repair the damage (Company Info, 2018). With the help off several investors, ​ ​ vendors and creditors the store was able to get reopen only 28 days after the flood. Whole Foods Market started to expand in 1984, first to Houston and Dallas, then to New Orleans with the acquisition of Whole Food Company in 1988 (Company Info, 2018). In the next year a store was ​ ​ built in Palo Alto, California, starting the expansion to the West Coast. Whole Foods Market grew so rapidly because of the purchase of various natural food chains : Bread & Circus of Massachusetts and Rhode Island, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Nature's Heartland of Boston, 5 Wellspring Grocery of North Carolina, Mrs.Gooch's Natural Foods Markets of Los Angeles and Detroit area Merchant of Vino stores (Company Info, 2018). ​ Coming into the 2000s Food for Thought in Northern California and Harry's Farmers Market stores in Atlanta were acquired. In 2001, Whole Foods Market moved into Manhattan and sparked great interest, while in 2002 it expanded into Canada and in 2004 it expanded into the United Kingdom with the purchase of seven Fresh & Wild stores (Company Info, 2018). ​ ​ Now, Whole Foods Market operates 470 retail stores, of which 448 stores are located in 42 US states and the District of Columbia, 13 in Canada, and nine in the UK (Whole Foods Market Inc. , 2018). The company operates in one segment: Natural and Organic Foods Supermarkets. Whole Foods Market offers a variety of natural and organic products including non-GMO, vegan, gluten-free, dairy-free and other special diet foods (Whole Foods Market Inc., 2018). With a wide range of healthy products, stores in many areas, and customization for convenience, Whole Foods Market is a supermarket that has room to prosper. B. Product Profile ​ ​ Whole Foods Market products are classified into three groups: non-perishables, prepared foods and bakery, and other perishables (Whole Foods Market Inc.,2018). It carries a product range of produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods, and household goods (Whole Foods Market Inc., 2018). Whole Foods Market purchases products from local, regional, national and international wholesale suppliers. The company owns one produce procurement center. It also operates three seafood processing and distribution facilities, and a specialty coffee and tea procurement and roasting operation (Whole Foods Market Inc.,2018). Whole Foods 6 Market has 11 regional distribution centers which mainly distribute a full range of perishable products to its stores across the US, Canada and the UK (Whole Foods Market Inc.,2018). In addition, the company has three regional commissary kitchens and four bakehouse facilities, all of which distribute products to Whole Foods Market stores (Whole Foods Market Inc., 2018) “If you want to know what goes into the products you buy, our standards make it easy, because if it doesn’t meet the standards, we don’t sell it.”, a quote from their site which establishes that their products are held to the highest standard and that they are credible (Whole Foods Market Inc., 2018). Some product standards Whole Foods Market have is that, all of their ​ products are free of hydrogenated fats and artificial colors, flavors, preservatives and sweeteners, ​ they adhere to the Global Animal Partnership 5-Step® Animal Welfare Rating, and they only sell wild-caught seafood from fisheries
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