Woolworths Marketing Strategy

Woolworths Marketing Strategy


Woolworths is a famous retail brand of Australia. The company was founded in the year 1924. The business domain of the company expands in Australia and New Zealand. The company has more than 1000 physical locations in Australia only. These include supermarkets as well as convenience stores. The product line of the company includes fresh products in the form of fruits and vegetables, pet care products including food or shampoo and others, stationery products, and so on. The product list also includes baby products and other lifestyle products like hair accessories. Necessity products like footwear, household products, sleepwear, liquor, and various drinks are also available at Woolworth stores (Kasanagottu and Bhattacharya, 2018). Woolworths faces maximum competition from Cole’s supermarkets. The intensive marketing strategy of Woolworths helps the company to cover 37% of the retail market share in Australia and New Zealand market.

Marketing Strategy Of Woolworths

Woolworths is considered as the most popular supermarket chain in Australia. It has the highest market share in comparison to any other supermarket in Australia. The company’s success is the outcome of active strategic approaches. In 1987 the launch of fresh food people was a successful. This campaign was successful until 2012. After that the company diversify into different strategy categories like Woolworth’s catalogues or Woolworth’s online sales strategy by traffic on to E-Commerce platforms (Mukonza and Swarts, 2020). To know more about the marketing strategy of Woolworths take help from SourceEssay dissertation assignment help experts.

STP Approach

The three layers of analysing the marketing strategy of Woolworths Australia are conducting a detailed discussion about the segmentation, targeting and positioning strategy of the organisation.


The total market of supermarkets can be divided into five criteria for five small markets on the basis of various criteria. The criteria are demographic, psychographic, and geographical, and behaviour oriented segmentation (Parkinson, 2018).


The target market of Woolworth’s supermarkets in Australia can be divided on the basis of the age of customers and their gender in accompaniment with their related values and income level or other factors. For evidence, it can be articulated that the company has targeted people from all age groups since 6 years to 55 years particularly as it provides products of all daily use for maintenance of healthy lifestyle of people of every age group. In addition to that it can be highlighted that it covers customers who have been at the higher level of income and prefers quality of the price of the products. The eminent to display of Woolworths catalogue is a wonderful manifestation in this regard (Wright et al., 2021). Nevertheless the recent times Woolworth’s catalogue shows that the company has the general shifted its focus towards special discount sales as well as the handpicked deals and introduction of new items or the existing items under the category of half price items. Most of the site and are in the general glossary order and weekly food as well as non food categories. The young couples and married couples between the age of 24 to 38 years and generally preferred for purchasing from Woolworths online. The perception of Woolworth’s catalogue for the week 13 to 19 for October 2021 shows that Woolworths online has been accountable for most invincible volumes of home as well as lifestyle and daily care products including groceries.

Woolworth’s catalogue has not only helped customers to be aware of the offers and deals but also made them aware of the product of values. This is the reason why there has been a growing trend of maintaining healthy lifestyle by the woolworths supermarkets customers in Australia to stop never the less the modern the customers are more price conscious. All major competitors of Woolworths including Coles and Wesfarmers have introduced the online domain for product sales through The E-Commerce platform it is difficult to note that the Woolworths promo code is there now a latest feature attracting the attention of the potential customer improves. Research says that young customers aged between 18 and 35 years are mostly interested in accessing Woolworth’s promo code (Bestley, 2019).


In a viewpoint of the essay rewriter, the geographical divisions of the business are spread across all regions of Australia and New Zealand. The company fulfils its target market demand from more than 1,000 stores Australia. Other than approximately 180 stores of New Zealand in different city and supports the company has also set up Woolworths online stores. The Woolworths online stores allow customers to physically visit kiosks to select a product from the digital screen and complete instant payment or select the cash or payment on delivery option. However the customers can access the same webpage and directly access the Woolworths promo codes. There is unique and diverse Woolworth’s promo code for new users or for the first five or ten orders of the new users.


Woolworth’s catalogue is generally targeting the aspect of different psychographic customers. Some customers prefer price of quality. On the contrary some customers prefer value for money products. Some customers are also willing to pay more for high quality of products. Therefore there is ample commission of different catalogue statements in the Woolworths catalogue. Catalogue of great deals are available every week. Sometimes catalogues are based on bulk purchase of cheap to moderately priced products where the weekly catalogue grocery items are sold. In the half price market the company often introduces different premium Ranger products for the quality oriented customers. Woolworths online also targets the psychographic division of customers (Yan and Yinhe, 2020). In fact one of the primary motives behind Woolworths to introduce Woolworth’s promo code and Woolworth’s catalogue is to compete against the major competitors growing in the Australian market like Coles and Aldi supermarket. This is a supermarket chain offer products at lower prices. However the company is trying to break this perception among the people with the help of aggressive marketing of their low price end products with help of Woolworth’s catalogue.

Targeting Strategy

It is the other state under which segmentation is the initial state and it simplifies the final target segment for the company to select from. Based on the above analysis it can be demonstrated that the target market of the invention is based upon geographical segmentation. In Australia people of every age group ready to pay premium price for good quality of products are the natural customers of Woolworth’s supermarket. In this regard it can be articulated that the element of cultural importance is another variant for targeting customers. In this regard, it articulated that Woolworths catalogue is one of the eminent elements of cultural importance spreading. The catalogue helps to promote specific cultural aspects and promote the products related to the specification of cultural importance (Shaikh and Shaikh, 2021).

Positioning Strategy

The following figure provides the position of the company as a comparison to the competitors. It can also be articulated that the company have higher market position in comparison to many competitors in terms of product quality. Nevertheless after the introduction of Woolworths online and Woolworths promo code the company is now getting to sell products against a value for money proposition as well. Nevertheless, the pricing category can also be compared with other super markets like Aldi super markets as well as Coles (Schultz et al., 2021). Aldi provides products of almost same quality nevertheless at a lesser price. This is the reason why the popularity of Woolworth’s online and Woods promo code is very important.

Competitive Advantage

VRIO Analysis

In order to understand the competitive advantage of the company, this tool can be applied. It evaluates business competitiveness based on specific parameters. These parameters are value, rarity of business elements and products, imitable and organisation. In case of this company can be highlighted that there is viability in the form of sustainable competitive advantage. The highest element in this regard is the strong brand value in the retail market and retail industry which provides a permanent and comparative advantage to the company. The company has partial advantage of local sourcing plan and therefore the product listing over Woolworths online is more valuable. However in spite of the strong value it is not real or imitable. In case of the online presence of the organisation in the big temporary competitive advantage is the Woolworths promo code. On top of that globalisation accounts for digital race among the grocery stores and the company has currently entered in a race with online applications of Woolworths online (Pulker et al., 2018). However it should not be considered as a real element in terms of killing competitive advantage as all different organisations have been using the online platform these days. On top of that, there is a viability of sustainable competitive advantage. In case of this company can be articulated that there is a value of 8 million dollars which is the considered highest among all Australian brands.

BCG Matrix Application

This Matrix can be considered as a major tool for understanding the value which is provided by different product line and cash or revenue which is generated by individual product line. As a part of this Matrix, the products can be divided into four categories, which are followed by stars and dog and cash cow. In case of this company the household commodities generating greater cash volume for their business should be developed to allow them to enter into the star categories. This is because these are also the most preferable products of the company which are profitable as well. The private label products of the company which are sold with maximum discount to buy means of Woolworth’s promo code can also be counted in the list of stars. Nevertheless these elements provide a competitive advantage to the organisation. The strategic units in the business helping the company to enhance the revenue to a further stage are the most potential units of the company. Nevertheless the commodities under the question mark are the local food of the company with the potential of helping the business to grow and the company needs to make a strong focus in terms of their strategic disbursement towards these product ranges. In addition to that it is important to note that the confectionery business unit of the company is still in the grey zone (Martin et al., 2020). It can currently be accounted in the list of question mark products. Nevertheless, this business has potential. The company can invest and take this business in the correct direction. After that it might provide more growth in the business domain if properly invested. In addition to that it can be highlighted that the plastic bags commodity of the company can be considered as the underdog’s category or the dog’s category as it is not able to provide any spectacular benefit to the business.

Competitive Analysis

In order to do a competitive analysis of Woolworth’s supermarket of Australia, this research uses porter’s five forces model.

Rivalry Among Existing Competitors

Number of new entrants in the supermarket business has increased over time and the functioning in this sector has become complicated. Woolworths Australian supermarket is considered as the largest and almost the most popular brand. However in Australia the company faces significant competition because of the limitation of market share and bottlenecking of business which is why the most potential companies like Aldi or Coles can cross the market share of 37% held by Woolworth’s supermarket in the Australian market anytime. Currently, the company should adopt effective strategies to differentiate from the competitors (Pulker et al., 2019).

Bargaining Power Of Consumers

The consumers put pressure on the organisations for getting the higher quality of product at fewer prices and with the best service demand. In the modern day, the customers have lot of options of shopping from large number of international supermarket brands. Therefore, if Woolworths is offering premium quality products at higher price range the customers will be no longer interested to buy it from this brand as they will be getting in the same product of the same brand at a cheaper rate from other companies. To know more take assistance from SourceEssay term paper help experts.

Threat Of New Entrants

New entrants free tax rate over the existing organisation as it impacts capability of the existing companies in context to profit or in terms of market share. It exists in the low productivity of the company or compromise of the quality of products (Sultan, Wong and Sigala, 2018).

Threat Of Substitute Products

It is considered as the biggest risk for super markets as a substitute of the products enables consumers to purchase products outside the brand ultimately accounting for lack of profitability. Because of the alternatives provided by various competitors of Woolworths Australia it is pertinent to know that it is a big threat for the company.


Woolworths has a potential marketing strategy for retaining customers. Geographical segmentation is the biggest strength of the company. However, the competition faced by the organisation in the Australian market in terms of price is very dominant. The company should focus on constant innovation and the improvement payment in differentiation in service and marketing.

Reference List

Bestley, R., 2019. “Anarchy in Woolworths”: Punk Comedy and Humor. In The Routledge Companion to Popular Music and Humor (pp. 76-84). Routledge.

Kasanagottu, S. and Bhattacharya, S., 2018. A Review of Metro, Target, & Woolworths Global Business Strategy. International Journal of Mechanical Engineering and Technology9(7).

Martin, K.D., Kim, J.J., Palmatier, R.W., Steinhoff, L., Stewart, D.W., Walker, B.A., Wang, Y. and Weaven, S.K., 2020. Data privacy in retail. Journal of Retailing96(4), pp.474-489.

Mukonza, C. and Swarts, I., 2020. The influence of green marketing strategies on business performance and corporate image in the retail sector. Business strategy and the Environment29(3), pp.838-845.

Parkinson, M.M., 2018. Case Study 4: Woolworths Group plc. In Corporate Governance in Transition (pp. 203-221). Palgrave Macmillan, Cham.

Pulker, C.E., Trapp, G.S., Foulkes-Taylor, F., Scott, J.A. and Pollard, C.M., 2018. The extent and nature of supermarket own brand foods in Australia: study protocol for describing the contribution of selected products to the healthfulness of food environments. Nutrition journal17(1), pp.1-14.

Pulker, C.E., Trapp, G.S., Scott, J.A. and Pollard, C.M., 2019. The nature and quality of Australian supermarkets’ policies that can impact public health nutrition, and evidence of their practical application: A cross-sectional study. Nutrients11(4), p.853.

Schultz, S., Cameron, A.J., Grigsby-Duffy, L., Robinson, E., Marshall, J., Orellana, L. and Sacks, G., 2021. Availability and placement of healthy and discretionary food in Australian supermarkets by chain and level of socio-economic disadvantage. Public Health Nutrition24(2), pp.203-214.

Shaikh, A.A. and Shaikh, M.M., 2021. A VIEWPOINT ON SUSTAINABLE PRACTICES OF COLES AND WOOLWORTHS DURING COVID-19. Academy of Marketing Studies Journal25, pp.1-4.

Sultan, P., Wong, H.Y. and Sigala, M., 2018. Segmenting the Australian organic food consumer market. Asia Pacific Journal of Marketing and Logistics.

Wright, C.J., Clifford, S., Miller, M., D’Abbs, P., Giorgi, C., Crane, M. and Smith, J.A., 2021. While Woolworths reaps the rewards, the Northern Territory community will be left to clean up the mess.

Yan, C.U.I. and Yinhe, C.U.I., 2020. The Difference of Between Event Marketing and Activity Marketing. Management Science and Engineering14(2), pp.24-27.

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