strategy proposal: 365 by whole foods market

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Alexa Clouthier Madison Barlow Sabina Leybold Jillian Green 365 by Whole Foods Market Written Proposal December 4, 2015

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Alexa Clouthier Madison Barlow Sabina Leybold Jillian Green

365 by Whole Foods Market

Written Proposal

December 4, 2015

Introduction As announced in May 2015, Whole Foods is introducing a new smaller-store model

called 365 by Whole Foods Market. It is designed to be an everyday shopping experience that makes purchasing natural and organic foods easier, more convenient, and more affordable. In this launch proposal, we will discuss the target audience, goals and objectives, campaign strategies, and timeline for the 365 product line.

Target Audience

Currently, typical Whole Foods customers are 18-30 years old, live in urban areas, and have a college education and $1000 or more in monthly discretionary income. They value health, fitness, and sustainability. Whole Foods also appeals to working parents, aged 30-50, who prioritize feeding their families organic, natural diets.

The population of people interested in natural food is increasing, but not everyone can afford organic options. Whole Foods 365 stores bridge the gap between high quality foods and small budgets, targeting families and lower-income individuals who value healthy choices. The 365 stores especially target millennials, as shown by the locations of the first five stores: Portland, OR, Bellevue, WA, Los Angeles, CA, Santa Monica, CA, and Houston, TX. These cities are “hipster havens” that appeal to young, tech-friendly, never-married men and women. They are also fairly liberal cities where people are health- and sustainability-conscious.

Goals and Measurable Objectives By the end of 2016 the first 365 stores will be active and double the amount of

stores will be opened by 2017. Also, 365 by Whole Foods stores plan on accomplishing the following: Business Objectives

● Make up 5% percent of the parent company’s total net sales by the end of 2017. ● Attract 10% of the millennial population in each store’s surrounding area by the end

of 2017. ● Report 75% customer experience/satisfaction via surveys by the end of 2017.

Communications Objectives

Customers will be encouraged to shop at 365 stores due to trends and post on social media. These posts help spread brand awareness for 365 due to offering healthy foods with reasonable prices.

● 365 stores will tweet and re-tweet users at least 5 times per week. ● Press and media release will be mentioned on search engines such as Yahoo and

AOL once a week.

● Television commercials will be shown on at least 10 channels three times per day.

Brand Persona Whole Foods is known for its core values of providing high-quality natural and

organic products, increasing environmental consciousness, educating communities about healthy eating, and emphasizing the satisfaction of customers, employees, and shareholders. It’s also known for its nickname “Whole Paycheck” due its expensive product line and reputation as an exclusive foodie haven.

In contrast, Whole Foods 365 has been called the “Nordstrom Rack of grocery stores”--the same high quality but at a lower cost. The 365 model highlights the accessibility of high-quality food as part of an everyday lifestyle and focuses on value. Health scares have improved the perceived value ratio of organic food, so Whole Foods 365 stores meet lower-income people in the middle by bringing down the price and improving accessibility while also encouraging them to spend a bit more for the added value of healthy food choices.

Message and Slogan As a company, Whole Foods Market pride themselves on their commitment to

quality. They aim to provide customers with healthy, organic and natural products. Whole Foods Market understands that this type of product is not always offered at affordable prices. With the introduction of the 365 stores, they aim to change the stigma that healthy food has to be expensive. The message of the 365 stores will correspond with the qualities that the large stores commit to every day. The market has implemented the slogan, “Where everyday value meets Whole Foods quality” , in order to remind customers that providing them with the best products is the first concern. Whole Foods Market’s quality standards are as follows:

● We carefully evaluate each and every product we sell. ● We feature foods that are free of artificial preservatives, colors, flavors, sweeteners,

and hydrogenated fats. ● We are passionate about great tasting food and the pleasure of sharing it with

others. ● We are committed to foods that are fresh, wholesome and safe to eat. ● We seek out and promote organically grown foods. ● We provide food and nutritional products that support health and well-being.

The implementation of these quality standards ensures that the customers are being offered the highest standard 365 days a year. Informing customers of the standards

ensures that they will be able to shop with peace of mind. The target audience will directly benefit from this commitment. Parents will know that they are providing their children with the nutrition and calories to sustain their growth and health. With big name retailers like Walmart and Kroger offering organic products, it was essential to develop a way to effectively communicate with customers that Whole Food’s products are superior to the lower-priced competition.

Whole Foods Market 365 stores are making high quality and healthy foods readily available to all people. Although products will be offered with value pricing, the excellence of the products will not be altered in any other way. According to Business Insider, CEO John Mackey believes, “This time is right to take the high quality standards we have developed over the last 35-plus years, and make them more broadly accessible through a streamlined, value-focused format and serve communities we would not be able to reach with our larger Whole Foods Market Stores.” The 365 products will always remain sustainable, organic, and affordable. Whole Foods Market’s promise to customers will continue to be making sure the service offered is convenient and personable.

Tactics In order to promote the new Whole Foods 365 Stores, several tactics will be used

such as social media, television and print ads, as well as press releases and promotional unveilings of newly opened stores. These tactics will encourage our audience of families and individuals of an urban and suburban setting to support 365 stores. Social Media Creating these channels early will spark interest and intrigue about our new 365 stores. Their social media channels will depict the process of building and creating the stores through videos posted on Facebook, Instagram, Twitter, and other social media outlets. These videos will show interviews with prospective customers as they reveal their overall feelings about the project. Project creators and administrators, such as the President of 365, Jeff Turnas, will also be interviewed on how the store will improve upon the original Whole Foods Market. Advertisements In the creation of television and print advertisements for the new stores, Whole Foods should depict realistic customers such as families demonstrating the values of healthy and organic food. The message that the new 365 stores is administering to the public is that the fresh, healthy and organic products of the original Whole Foods Market is now also affordable. By showing new, busy family lives purchasing and promoting the brand, other customers will be persuaded to support 365 as well. These ads will be strategically placed throughout family-friendly and household networks such as HGTV, The Food Network,

news programs and talk shows. As for print ads, coupons will be available in newspapers and closely surrounding the areas where the new stores will be opening. There will also be ads placed in existing Whole Foods Stores to promote the brand. Press Conference and Unveiling By holding a press conference, Whole Foods will be able to answer any questions from the media regarding the 365 stores. Creating and maintaining a relationship with journalists and reporters will create a positive name for the brand throughout the building process as well as moving forward into the future. An unveiling of the first store in Silver Lake, CA will welcome the public as well as the press to experience the newest brand of Whole Foods in an exciting and positive way. App Whole Foods will be creating an app in order to make the shopping experience for the customer simpler. Within the app, there will be a feature to create a shopping list, as well as an option to order your groceries and have them picked up or delivered. Customers will also have the option to view recipes or quick cooking tips to use throughout the week. This app will complement the store’s easy and simple way to shop that is helpful to customers.

Campaign Strategy The combination of the elements discussed above will collectively make up the

campaign strategy for 365 by Whole Foods Market. By establishing a target audience, brand persona, goals and measurable objectives, a specific message and slogan and implementation of various tactics, the 365 stores will reach and become familiar with the store’s projected audience.

Timeline

The launch plan will be completed throughout 2016-2017. March 2016 Social media accounts created & becoming active April 2016 App goes into development June 2016 Television and print ads (“coming soon”) on the air/in newspapers Mid June 2016 Flyers/signage released in existing Whole Foods stores (continuing

through 2017) August 2016 Six-month evaluation of communications effectiveness October 2016 Press Conference October 2016 Increase frequency of television/print ads November 2016 Unveiling/store opening events, app is released December 2016 Nine-month evaluation of communications effectiveness

January 2017 Release plans for upcoming year’s growth March 2017 One-year evaluation of communications effectiveness May 2017 First round of customer experience/satisfaction surveys June 2017 Unveiling/store opening events for additional stores November 2017 Evaluation of communications effectiveness in comparison to goals

sales report evaluation, population analysis, second round of customer experience/satisfaction surveys