Presenting

Whole Foods MarketGROUP 1

Name ID

Mazed Hossain Mahin 13164080

Md. Yasir Arafat 12264057

Sadman Shariar Biswas 12264004

Shamima Nasrin 13164074

Nipupurni Biswas 12364006

Hasan Asif 12264069

WFM At a Glance Founded in 1980 in Austin, Texas John Mackey, the cofounder and CEO $ 6.6. billion sales in 2007 276 stores in USA, Canada and GB Revenue growth 30% in 1991, 20% since

2000 Growth Objective: by 2010

400 stores $12 billion sales

Marketing Philosophy Marketing high quality natural and

organic foods to more and more consumers

“Whole Foods, Whole People, Whole Planet”

Help the customers to live longer, healthier, more pleasurable lives.

Natural & Organic Food- What is it?

Product containing no artificial ingredient No added color Minimally processed Fresh fruits, vegetables, meats and

processed foods

Why natural? Environment friendly agricultural practices

Industry Analysis

Natural and Organic Foods Industry Represent 3% of the total US retails sales of

food & beverages $17 billion sales in 2006 alone in United States Sales growth is 7-9% since 2000 Projected sales is $33 billion in 2008 Farm production is 4.1 million acres in 2005,

increased by 2 million acres farm land since 2001

8,400 certified organic farmers, other 9,000

Sales Channel

40%

31%

29%

Sales of organic foods

Supermarkets

Leading natural foods supermarket chains

Independent grocery retail chains

Leading Organic Firms Kraft, General Mills, Groupe Danone, Deans

Food, Kellog Heinz- organic ketchup Campbell Soup- organic tomato juice Starbucks- organic coffee Coca-Cola- Odwalla juices Tyson Foods- organic chicken

Coming back to WFM’s Values

WFM’s Core Values“Whole Foods, Whole People, Whole Planet”

Selling the highest quality natural and organic products available

Satisfying and delighting our customers Team member happiness and excellence Creating wealth, through profits & growth Caring about our communities and our

environment

Introducing the Growth Strategy

Growth Strategy Combination of New Venture & Acquisition Opening 10-15 times bigger stores in

metropolitan areas

Why Acquisitions? Additional bargaining power with suppliers Full utilization of company’s facilities Reduce general and administrative expenses Renovating and rebranding

Environmental Forces 14,500 superstores moving towards natural

and organic products marketing Healthy eating concept- leading superstores

have special “organic & health food” sections Consumer demand is growing 20% annually Intense price competition from the rivals Customers prefer avoidance of pesticides

(70.3%), freshness (68.3%), and health & nutrition (67.1%)

Product, Pricing & Marketing

Product Line Strategy Fresh Produce Meat and Poultry Fresh Seafood Daily Baked Goods Prepared Foods Coffees and Teas Body Care and Nutrition Grocery and Household Floral Department Educational Products

Pricing Strategy Advantages: Offer Premium Customers Premium Products Niche Products

Disadvantages: Price Level High Price Sensitive Consumers

Marketing and Customer Service Advertising Word of Mouth Recommendation Store Signage Store Events Community Outreach Programs

Store Size & Location

Open Format Sweet Spot Footprint 45000 SFT-60000

SFT Located In Upscale urban metropolitan

centers Avg. capital cost for new store $15.1

million in 2007 Total 276 stores in 36 states

Store description and Merchandising

No standard store design Management want to give a view to

customer store as “Third Place” Variety of category (Seafood ,Juice Bar etc.) Experimenting in Merchandising like to take

best ideas and incorporate it to other stores. Introduced brochure signage to informing

shopper about Five step Animal rating program

Store Operations Decentralized Team and Management process Highly dependent on team members & associates

Empowering team members

Different team members for different category Team Leader screen candidates for job openings if

2/3 of team members had to agreed. Team Leaders report to regional presidents 3rd Party administered Team leader survey Customize product display & product mix

considering TG . In 2008 employed 54000 employees 85 % full time . Benefit plan ,Health Insurance plan

Compensation & incentive

Gain Sharing Program Encouraged stock Ownership Surprise inspection & reward Salary Cap (wages plus profit incentives bonuses) The Use of Economic Value added measure

Performance Promoting Employee within as much as possible

Purchases and Distribution

Whole foods used regional and national suppliers.

Some perishable products, from some distant supply sources.

The company operated nine regional distribution centers to supply its store.

Community Citizenship & Social Activism

The Animal Compassion Foundation in January 2005

Eliminating disposable plastic grocery bags

In 2005, the company created two foundations designed to

effect solutions to global problems

Donating at least five percent of its annual net profits to

charitable causes.

Financial Performance

Year Store Difference Sales Growth

2004 163 - 14.9%

2005 175 12 12.8%

2006 186 11 11.0%

2007 276 90 7.1%

2004 2005 2006 20070.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Column2

Balance sheet Ratio 2004 2005 2006 2007

Current Ratio 1.45 1.61 1.22 0.86

Debt to equity 0.6 0.4 0.5 1.2

Total asset turnover 3.10 2.95 2.70 2.25

2004 2005 2006 20070

1

2

3

4

5

6

Total asset turnover

Debt to equity

Current Ratio

Income statement ratio

2004 2005 2006 2007

Gross Profit 34.7% 35.1% 34.9%

34.8%

Net Profit Margin 5.6% 4.9% 5.7% 4.5%

2004 2005 2006 20070

5

10

15

20

25

30

35

40

Gross ProfitNet Profit Margin

Competitors

Wild Oats Market• Company’s 109 stores in 23 states and

British Columbia, Canada• Combines sales of about $ 1.2 billion• Cofounder of wild oats was Mike

Gilliland• Product line includes- dairy, meat,

seafood and baked goods etc

Fresh market Headquarter in Greensboro, North Carolina Founder of Fresh market was Ray Berry During the 1982-2000 period, sales

revenue grew at a 25.2% compounded rate Product line includes-meats, sea food, 300

fresh produced items, fresh baked goods, prepared foods, 40 varieties of coffees, a section of grocery and dairy items, bulk products, cheeses wine, beer, gift items etc.

Trader Joe’s It was a super market chain more than 315

stores in 22 states It is based on Pasadena, California CEO of Trader Joe’s was Dan Bane Product line includes-backed goods, organic

foods, fresh fruits, vegetables, imported and domestic cheese, gourmet chocolates and candies, coffees, fresh salads, meatless entrees, low fat products, frozen fish, sea food etc

Sunflower Farmers Markets Entered in market in 2003 Establishes four stores- two in Phoenix, one in

Albuquerque and one in Denver Founder and President was Gilliland Annual sales in 2013 was $500 million Product line includes-meats, sea food, cereals,

nutrition bars, health drinks, pastas, frozen meals, trial mixes, coffee, nuts, candy, salads, cheeses, breads, vitamins, supplements, medications, soaps, shampoos, books etc

Fresh & Easy Neighborhood markets It was newly established subsidiary of British

supermarket giant Tesco, The worlds largest retailer and sales $51.86

billion for fiscal year Feb 23,2008 Additional 38 stores in Las Vegas, San Diego

and Los Angeles Product line offering ranged from gourmet

items and included natural and organic foods, fruits, vegetables, meat, fish, poultry etc

Independent natural and health food grocers In 2005, there were approximately

14000 small independent retailers natural and organic foods, vitamins, supplements, beauty and personal care products

Combined sale were $ 18 billion range in 2007

Recommendation Configure the most profitable combination of price. Develop a detailed marketing plan that supports

product strategy success. Can use specialized software for inventory Increase store location in more geographic location

like in Asia or Australia or some others markets. Can go for KPI for employee performance evaluation Can go for solar panel instead of electricity which will

be cost effective and environment friendly. Develop contract farming for organic chicken and beef

productions.

Q???

THANKS!!!