Whole Foods Market pitch

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NEW BUSINESS PITCHWhole Foods, Whole People, Whole Planet.December 2016NAME BRAND PITCH TYPEMediaMARKET DATENovember 21 , 2016The Data You Need to Win This PitchDESCRIPTIONUpscale grocery store chain, Whole Foods Market, has launched a media agency review, according to sources.In its last annual report the company stated that advertising expenses totaled nearly $90 million in its fiscal-year 2015. Its estimated that the company spends about $65 million annually on media.Previously, the Austin-based Whole Foods had worked with GSD&M (also based in Austin) for media. Two years ago, GSD&M was the media agency that launched the brands first national ad campaign. New York-based creative agency Partners & Spade was tapped to develop the creative approach.Whole Foods' $65 Million Media Assignment Is In ReviewthU.S.Client Profile / MarketWhole Foods Market Inc. is an American supermarket chain exclusively featuring foods without artificial preservatives, colors, flavors, sweeteners, or hydrogenated fats. It is the United States' first certified organic grocer, which means it ensures, to National Organic Program standards, organic integrity of the heterogeneous products from the time they reach stores until they are placed in a shopping cart. It opened on September 20, 1980, in Austin, Texas, its current headquarters. As of September 2015, it has 91,000 employees and 431 supermarkets in the United States, Canada, and the United Kingdom, and has its main produce procurement office in Watsonville, California.As of 2015, founder John Mackey and Walter Robb are co-CEOs of the publicly traded company, with John Elstrott as chairman. In November 2016, the company announced that Walter Robb would be stepping down as co-CEO at the end of the year and would remain with the company as a director. It became a Fortune 500 company in March 2005 and is the 30th largest retailer in the U.S., based on 2014 revenue.FINANCIAL OVERVIEW- Source: AccessConfidential.com -COMPANY BACKGROUNDMAIN COMPETITORS2015 Sales (mil)2015 Employees Employee Growth PercentAssets (mil)Net Income Growth PercentSales Growth Percent15,39090,900+4.2--+8.4%Ms. Natanya P. AndersonSenior Marketing Director, 365Mr. John MackeyCo-Founder and Chief Executive OfficerDECISION MAKERS byNatanya.anderson@wholefoods.comJohn.mackey@wholefoods.comU.S. Grocery Market$ 649B TOTAL SUPERMARKETSALES1.3% SALES GROWTH2011 - 20163.4M EMPLOYEDPEOPLE38K SUPERMARKETSIN US ($2 million or more in annual sales)- FMI.com -- Ibis World -- FMI.com -- FMI.com -A Deeper Look into the Grocery Marketconsumers choose their primary grocer is becauseits conveniently located to where they live or work.#1 REASON$107.34Weekly Household Grocery Expense1.5Average # of Trips to Supermarkets per Week46,000 ftMedian StoreSize- FMI.com -- FMI.com -- FMI.com -Warehouse Clubs are gaining ground in the retail space- NPD Group -$420BWarehouse Clubs added660kJobs between 2000 and 2015- NPD Group -Warehouse Clubs Sales in 2013WAREHOUSE CLUBSSALES GREW10.5xBETWEEN 1992AND 2013A National Bureau of Economic Research study has found that the evolution and growth of warehouse clubshave been the most significant influences on the retail sector over the last 15-20 years.Retailers are extending beyond price and product selection in order to compete against each other, with more turning to innovation and experiential retailing to hold onto and grow market share:Retailers Innovations to CompeteKrogerplans to invest$2.5 million to build aculinary center inCincinnati where its headquartered in orderto train the chefs inall its stores, and providea forum for them toshare ideas andbest practices.Similarly, Walmartrecently debuted itsCulinary & Innovation Center where it plans todevelop new privatelabel and brandedfood items.SelectWhole Foods Marketsfeature amenities like a puttinggreen (Augusta, Georgia)and a spa (Boston),and some havebike repair stations.ShopRite in Morristown,New Jersey offers anin-store restaurant,juice bar, oyster barand even a daycare centerfor parents with childrenin tow. A store in Hanover Township in New Yorkincludes a fitness studioand a cosmetologiston weekends.Online GroceriesIN THE US, ONLINE GROCERY PENETRATION IS EXPECTED TO INCREASE FROM 8% TO 26% FOR FRESH FOODS &16% TO 28% FOR PACKAGEDGroceries (Fresh Food)Groceries (Package Food)Pet Food & Pet SuppliesBaby / Kid Food Products & Infant FormulasAuto parts & accessoriesLarge home appliancesHome improvement items & toolsPersonal care & household productsSporting GoodsOffice & school supplies for home useChildrens Toys and Childrens DurablesHome furnishings & AccessoriesHandbags & Accessories0% 10% 20% 30%Past 12 Months Next 12 Months2%30%13% 41%ONLINE GROCERIES MARKET SHARE OFOVERALL GROCERY SALESMILLENNIALS SHOP ONLINEYOUNGER MILLENNIALS (18-25)OLDER MILLENNIALS(26 - 34)CouponingBRAND MARKETERS PRIMARY OBJECTIVES IN 2017Increase couponredemption 19%Increase couponredemption 19%Mobile Marketing & Planning Report - 3Cinteractive36% Coupon Deliveryreceived the strongest vote for a plan to grow mobile marketing impactMobile Marketing & Planning Report - 3Cinteractive40% consumers have left a store because they left their coupon at homeMobile Marketing & Planning Report - 3CinteractiveWhen asked what innovations theyd like to see when grocery shopping, consumers pointed topromotions and coupons customized to their personal shopping habits as the top improvement area.Mobile Marketing & Planning Report - 3Cinteractive$15.4BSales 2015 % change+8.4%433 Stores across:96%4%U.SOthers2014 SalesAverage store size (2015)38,000 square feetStats: Whole Foods Market65%SALES COME FROM PERISHABLESStats: Whole Foods MarketSAME-STORE SALESDROPPED2.5%IN FISCAL 2016This was the fourth consecutive quarterly decline. Whole Foods has been in its worst sales slump since 2009. 33%SALES COME FROM EXCLUSIVEBRANDS & PREPARED FOODSLaunch of 365 by Whole Foods MarketLower cost and convenience-focused store that offers mostly Whole Foods private-label itemsHas more automated and mobile checkout options, and provides other cost and time efficiencies.DIGITAL COUPONSFast Food industry in numbersTaking on a Value StrategyWhole Foods started an initiative to give out digital coupons as an incentive to price-conscious shoppers who would value the discounts and download the Whole Foods mobile app to get them.Whole Foods Market is the leading Apple Pay retailer in both transactions and salesLOYALTY PROGRAM10 percent off thenew membersfirst purchaseOne-time coupon good for 15 percent off any departmentand select free products1 2We are going to continue to maintain our standardsand promote our higher quality products.Promotions and price investments are becomingan integral part of our conversation, but we arenot participating in a race to the bottom.A.C. Gallo, Whole Foods Market President & CEOWhole Foods MarketingWhole Foods launched its first-ever national brand campaign in 2014Advertising Expenses in 2015$89MOur priorities include progressing to an always-on unified marketing and media plan, using insights from our customer data and analytics to improve the relevancy, effectiveness and efficiency of our value and marketing investments; intensifying our personalization efforts, including the roll-out of our optimized rewards program to all U.S. storesJohn MacKay, co-founder & co-CEO WFMInstacart, an internet-based grocery delivery service, offers fresh grocery delivery to more U.S. homes than any other food retailer PURPLE CARROT PARTNERSHIPIn 2016, Whole Foods Market partnered with Purple Carrot to sell vegan meal kits in their stores. Its the first in-store point of sale for Purple Carrot, which until now has been purely e-commerce. The move is expected to appeal to the millennial market.MILLENNIALGROCERYSHOPPERSQUICK DEFINITION:Millennial Grocery Shoppers Our Millennial Grocery Shopper demographic refers to millennial consumers shopping at Whole Foods top competitors, like Safeway, Kroger and Trader Joes. Weve excluded Whole Food Market fans in order to better highlight the differences between Whole Foods current fans and the consumers buying the competition.47%30%60%090%13-1718-24 25-34 35-44 45-54 55-6467%FEMALE42%MARRIED62%WITH CHILDRENBEAUTY & WELLNESS168.3FOODIES167.9HEALTHCONSCIOUS144.4HOME DECORATORS & DIYs143.783%Millennial Grocery ShoppersCompare the Millennial Grocery ShoppersDemographic with Whole Foods AudienceWhole Foods Market audience overlaps with our Millennial Grocery Shoppers demographic by 80% in top interests, including: Beauty & Wellness, Fashion, Health and Home & GardenMILLENNIAL GROCERY SHOPPERS:BEAUTY & WELLNESSWhole Foods audience over indexes as Beauty & Wellness Aware (172.3)Like Millennial Grocery Shoppers, they are enthusiastic about cosmetics (cosmetic connoisseurs 189) and physical activities (Active & Fit 192.8)Skin care products collect very high popularity points (172.7)COSMETICSCONNOISSEURS184.0ACTIVE & FIT169.2BEAUTY & WELLNESSAWARE168.3CLICK HERE TO SEE TOP BEAUTY BRANDSSKINCARE170.1WHOLE FOODS AUDIENCE CROSSOVERShttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttps://goo.gl/J7XtueMILLENNIAL GROCERY SHOPPERS:FOODWhole Foods audience over indexes as Foodies (Foodies 153.9).They are Thoughtful Eaters (198.2) and enjoy cooking at home (Home Chefs 193.8).Organic & Natural Foods top the ranking with 194.3 popularity points, which makes sense since this demographic enjoys Fruit & Vegetables (179.5)CLICK HERE TO SEE THEIR FOOD BRANDSFRUIT &VEGETABLESFOODIES167.9POPULARITYCLICK HERE TO SEE THEIR FAVORITE RETAIL STORESTHOUGHTFULEATERS181.5 POPULARITY176.0 POPULARITYWHOLE FOODS AUDIENCE CROSSOVERShttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttps://goo.gl/J7XtueWhole Foods audience over indexes as Home Decorators & DIY (175.9).Like Millennial Grocery Shoppers, they enjoy watching Home & Leisure Channels (177.7) and reading Home & Garden Magazines (173.5).MILLENNIAL GROCERY SHOPPERS:HOME & GARDENHOME DECORATORS& DIYs157.9POPULARITYHOME & LEISURECHANNELS128.5POPULARITYHOME &GARDEN MAGAZINES122.7POPULARITYCLICK HERE TO SEE THEIR FAVORITE HOME & LEISURE CHANNELSWHOLE FOODS AUDIENCE CROSSOVERShttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttps://goo.gl/J7XtueWhole Foods audience is equally interested in Kids-related websites (147.6) but less interested in Daily Deal Websites (145.0).Regarding mobile apps, Whole foods consumers over perform Millennial Grocery Shoppers in both Food & Drink (176.3) and Health & Fitness (180.8) apps.MILLENNIAL GROCERY SHOPPERS:WEB & MOBILEFOOD & DRINK151.5HEALTH & FITNESS141.7TOP APPSCLICK HERE TO SEE THEIR FAVORITE APPSDAILY DEAL WEBSITES158.1KIDS147.6TOP WEBSITESCLICK HERE TO SEE THEIR FAVORITE WEBSITESWHOLE FOODS AUDIENCE CROSSOVERShttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttp://bit.ly/2dkYpovhttps://goo.gl/oKTJhohttps://goo.gl/J7XtueCONSUMER INSIGHTS SUITEDiscover more about Whole Foods Markets consumersTRY NOW FOR FREE >on Cubeyou Consumer Insights Suitehttps://goo.gl/J7Xtuehttps://goo.gl/RgJVEVhttps://goo.gl/RgJVEV