whole foods market pitch

NEW BUSINESS PITCH

Whole Foods, Whole People, Whole Planet.

December 2016

NAME BRAND PITCH TYPE

Media

MARKET DATE

November 21 , 2016

The Data You Need to Win This Pitch

DESCRIPTIONUpscale 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. It’s 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 brand’s 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

Review

thU.S.

Client Profile / Market

Whole 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 BACKGROUND

MAIN COMPETITORS

2015 Sales (mil)

2015 Employees

Employee Growth Percent

Assets (mil)

Net Income Growth Percent

Sales Growth Percent

15,390

90,900

+4.2

-

-

+8.4%

Ms. Natanya P. AndersonSenior Marketing Director, 365

Mr. John MackeyCo-Founder and Chief

Executive Officer

DECISION MAKERS by

[email protected]

[email protected]

U.S. Grocery Market

$ 649B TOTAL SUPERMARKETSALES

1.3% SALES GROWTH2011 - 2016

3.4M EMPLOYEDPEOPLE

38K SUPERMARKETSIN US ($2 million or more in annual sales)

- FMI.com -

- Ibis World -

- FMI.com -

- FMI.com -

A Deeper Look into the Grocery Market

consumers choose their primary grocer is becauseit’s conveniently located to where they live or work.

#1 REASON$107.34Weekly Household

Grocery Expense

1.5Average # of Trips to Supermarkets per Week

46,000 ftMedian StoreSize

- FMI.com -

- FMI.com -

- FMI.com -

Warehouse Clubs are gaining ground in the retail space

- NPD Group -

$420B

Warehouse Clubs added

660kJobs between 2000 and 2015

- NPD Group -

Warehouse Clubs Sales in 2013

WAREHOUSE CLUBSSALES GREW

10.5xBETWEEN 1992

AND 2013

• •

• • • •

A 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 Compete

Krogerplans to invest

$2.5 million to build aculinary center in

Cincinnati where it’s headquartered in order

to train the chefs inall its stores, and provide

a forum for them toshare ideas andbest practices.

Similarly, Walmartrecently debuted its

Culinary & Innovation Center where it plans to

develop new privatelabel and branded

food items.

SelectWhole Foods Markets

feature amenities like a puttinggreen (Augusta, Georgia)

and a spa (Boston),and some have

bike repair stations.

ShopRite in Morristown,New Jersey offers an

in-store restaurant,juice bar, oyster bar

and even a daycare centerfor parents with children

in tow. A store in Hanover Township in New York

includes a fitness studioand a cosmetologist

on weekends.

Online Groceries

IN THE US, ONLINE GROCERY PENETRATION IS EXPECTED TO INCREASE FROM 8% TO 26% FOR FRESH FOODS &16% TO 28% FOR PACKAGED

Groceries (Fresh Food)

Groceries (Package Food)

Pet Food & Pet Supplies

Baby / Kid Food Products & Infant Formulas

Auto parts & accessories

Large home appliances

Home improvement items & tools

Personal care & household products

Sporting Goods

Office & school supplies for home use

Children’s Toys and Children’s Durables

Home furnishings & Accessories

Handbags & Accessories

0% 10% 20% 30%

Past 12 Months Next 12 Months

2%

30%

13% 41%

ONLINE GROCERIES’ MARKET SHARE OFOVERALL GROCERY SALES

MILLENNIALS SHOP ONLINE

YOUNGER MILLENNIALS (18-25)

OLDER MILLENNIALS(26 - 34)

Couponing

BRAND MARKETERS’ PRIMARY OBJECTIVES IN 2017

Increase couponredemption 19%Increase couponredemption 19%

“Mobile Marketing & Planning Report” - 3Cinteractive

36% Coupon Deliveryreceived the strongest vote for a plan to grow mobile marketing impact


40% consumers have left a store because they left their coupon at home


When asked what innovations they’d like to see when grocery shopping, consumers pointed topromotions and coupons customized to their personal shopping habits as the top improvement area.


$15.4BSales 2015 % change

+8.4%

433 Stores across:96%

4%

U.S

Others

2014 Sales

Average store size (2015)

38,000 square feet

Stats: Whole Foods Market

65%SALES COME FROM PERISHABLES

Stats: Whole Foods Market

SAME-STORE SALESDROPPED

2.5%IN FISCAL 2016

This was the fourth consecutive quarterly decline. Whole Foods has been in its worst sales slump since

2009.

• • •

• • •33%

SALES COME FROM EXCLUSIVEBRANDS & PREPARED FOODS

Launch of 365 by Whole Foods Market

Lower cost and convenience-focused

store that offers mostly Whole Foods private-label items

Has more automated and mobile checkout options, and provides other cost and time

efficiencies.

DIGITAL COUPONS

Fast Food industry in numbersTaking on a Value Strategy

Whole 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 sales

LOYALTY PROGRAM10 percent off thenew member’sfirst purchase

One-time coupon good for 15 percent off any departmentand select free products1 2

“We 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 are

not participating in a race to the bottom.”

A.C. Gallo, Whole Foods Market President & CEO

Whole Foods Marketing

Whole Foods launched its first-ever national brand

campaign in 2014

Advertising Expenses in 2015

$89M

“Our 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. stores”

John MacKay, co-founder & co-CEO WFM

Instacart, an internet-based grocery delivery service, offers fresh grocery delivery to more U.S. homes than any

other food retailer

PURPLE CARROT PARTNERSHIP

In 2016, Whole Foods Market partnered with Purple Carrot to sell vegan meal kits in their

stores. It’s 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.

MILLENNIALGROCERY

SHOPPERS

QUICK DEFINITION:Millennial Grocery Shoppers

Our Millennial Grocery Shopper demographic refers to millennial consumers shopping at Whole Foods’ top competitors, like Safeway, Kroger and Trader Joe’s.

We’ve excluded Whole Food Market fans in order to better highlight the differences between Whole Food’s current

fans and the consumers buying the competition.

47%

30%

60%

0

90%

13-17

• • •

• • •

18-24 25-34 35-44 45-54 55-64

67%FEMALE

42%MARRIED

62%WITH

CHILDREN

BEAUTY & WELLNESS

168.3

FOODIES

167.9

HEALTHCONSCIOUS

144.4

HOME DECORATORS & DIYs

143.7

83%

Millennial Grocery Shoppers

Compare the Millennial Grocery ShoppersDemographic with Whole Foods’ Audience

Whole Foods’ Market audience overlaps with our Millennial Grocery Shoppers

demographic by 80% in top interests,

including:

Beauty & Wellness, Fashion, Health and

Home & Garden

MILLENNIAL GROCERY SHOPPERS:BEAUTY & WELLNESS

Whole 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)

COSMETICSCONNOISSEURS

184.0ACTIVE & FIT

169.2

BEAUTY & WELLNESSAWARE

168.3

CLICK HERE TO SEE TOP BEAUTY BRANDS

SKINCARE

170.1

WHOLE FOODS’ AUDIENCE CROSSOVERS

http://bit.ly/2dkYpov

https://goo.gl/oKTJho

https://goo.gl/J7Xtue

MILLENNIAL GROCERY SHOPPERS:FOOD

Whole 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 BRANDS

FRUIT &VEGETABLES

FOODIES167.9POPULARITY

CLICK HERE TO SEE THEIR FAVORITE RETAIL STORES

THOUGHTFULEATERS181.5 POPULARITY

176.0 POPULARITY







Whole 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 & GARDEN

HOME DECORATORS& DIYs

157.9POPULARITY

HOME & LEISURECHANNELS

128.5POPULARITY

HOME &GARDEN MAGAZINES

122.7POPULARITY

CLICK HERE TO SEE THEIR FAVORITE HOME & LEISURE

CHANNELS





Whole 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 & MOBILE

FOOD & DRINK151.5

HEALTH & FITNESS141.7

TOP APPS

CLICK HERE TO SEE THEIR FAVORITE APPS

DAILY DEAL WEBSITES158.1

KIDS147.6

TOP WEBSITES

CLICK HERE TO SEE THEIR FAVORITE WEBSITES







CONSUMER INSIGHTS SUITE

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whole foods market pitch

Data & Analytics