Strategic Plan for Woolworths/Macro Wholefoods

•Run specials and promotions to introduce customers to wholefoods.

•Increase product line to offer a full selection of wholefoods alternatives and support them with marketing.

Woolworths has to convince consumers that it is serious about its Macro wholefoods division. To do

so, the following steps are recommended:

•Wholefoods value must be accepted and promoted on all levels.

•Floor staff must be trained and educated about the benefits of wholefoods and must be able to answer customers’ questions and address their concerns.

•AT the board level, there should be a board member exclusively representing the wholefoods division, driving, and promoting it.

•Wholefoods selections available in supermarkets must be approved and recommended by the team of expert nutritionists employed by Macro.

•Their professional advice and support must be available on the website.

7.3Supply chain strategy (R&D, Supplier relationship management)

Woolworths’ main strategies are the 'Fresh Food People' and 'Everyday Low Prices' strategies to deliver quality products and services to its customers at low costs (Woolworths Limited, 2011). This shows Woolworths’ cost leadership strategy in its non-organic/conventional food market. Woolworths should apply the same cost leadership strategy to its Macro food products by utilising its core competency of supply chain management. In addition, Woolworths should dedicate a separate R&D centre for its existing and new organic products.

Inconsistent supply, storage and distribution are the biggest obstacles to this plan (Australian Bureau of Agricultural and Resource Economics, 2004). To overcome this, Woolworths should adopt collaborative marketing approach to organise its suppliers and organic farmers to maximize supply chain and efficiently drive down the cost of organic products.