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Strategic Plan for Woolworths/Macro Wholefoods

8 Action Plan for Business-level strategy

8.1 Focused Differentiation Strategy towards Differentiation Strategy

Macro is to adopt a focused differentiation strategy for the years 2012-2015 applied to the specific wholefoods in a selected retail foods market segment. For the strategy to be successful, it has to be supported at all the levels. Woolworths has to convince consumers that it is serious about its Macro wholefoods division. To do so, the following steps are recommended:

No

Task or Actions

Responsibility

Target

Time line

1.

Adopt and follow a focused diversification

All levels of the

To capture a

For the years

 

strategy applied to the specific wholefoods

company

niche in

2012-2015

 

in a selected retail foods market segment

 

growing market

 

 

 

 

 

 

2.

Wholefoods value must be accepted and

All levels of the

To convince

From 2012

 

promoted on all levels

company

consumers that

onwards

 

 

 

Macro is

 

 

 

 

serious about

 

 

 

 

wholefoods

 

 

 

 

 

 

3.

Train and educate floor staff about the

HR Department

To convince

Should be

 

benefits of wholefoods for them to be able

 

consumers that

completed in

 

to answer customers’ questions and

 

Macro is

Next six months

 

address their concerns

 

serious about

 

 

 

 

wholefoods

 

 

 

 

 

 

4.

Select a board member representing

Senior

To give

In the beginning

 

exclusively wholefoods division, driving and

executives and

wholefoods

of 2012

 

promoting it

board members

division support

 

 

 

 

to grow

 

 

 

 

 

 

5.

Employ a team of expert nutritionists

R&D

To recommend

In the beginning

 

 

Department

and approve

of 2012

 

 

 

wholefoods

 

 

 

 

selection for the

 

 

 

 

supermarkets

 

 

 

 

 

 

6.

Investigate economic benefits of Macro

Marketing and

To choose

In the years

 

changing to differentiation strategy. The

Financial

whether it is

2012-2015

 

study has to encompass all levels of both

Departments

worth changing

 

 

Macro and Woolworths and will take 12-18

 

Macro to

 

 

months

 

differentiation

 

 

 

 

 

 

 

 

AUTHORS

Page 23

 

 

 

 

 

 

 

 

Strategic Plan for Woolworths/Macro Wholefoods

 

 

 

strategy

 

 

 

 

 

 

7.

Adopt a new/ revised strategy for Macro

Board level

To choose

By the middle

 

 

strategy for the

of 2016

 

 

 

next 5 years

In 2015, the marketing and financial departments of Macro and Woolworths have to investigate economic benefits of Macro changing to differentiation strategy. The study has to encompass all levels of both companies and will take 12-18 months. In 2016, a new/ revised strategy should be adopted.

8.2 Diversification strategy: New product line

One of the action plans for expanding product lines of baby food and pet food is to develop the Woolworths’ private labels under the Macro wholefood brand.

An alternative implementation method is to acquire existing entities that manufacture organic products for either babies or dogs. This would likely be a faster but more costly way to enter the market. As mentioned earlier, there have already been several organic food companies in Australia, which mean there are several potential targets. Most of them are independent, relatively small and low-profile companies. Some of them may be in a critical stage of their business and have financial difficulty. Others may look for a well-developed distribution channel, which is one of Woolworths’ core competencies. This dictates that the possibility of mutual benefits exist, if the right target can be found. If the contract is signed successfully, HR team need to restructure with hiring and firing employees and give them training in order to adopt the Woolworths corporate culture.

No

Task or Actions

Responsibility

Target

Time line

 

 

 

 

 

1.

Investigate economic benefits of

Marketing

To choose

Beginning of

 

developing a private label under Macro

Department

Product line

2012

 

brand (A) vs acquiring existing stores or

 

extension plan

 

 

manufacturers (B). Choose plan A or B

 

 

 

(A) Developing Private Labels under Macro brand

 

 

AUTHORS

Page 24

 

 

 

 

 

 

 

 

Strategic Plan for Woolworths/Macro Wholefoods

2.

(A) Develop the Woolworth's private labels

R&D

To expand

From 2012

 

under the Macro wholefood brand

Department

product lines of

onwards

 

 

 

baby food and

 

 

 

 

pet food

 

 

 

 

 

 

3.

(A) Form a project team who will be

R&D

To expend

Should be

 

responsible for the entire new R&D division

Department

product lline

completed in

 

and hire nutritionist(s).

 

and develop

next six months

 

 

 

private label

 

 

 

 

 

 

4.

(A) Conduct market research to identify

Marketing

To determine

By the end of

 

customer needs

Department

what customers

2012

 

 

 

really demand

 

 

 

 

and how to

 

 

 

 

differentiate

 

 

 

 

organic

 

 

 

 

products from

 

 

 

 

existing

 

 

 

 

products

 

 

 

 

 

 

5.

(A) Build and test prototypes of new

Nutritionists

To get ready to

By the end of

 

products and launch new products

and R&D

launch the

2013

 

 

Department

products under

 

 

 

 

private label

 

 

 

 

 

(B) Acquiring existing stores or manufacturers

 

6.

(B) Acquire existing entities which

Business

To expand

 

 

manufacture organic products for either

Development

Product Line

 

 

babies or dogs

Department

 

 

 

 

 

 

 

7.

(B) Investigate existing organic

Marketing

To identify

Beginning 2012

 

manufacturers with a focus on their

Department

potential

 

 

upstream relationships

 

takeover

 

 

 

 

targets

 

 

 

 

 

 

8.

(B) Choose manufacturers whose product

Business

Narrow down

By the middle

 

standards comply and determine whether

Development

the choice of

of 2012

 

they satisfy with the already developed

Department

manufacturers

 

 

products or require product modification or

 

 

 

 

customization

 

 

 

 

 

 

 

 

9.

(B) Identify and acquire the manufacturer

Investment

To finish

By the end of

 

 

Team

acquisition

2012

 

 

 

 

 

In implementing their diversification strategies, Woolworths requires restructuring a business model

 

 

AUTHORS

Page 25

 

 

 

 

 

 

 

 

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