- •Executive Summary
- •Introduction
- •Company overview
- •External environment analysis
- •Trend analysis
- •Industry analysis
- •Competitors analysis
- •Strategic group map
- •Customer analysis
- •Summary of external position in the environment
- •Internal environment analysis
- •Present strategy
- •Core competencies
- •Organization Structure
- •Summary of internal position
- •Proposed vision and mission
- •Proposed strategies: Business-level strategy
- •Focused differentiation strategy towards Differentiation strategy
- •Diversification strategy: New product line
- •Baby Food Product Line
- •Pet Food Product Line
- •Organisation structure
- •Proposed strategies: Functional-level strategy
- •Financial strategy
- •Marketing strategy
- •Emotional Positioning or price positioning of organic food
- •Market Segmentation – increase customer base and brand awareness
- •Demand Forecast Model
- •Customer loyalty program
- •Separated versus Integrated Approach
- •Supply chain strategy (R&D, Supplier relationship management)
- •Action Plan for Business-level strategy
- •Focused Differentiation Strategy towards Differentiation Strategy
- •Diversification strategy: New product line
- •Action Plan for Functional-level strategy
- •Finance
- •Marketing
- •Supply Chain
- •Action Plan Summary
- •Conclusion
- •Appendices
- •Appendix A: Competitors analysis
- •Appendix C: Dog Food Trend Analysis
- •Appendix D: Surveys of dog owners
- •Appendix E: Separated Approach shelf image
- •Bibliography
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 |
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2. |
Wholefoods value must be accepted and |
All levels of the |
To convince |
From 2012 |
|
|
promoted on all levels |
company |
consumers that |
onwards |
|
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|
Macro is |
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serious about |
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wholefoods |
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3. |
Train and educate floor staff about the |
HR Department |
To convince |
Should be |
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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 |
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serious about |
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wholefoods |
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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 |
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to grow |
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5. |
Employ a team of expert nutritionists |
R&D |
To recommend |
In the beginning |
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|
Department |
and approve |
of 2012 |
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wholefoods |
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selection for the |
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supermarkets |
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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 |
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|
|
Macro and Woolworths and will take 12-18 |
|
Macro to |
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months |
|
differentiation |
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AUTHORS |
Page 23 |
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Strategic Plan for Woolworths/Macro Wholefoods
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strategy |
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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 |
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(A) Developing Private Labels under Macro brand
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AUTHORS |
Page 24 |
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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 |
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baby food and |
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pet food |
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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 |
|
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4. |
(A) Conduct market research to identify |
Marketing |
To determine |
By the end of |
|
customer needs |
Department |
what customers |
2012 |
|
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|
really demand |
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and how to |
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differentiate |
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organic |
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products from |
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existing |
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products |
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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 |
|
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private label |
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||
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(B) Acquiring existing stores or manufacturers |
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6. |
(B) Acquire existing entities which |
Business |
To expand |
|
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manufacture organic products for either |
Development |
Product Line |
|
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babies or dogs |
Department |
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7. |
(B) Investigate existing organic |
Marketing |
To identify |
Beginning 2012 |
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manufacturers with a focus on their |
Department |
potential |
|
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upstream relationships |
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takeover |
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targets |
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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 |
|
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products or require product modification or |
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customization |
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9. |
(B) Identify and acquire the manufacturer |
Investment |
To finish |
By the end of |
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Team |
acquisition |
2012 |
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In implementing their diversification strategies, Woolworths requires restructuring a business model
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AUTHORS |
Page 25 |
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