Strategic Plan for Woolworths/Macro Wholefoods
12 Appendices
Appendix A: Competitors analysis
•Coles Group (estimated share market 31%), a part of Wesfarmers, is also one of Australia’s leading retail organisations with brands including Coles and BI-LO supermarkets, and several liquor retailing. Coles is currently operating 754 supermarkets throughout Australia (IBISWorld, 2011) and employing over 91,600 team members (GAIN Report, 2007). They carry more than 500 products in Coles’ organic range from baby, dairy, fruit and vegetables, grocery to meat products (GAIN Report, 2007).
•Independent Grocers of Australia, IGA, (estimated share market 7%) is introduced to the market by Metcash Trading Limited in 1988. More than 1,650 stores trade under the banners Foodland IGA, Supa IGA, IGA/IGA Everyday, IGA Express, Friendly Grocer and Eziway (IBISWorld, 2011). IGA Distribution has 12 distribution centers carrying around 21,000 items (GAIN Report, 2007).
•ALDI Supermarkets (estimated share market 4%) is the German based international discount chain which entered Australian market in 2001 and currently has 230 stores throughout in NSW, ACT, Victoria and Queensland (IBISWorld, 2011). They success is attributed to their focus on a narrow product range and targeted at a specific demographic (GAIN Report, 2007). An estimated 95 percent of their products are ALDI’s private label or home brands (IBISWorld, 2011). They adopted organic lines, but are yet to supply full range of organic products.
•Australian United Retailers, AUR, (estimated market share 2.3%) merged with Foodworks and trade under the Foodworks banner. The merged entity operates over 670 stores to serve everyday groceries (IBISWorld, 2011).
•Franklins (estimated share market less than 1%) is a discount supermarket chain throughout NSW. They are currently operating 82 stores in NSW as of 2009 (IBISWorld, 2011).
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•SPAR Australia (estimated market share less than 1 %) entered the Australian market in 1994 and currently operates 230 stores (IBISWorld, 2011).
•James Street Market + Ferry Road Market attempt to offer the freshest fruit & vegetables and the highest level of personalized customer service in Brisbane and on the Gold Coast (Ferry Road Market, 2011). Their products are not necessarily organic; however, they must become a tough competitor to Macro Woolworths in terms of a high-end market.
•Flannerys is an organic food retail chain with 9 stores in Queensland for over 20 years. By focusing on a wide range of healthy, organic and environmentally friendly, and prices are competitive products, they have been successful since they open (Flannerys Natural Grocers, 2011).
•Wray has been operating 5 stores in the areas of Brisbane and the Gold Coast since 2005. Their focus is to provide extraordinarily clean and nutritious food at a reasonable price. All produce is Australian grown and sourced from local certified organic growers (Wray Organic, 2011).
•Individual local organic product retailers are usually small entities and lifestyle business which the owner runs daily operations to earn just enough profits to maintain the business. There are a large amount of local retailers, born and die every day, all over in Australia.
•Farmers’ market would be also powerful competitors to Macro because they are predominantly fresh food market that operates regularly and locally, directly from farmers and (GAIN Report, 2007). Several markets also focus on organic produce, such as Miami High School in Queensland (GAIN Report, 2004).
Appendix B: Baby Food Companies
Bellamy's Baby Organic products are the only producer of certified organic babies' and children's foods, made in Australia, from birth through to 3 years. The product range includes formulas, teething rusks, cereals, pastas, fruit snacks, rice cakes and fruit bars - all of which are certified organic by the National Association for Sustainable Agriculture, Australia (NASAA) (Bellamy's, 2008).
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Strategic Plan for Woolworths/Macro Wholefoods
Babynat Organic Baby Food is imported from Europe and distributed by a Gold Coast company. Babynat organic products are certified organic by Ecocert International in Europe and the UK Soil Association without using pesticides or chemical fertilisers. Their product range is cereals, biscuits, infant formula and fruit and vegetable jars (Organic Choice Pty Ltd, 2009).
Holle carries a range of baby cereals and a baby formula, in Australia. The ingredients used in Holle's baby food range come from bio-dynamic or organic agriculture with no ingredients made from gene technology including crystallized sugar, table salt, and colours or preservatives (Bio Living, N/A).
The Organic Bubs is owned by sisters who both are mothers and nutritionists. Their product range is certified organic baby meals jam packed with quality ingredients, which qualities are what they would feed their babies (Organic Bubs, N/A).
Heinz Organic baby foods are certified organic and have been tested and approved by the Biological Farmers of Australia (BFA). This endorsement is on the label of all organic products made by Heinz for sale in Australia. Most supermarkets stock Heinz organic baby food products (Heinz, N/A); however not treated as special.
Appendix C: Dog Food Trend Analysis
Global Trends of the Dog Industry
Economically developed and advanced countries in terms of pet care such as the US, UK and Japan have had a significant early lead in enhancing the quality of pet’s lives, especially food and treatment. Their motivations of starting businesses were similar in necessities of the real food that they wanted to feed their precious family members in the first place while majority of conventional dog food is highly processed animals carcass mixed with flours and vitamins added.
Australia
The SundayMail (June 26, 2011) reported that dog owners in Australia are also spending large amounts on their dogs and it is still increasing. In addition to this, another article from the same resource (July 17, 2011) addressed the concern of sulphur dioxide levels in dog food, which can
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destroy Vitamin B (thiamine) levels causing neurological breakdown in cats and dogs. The dog food from VIP Pet Foods had the highest sulphur dioxide level at 1140mg/kg, despite their website appealing "keeps sulphur dioxide at a minimum, at just 2mg/kg" (V.I.P. Pet Foods, 2011). The RSPCA has started a movement for new laws to ensure there is enough thiamine in pet food. Owners are becoming concerned about their dogs’ health and food.
Domestic Pet Industry Analysis
Australia has one of the largest numbers of pet ownership in the world with more than 36% of households owning dogs (Australian Companion Animal Council Inc., 2009). Seen in a graph below, along with increasing the number of households with pet, revenue in the pet industry and its domestic demand, which indicates the usage of goods and services, have been growing until 2011 and also expected furthermore towards 2015.
Graph 1: Growth of the pet industry revenue and its domestic demand
Source IBIS World (2011)
Revenue ($m) |
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Domestic Demand($m) |
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Households with pet (%) |
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$9,500 |
65% |
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$9,000 |
64% |
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$8,500 |
63% |
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$8,000 |
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62% |
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$7,500 |
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$7,000 |
61% |
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$6,500 |
60% |
Seen in Table 1 and 2 below, in Queensland, approximately 41.3% of households had at least a dog in 2010, and its expenditure on dogs has increased to $3.6 billion in 2009 by 66% since 1998, especially premium dog food from $333.5 million to $486.1 million by 46% in five years (Australian Companion Animal Council Inc., 2009). This data shows that a dog owner spends $1,056 per year per dog, which has almost doubled in ten years (Australian Companion Animal Council Inc., 2009).
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