Unit 3 WHOLE FOODS MARKET Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author: Patricia Harris
Professor: Dr. William Quisenberry
Date: July 7, 2015

Name of Case Study
Company Name: Whole Foods Market 2010
Topic of the Week: How to Grow in an Increasingly Competitive Market? Synopsis of the Situation
The food industry as we knew it changed in 1980 when Whole Foods Market founders John Mackey and Renee Lawson Hardy introduced the world to their company. The concept of its natural food and promotion of healthier choices made consumer take a closer at their dietary decisions. With humble beginnings Whole Foods Market opened its first store with only 19 employees and with great growth they now have 53,500 employees, 289 stores in United States, United Kingdom and Canada. The world’s largest retailer of natural and organic food is the title that this company inherited. Their strategy of targeting the locations with highly educated and health conscience consumers have proven to be beneficial for the company. Unfortunately as our economy is going a period of decrease Whole Foods will also feel the decrease as the competition offer products like their but at a lower price. Eating healthy has a high cost associated with it; Whole Foods will need to create or invent away to retain their current consumers and secure other consumers to continue to be recognized as the leading of their industry.
Alternative Solutions
1. Whole Foods Markey should build a campaign around their 365 Everyday Value products. It will show the consumers that they care about their choice of healthy eating and their pockets too as well.
2. Whole Foods Market should create a rewards or incentive program that is gear towards the saving the consumer money and securing loyalty. They could give the consumer free membership cards that is swiped with each purchase where there is a reward or status level associated with for savings or free items.
3. They should start a “Pesticides aside” campaign where they go in to untapped farming community and teach them the advantages of organic farming. Once they are on board add them to the Whole Foods Market family for local distribution; therefore cutting down on the need to transport to that area.
Selected Solution to the Problem
Whole Foods Market is a highly recognized and respected company; however, so is the cost associated with healthy eating. The cost during the economic slump may cause consumers to fall back to unhealthy habits or substitute the organic needs with a competitor a discounted price. In order to remain the giant of the industry, Whole Foods must create a way to save the consumers money while still providing that great quality of organic food.
One of the recommendations would be to offer an incentive or reward to their customers. Promote a free membership campaign that could managed with a physical card or digital, that way you covered the traditional customers and the high tech customers well. Each time they shop either you scan their card or mobile device to add points that will go towards discounted or free items. When a customer is aware that they are spending to save money in the future, it becomes an unconscious desire to reach that goal. The reward has to easily obtainable with a frequency that would keep them loyal.
Implementation
Whole Foods Market needs to find a way to get the word out about the Free Membership with benefits to their current customers and future customers. The marketing team should build a campaign that is communicated through several different venues: in store advertising, printed out on the back of the receipts, capturing email addresses at check out to send information, online infomercials and the local print circular.
The membership can be managed via the bottom of the receipt letting the customer know their status, online through Whole Foods website under a tab “membership only club” or