PESTEL WHOLE FOODS MARKET

Topics: Organic food, Customer service, Whole Foods Market Pages: 9 (1287 words) Published: March 13, 2014
PESTEL ANALYSIS
Political factors
- A government that is based on“A healthier you” strategy - Reporting of organic prices
- Safety inspections Services

==> Positive impact
Economic factors
- Increase of 3.9% in the third quarter
- Real Personal Consumption expenditures (increase of 3% in the third quarter) - Temporary Personal Income (increase of 6.1% in the third quarter) - European Markets : Weak dollar against Euro, increase in the interest rates.

==> Moderate impact
Socio-cultural factors
- Increase a more healthy consciousness spirit.
- Social pressures regarding the environment and animal welfare. - Trend to cook organic products with Whole Foods market's cooking initiation. - Greater knowledge of links between health issues and food.

==> Positive impact
Technological factors
- New Internet capabilities : On line shopping service
- Improved telecommunication facilities (distribution and retailing of goods) - Improved technology for processing of goods.

==> Weak impact
Environmental Factors
- less than 1% of US farmland certified organic in 2004
- Recycling and Energy consumption
- Products without pesticides, chemicals..

==> Positive impact
Conclusion to PESTLE Analysis
We can conclude that the macro environment of Whole Food Markets has a good impact.  The most important point that we have to notice is that the company instructs to its team and its customers a particular intention to the environmental issues and concerns.

KEY SUCCESS FACTORS

Strong brand name
Good sales and communication : events ( Valentine's day), customers' invitation, cooking and massage initiation, customer services, limited advertising but marketing through word of mouth.. Merchandising : how they place their products

Control quality processes : Products quality without pesticides, chemicals products. Products 100% natural. A good place strategy : they try to implement in the big city and center town where they can target a lot of consumers. Large differentiation in their products

Good marketing impact : packaging,
Strong ethic : missions and visions, employee skills, training and experience Technology and innovation : The company gives tips and ideas about healthy recipes for children in their website (annexe) Strong supplier network

Niche : educated and wealthy customers who are willing to pay premium products. Emotional involvement and customers' experience

Technology and innovation-related
- on line shopping service
- The company gives tips and ideas about healthy recipes for children in their website (annexe) Manufacturing-related
- Large differentiation in their products
- They pay small-scale producers a price for their products that more than covered the producer's costs in order to maintain the growth, creativity and the lifestyle of their producers Purchasing and Distribution-related

- The company purchased most of the retailed in the company's stores from local, regional and national suppliers and vendors in order to have a better position to negotiate volume discounts with major vendors and distributors -They have nine regional distribution centers to supply its stores -Strong supplier network

-A good place strategy : they try to implement in the big city and center town where they can target a lot of consumers

Marketing-related
- Most of their marketing budgets on in-store signage and store events such as taste fairs, classes, and product samplings - 0.5% of its revenues is spent on advertising
- Good sales and communication : events ( Valentine's day), customers' invitation, cooking and massage initiation, customer services, limited advertising but marketing through word of mouth.. - Merchandising : how they place their products

Skills-related
- Niche : educated and wealthy customers who are willing to pay premium products - Strong ethic : missions and visions, employee skills, training and experience - The company invests in training and...
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