Whole Foods Market Case 2

Topics: Whole foods, Organic food, John Mackey Pages: 4 (874 words) Published: March 18, 2015


WHole foods MARKET
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Whole Foods Market
1. What are ‘natural foods’? Is ‘natural foods’ a good business definition? What opportunities do natural foods offer for producers, distributors, retailers?
In my own words I would describe ‘natural foods’ as foods that are literally by definition, natural. Not processed, no chemicals, additives, and any other elements to produce the food. The natural foods market as a whole includes “natural” products, including “sustainably developed,” “grown under fair trade,” and “green friendly, which all form the definition of ‘natural foods’. When interpreting ‘natural foods’ with the above definition, I would conclude it to be a very good business definition. The opportunity offered by natural foods is endless in terms of business. Based on a market research, there is great motivation in purchases of natural products including: 66% health/nutrition, 38% taste, 30% food safety, 26% environment, and 16% availability. For organic food producers, their acreage grew significantly due to the high demand of these organic products and to take advantage of higher margins. Natural product producers benefitted versus a convention chemical-intensive system because of the price premiums and greater profits. Manufacturers and distributers of natural products need to develop specific and distinctive pipelines in order to maintain organic integrity through the distribution chain. Organic foods are more perishable than conventional foods so they require faster and more careful handling. The competition is slight in this regard, due to the specifics of organic product distribution offering more to the distributer. Retailers are offered the opportunity to sell these natural products which provides them with something people want. With organic foods increasing in popularity and consumption, retailers are benefiting tremendously with the sale of these goods. 2. What is Whole Foods’ strategy? How has it adapted over time?...
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