Whole Foods Market: Marketing Strategies

Paper Info
Page count 4
Word count 1266
Read time 5 min
Subject Business
Type Essay
Language 🇺🇸 US

Executive summary

This report is an analysis of marketing strategies employed by Whole Foods Market. An overview of the organization with its business specifications is detailed. The two models to be critically analyzed include; the five forces by Porter which will focus on the external environment and a SWOT analysis to measure the internal aspects. Model by porter illustrates the use of power from both the supplier and the buyer, new competitors in the market and development of product and technology. The finding shows that Whole Foods Market has been able to infiltrate markets of other economies in the world like the United Kingdom. Differentiation of the product is the key in its promotion policies. SWOT analysis points out the need for training and development of staff so as to be able to offer better good and services. The strong value system is important in establishing a rapport with the customers. (Bradford & Tarcy, 2005).

Focus is also laid on market mix. Major areas discussed include the location advantage, pricing mechanism, its promotion, distribution and developments. It is evident Whole Foods Market has taken over the market niche and with its well-built financial background it has managed to allocate various products prices with respect to the ability of the consumer. It is in the companies’ policies to continuously develop the product through research (Guiltinan, 2007).The Company makes use of clicks and bricks where the customer may place an order through the internet but picks it from any other outlets. An appreciation of interactivity and individualization is considered by Whole Foods Market. This is where the customer and the seller are kept at a close range through monitoring and evaluation measures.

The report also furnishes on the lifecycle of a product from its initial stages of idea generation to the final level where the product demand faces a downward trend. Because of the many variants available in the industry, Whole Foods Market uses a mechanism to differentiate a product from others. Integral part of product differentiations is an acute use of color, graphical displays, text, quantities, qualities and the prices (Hill & Westbrook, 2006). Therefore a consumer will fit to his or her category of needs automatically.


The company was started in the year 1980 in Austin Texas and since then has grown to own an extra two hundred and seventy stores. These stores are distributed in both North America and the UK. The company has grown to take up a dominant position in the organic foods market and is now the biggest. Since the company has a big financial base, it has employed a big workforce in its various departments. Data revealed shows that manpower with special talents and abilities have been employed to give competitive services. By doing so it has been able to secure a big customer base. The investments made in other countries simply earn foreign earnings thus boosting the base countries economy (Ulrich, 2008). Whole Foods Market participates in community development issues like diverting funds to aid various organizations such as sports. This was actualized when it sponsored swimming and rugby teams in their 2002 competition (Seglin, 2003). By so doing it shows a sense of social responsibility advocated by the government. To be able to discuss the Whole Foods Market’s competitive advantage in various areas we will consider a model by Porter. This model considers forces driving competition in the market.

Model by porter

Power from supplier

Whole Foods Market has infiltrated other countries in the world by setting up stores in other countries. The United Kingdom is one of the beneficiaries of the companies’ expansion measures. This is an indicator that it is able to manage its business market in other countries. Products sold by Telstra are of quality standards such that the customers have complete trust on their supplies. Call centers established by Telstra communications is a sign of good contact with the customers (Dev, 2007). It is clear that the procedures established to guide on transaction processes favors the customer thus that is a reason why there is a well established base.

Relevance of new competitors

There exist regulations from the government to guide on entry into the market. Since Telstra is long established company, it has managed to set up many a variety of stores in both UK and North America. This has enhanced the location advantage in that customers can easily access these products. The strategy to fight new entrants in the market is to avail its product to the customers at a real time. Adverts and promotion is also a key in its strategy to fight competitors in the field (Rothman & Wetsbrook, 2007). Branding is important when marketing its supplies. The brand name distinguishes the products from those of other companies in the market.

Product and technology development

Whole Foods Market has a continuous strategy of building on its product through a process of developing a product to respond to market needs. The prices of supplies have been adjusted for them to fit the abilities of a customer. Introducing affordable brand is crucial to the company so as to be able to make sales. The rules from the government direct that a company must be able to release a product considering its importance at such time (Hartman, 2004).

Ability of the buyer

Consumer of such a product must be able to choose between many alternatives in the market. The cost of an organic product is left to the market forces such that it is always at equilibrium. Communication is of essence at this present age, thus it is unlikely that the company misses out on sales (Grant, 2005).

Competitive aggression

Due to the process of product differentiation and improvements fewer competitors are recorded in the market. Whole Foods Market has also been able to increase both the number and sizes of its stores in the market. Quality of services ranges from basic to complex coverage (Guiltinan , 2007).

SWOT Analysis

Whole Foods Market is established on a strong ground of well trained personnel who are able to deliver. Its financial base is in a way that it is able to meet long and short term liabilities within. Strong values integrated in the company’s rules and regulation ensures that it survives the test of time. The company is also capable of meeting a wide variety of needs of the customers following its innovative nature and a market controlled prices of goods (Guiltinan , 2007).

The company faces a challenge from the management in that the process of recruiting the suitable managers has not been adequately transparent. This acts as a setback to those who want to invest in the shares of the company. Government regulations are examples of external factors which act as opportunities and also as threats to the company’s’ performance. However, when the regulations are softened by the government they become opportunities to the company’s production activities. For example, tax holidays, subsidies and incentives as well as shortened time of business registrations are important to Whole Foods Market (Bradford & Tarcy, 2005). There exist opportunities for the company both within and without. These investment areas are necessary for expansion and differentiation purposes. Well established research departments are necessary to take the products to anew level of innovativeness.


Whole Foods Market is therefore strategically placed to face the economic challenges brought by stiff competitions arising from its key competitors. As explained above the company has several opportunities as well as threats which can either facilitate its growth or demean its expansion. The key staff should work towards transforming the threats into opportunities


Bradford, R & Tarcy, B. (2005). Simplified strategic planning. 7th ed. London: Mc-Graw- Hill.

Dev et al. (2007). In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century Marketing Management. 10th ed. Minneapolis: Harcourt Publishers.

Grant, et al. (2005). Corporate Social Responsibility.5th ed. Orleans: Blackwell publishers.

Guiltinan, D. (2007). Marketing Management: Strategies and Programs.4th ed. New York: The Thomson Corporation.

Hartman, L. (2004). Perspectives in Business Ethics.8th ed. Delaware: Beauchamp publication.

Hill, T. & Westbrook, R. (2006). SWOT & Porters Analysis: It’s Time for a Product Recall. 8th ed. Prentice Hall: California.

Rothman, Howard & Sotheby, M. (2007). Companies With A Conscience. 4th ed. Mary Land: Ocean View Publishers.

Seglin et al. (2003). The Right Thing: Conscience, Profit and Personal Responsibility in Today’s Business. 5th ed. London: Spiro Press.

Ulrich, P. (2008). Integrative Economic Ethics: Foundations of a Civilized Market Economy. 9th ed. Texas: Cambridge University Press.

Cite this paper


EduRaven. (2022, January 2). Whole Foods Market: Marketing Strategies. Retrieved from https://eduraven.com/whole-foods-market-marketing-strategies/


EduRaven. (2022, January 2). Whole Foods Market: Marketing Strategies. https://eduraven.com/whole-foods-market-marketing-strategies/

Work Cited

"Whole Foods Market: Marketing Strategies." EduRaven, 2 Jan. 2022, eduraven.com/whole-foods-market-marketing-strategies/.


EduRaven. (2022) 'Whole Foods Market: Marketing Strategies'. 2 January.


EduRaven. 2022. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.

1. EduRaven. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.


EduRaven. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.


EduRaven. 2022. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.

1. EduRaven. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.


EduRaven. "Whole Foods Market: Marketing Strategies." January 2, 2022. https://eduraven.com/whole-foods-market-marketing-strategies/.