Whole foods market Vs

Freshdirect.com
Success of whole foods
market
It sells Healthy, gourmet products such as
organic vegetables, Free-range poultry,
foods without artificial ingredients or
hydrogenated fats and many environmental-
friendly products such as non polluting
detergents.
The company is consistently ranked among
the most socially responsible businesses and
placed second on the U.S. Environmental
Protection Agency's list of Top 25 Green
Power Partners.
During the Late 1990’s the company was
able to tap the American market as their
desire for healthy living and gourmet
cooking increased.
The company educates consumers about
foods, provides recipes and arranges trips
for customers to meet up with the local
fisherman.
Reasons to purchase.

 Whole Foods is a key supermarket in the US and is

ready to challenge supermarkets in the UK, Asia and
rest of the world. With their unique approach to food
retailing and ability to respond to and set trends it is
essential to understand this new and radically
different player in the international market.

 The organic lifestyle is firmly in the mainstream.

Understand how a supermarket can be organic and
profitable at the same time.

 Whole Foods revolutionary store design and

merchandising concept has implications for food
manufacturers in terms of the way product is
presented and delivered. Increasingly stringent
quality standards that must be met are also essential
to understand as part of the development of food
Catering to customers
Ø Extraordinary customer service
Ø Educating their customers
Ø Meaningful Value
They offer value to customers by providing them with high quality products, extraordinary
service and a competitive price. they are constantly challenged to improve the value
proposition to our customers.

Ø Retail Innovation
Ø Inviting store environments
Marketing concepts of whole
foods market
Whole Foods doesn't rely on traditional
marketing to spread their message.
Instead, they rely on WOM (word of
mouth) and the creation of a food
"experience" for their shoppers.
Deliverables of in-shop experience to
customers
WFM understands the power of a
knowledgeable, caring, and passionate
workforce in creating highly satisfied
customers. They’ve created a company
culture which connects with their team
Success of
Freshdirect.com
Freshdirect.com is an online grocer
operating in New York that delivers Fresh &
processed foods and other perishable & non
perishable groceries.
FreshDirect custom-prepares groceries and
meals for its customers, a manufacturing
practice called Just In Time that reduces
waste and improves quality and freshness.
Prices are cheaper than whole foods. And
served at your doorstep.
Marketing concepts & Operations
of FreshDirect.com
 FreshDirect uses SAP AG software to process thousands orders
placed on its website every night. Orders are dispatched to the
kitchen as well as fresh storage rooms, production areas within the
company's refrigerated facility. All order components are custom-
cut, packaged, weighed and priced. In the case of dry goods or
frozen foods, items are picked from storage before being placed
inside bins that travel along conveyors to the sorting area. There,
products in a customer's order are scanned and gathered in
corrugated fiberboard boxes. The boxes are labeled, recorded and
loaded into refrigerated delivery trucks.
 Other factors negatively infuencing consumers' decisions to
purchase groceries or other goods online include shipping costs,
credit card security, the need or want for immediate delivery of
products, and the social aspects of the shopping experience.
 The company takes mostly internet feedback from customers
 They concentrated on B 2 B marketing.
 FreshDirect leverages vertical integration in its operations to provide
unique value propositions to its commodity suppliers.
§ NetTracker Analysis Program
Challenges that both the
companies faced as they
The biggest disadvantage for FreshDirect is expanding
outside of New York. NYC is a perfect location for their
company, as it is densely packed with both wealthy and
busy people, a perfect audience for them. If they where to
expand outside of New York they will become less efficient
as their resources will be spread out. They will also likely
face competition from well established companies, such
as Peapod, and will have difficulty attracting customers
committed to their competitors because of switching
costs. In most areas, they will have already lost the first
movers advantage. Just like Netflix has been more
successful than Blockbuster Online because of its loyal
customer base, the same will apply if FreshDirect tries to
expand.
The biggest challenge facing Whole Foods continued
success is its ability, or inability, to open stores.
In 2006, they opened only 13 new stores. The most new
stores WFM has ever opened in a 12-month time period is
probably 15 new locations. That’s not enough. The
company needs to open more stores. Yes, sales at existing
WFM locations will be slightly cannibalized when more
new stores open. But the “customer pie” increases with
every new store Whole Foods opens
it will take Whole Foods at least six years to open the 90
stores it has in its development pipeline today. And by the
time Whole Foods opens those 90 stores, they will
probably have 120 more stores in its development
pipeline.

So why doesn’t the input match the output? It’s my

contention that decentralization hampers the ability of
Whole Foods Market to open new stores.
By ,
Kaushik
Vikkey
Mohanakrishnan

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