IMC 240

Mhari, Christian, Tiffany, Yuhao, and Legend

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 Agenda
➢ Executive Summary
➢ Problems with Whole Foods
➢ Preliminary Research
➢ Competitive Overview
➢ Qualitative Research Findings
○ Focus Group
○ Ethnography
➢ Quantitative Research Findings
○ Qualtrics Online Survey
○ Survey Trends
➢ SWOT Analysis
➢ Creative Brief
➢ Brand Findings and
Recommendations
➢ Suggestions for Future Research

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Executive Summary

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Executive Summary
From its humble beginnings in Austin, TX, Whole Foods Market has blossomed into the
largest organic grocery store in the United States. In examining the current state of Whole
Foods Market, M.T.L.Y.C research team conducted a study analyzing how it stacks up against
other grocery stores. Results from the research suggest that Whole Foods Market is known;
however, it does not rank as a favorite or go-to grocery store for the majority of our
respondents.

In order to further determine the consumers reasoning for not solely shopping at Whole Foods,
we put together both quantitative and qualitative research. Conducting both a focus group and
an online survey, we discovered the consumers feelings towards Whole Foods, as well as their
feelings/opinions about their favorite grocery store.
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Executive Summary
● Findings
○ The younger (18-40) consumer feels that Whole Foods is elitist and non-
inclusive when it comes to their marketing/advertising; they cannot see
themselves in the ad copy and do not find the brand relevant.
○ Furthermore, the category of healthy food is only marginally relevant to
many: The food selection/prices contribute to why the consumer is less
likely to shop at Whole Foods.
● Recommendations
○ Include more diversity in people of different racial groups, economic
groups in commercial advertising
○ Spread out locations of stores to more neighborhoods
○ Try to incorporate more food options that are not just healthy/organic
options 5
Whole Foods Locations
in the US

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● Whole Foods has 479 stores in the
US as of this year.
● They have added 3 additional stores
in the US in the past 6 months.
● States with the largest number of
locations
○ California (88 stores)
○ Texas (34 stores)
○ Massachusetts (32 stores)
● Top cities for Whole Foods
○ Chicago (12 stores)
○ New York (10 stores)
○ Houston (8 stores)

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Problems with Whole
Foods

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The Marketing Problem
● Competition and Market Saturation:
○ Whole foods has a lot of competition with other grocery stores
who also offer a selection of natural/organic products. Whole
Foods does not produce their own organic products, they buy
those products from farmers, and so do all of their competitors
such as Trader Joe’s, Aldi, Jewel-Osco, etc.
○ Whole Foods only advertises to the public sporadically. Relies
heavily on social media interactions for marketing.
○ It is seen as an elite place to shop.

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Preliminary Research

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 Current Target Demographic
● Ages 18-40
● College educated
● Upper middle class ($60K+)
● Socially/Environmentally conscious
● Health-conscious, organically minded
● Value quality over quantity
● View shopping at whole foods as an experience

Source:
https://www.factual.com/blog/can-data-reveal-quintessential-whole-foods-shopper
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Competitive Overview

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 Competitors
● Local grocery stores

● Supermarkets

● Independent/Specialty stores

● Big box stores

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Competitive Analysis

Whole Foods
4.4%

Jewel-Osco
25.5%

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 Category Whole Foods Jewel-Osco

Locations 500 (Across North America and 187 (Across Illinois and Iowa)
UK) 12 in Chicago. 25 IL

Slogan “World's Healthiest Grocery Store” “Good things are just around the
corner”

Parent company Amazon Albertson’s

Market share (In Chicago) 4.4% 25.5%

Total Social media followers 11.84 million 245,430

Revenue $16 billion $60.8 billion (Combined total for

all Albertsons companies)
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Qualitative Research
Findings

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Focus Group
● The focus group took place on Thursday, October 10th at Roosevelt
University.
● We had 10 total participants: 8 females and 2 males.
● Tiffany and Yuhao were the focus group moderators and asked questions
about participants about…
○ Favorite and go-to grocery stores
○ Thoughts/feelings about Whole Foods specifically
○ Jewel and Whole Foods commercials
● Participants also took a short handout questionnaire prior to beginning
the discussion. The moderators used these questionnaires as a way to get
the conversation started.
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 Focus Group (Cont.)
● Important findings from qualitative research:
○ People-of-color participants did not see themselves represented in the Whole
Foods commercial ; they felt more of a connection to a Jewel-Osco commercial.
○ Participants said Whole Foods products are overpriced.
○ Participants did not find it important to always eat organic foods. One
statement from a young woman said, “I've been in there (Whole Foods) a few
times and it’s always Organic, Organic, Organic.” And “organic isn't too
catchy these days.”
○ Some participants felt that they did not feel that they fit the image of the
average Whole Foods shopper which made them less likely to shop there.
○ Participants do not shop at Whole Foods often because it is not a one-stop-
shop. They put it at the end of the list and it is likely the least important. Even
if it had more bases covered for shoppers, the positioning does not appeal to
them. 19
 Ethnography
● Shopping habits
○ More time was spent looking at the labels and standing in front of
freezer/chiller doors compared to consumers we observed at other
grocery store shoppers.
○ Many people stay for the experience and activities.
■ On certain nights, Red Star Bar (inside of Whole Foods) holds
trivia nights. Also, certain locations have kids yoga.
○ There are also samples for products and its usual to see people
leisurely walking throughout the store with a glass of wine or beer
in hand from the bar.

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Quantitative Research
Findings

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Qualtrics Online Survey
● The online survey was created using Qualtrics.
● Each agency member in our group shared the link to the online
survey on social media (Facebook, Twitter, and Instagram).
● The survey took about 10-15 minutes for participants to complete.
○ It was composed of 33 total questions.
○ The survey had 171 total recorded responses. (Approx. 80%
Female)
● Fielded for two weeks: Oct 25 - Nov 7, 2019.
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Demographics of Survey Participants
● Gender
○ 80% Female, 17% Male, 3% Nonbinary/Prefer not to answer
● Race
○ 53% White, 30% Black/African American, 17% other
● Age
○ 67% Ages 30 and older, 33% Ages 18-29
● Marital Status
○ 45% Married, 26% Single, 15% In A Relationship, 14%
Divorced/Separated
● Annual Income
○ 52% Less Than $70,000, 48% More Than $70,000,
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Top 5 Grocery Stores
★ Whole Foods did not rank in the top 5.

1. Jewel
2. Mariano’s
3. Target
4. Aldi
5. Walmart
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“What emotion do you feel when you enter your
favorite grocery store?”

This tells us that our participants want to feel

happy, calm, excited, or no emotion when entering
their favorite grocery store.
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“What do you like most about your favorite grocery
store?”

This tells us that our participants enjoy the variety, price, selection,
and freshness of the products they purchase from their favorite
grocery stores. Whole Foods can definitely take advantage of the
word “freshness” when advertising to appeal to consumers. 26
Survey Trends

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Male participants responded as being
more familiar with Whole Foods than
female participants. This may be
because males are lighter shoppers
than females; also, the word familiar
may mean heard of to some people,
while others may interpret it to mean
shopped at. Based on these results,
we would suggest that Whole Foods
should aim to market primarily to
women so that they become more
familiar with the brand, but they
should not forget about their male
audience so that men do not lose
interest in the brand. 28
According to our online survey, 82% of
participants ages 18-29 indicated a degree of
price consciousness when shopping. This
could be because younger people are less likely
to have financial stability than older people
who are more likely to have a stable income.
This ideology does not align with Whole
Foods because they are one of the most
expensive options amongst grocery stores.
Based on these results, we would suggest that
Whole Foods should sell more products that
are affordable to younger consumers, who
might be on a lower budget than older
consumers. We would also recommend a
promotion that gives college students a 5%
discount anytime they shop at Whole Foods.
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In the online survey, we asked participants to
watch a Whole Foods commercial and a Jewel-
Osco commercial. After that, the survey asked,
“How effective was each commercial at making
you want to shop at that store more often?”

According to the results we received, Jewel-

Osco’s commercial is more effective at making
consumers want to shop at their store than
Whole Foods’ commercial. Based on the data
collected, we would suggest that Whole Foods
should make their commercials more inclusive
by having a more diverse cast of actors in their
advertising and they should also make the story
of the commercials more relatable to the average
consumer.
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Our online survey results showed that consumers
who make less than $70k a year do not see
themselves represented in Whole Foods
commercials as much as consumers who make
$70k or more. According to our prior research,
many of the consumers making smaller yearly
salaries may be ages 18-29. This data illustrates
that Whole Foods has trouble reaching younger,
less established shoppers. Therefore, we would
suggest that Whole Foods should include more
affordable products in their store. They should
advertise those more affordable products on
social media platforms to attract young adult
shoppers in order to increase the number of
younger Whole Foods customers.
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SWOT Analysis

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SWOT - Strengths
● High quality standards for its products
● Strong brand reputation and image
● High employee retention rates and deemed
“socially responsible”
● Supports many charities and partnerships
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SWOT - Weaknesses
● High price - “Whole paycheck” nickname
● Limited locations
● Limited choices on products; no variety
● Not as “one-stop shop” friendly compared to
competitors.
● Very segmented marketing to a targeted
group of people
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SWOT - Opportunities
● More people overall are becoming health
conscious.
● Amazon acquisition has brought some lower
prices.
● Expansion of store locations
● Rise of genetically modified organisms
products
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SWOT - Threats
● Surge of local organic stores
● Big box competitors offering healthier
options (Whole Foods is losing market
share.)
● Changes in government regulations on
organic foods.
● Highly dependent on US suppliers.
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Creative Brief

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 Creative Brief
Who:
“America’s Healthiest Grocery Store.” Whole Foods is a
pioneering grocery store of natural/organic foods.
Current Audience:
Middle-Class. College graduated. Income above $60,000.
Primary Target Audience:
Single men and women, Ages 18-29, with income less than
$70,000. Live in the city
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 Creative Brief (Cont.)
Competition: Trader Joe's, Mariano’s, Jewel-Osco, Target, and
local organic stores.
Benefits to be communicated: Whole Foods Market is not just
an organic grocery store. We are a full-service shopping
experience that delivers unsurpassed products, which are held to
some of the industries strictest standards.
Tone: Relaxing, helpful and welcoming. Create a more inclusive
ambiance around the brand and welcome everyone regardless of
their income level or how they identify themselves.
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Brand Findings and
Recommendations

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 Brand Findings
● Whole Foods current customers value quality over anything
else, are inquisitive, study the nutrition labels, and view
shopping at Whole Foods as an experience.
● In order to maintain their high-standards, Whole Foods
created a list of ingredients they deem “unacceptable” and
will not sell any item containing these ingredients.
○ Bleached flour
○ Polydextrose (can be found in sugar free cereal/snacks)
○ Sorbic acid (can be found in some cheeses such as
Kraft)
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 Recommendations for the Brand
1. Focus more on the younger set of the 18-40 target audience:
● Utilize Whole Foods strong social media presence and Amazon’s huge dominance
in e-commerce to build a connection with them.
● Offer a college discount program that gives students 15% off.
1. Include more diversity, health facts/benefits, variety in ads/marketing. Current
marketing is very sporadic and comments from the focus group described their
commercials as “dull, elitist and uninspiring.”
2. Spread out locations to more neighborhoods and not just centralized areas.
● For example, In Chicago, they should put more locations in neighborhoods such as
Wicker Park, Lincoln Park, etc. rather than having most of their locations in the
loop. 42
Recommendations for the Brand
4. Offer bigger discounts for Amazon prime users on certain products that
have a large markup.

5. Recognize and justify prices on specialty items by hammering home the

importance of eating healthy and effects it has on your body.

6. Highlight the lower-priced and equally healthy Everyday Value 365

line of products.

7. Incorporate more food options and varieties.

8. Offer a rewards program to heighten brand loyalty and attract new

customers.
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Suggestions for Future
Research

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Suggestions for Future Research
● Focus group questions:
○ Delve more into the specific items people purchase in a typical
shopping trip.
○ Questions on specific items that people would never consider
buying organic and products that must be organic for them to
purchase.
● Online Qualtrics Suggestions
○ Try to get more people of color to participate.
○ Make the ratio of male to female participants closer to being
equal.
○ Try to get more people that are health conscious to participate.
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