WHOLE FOODS REVIEW BRAND NEW HAPPENINGS
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W H O L E F O O D S R E V I E W
BRAND NEW HAPPENINGS
AGENDA
• Problem Statement• Overview of objective
• 5 Recommendations• Explanation and methods used• How Whole Foods will accomplish their goals
INTRODUCTION
• Brand New Happenings Team Members• Eric Bontz• Laura Finch• Dennis LaMantia• Stephanie Morgenstern• Karl Swanson
PROBLEM STATEMENT
• Increase market share by providing a great customer experience
• Ensure Whole Foods is differentiated from traditional grocery stores and smaller boutique stores
• Remain loyal to their mission
SEGMENTATION
• Survey respondents were screened to ensure they were familiar with Chicagoland grocery stores and spent $350 or more per month on groceries.
• Qualifying respondents were then segmented based on gender.
METHODOLOGYPerceptual Mapping Survey
Males Females54 Attempted 31 Completed 57
%66 Attempted 36 Completed 55
%Conjoint Analysis Survey
Males Females53 Attempted 30 Completed 57
%108 Attempted 44 Completed 41
%
• Value Curve Analysis due to the mature market
RECOMMENDATION #1INCREASE NON- GROCERY OFFERINGS
INCREASE NON-GROCERY PRODUCT OFFERINGS
• Perceptual Map (Male/Female) – Wide Selection and Other Products
• Demographic Info – Number of Stores Shopped
• Value Curve – Selection
-1.5 -1 -0.5 0 0.5 1 1.5-0.2
0
0.2
0.4
0.6
0.8
1
1.2Whole Foods
Other Products
Wide Selec-tion
Preference
AttributesBrand
0.2 0.4 0.6 0.8 1 1.2 1.4
-1.5
-1
-0.5
0
0.5
1
Whole Foods
Other Products
Wide Selec-tionPreference
AttributesBrand
PERCEPTUAL MAPS – WIDE SELECTION AND OTHER PRODUCTS
Perceptual Map - Males Perceptual Map - Females
DEMOGRAPHICS – NUMBER OF STORES SHOPPED
5%
57%
38%
Number of stores - Men
4%
40%
41%
15%
Number of stores - Women
1
2
3
4 or more
VALUE CURVE MUST- HAVE – SELECTION
Conv
enien
ce/Loc
ation
Price
(Value)
Wine/Sp
irits
Select
ion
Ameni
ties (
Banks/
DVDs)
Coup
ons/P
romoti
ons
Operat
ing Hou
rs
Store
Greeter
s
Social
Respon
sibilit
y0
1
2
3
4
5
6
Map 4 - Reduce Must-Haves
Regular StoresHigh-EndWhole Foods
EXPAND NON-GROCERY PRODUCT OFFERINGS
• Offer increased selection of non-grocery items to allow for “one-stop” shopping experience.
RECOMMENDATION #2INCREASE CONSUMER VALUE PERCEPTION
INCREASE CUSTOMER’S PERCEPTIONS OF VALUE RELATIVE TO PRICE
• Perceptual Map (Male/Female) – Sales/Promotions and Low Prices
• Demographic Info – Coupon Usage
• Conjoint Analysis – Price of Milk
PERCEPTUAL MAPS – SALES/PROMOTIONS AND LOW PRICES
-0.4 -0.2 0 0.2 0.4 0.6 0.8 10
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Preference
Sales/Promotions
Low Prices
Whole Foods
-1.5 -1 -0.5 0 0.5 1 1.5
-1
-0.5
0
0.5
1
1.5Whole Foods
Preference
Sales/Promotions
Low Prices
Perceptual Map - Males Perceptual Map - Females
DEMOGRAPHICS – COUPON USAGE
2%
40%
58%
Coupons - Men
AlwaysNeverSometimes
13%
16%
71%
Coupons - Women
AlwaysNeverSometimes
CONJOINT ANALYSIS MALE – PRICE OF MILK
open 24 hoursopen 18 hoursopen 10 hours
120,000 sf46,000 sf10,000 sf
full pharmacyover the counter
no drugscashier & self-checkout
only cashiersonly self-checkout
7 min wait time4 min wait time1 min wait time
$5 gallon of milk$4 gallonn of milk$3 gallon of milk
10 miles5 miles
0.5 milesIntercept
0.0860.084
0.0600.031
0.0020.060
0.1120.000
0.0600.174
0.2240.0600.060
0.2360.356
0.0600.186
0.4130.060
0.4651.000
0.718
CONJOINT ANALYSIS FEMALE – PRICE OF MILK
Intercept0.5 miles
5 miles10 miles
$3 gallon of milk$4 gallonn of milk$5 gallon of milk1 min wait time4 min wait time7 min wait time
cashier & self-checkoutonly cashiers
only self-checkout10,000 sf
120,000 sf46,000 sfno drugs
over the counterfull pharmacyopen 10 hoursopen 18 hoursopen 24 hours
0 0.2 0.4 0.6 0.8 1 1.2
1.0000.974
0.5380.169
0.9380.645
0.1690.556
0.4960.169
0.5280.485
0.1690.169
0.0580.000
0.1690.235
0.3350.169
0.2500.250
INCREASE AWARENESS OF CURRENT DISCOUNTS AND DEVELOP NEW PRINT ADS
Eat Healthily For Not A WHOLE Lot
$1.00 offany ONE (1)
8" to 9" Fresh Fruit
Tart
$2.00 offany ONE (1) package of
Granny Smith’s Apples
RECOMMENDATION #3INCREASE SHOPPER LOYALTY
3. INCREASE CUSTOMER LOYALTY
• Perceptual Map (Male/Female) – Sales Promotions vs. Preference
• Demographic Info (Male/Female) – Store Loyalty Program Importance
• Value Curve – Create Delighters to Increase Loyalty and Retention
PERCEPTUAL MAPS – SALES PROMOTIONS
DEMOGRAPHIC INFO – STORE LOYALTY PROGRAMS
VALUE CURVE – CREATING DELIGHTERS
INCREASE CUSTOMER LOYALTY
• Create a nation-wide customer loyalty program• Track previous purchases, customize promotions, and
offer discounts to retain current customers while attracting new shoppers
WHOLE FOODS REWARDS
RECOMMENDATION #4MORE CONVENIENT SHOPPING
MORE CONVENIENT SHOPPING
MORE CONVENIENT SHOPPING
MORE CONVENIENT SHOPPING
SHOPPING FREQUENCY
ACTUAL PLANS
• Plan to open smaller stores (25,000 sf instead of typical 35,000 – 50,000 sf) in less affluent cities1
1 http://www.forbes.com/fdc/welcome_mjx.shtml
ACTUAL PLANS
• Plan to open 52 – 59 news stores over the next two years2
Whole Foods Jewel
2 http://www.forbes.com/fdc/welcome_mjx.shtml
RECOMMENDATION #5DEL IGHT CUSTOMERS WITH EXTRAORDINARY SERV ICE
5. DELIGHT CUSTOMERS WITH EXTRAORDINARY SERVICE
• Focus on high customer service in brand message• Decrease Average Checkout Wait Time to four
minutes or less• Create an environment that engenders a
community feeling with classes and events• Helpful Staff willing to assist with menus, recipes, cooking
strategies geared towards making customers healthier• Classes on how to shop and cook with a healthy and/or
organic focus• Events where people can come and prepare their own
food together to take home ready-made healthy meals
5. DELIGHT CUSTOMERS WITH EXTRAORDINARY SERVICE
Wait Time Weight - Males
7 min wait time
4 min wait time
1 min wait time
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
0.060
0.236
0.356
Wait Time Weight - Females
1 min wait time
4 min wait time
7 min wait time
0 0.1 0.2 0.3 0.4 0.5 0.6
0.556
0.496
0.169
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
-1.5
-1
-0.5
0
0.5
1
1.5Whole Foods
Customer Service
Preference
Service Preference- Females
Service Preference- Males
-1.5 -1 -0.5 0 0.5 1 1.5
-1.5
-1
-0.5
0
0.5
1
1.5
Good Cus-tomer
Service
Preference
Whole Foods
• Decrease wait time for both segments and increasing perceived customer service level for females
5. DELIGHT CUSTOMERS WITH EXTRAORDINARY SERVICE
Conv
enien
ce / Lo
cation
Price
(Value)
Wine/Sp
irits
Food S
electio
n
Amen
ities (
Banks/
DVDs)
Coup
ons/P
romoti
ons
Operat
ing Hou
rs
Store
Greeter
s
Social
Respon
sibilit
y
Helpful
/ Kno
wledge
able S
taff
Communi
ty Ev
ents &
Class
es0
1
2
3
4
5
6
Regular GroceryHigh End OrganicWhole Foods
• Delight Customers with the unexpected levels of service, education, and community at your stores.
5. DELIGHT CUSTOMERS WITH EXTRAORDINARY SERVICE
• Proposed Floor plan to implement changes
SUMMARY• Increase market share by providing a great customer experience
• Increase Customer Loyalty• New Whole Foods rewards program
• Delight Shoppers with Extraordinary Shopping Experience• Employ a customer-focused business strategy
• Offer More Convenient Shopping• Open more smaller stores
• Ensure Whole Foods is differentiated from traditional grocery stores and smaller boutique stores• Increase Non-Grocery Offerings
• Allow for “one-stop-shopping”
• Remain loyal to their mission• Improve Customer Value Perception
• Healthier eating options at fair prices
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