SWOT Analysis – Whole Foods STRENGTHS  Experience in the Industry  Large, customized stores  Huge selection/variety – over 30,000 items  Nationally Known Organic/Natural Foods Seller WEAKNESSES  Price – up to 75% higher  Locations – only in affluent areas  Advertising Budget very low (WOM approach)  Promotional Offers – no coupons OPPORTUNITIES  Expand private label selection – lower price for customers  Advertise more, create coupons and promotions to get people in the store  Hype right now is to eat healthier and protect the environment  Rewards program – frequent buyer cards (like Kroger cards)  Back to Basics – buy more local products that people will pay more for THREATS  Conventional Supermarkets  Bad Economy  Local Farmers’ Markets/Independent Retail Chains

What are the future challenges for Whole Foods?

Future Challenges  Conventional Grocery Stores over saturate Market & offer Organic & Natural Foods  Convince new customers to shop at WF rather then more convenient stores  Pricing – being able to compete against the conventional grocery chains  Getting more people in the store

What is our recommendations for Whole Foods?

Recommendations  Lower Price to Compete with Grocery Stores  Add a customer rewards program for frequent buyers  Mail coupons to customers  Expand Private Label Selection  Lowers mfg costs, could offer discounts to customer for using WF brand products

Recommendations  Personalize Service at WF  3 days after purchase, Thank You cards to customers after purchases  7 days after purchase, 10% coupon to use on next purchase  recipes  Advertise, Advertise, Advertise  Mail fliers to local zip codes – show locally grown foods, classes offered, items on sale, coupons

Recommendations  Catering  Offer catering to local businesses & events  Do Not Buy Wild Oats  Halt expansion until WF builds up more cash  Focus on profitable stores and use that philosophy to improve unprofitable stores