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CURRENT MARKET OVERVIEW
Since 2016, Woolworth has been working on restructuring their food offerings and in 2017, they were able to exceed sales growth straight for three quarters compared to their biggest rival, Aldi (Westbrook, 2017).
Currently, Woolworth is leading the market with a 36.8% market share. The trend in the industry is shifting towards demanding more organic and gluten free foods. The industry has also experienced innovation with consumers finding it more convenient to use the self-checkout system (Bankwest, 2018). The Australian shopper considers value for money being the most important factor when it comes to deciding a grocery store and Woodworth is known for their discounted ranges.
The average consumer is now moving towards online shopping for grocery and research shows that more of the Australian consumers will now be shopping online for groceries in the coming years. Almost 34% of both, Woolworths and the competitor Cole’s shoppers are expected to purchase groceries online frequently in the coming years (Morgan, 2018). This is a growth platform for Woodworth to engage with the target audience via digital platforms.
MARKET DESCRIPTION
Woolworths has a range of products that they offer to their consumers starting from groceries, home products, every day basics as well as clothing and accessories. They cater to the demands of a large market segment and are known for their succeeding pricing strategies. The IBIS World’s report has described the Australian grocery sector as “fiercely competitive” (Mudditt, 2018). The industry revenue has grown to about $105.8 Billion, accounting for approximately a 4.2% growth in the overall industry growth (Mudditt, 2018).
PRODUCT OFFERINGS & REVIEW
The table below gives a description of the range of products that is offered by Woolworths to shoppers:
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Fresh fruits, vegetables and salads. |
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Meats including beef, lamb, turkey, chicken, pork and seafood etc. |
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Fresh and packages breads, biscuits and cookies. |
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Dairy items including ready to eat meals including pasta sauces etc. |
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Dry items and snacks. |
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Frozen meals, ice creams and desserts. |
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Juices, soda, tea, coffee and a range of nonalcoholic drinks. |
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Wine, beer etc. |
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Cigarette and Tobacco |
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Pet care and food items. |
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Offers baby food, clothing and baby care products. |
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Offers a range of cosmetics, creams and medicines. |
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Offers household cleaning agents such as detergents, floor cleaners etc. |
Private Labels
Within the Australian grocery market, private label food items have now become a major source of competition among giants such as Woolworths and Cole. Woolworth has almost 8 different categories of private label food offerings for consumers.
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