Prof Curt Abel
Assignment #1 – Whole Foods Case Study
Strategy recommendation for Whole Foods – Organic and Non-organic Product Line Creation Executive Summary
The demand for organic food is presently at an all-time high, with sales growth of 20% each year. We can achieve profit growth at Whole Foods and maintain their social mission by creating a new private label product line which contains Organic and non-Organic products. Our social mission would have to have minor alterations to include the change, which will still have strong standards. This will capture the target market that feels organic food is expensive or will go to a competitor for more affordable pricing. Broadening and capturing our target market would lead to a profit gain of at least 10%. This will create capital to continue to expand the Whole Foods brand. Background
Whole Food is the largest organic food conglomerate, currently has over 260 stores in the US, and a growing presence in Canada and the UK. It is regarded as one of the fastest growing companies in the completive grocery market and topped the list in Forbes as “100 Best Companies to Work For.” Category:
Organic food sales growth has been calculated at 20% each year, quadrupling sales from $3.6 billions to $21.1 billion which has led to Whole Foods growth. Whole Food currently has over 275 stores and 52,900 employees. During this growth period, the USDA has formed the National Organic Standards. This created more stringent rules and regulation over all organic products, affecting all that grow and sell organic products. Consumer:
When Whole Foods began they created a Quality of Standard which included prohibiting foods with artificial coloring, flavors, sweeteners, Trans fats or hydrogenated oil. Whole Foods decided shortly thereafter that they wanted to compete with mainstream supermarkets, which is when the loyal consumers began to protest that they were no longer receiving the highest quality...
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