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Summary: Getting Your Product On Shelves At Whole Foods

864 Words4 Pages

Customers around the United States are beginning to see the importance of both healthy and organic foods, and along with this new importance comes the demand of lower prices. Inside of Wall Street Journal article, “Getting Your Product on Shelves at Whole Foods Just Got Harder”, written by, Heather Haddon and Sarah Nassauer, an inside look at Whole Foods’ Total Quality Management process is presented. “Total quality management (TQM) is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement” (Business, 181). The article covers Whole Foods’ overall plan, when the company began …show more content…

Whole Foods last updated their rates nine years ago, and in comparison, their promotional fees were a bargain to other competitors. Whole Foods now looks at sales trends from Nielsen data for price recommendations, just like their competitors do. Whole Foods developed its cachet by carrying niche brands without being able to pinpoint whether they drove sales. During promotions, stores in a geographic region wouldn’t stock special displays or discount promoted items, which irritated …show more content…

Some suppliers feel as though Whole Foods’ changes are rushed and confusing. Some smaller businesses, like Kitchen28, who once wanted to expand to the Whole Foods stores, find difficulty in doing so because of the tighter management of shelf space and started selling product at other places. Other businesses are taking advantage of Whole Foods’ adjustment period. For example, Kroger Co doesn’t require smaller businesses to pay a fee to sell their products in store. Walmart also has been said to treat incoming suppliers as a partner. “Partnership a voluntary association of two or more persons to act as co-owners of a business for profit” (Business, 110). Whole Foods executives say they haven’t seen suppliers defect because of the higher fees and stricter requirements, although they were expecting some discontent. Some suppliers thought that the changes at Whole Foods were long overdue and intend on paying the increased fees for promotion. Whole Foods is currently having some challenges, but in the end, it is thought to create a more competitive

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Whole Foods has been doing an amazing job keeping up with their financial performance and customer demands. The more customers who demand their business the more locations they open. This in return gives Whole Foods more revenue as each year passes. Whole Foods report its annual fiscal years on a 52 week basis. Whole Foods expectation for 2016 are 3-5% growth in sales.

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Established in 1978, Whole Foods Market opened its first store in Austin, Texas in 1980. This natural supermarket was the first certified organic food supermarket in the U.S. Now, 456 stores stretch across the nation, Canada, and the U.K. (see appendix A with the various states and locations) with 35,000-50,000 SKU’s lining the shelves. Whole Foods sets high standards for not only it’s product freshness but also expectations of employees. High customer service, environmental stewardship, positive impact on local and global communities, and high return on invested capital has made Whole Foods Market an industry leader being 5th largest public produce and food retailer.

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The company can use it to keep consistent prices, track the stocking on the shelves, and figure out which products are demanded most by customers. The article even talks about how Walter Robb was walking through the isles himself, checking in on their products, and trying to see what else he can improve. Mr. Robb says, “We’ve now learned that anytime a story breaks, we’re responding right away, because misinformation gets out there, and people think, well, that is the gospel. It’s on us to be out there.” This dedication to the company and their product illustrates how Whole Foods’ still sticks to their original ideas and values

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Whole Foods has been struggling for quite sometime now, this is because of several things. Whole Foods was caught overpricing its customers and has been trying to reshape its image for two years now. For example their vegetable platters were on average overpriced by $2.50 and their chicken tenders were overpriced by an average of $4.13. This led to a lawsuit of $800,000 and extremely bad press, where people began nicknaming it as “Whole Paycheck”. Around the same time the company’s stock fell by over 40 percent.

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The history of grocery stores in the United States is complex and full of competition and innovations as consumers' ever-changing tastes dictate who rises to the top. Some grocers compete on the basis of cost leadership, like Walmart, who’s slogan is “Everyday Low Prices”. Other grocers seek a blue ocean strategy by serving rural food deserts like Dollar General. Trader Joe’s, however, utilizes a unique differentiation strategy via distinctive product offerings and exceptional customer experience. Founded in California but expanded nationwide, it is the perfect middle ground for many shoppers between limited SKU boutique organic grocers and a typical American mega-grocery chain.

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This is mainly the manufacturing and delivering cost since the brand new stores need to stack their shelves with all of the products which will make this cost to raise at least for the period when the store first opens. The expansion of Whole Foods to the 365 stores will cause multiple operating expenses to increase. The process of hiring new employees and training them will increase the salaries and wages expense. Finally, another huge expense that will increase is marketing, especially with the new app that Whole Foods wants to launch where people can find coupons. Also, on advertisement for the new store, researching the demographics and behavior/lifestyle of their new

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o Accused of massive overcharging products by using labels that listed incorrect weights o PETA is suing the company for having consumers pay high prices for meat from animals on farms that differ from the industry’s paltry minimum standards • Same-store sales dropped from last year by 0.2% • Total sales increased by 6%, weakest since about 2010 • Profitability is also down Growth strategies/ Solutions  Rebuild their tarnished reputation o Market the products with better prices o Scan the internal and external environment of the company and make corrections o Deal with the lawsuits and allegations against the company o Remind the social media what Whole Foods stands for and what the goal of the company is  Lower prices o Have occasional discounts, especially around the holidays o Sell items in bulk packages o Instead of creating a chain that will create doubts in the current loyal base, change the pricing strategy for all stores that considers price-conscious buyers  Expand their “Non-Whole Foods” items o Implement items that are not only natural and organic, but regular everyday items o Some of the items that should be sold cheaper than the organic items are: bananas, chicken, ground beef, milk, and

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The nature of Whole Foods operation is Providing the best quality food and drugs to their customers. Whole Foods Market is a retail provider of foods both organic and non-organic. Whole Foods also provides their customers with Drugs both holistic and non-holistic. Date of annual report used:

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They truly appear to have a solid vision that when properly executed will start with the employees and have an effect on the communities that they are present in (Kreitner, R., & Kinicki, A., 2013). Whole Foods is simply are not only focused on their profitability, but also having a heroic impact on everyone they interact with, thus resulting in a ripple effect

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PROBLEM IDENTIFICATION Whole Foods Market was created as a grocery store to serve as providing healthier options for consumers (Whole Foods Market History, 2016). Whole Foods has recently begun a target of the younger demographic, such as millennial that are increasingly becoming more concerned with the food they are putting in their bodies (Low, 2015). However, there is a large shift happening within the retail industry, including grocers concerning consumer behavior (Lewis & Dart, 2010). The problem Whole Foods is having though is the lack of adaption they are having to the changing society. Having a younger demographic with such high price and quality items is causing a disconnection with consumers and brand loyalty.

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Whole Foods’ products are natural and locally grown. Unlike many processed foods, Whole Foods products are healthy and environmentally friendly. The products themselves are an example of improving and changing the world. The management philosophy

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Slumping sales at Whole Foods make the need to do so clear. The desire to offer convenience and lower prices could ultimately lead to the formation of an entirely new brand. Mackey concedes this point, admitting that "Over time, there could be other formats that evolve that ... wouldn't be [to] our standards." If Amazon is banking on the convenience of online grocery shopping to make its acquisition successful, analysts claim the retailer may be facing an uphill battle. Although online grocery services do exist, including Amazon's own AmazonFresh, customers aren't rushing to embrace the idea.

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Purchasing items online has become a major threat to companies who have long been selling proucts in physical stores. However, online stores, including Amazon, were never a real threat to grocery markets. This is due to the same reason why Amazon decided to make the purchase in the first place, consumers have favored to shop for their grocery products in person. But thanks to the purchase of Whole Foods and Amazon’s lowering of prices for higher quality goods, Whole Foods/Amazon has become a major threat to grocery markets. In June of 2017, the six largest food retailers announced a combine lost of $12 billion in value after Amazon announced they were going to lower Whole Foods prices.

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I cannot say that I go to Whole Foods Market or an grocery store a lot. I am not allowed to do that because my wife says that I do not buy what we need. Due to this forum and the imposed questions I did go to our local one that is relatively new because I could not find it as a location on the organization website. In addition, when I was here from 2009-2012 it was not here and I do wonder what their strategy is to drop a store that is surrounded by a host of other stores that do the same thing or in some cases more like a Super Walmart.

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