Marketing Strategy Of Woolworths

Woolworths is a renowned retail chain established in Australia in 1924. It has several outlets in New Zealand and Australia, which includes convenience shops and supermarkets. The products of Woolworths include vegetables and fruits and stationery goods, baby care goods and so on. The company also sells clothing, accessories and other homecare products. The company has the highest market share compared to any other retailer. The marketing strategies of the company are intended to attract more customers.

Marketing strategy

The marketing strategy of the business is based on some principles. These are improving the main offerings so that the consumers put the company at first, innovation to fulfil most of the requirements if customers. It also has the principle of generating additional customer value by aiming for success and implementing the lean model.


Woolworths has a better position in the retail market as compared to its rivals based on the quality of the goods. The pricing of the products is also superior when compared to Coles or Aldi.

Marketing Strategy Of Woolworths

Competitive advantage

VRIO analysis is used to understand the competitive advantage of the company. Woolworths has a sustainable competitive advantage. The company has a superior value and rank in the retail chain. This offers an everlasting competitive advantage to the company. The business also has a slight advantage of a local sourcing plan. According to VRIO analysis, the company is valuable, however not imitable or rare.

It also has a competitive advantage to some extent based on its online presence. The online application of “Woolworths online” is a result of the massive globalisation that has led the company to have a digital presence. This is, however, not a rare component since all other retail companies have their websites. The company’s sustained competitive advantage is seen since it has a value of more than $8 million. This is the highest of all other retail companies in Australia.

Woolworths V R I O Competitive Advantage
Brand Yes Yes Yes Yes Sustained
Local sourcing plan Yes No No Yes Partially Competitive
Digital presence Yes No Yes Yes Sustained
Customer value Yes Yes Yes Yes Sustained

Marketing Mix

This framework helps analyse the marketing strategy that the company uses to make its mark in the market. The brand's marketing strategy helps it place itself competitively in the marketplace and attain its objectives.

Product strategy: the company offers all kinds of grocery materials. They also have begun selling DVDs, magazines and stationery goods. The products are of good quality that keeps the customer satisfied. The product range of accessories, clothing, housewares and so on also caters to all the customer needs.

Pricing strategy: The Company tries to have a rather higher range compared to others in the market. The company offers both premium and low prices to stay competitive. There are also reward programs, shopping cards and other discounts that attract customers.

Place strategy: Woolworths has more than a thousand stores in Australia, which include convenience stores and supermarkets. The company also runs an online app. The broad distribution network leads it to operate several private labels.

Promotion strategy: Woolworths provides different loyalty programs for consumers, like petrol pump discounts. It uses newsletters and magazines for promotions and gives extensive promotions and deals for customers like gift cards. The online stores also offer discounts to attract customers. A broad promotion campaign helps to attain the target market and also earn profits.


The company maintains a strong marketing strategy that helps it to attract and retain customers. The retail stores of Aldi and Coles offer tough competition to Woolworths. However, the company maintains innovation to stay competitive and have an advantage over others.