Grocers Offering Natural Organic Products â€Myassignmenthelp.Com

Question: Discuss About The Grocers Offering Natural Organic Products? Answer: Introducation Whole Food Market is one of the world's largest chain grocers offering natural and organic products of quality. The chain store offers many customers with a variety of commodities such as ready food, pet, and organic supplies. Having begun from a humble background the organization has grown to be the world's Healthiest Grocery store. The organization continues to focus on sustaining community resources by educating the people on healthy eating as well as sustainable food practices(Dou, 2016). The company is present in Canada, the United Kingdom and the United States making it an international organic food outlet. The grocery store started small after four local business people came up with the idea that the natural food industry could be established like a supermarket. Having previously garnered experience in the industry the co-founders found great success in their startup. At the moment the organization began very few natural food stores were retailing the products in the market. S ince its establishment, the company has continued to expand within the United States and across the globe. Mission Statement Though many companies operate under one unique mission statement, Whole Foods Market chose to operate on several core values. The company operates on the following major values: Satisfying, delighting and nourishing customers. Supporting their teams success and happiness. Creating wealth through growth and success. Continuously considering environmental needs. Enhancing stakeholders health by educating them. The organizational core values maintained by Whole Foods Market are shaped in a manner that allows for the sustainability of the organization for continued natural foods and products to its customers. From the organizational outline and core values it evident that it focuses remaining successful through unethical manner. Overview of products and services Whole Foods Market has strategically placed itself as a provider of natural foods through attaching an emphasis on the need of organic products (Glover, 2016). From the time of its establishment, the organization has continued to critically think on the products that it channels to the customers. Whole Foods Market targets individuals with dietary restrictions, natural products, and health enthusiasts. The organization defines quality in relation to ingredients, freshness of grocery and nutritive value. Due to the high quality of products, it offers to its markets the organization has created a wide array of readymade food. The business survives and thrives as a result of investing in customer satisfaction. Most interestingly, the company identified specific customer niche that it has continued to satisfy by meeting their needs over the years. Trained staff and customer education are some of the highest contributors to customer satisfaction by the company. Whole Foods Market also gives back to the society in the environment that it operates something that is an essential business responsibility(Mayne, 2017). The company offers each employee 20 hours of community services and works with farmers by helping them improve on the packaging of their products. Through the community give back initiatives the organization has on many occasions gained the favor of the environments that it operates. Whole Foods Market Growth Analysis Whole Foods Market started as a small establishment after John Mackey founded the business with $25000 that he received from his father. Compared to today store the store was relatively smaller, taking 10,500 square feet a small fraction of 55,000 square feet, which many stores hold today. The store continuously expanded to over ten stores in the 1980s. It strategic expansion in the 1990s saw the natural grocery food chain store acquire existing stores such as Natural Foods Market, Amrion, and Bread of life and Wellsprings Grocery. Through the acquisition, WFM grew to be the largest natural foods store in the United States by 2006. Acquiring Wild Oats in 2007 has long been viewed as the largest break through as it led to becoming dominant in the natural organic food industry(Obeng, 2016). The organization continuously strives to bring on board market dominance that its co-founders brought into the market. Target marketing The quality of products currently offered by WFM and their standards tend to make prices higher. Due to high prices and specific emphasis on only organic foods often limit the audience that the organization can cater for. The target audience is not only limited to the high prices that it can offer, but also as a result of the specific target on those customers willing to keep a healthy lifestyle(Pineda, 2016). Whole Foods Market changed the level of competition in the industry that it operates and is currently viewed s an upscale competitor within the natural food market. Due to this view, the brand gained names such as the Whole PayCheck as a result of the high prices that it offers in a market that it commands. Competitor Analysis Unlike the time when the company was founded, currently, it faces stiff competition from companies that have invested in natural foods. The reason behind this is the fact that the market niche has evolved to a highly populated market. Current competition can be associated with the trend on a healthy lifestyle in many societies today. Competition mainly comes from those organizations that specialize in organic products, such as Trade Joe`s and Sprouts Farmers Market. However, competing stores lack market reputation as compared to WFM and thus focus more on creating value to their customers. Increased emphasis on low prices and creation possess as the largest threat by competitors towards WFM. Apart from direct competition, Whole Foods Market also faces indirect competition from other groceries that are a well known store that has integrated organic and natural foods into their shelves. Grocery stores such as Safeway and Ralphs currently serve as outlets of organic foods (Mayne, 2017). Wal-Mart currently sales more than 18% of all groceries consumed in the country and cannot be ignored as a competitor. WFM thus is being subjected to immense competition from all angles. To analyze competitors within the industry, the paper focuses on other players in the market who are Weis Markets Inc and Sprouts Farmers Market to provide the strategic position for Whole Foods Market in the natural food market. Weis Market Inc Overview Weis Market, Inc started small by its founders Sigmund and Harry in 1912 as a neighborhood store. It was located at Market Street which is in Sunbury in the state of Pennsylvania. The company has since grown to become one of the largest outlets within the United States with presence almost in every state. It is mostly associates in stores, manufacturing facilities, and corporate office. The organization was built on self-reliance and they use their own products to produce the majority of the food products that they sell to the market. However, in their endeavors to grow natural food industries have supported local farmers who serve as their main suppliers. The company prides its self for its long commitment to promoting a mutual interaction with its neighborhoods. Social responsibility has remained a pillar of its growth since it offers donations through community health care organizations and clinic programs(Mujtaba, 2016). The company is environmentally friendly as they have instal led energy efficient equipment in their natural food stores. Weis Market Inc Opportunities Weis Market Inc has an opportunity to grow through establishments of partnership that are continuously helping it grow. To enhance its supply chain in the market the organization has partnered with InnerWorkings Inc which is a leading marketing execution firm to aid it in promoting its business. InnerWorkings according to this collaboration will help Weis Market in enhancing its direct mail campaigns, print strategies and programs. All logistics that are to be involved in the marketing expertise will also be executed by InnerWorkings as per their agreement(Mayne, 2017). Through this partnership, InnerWorkings will expand Weis Market supplier network through ensuring brand consistency across the regional grocery chain. Through the shortening of its lead time, Weis Markets will be able to access real-time data through a platform run by InnerWorkings. This partnership provides an opportunity for Weis Market to expand the market as well as increase their return on investment. Weis Market Inc Strategy Weis Market, Inc. drives a culture that is focused on increasing sales. Through its initiative, the company focuses more on improved operating practices as well as increasing its sales. By initiating a disciplined growth in its markets, the company has continued to believe that its market share in the natural food industry will equally increase to a reasonable extent. Initiatives that the company has focused on towards increasing sales are remodeling its stores, strategically acquiring other companies and investing in establishing new stores. Communicating management goals to its diverse associates has worked in establishing ways that have continuously helped in its strategic plans. Meaningful differentiation as a strategy has worked for the company through making an understanding of consumer needs. An initiative builds on customer satisfaction is instrumental to the growth of future markets(Grewal, 2017). A focus on local residents, shopping experience, and excellent customer service seem to have paved a way for the future success of the business. Through the incorporation of information technology, the company continuously offers a better customer experience to its customers. Information technology has enabled the company to educate its customers on the need of investing in healthy lifestyles that are essential. Sprouts Farmers Market Overview Sprouts Farmers Market is one of the leading food retailers globally. The company offers to the market groceries that are fresh, organic and natural foods. Having started in 2011it has grown to be among the most notable organizations dealing with natural foods globally. Through its various initiatives Sprouts, has continuously made the shopping experience affordable for those who invest in healthy lifestyles(Dou, 2016). Its stores are modeled in a setting that is approachable to all its customers. Sprouts Farmer's market invests more on its customers healthy living which is in line with current social needs. Sprouts Farmers Market Opportunities Though Sprouts Farmers Market operates a private label, it still has an opportunity to command a relative market globally. Many companies that operated under private labels are currently global success stories. Since a majority of its competitors often apply a low pricing strategy apart the company can change its approach on pricing to win its clients. Most of its clients are likely to have disposable income and health needs and thus quality is of importance. Since quality does not auger well with low pricing the company can apply competitive pricing in marketing its natural food. Competitive pricing would absorb customers from low priced grocery stores as we as those from high-priced stores such as WFM. Sprouts Farmers Market Strategies Sprouts Farmers Market has established a produce section that draws customers into the market. Customers buying from the grocery store are in a position to benefit from discounts up to 20% as compared to their competitors. Through competitive pricing Sprouts, Farmers Market has been able to achieve a high inventory turnover and reduced the cost of waste(Glover, 2016). In the traditional store model groceries used to generate a lot of waste unlike in the current stores run by Sprouts. Sprouts Farmers Market thus has managed to unlock the operating margin that was not previously notable. Sprouts currently compete largely on brand identity and price. Through its production model, it is able to sustain its food supply chain, while at the same time offering its clients` large discounts(Pineda, 2016). It understands that the grocery industry that is densely populated and thin profit margins in the market are favorable if sales a steady. Through offering discounts it has been able to disrupt some of its competitors operating models. Through its tactic, it has grown to be a darling of many natural food consumers. Entrepreneurial practices carried out by Weis Market Weis Market, entrepreneurial practices revolve around the organization's ability to take risks given its wide growth over time. Since most of the stores are located in urban centers where competition is high their entrepreneurship initiatives are more oriented towards commanding several markets. The company has developed a culture that values customers in the supply chain something that helps it win their confidence. Growing customer experience has remained of the essence something that has seen it invest more in emerging technologies. Recently the company redesigned its website as well as mobile to enable customers to optimize their experience while using the platform(Obeng, 2016). These updates saw the natural foods giant bring on board new recipes, weekly circulars, and ease in creating an account for customers. Changes help in increasing customer base for the company given those customers currently admire buying items online. Through the entrepreneurial initiatives, Weis will be able to build better relationships with vendors. Improving entrepreneurial practices in Weis Market Inc Currently, many companies globally are implementing green logistics in the environment where they thrive. Weis Market Inc is not an exemption having successfully managed to come with an innovative technology that recycles wax card boards. The waxed cardboard is used for the storage and shipment of vegetables and other products. Coming up with initiatives that are environmentally friendly is a means of creating an entrepreneurial culture that is environmentally friendly. The organization should thus focus on ways of recycling their natural products waste to with the aim of utilizing resources effectively(Glover, 2016). Through creating a partnership it will be able to sell its material waste to partners and check off some of the losses. Weis Market Inc should also focus on new markets through integrating natural foods and other foods. Though such an initiative may compromise its mission and reason of creation it would actually work in ensuring that it harnesses more customers. It is evident that in the wake of GMO`s no customer can be convinced that all organic foods are pure (Pineda, 2016). If Weis Market integrates other products into its supply chain and invests in labeling the products customers would remain confident in the products. Entrepreneurial practices carried out by Sprouts Farmers Market Sprout Farmers Market operates its business in an old fashion manner something that has helped it attract customers. Though its business has often adopted information technology initiatives the undertakings have been made to relate to its business culture. As an entrepreneur, the company appreciates the need of offering customers natural food that is fresh at relatively low prices. Due to its entrepreneurial culture, the business has expanded steadily in few years to become a notable player in the market that it operates(Alkon, 2016). Though the company faced challenges during the time of its merger with Sun Harvest and Sunflower Farmers Market, the company management is still able to create a growth path that is profitable in the future. Sprouts Farmers Market values its customer in its entrepreneurial initiatives. Due to its consideration on its the customers, it created an internal help desk that would be instrumental in enhancing interaction with customers. Through the desk, the organization has been able to source for feedback on their customer's experience as well as answering their queries with ease. The retailer is currently focused in creating a platform for investment through acquisition and technological upgrade. Improving entrepreneurship practices in Sprouts Farmers Market Though Sprouts Farmers Market has improved their entrepreneurial undertaking they can do better. Through their technology steering committee, the organization is in a position to decide on the best technologies that it can implement to become a market leader in grocery sales. This can be done through offering technological infrastructure that integrates customer, vendor and business process (Glover, 2016). Integrating the process ensures communication across the supply chain of natural food which is a value adding activity. Technology will also work in improving how the organization receives real time data regarding its customers and suppliers. The data will be utilized in ensuring that organizational business processes match the needs of all stakeholders. Improving the current lines of communication within sprouts is also of the essence if the organization's entrepreneurial culture is to move to the next stage. Reducing the number of emails sent to the organization employees is one of the processes that should be undertaken to improve communication (Pineda, 2016). The organization can invest more on cloud communication as well as improve their media position. This can be improved by partnering with social media providers such as Facebook to disseminate more information about the current products offered by the company and their benefits. Through its Chatter box, the organization will continue to create a better platform aimed coordinating organizational activities with ease. Proposal on improving Weis Market Inc and Sprout Farmers There is a growing demand for healthy and natural foods across the Market globe especially due to the emergence of lifestyle diseases. Both Weis and Sprout are key stakeholders in the retail of natural foods and have to invest more in marketing these products globally. These companies should partner with health care providers in providing customers with potential information on the essence of natural foods. Health care providers can serve as best marketers since they can brief the public on vital information that they can trust(Alkon, 2016). The organization need to invest more in funding initiatives carried out by the health care providers for the sake of mutual benefit. As international organizations Weis and Sprouts should aim at entering new markets across the globe. They should put more emphasis on those markets that prefer natural foods, especially in Asian countries(Mujtaba, 2016). Through their expertise, they have a potential of bringing a new experience to new markets by offering them with fresh and natural products. Training in these countries would be of essential though including expatriates can greatly make it easy for the organizations to take control of new markets. Conclusion Natural foods and the organic food market is a complex market niche that if well invested can help an organization achieve high profits. Despite the profitability of the market watching the current competitive forces, it is evident that the market is populated in current times. Players in these markets should focus more effort towards finding new opportunities in the market niche. However, more amazing is that more people will continue to purchase natural and organic foods a result of the emphasis on healthy lifestyle. Investment on value adding activities in the distribution of natural foods and organic will be a feature to watch since it has the ability to help many retailers succeed. More retailers are likely to continue entering the market niche in the future hence declining its profitability References Alkon, A. H. (2016). The Stockton Farmers Market: Racialization and Sustainable Food Systems. Food, Culture Society, 389-411. Dou, Z. F. (2016). Assessing US food wastage and opportunities for reduction. Global Food Security, 19-26. Glover, D. . (2016). Small farmers, big business: contract farming and rural development. Springer. Grewal, D. (2017). Enhancing Customer Engagement Through Consiousnes. Journal of Retailing, 55-64. Mayne, S. T. (2017). The US Food and Drug Administrations role in improving nutrition: Labeling and other authorities. Journal of Food Composition and Analysis. Mujtaba, B. G. (2016). Creating an Organizational Culture of Delightful Customer Intimacy at Publix Super Markets. Inc. International Journal of Marketing Practices, 47-67. Obeng, E. L. (2016). Survival of The Fittest: How Competitive Service Overlap and Retail Format Impact Incumbents Vulnerability to New Entrants. Journal of Retailing, 383-396. Pineda, R. . (2016). Making the climate change issue real for managers. Journal of Global Responsibility,, 84-97.