MKT-571

Dawn Obermoeller

Career Connections: Customer Relationships and Satisfaction

As a manager for the Healthy Food Store, I will develop a Customer Satisfaction Plan that will help the store to increase sale and customer satisfaction based on consumers, business demographic information, behaviors, and psychographics. Besides, the plan to attract the target audience; another strategy will be developed build a long term relationship and strong customer loyalty between the business and the target audience using a Customer Relationship Management (CRM). Moreover, personal communication with direct marketing, social media, events, publicity, and frequency market with reward ideas will be developed as well.

This paper will also discuss some of the strategies that may be used to apply the strategy, the reasons for selected plans, and at least three potential methods of measuring customer satisfaction and loyalty.

Whole Foods Store is the Healthy Food Store, which I will develop the plan to improve customer relationships and help to make the customers more satisfaction when they shop there. Whole Foods Market is one of the most popular stores in selling natural and organic foods in America and the World. It was found in 1980 on the idea of providing the highest quality of natural and organic foods to consumers. The company let the customers who sign up for Whole Foods market Rewards to earn points. Then, they can redeem it for free products and dollar-off discounts every time they shop at Whole Foods Store (Whole Foods Market IP. L.P., 2016). While the company began with one store in Austin, Texas, it quickly became a success with 447 stores in the US and the UK (Whole Foods Market IP. L.P., 2016).

Market Segmentation

Market Segmentation states to the numerous portions of the business sector given the standard qualities of the shoppers (Bose, 2004). People really care about their health and want to have a longer and healthier life, so Whole Foods Market have been built by providing the best experience and products for this purpose. Most of us are so busy with work and family, so we may not be able to have time or place to grow their organic vegetables due to financial constraints or time constraints. First and foremost a market for healthy lifestyle eating, it has been created in part by the explosion in health improvements. The recent health conscience movement has allowed the natural and organic food market an opportunity to thrive. Whole Foods Market in particular caters to a certain function segment of this market. By targeting customers who are more health conscience, they look for appealing to the consumers’ sense of cultural expectation, minimalism, and quality. The founders of Whole Foods Market believe there is a cultural expectation to eat healthier. Whole Foods Market is not only providing the high-quality natural foods, but it is also offering very reasonable prices for their products. Moreover, they offer online ordering, competitive prices, and high-quality products with no additives. In addition, Whole Foods Market is unique because it aggressively tries to find to build brand relationships with up and coming local natural and organic food suppliers. Instead of focusing mainly on a stock of well-recognized brands, Whole Foods Market can attract both young and older adults who are looking for to make a commitment to healthy eating. In trying to build an interdependent relationship between their consumers and the brands that they carry, Whole Foods Market has created their part of the market to supply for their stores.

Market Segments

It is important to understand the Whole Foods Market and its primary market segment. The Whole Foods Market should consider the following sections before starting to develop the Customer Satisfaction Plan:

Demographic

Whole Foods Market can be seen as having a broad demographic ranging from millennials to baby boomers. While they appeal to young and older adults who may wish to eat healthier, they appeal to consumers who enjoy the variety of the selections, the focus on local suppliers, as well as teens. Whole Foods shoppers tend to make small to mid-sized trips. Moreover, Whole Foods Market is so popular because they understand what their customer demographics occur to be. According to Whole Foods Shopper Insights (2016), A Whole Foods shoppers are most males with an income of 125K or more a year and lower middle age. Education can reflect a person’s knowledge and attitudes that have been recommended and learned by family members’ behaviors. Adopting healthy food habits is one of these habits that can be learned. In addition to the learned eating, growing up in a family that is educated and has lived in a wealthier area can also be indicators of healthy living habits (Lallukka, Laaksonen, Rahkonen, Roos, & Lahelma, 2007).

According to Brandongaille.com (2014), the most ages that love to shop at Whole Foods normally for their food desires are 18-30-year-old ages. Whole Foods Market also offer the special discount to their customers to buy the foods sample for only $5.00 on Friday. According to latest studies, Family with children would love to purchase the organic foods today is more than 40% of last year.

Behavioral

Whole Foods Market always wants to give consumers the best experience and products because they understand the quality of the highest form of value (Whole Foods Market, 2016). Customers have been habituated that it is possible to eat healthier foods, but they don’t want to pay the prices that higher than products would normally cost. These behaviors can be partly recognized local suppliers throughout the country where consumers search out natural fresh meats and produce.

According to Businessinsider.com (2016), Whole Foods’s buyers have some changes on their foods trends in 2016. This research is based on their survey of consumer behavior and buying foods and other products for Whole Foods of 430 stores. The list includes items, such as canned wine, dehydrated vegetable, and “sophisticated” jerkies made of salmon, bison, and chicken. Here is the list of seven’s the top trends they identified:

1. Alternative flours

2. Canned wine

3. Dehydrated foods

4. Grass-fed everything

5. Plant-based everything

6. Fermented foods and probiotics

7. Uncommon meats and seafood

Psychographic

According to Organic Trade Association (2016), “With $43.3 billion in total organic product sales, the industry saw its largest dollar gain ever, adding $4.2 billion in sales in 2015, up from the $3.9 billion recorded in 2014. For the fourth year running, the industry saw growth in the double-digits at 10.8%.” This percentage is reflective of how important eating healthy is to the typical family.

According to Nielson, the five most common segments within San Jose, California (Zip code, 95111) were named American Dreams, Multi-Culti Mosaic, Multi-Culti Families, The Cosmopolitans, Urban Achievers, and Young Digerati. These segments range from wealthy young family mix to midscale Middle age family Mix. These families are mixed as far as race and whether they have children or not (Nielson, My Best Segments, 2016).

The Young Digerati is tech savvy, lives in fashionable areas and is highly educated. They are between the ages of 25-44 and are ethnically mixed and wealthy. This group also likes fitness, clothing boutiques, the trendy bars, and restaurants. They shop at the high-end retail stores and drive expensive cars (Nielson, My Best Segments, 2016).

The American Dreams part is an upper middle aged ethnically diverse mixed family. They are in the top middle part of the median income, homeowners, with a college education.

The Urban Achievers are the little bit younger approximately 35 and are the up and comers. They are typically educated, homeowners, and could be single, married with or without children. They speak more than one language other than English. This group shops at FedEx and reads the New Yorker (Nielson, My Best Segments, 2016).

The Multi-Culti Mosaic is the immigrant entrance community. They are a mixed population of Hispanic, Asian, and African-American families. They are younger than 55 years old. Their income is above average (Nielson, My Best Segments, 2016).

The last group is Multi-Culti Families are middle age, urban households with moderate means. Most of them can speak two languages. They enjoy a wide variety of media and are average in their overall use of technology (Nielson, My Best Segments, 2016).

Geographic

Whole Foods Market has 447 locations of 12 geographic divisions of its operation within the United States, Canada, and the United Kingdom, and ships everywhere (Whole Foods market, 2016). This feature of the company’s directorial structure requires local offices. Each local office is in charge of arranging business events to their local market conditions. Consequently, they keep up satisfactory flexibility to have the differences among regional markets through different geographic. However, based on the nature of their products it is likely that their geographic demographics are the focus for more urban and populated areas. Whole Foods Market’s corporate building is proper for promoting global business. The flexibility of the geographic separations allows the company to adjust its activities to modifying to their local markets. According to this, they have improved its store operations and supply chain.

Positioning Strategy

Whole Foods Market has positioned itself as a new marketing train. The company seeks to expose customers to healthy natural food products. They offer a money back guarantee for any unhappy customer. Additionally, they are appealing to consumers because they provide right to use to a diversity of natural products for a fraction of the cost.

Marketing Strategy and Customer Relationship

Whole Foods Market has increased grown 1 to 447 stores that specialize in providing the best products at the best price. This success can be attributed to the successful marketing strategy adopted by founders, which is centered on building a strong public relationship. The founders dedicated their business to not only provide consumers with a tremendous variety of quality products but also a commitment to support a sustainable and healthier planet.

According to Whole Foods Market (2016), “Whole Foods Market’s vision of a sustainable future means our children and grandchildren will be living in a world that values human creativity, diversity, and individual choice.”

A loyalty program can be offered by Whole Foods Market as it is offered by vendors and producers to motivate continuous support among customers through rebates, free samples, or special amenities. This would be a great incentive for customers to keep coming back to their store. They would also build a relationship with their customers by giving them continued discounts (Berman, 2006).

A good method to measure customer satisfaction and loyalty is through the use of a survey that includes some of the questions that measure the degree of customer’s satisfaction such as:

a. 1 time

• Would you recommend Whole Foods Market to your family and friends?
  • Yes
  • No
• How likely are you to continue to buy our products per month?

3.How satisfied are you with our brands and styles?

• b. more than 3 times
  • c. more than 4 times
  • d. more than 5 times

a. not satisfied

b. satisfied

c. very satisfied

d. extremely satisfied

4.You consider the overall value of the service/product we provided as:

This is an example of the types of questions that can be used to measure the overall performance of the company, and examine the efficiency of the enterprise’s strategies and plans. The results and data collected can be used to develop more effective and efficient strategies and plans that will be supports of the company’s success.

• An extraordinary price
  • A good price
  • A reduced price

Being able to maintain a loyal customer base and constantly building their customer base will help Sprouts to continue to grow throughout the United States. Whole Foods Market is committed to provide their customers with quality products and as long as they continue to do this, they will be successful. Good quality products almost sale themselves, but with building an outstanding Customer Relationship Management (CRM) and guaranteeing customer satisfaction, Whole Foods Market will continue to grow and build upon their customer loyalty.

Being able to maintain a loyal customer base and constantly building their customer base will help Sprouts to continue to grow throughout the United States. Whole Foods Market is committed to provide their customers with quality products and as long as they continue to do this, they will be successful. Good quality products almost sale themselves, but with building an outstanding Customer Relationship Management (CRM) and guaranteeing customer satisfaction, Whole Foods Market will continue to grow and build upon their customer loyalty.

References

Organic Trade Association. (2016). Market Analysis. Retrieved from

http://ota.com/resources/market-analysis

Whole Foods Market. (2016). Company Info. Retrieved from

http://www.wholefoodsmarket.com/company-info

Bose, C. (2004). Principles of Management and Administration (1st ed.). New Dehli, India: Prentice-Hall of India.

Whole Foods Shopper Insights. (2016). Retrieved from http://infoscout.co/retailer/whole_foods

Brandongaille.com (2014). Retrieved from http://brandongaille.com/17-incredible-whole-foods-customer-demographics/

Lallukka, T., Laaksonen, M., Rahkonen, O., Roos, E., & Lahelma, E. (2007). Multiple socio-economic circumstances and healthy food habits. European journal of clinical nutrition, 61(6), 701-710.

Businessinsider.com (2016). Retrieved from http://www.businessinsider.com/whole-foods-buyers-predict-the-biggest-food-trends-of-2016-2015-12

Nielson, My Best Segments. (2016). Retrieved from https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup

Panmore. (2015). Retrieved from http://panmore.com/whole-foods-market-organizational-structure-analysis

Berman, B. (2006). Developing an effective customer loyalty program. California management review, 49(1), 123-148.