Y



 


 


 

By;
Silja Bohry 7042108
Tri Mai 6900453
Rishi Kanojia 6642748
Jatin Mehta 6665675
4



  Australian Supermarket
Retail Industry
4


  Woolworths
4


 
 Australia
 
  
 
4 Australian supermarket retail industry is one
of the world's largest industries
4 Accounts for 62% of the total retail trade
4 Woolworths and Coles together amount to
80% of the market
4 Strong price competition between the major
retailers due to high consumer demand
 

 Woolworths 2010.
 a 
  

4 ¦argest company in the Australian
supermarket retail industry
4 Serving 95% of grocery items
4 Shareholders and employees - 420,000
4 One of the most trusted brands in
Australia
 h



4 




Woolworths serves people·s concern about environmental and
health issues

4 


 
  


ÿ pansion of target market

4 





Social responsibility about climate change and global warming

Giving an e ample to society

4 ÿ



Opportunity to conduct business cheaper


 
Chosen trends could lead Australian

supermarket retail industry into an economic boom (best case) or
into a recession (worst case) within the ne t 5 to 10 years
 Y
!"

!" 

#

$
 Increasing numbers of consumers
demand goods that are organic, locally grown
and involve eco-friendly packaging

ÿ 


 In recent years every business sector has been
impacted by the green movement (Agriculture
and Agri-Food 2009)
- Green product popularity has grown over the
past five years (Raybin 2009)

 



 Increasing number of

retailers include green products into food and
grocery line
Ä

- Customers· concern for environment
- Willingness to spend more on green products

Ä
- High income level of individuals
- ÿndurance of the concern for environment
Y
%"

%" 




  
& '
$
Social Networking is one of the
biggest trend on the web and businesses
increasingly use it as an ine pensive marketing
tool

ÿ 

 Facebook (created in 2004)

- More than 100 million members in 2008 and
currently more than 500 million users (Facebook
2010; Zuckerberg 2008)

 



 Online users as potential

customers
Ä

- Increasing number of users
- Cheap marketing tool

Ä
 Continuation of high number of users
 Increase in business growth and profit
Y
("

(" 





$
Increasing green policies in the
stores including energy efficiency, limiting
carbon emissions from food transportation

ÿ 

 Companies are increasingly

innovating to have a green image through
operations (Makower 2010)

 



 Supermarkets are

setting a good e ample to the society of how
to act environmentally friendly
Ä

- ÿnvironmental concern
- Companies feel environmental pressure

Ä
- Pressure from the government
Y
)"

)" ÿ


$
Application of information and
communication technologies in support of all
the business activities

ÿ 

 More than 75% of businesses

operating a website (Internet Business Blog
2009)

 



 More activities online

Ä

 Cheap opportunities for business operations
- Increasing number of people using internet

Ä
- Government developing new ADS¦ system
- Cheap and fast internet
$


 

Note T 1-2 = Income level

T 4-2 = Business Profit


$


* 
 
 
 +!


,Boom-

$
 In this future individuals have a

high income and Woolworths has increasing
profits due to SNS appearance

 
This scenario could happen if real

GDP in the Australian market grows faster
than the trend rate of economic growth and
SNS users spend their money on Woolworths
due to the supermarket·s online appearance
 
 +%


üKing Customersµ

$
 In this future the individuals have

a high income and Woolworths has decreasing
profits from its SNS appearance

 
This scenario could happen if

individuals and SNS users avoid Woolworths
and choose competitors instead
 
 +(


üFlying lowµ

$
 In this future individuals have a

low income and Woolworths has increasing
profits due to its SNS appearance

 
This scenario could happen if

Woolworths was addressing low income
customers through an attracting SNS
appearance
 
 +)


üRecessionµ

$
 In this future individuals have a

low income and Woolworths has decreasing
profits due to its SNS appearance

 
This scenario could happen if there

is a fall in economic growth and individuals
either do not have the money to spend it on
Woolworths or are not addressed through
Woolworths·s SNS appearance
  



i üBoomµ
- Opportunity to increase green products to serve the
e clusive and wealthy customers
- Opportunity to e pand the online appearance
- Risk that competitors copy Woolworths·s strategies
- Risk that boom leads to downturn as economic peak is
already reached

i üKing Customersµ
- Opportunity to restructure online appearance
- Risk that Woolworths neither has innovative methods
nor marketing opportunities to address potential
customers
i üFlying lowµ
- Opportunity to e pand online marketing strategy
to attract even more individuals with low income
- Risk that demand decreases as people have only
little income

i üRecessionµ
- Opportunity for government initiatives
- Opportunity to e pand the market to other
countries
- Risk of too little demand
- Risk that cheap online marketing options are not
addressing potential customers as they have only
little money
 
  

4 Percentage of estimated increased sales due to SNS appearance

4 Competition

i üBoomµ
4 High (about 80%) increased sales due to SNS appearance
4 High competition

i üKing Customersµ
4 No increased sales due to SNS appearance
4 No competition

i üFlying lowµ
4 High (about 70%) increased sales due to SNS appearance
4 High competition

i üRecessionµ
4 No increased sales due to SNS appearance
4 No competition
 Conclusions
i üBoomµ - Best future for Woolworths

i üKing Customersµ ² Woolworths has disadvantage

against its customers, so the company needs to
overcome the disadvantage of having no money

i üFlying lowµ - Woolworths tries to get the necessary

resources to attract people with low income

i üRecessionµ - worst future for Woolworths

Note The low income scenarios üFlying lowµ and

üRecessionµ are quite improbable to occur in Australia!
Y
 


.
 References
Agriculture and Agri-Food 2009, ¶Going Green The Future of the Retail Food Industry·, viewed 08 October
2010, <http

www.ats.agr.gc.ca
amr
4531-eng.htm>.

Facebook 2010, ¶Press Room·, viewed 05 October 2010,

<http

www.facebook.com
press
info.php?statistics>.

Internet Business Blog 2009, ¶ÿ-Business Growth Statistics·, 19 September, viewed 10 October 2010,
<http

blog.internetbusinessesforsale.co.uk
e-business
e-business-growth-statistics-2009>.

Makower, J 2010, ¶State of Green Business·, £



 viewed 12 October 2010,
<http

www.greenerworldmedia.com>.

National Association of Retail Grocers in Australia 2002, viewed 10 October 2010,

<http

www.narga.com.au
docs
NARGA_ISSUÿS_2002.doc>.

Raybin, A 2009, ¶Green is Gold·,   
, 08 June, viewed 08 October 2010,

<http

blog.airdye.com
goodforbusiness
2009
06
08
green-is-gold
>.

Woolworths 2010, ¶How We Do Business·, viewed 07 October 2010,

<http

www.woolworths.com.au
wps
wcm
connect
Website
Woolworths
About-Us
Woolworths-
Facts
How-we-do-Business
>.

Zuckerberg, M 2008, ¶Our First 100 Million·, 
, 26 August, viewed 05 October 2010,
<http

blog.facebook.com
blog.php?post=28111272130>.