WFM memo
To: Dr. Sihi
From:
Date: 03/25/2014
Subject: Insights on World Foods Market, Inc.’s high price perception
Following our initial research on Whole Foods Market’s high price perception we have identified three key insights. The 365 Everyday Value brand has poor brand visibility; whilst price is key, Whole Foods Market (WFM) does not discuss price through any of its outlets; WFM millennial customers could be directly targeted with an added value proposition.
Brand Visibility
The 365 Everyday Value brand has poor brand recognition. Informal conversations with regular WFM customers from Southwestern University proved that many customers are not aware that the brand exists. 100% of those surveyed did not recognise the 365 brand, and were unaware that WFM had a “value” brand. We also found it difficult to locate 365 products in store during our visit to the Austin store.
To increase brand visibility, WFM should emphasise the 365 brand on their website. Perhaps offering a direct link or feature on the company homepage. In store, the 365 brand should also be highlighted, perhaps using signage, or specific shelf space.
Price
As Cathy Cochran-Lewis highlighted, it is clear that WFM has a high price perception. However, WFM make little effort to combat this image. Instead, price appears to be a “taboo” subject. No prices are listed on the WFM website and all recipes featured on the Facebook page do not include prices, despite using exclusive WFM products. This acts to reinforce people’s perception of WFM as a high-priced store.
One of the things WFM could do is to display the prices of the 365 products matched to the customer’s nearest store. That would be a starting point of the repositioning of the brand products in consumers’ minds. The facebook page could also feature 365 budget recipes, using low cost ingredients and listing an average meal price if all goods are purchased in store.
Millennials
One third of WFM customers
From:
Date: 03/25/2014
Subject: Insights on World Foods Market, Inc.’s high price perception
Following our initial research on Whole Foods Market’s high price perception we have identified three key insights. The 365 Everyday Value brand has poor brand visibility; whilst price is key, Whole Foods Market (WFM) does not discuss price through any of its outlets; WFM millennial customers could be directly targeted with an added value proposition.
Brand Visibility
The 365 Everyday Value brand has poor brand recognition. Informal conversations with regular WFM customers from Southwestern University proved that many customers are not aware that the brand exists. 100% of those surveyed did not recognise the 365 brand, and were unaware that WFM had a “value” brand. We also found it difficult to locate 365 products in store during our visit to the Austin store.
To increase brand visibility, WFM should emphasise the 365 brand on their website. Perhaps offering a direct link or feature on the company homepage. In store, the 365 brand should also be highlighted, perhaps using signage, or specific shelf space.
Price
As Cathy Cochran-Lewis highlighted, it is clear that WFM has a high price perception. However, WFM make little effort to combat this image. Instead, price appears to be a “taboo” subject. No prices are listed on the WFM website and all recipes featured on the Facebook page do not include prices, despite using exclusive WFM products. This acts to reinforce people’s perception of WFM as a high-priced store.
One of the things WFM could do is to display the prices of the 365 products matched to the customer’s nearest store. That would be a starting point of the repositioning of the brand products in consumers’ minds. The facebook page could also feature 365 budget recipes, using low cost ingredients and listing an average meal price if all goods are purchased in store.
Millennials
One third of WFM customers