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Whole Foods ICM Plan

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WHOLE FOODS MARKET Integrated Communications Plan Anonymous Media Christine Sangalis, Carole Anne Nelson, Sara Leppala, Nicole Murphy, Sam Canedy
Transcript
Page 1: Whole Foods ICM Plan

W H O L E F O O D S M A R K E T

Integrated Communications

Plan

Anonymous Media Christine Sangalis, Carole Anne Nelson, Sara Leppala, Nicole

Murphy, Sam Canedy

Page 2: Whole Foods ICM Plan

Executive Summary & Overview:Whole Foods Market (WFM), headquartered in Austin started in 1980, went

public in 1992. With 387 locations worldwide, WFM includes fair prices for crops, environmentally sound practices, better wages and labor conditions for workers and strives to offer the highest quality natural and organic food products at competitive prices.  During the downturn of 2008, WFM launched a national initiative dedicated to reassuring customers that “Values Matter.” In attempting to teach customers how to get the most out of their food dollar, WFM created programs, education and tips on finding deals at Whole Foods.  Although, WFM’s advertising is done at the local level due to their decentralization and regional offices that function fairly autonomously. This flexibility allows the needs of the local community to be met more authentically.

We have determined Whole Foods Market’s problem to be to expand on their campaign that emphasizes price and value through in-store events that clearly illustrate this connection. We have looked at external and internal environments, coming up with several critical factors. Due to WFM’s primary method of advertising at a local or regional level, the budget for these events is between $10,000-$20,000. Each store’s main focus is improving customer’s shopping experiences through their core values Lastly, due to customers cooking more at home, Whole Foods needs to emphasize the value their store has to offer.

Anonymous Media has proposed three events at the Whole Foods Post Oak location, in Houston, Texas. Because this store has recently opened, there is great opportunity to communicate the value that Whole Foods has to offer and create a community. The population near this store correlates with our target market, men and women aged 25-34, who are young professionals. They are health and price conscious despite being in the mid-upper class.

Our first alternative, Pieces to make the Whole “Drive-Thru” will have bags of pre-set ingredients with a recipe available for purchase to make meals at home. This aligns with people cooking more at home and will kick start people’s New Years Resolution to lose weight. At our second alternative, “Meat” the Chef, Whole Foods will hire 3 local chefs in Houston to make custom food creations at different stations. There will be a small band playing and a Whole Foods representative at each station, explaining the 5-step process the store uses to buy their high-quality meat. Consumers will also have the opportunity to get a loyalty card for future promotions in the meat department. Our third alternative is a Craft Beer + Food Pairing social gathering, “A Draught Pick.” Because WFM Post Oak is the only store with an in-store brewery, we want to capitalize on this opportunity. This event will have separate booths for each style of craft beer with a sample of a beer along with a food pairing that best complement the beer. Whole Foods has already built its reputation on quality products, so naturally they, too, provide the best quality craft beer and want to clearly communicate this.

Although we believe all alternatives will be successful, we recommend Alternative B, “Meat” the Chef. It incorporates esteem with practicality and knowledge. People generally care about the quality of their meat and would prefer to buy natural or organic, if price allows. The costs for the event include hiring the chefs, band, and in-store signage. Further promotion includes social media, bloggers, and restaurant promotions. This event will be measured through social

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media analytics, number of attendees, number of people getting the loyalty card and amount of specific meat sales.

Problem:Due to the recent shift by consumers focusing on value while grocery

shopping, Whole Foods Market needs to expand on their campaign that emphasizes price and value. By selecting three departments in the store, Whole Foods Market wants to incorporate events to the campaign to more concisely illustrate the company’s dedication to price and value.

Critical Factors: Advertising budget for individual stores is between $10,000-$20,000 Whole Foods Post Oak in Houston, TX opened within the past month (Nov. 6) Whole Foods recently launched a values campaign Whole Foods Market primarily advertises at the local level, due to their

decentralization Since the downturn, consumers are increasingly cooking meals at home

instead of eating out Each store’s main focus is on improving customers’ shopping experiences

through their core values Whole Foods Market consumers are health conscious and prefer to buy

organic, natural foods at a reasonable price point The population surrounding Whole Foods Post Oak consists of young

professionals with young families. 13,513 Whole Foods Market Houston Facebook followers, & 7,872 Twitter

followers Competitors near Whole Foods Post Oak include HEB, Kroger and The Fresh

Market

Scope and Target:We believe Whole Foods Market Post Oak is the optimal location to

implement in-store events as it recently opened. At this location, Whole Foods Market can create a loyal community in the surrounding area. In addition, we believe an event campaign will be more successful at a specific location due to Whole Foods Market’s focus and expertise on regional and local advertising.

Through our campaign, we want to get customers in the store for a grocery shopping experience. We want to emphasize the price/value connection that Whole Foods Market has to offer through in-store events and promotions. Following the economic downturn, grocery shoppers have been more price conscious and are more receptive to promotional tools for groceries. Although 54% of grocery shoppers say their primary reason for choosing a grocery retailer is price comparison, 32% choose retailers based on promotion. By illustrating the quality of the ingredients and products Whole Foods has to offer, customers will be more understanding of the value of the food they purchase at the price it is sold at.

We are targeting men and women aged 25-34, who are young professionals. Affluent residential areas, as well as many offices and the Galleria surround whole Foods Market Post Oak. There are over 60,000 people in the same 77056 zip code combined with the adjacent zip code, 77057. Close to 30% in both zip codes are

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between the ages of 21-34, which aligns with our target. Although they are in the mid-upper class, they are still price conscious and looking for good deals on their groceries, without sacrificing quality. This target is technologically advanced and engages on social media with both friends and brands.

Alternatives

Alternative A. “Pieces to make the Whole” Drive-Thru        With the shift of consumers increasingly cooking at home and placing more emphasis on value while grocery shopping, we recommend Whole Foods Post Oak create a “Drive-Thru” of pre-set ingredients to make meals at home. To jump on the New Years Resolution bandwagon of weight loss, the drive-thru will last for three weeks during the month of January. Depending on budget and availability, Whole Foods can either have a food truck or tent near the entrance of the store for easy accessibility to consumers on their way in or out of the grocery store.        The “drive-thru” will have meals with pre-measured ingredients, so that all the customer has to do is follow the instructions to cook the meal to perfection. There will be options of meals for two, four, or six people. A limited menu will be provided to make the event feasible but all meals will revolve around healthy meals, which will include a main course and a side item. A selection of healthy meals is increasingly more and more important, particularly at the beginning of the New Year and Whole Foods Market will successfully integrate this preference into the drive-thru event.

This event is targeted to the primary grocery shoppers of families. These families are affluent yet health and price conscious customers who have shopped at Whole Foods before. During the New Year, this event will be relevant to a family who has an exceptionally busy schedule and is looking to create healthy, affordable meals.        How does this pertain to value? Grocery shoppers, since the downturn, associate value with cooking at home, rather than eating out. Whole Foods offers quality ingredients and this event will be cost effective for families. It is less expensive than eating out or picking up take out as well as can be less expensive than other prepared foods inside the store. In addition, if people buy two or more meals during the two weeks of the drive-thru, they will receive a discount. This will be beneficial since grocery shoppers are very responsive to promotional tools.        To promote this event, Whole Foods will rely on online media as well as in-store advertising, starting at the end of the December and continuing into January. The event will be promoted online both through the website as well as all social media accounts. The target market is active on social media and technology, creating a better opportunity to generate awareness and buzz. To promote the “drive-thru” in stores, Whole Foods should set a banner at the future site of the “drive-thru.” There should be signage throughout the store, as Whole Foods frequently advertises for other promotions. In addition, the cashiers should start word of mouth buzz to give out specific information about the event.        Whole Foods is able to measure this event through two different ways. On social media, the number of likes, shares, and comments can measure the awareness and exposure before, during, and after the event. To measure the success during the event, Whole Foods can measure how many people bought the meals or how many people stop at the drive-thru versus how many people actually

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bought a meal. In addition, Whole Foods can draft a survey after the event is over. Selling the food should cover many of the costs. The social media experts are already employed and the signage around the store already exists. The banner and tent (or if already owned food truck) will be low cost.

PRO: Low budget as many of the costs will be covered by selling the foodPRO: Geographic location around Whole Foods matches the family-oriented target marketPRO: Cost, time, and health consciousCON: Limited menu per dayCON: Families might want to cook their own meals or already have

ingredientsCON: The drive thru could create traffic in the parking lot

Alternative B: “Meat” the Chefs

Because Whole Foods customers are concerned with the quality of their food and prefer to buy natural when price permits, this alternative will introduce the 5-step process that Whole Foods uses to buy its meat. The 5-step process emphasizes animal welfare standards that include no crates, enriched environment, enhanced outdoor access, pasture centered, and animal centered. Whole Foods needs to clearly educate their consumers about the 5-step process to create a sense of value with their meat department. Whole Foods will introduce these 5 steps to their customers through a special event called “Meat” the Chef.

At “Meat” the Chef, Whole Foods will hire 3 local, well known chefs in Houston to make custom food creations using different meats and other items sold purely at Whole Foods. Each chef will have their own station with branded signs with their information such as their name and restaurant. The specific meat used in each chef’s recipe would be on display at their station, as well as a coupon for each item. There will be recipe cards for each of the chef’s creation, so the consumers can make top chef creations at home. This will be beneficial because grocery shoppers are very responsive to promotional tools. Most consumers like the thrill of a bargain and this discount can foster a long-term relationship with shoppers.

To link the 5-step process to the event, a Whole Foods representative will be positioned at each chef’s station explaining the process of buying the meat, how the animals are raised and where the meat comes from. They will be there to answer any questions the consumer may have, and encourage the consumer to visit the other stations. The representative will hand out the previously mentioned recipe cards, with information about the 5-step process on the back as well as free samples of the food that the chef is creating.

In order to draw attention to the event, there will be a small band playing. The choice of the band will be up to Whole Foods Post Oak. We encourage Whole Foods to hire an upbeat, acoustic trio to create a fun atmosphere for consumers to enjoy the event further.

At the “Meat” the Chef event, consumers will also be encouraged to apply for a loyalty card for future promotions and discounts in the meat department. Research shows that more than 50% of consumers say that they spend more and shop more regularly with loyalty cards in order to earn more points. “Meat” the Chef will introduce consumers to the value of shopping in Whole Foods’ meat department and then the loyalty card will encourage them to continue to shop with us. The loyalty

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card will align with the value that Whole Foods has to offer, especially in their meat department.

This event will be held during Fall on a Sunday from 12:00 p.m. to 5:00 p.m., during prime grocery shopping hours. This will allowing Whole Food’s to hire local chefs from restaurants who close after brunch on Sundays as well as have the event during a high traffic period.

This event will be catered to 25-34 year olds who are looking for good deals while grocery shopping, but don’t want to sacrifice quality. This target will be receptive to this type of event because the target enjoys cooking and are price conscious. Since this Whole Foods’ recently opened, this event will help draw our target market away from local competitors and into Whole Foods’ meat department for future purchases.

This target market is technologically advanced and will be best reached online. Advertising for this event well start a month before the event. Since the Whole Foods Houston Twitter and Facebook have a large following, the event will be promoted through these platforms. Whole Foods will also encourage local food and health bloggers to attend the event. To further push the event, in-store signage will be placed at the entrance of Whole Foods and throughout the meat department. Flyers will also be placed at Whole Foods registers and at the chef’s restaurants. This event will be measured through social media analytics, number of attendees, number of people getting the loyalty card and amount of specific meat sales.        PRO: Easily adaptable to other stores in the region

PRO: Emphasizes the quality and value of the meat departmentPRO: Combines highly regarded chefs with knowledge of Whole Foods meat

preparationCON: Could be costly or difficult to bring in chefsCON: Alienates vegetarians CON: Might be hard to measure as people already buy meat

Alternative C. Draught PickOver the past few years, there has been a significant shift in consumer

preference when it comes to their beer of choice. The general hype has been about the gradual shift of preference to wine and spirits, but another shift has taken place from manufactured beer to craft brewed beer. A craft brewery has been defined as a small, independent brewery with an emphasis on a culture that manufactures beer with flavor either derived from traditional or innovative brewing ingredients. Because of this trend toward the consumption of craft beer, we recommend Whole Foods Post Oak take full advantage of their one-of-a-kind, in-house brewery.

The key target market for this product is males aged 25-34, which aligns with the audience Whole Foods should reach. The style of beer is the biggest driving factor when making a purchase and despite this style preference they still have a desire to try new styles, as long as there is some familiarity in the style of beer. Another important fact to mention is the importance of food pairing with this category of beer. This beer category is a social beer, not the kind of beer that is guzzled in order to get inebriated. This information leads us to our main idea for the event to be hosted during the Summer for approximately 3 hours at Whole Foods Market Post Oak: A Craft Beer + Food Pairing social gathering.

This event will have separate booths for each style of craft beer. So a booth for IPA, bitters, stout, etc. Served at each booth will be a sample of a beer along with

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a selection of food pairings that best complement the beer. The food paired with each style of beer will be chosen from the other departments throughout the store. Since there will be an emphasis on a small selection of beer brands with one event, if the event is successful, there is the possibility of repeating the event and highlight another brand offered by Whole Foods Market. To really tie in to the in-house brewery, we recommend that we let the decision of which beer to highlight be left to the brew master and his staff.

What is the value this event brings to WFM consumers? Whole Foods has already built its reputation on quality products, so naturally they provide the best quality craft beer. Craft beer consumers, as we stated previously, are not looking for something to be guzzled to achieve inebriation—they look for a beer that can be savored and appreciated. This idea of savoring the nutrition Whole Foods Market provides its customers is a branch of the value you provide. The consumers to which Whole Foods caters seek the nutritional value at an affordable price.

This target audience is best reached online. They are a highly technological and a constantly connected demographic with access to the Internet via their mobile devices. Heavy advertisement of the event should be conducted on WFM website and social media platforms. Promotion for this event will also be done throughout the store a week to a week and a half prior to the event with banners and signage at all entrances. For all mailers WFM releases to its loyal customers, the event should also be promoted. As previously mentioned, this audience wants to share about their preferences and gain information and suggestions from others. Whole Foods Market should create a space online for its customers to interact with each other and with Whole Foods brew master and staff. Whole Foods Market Post Oak should also reach out to local beer bloggers and heavily followed individuals to personally invite them to attend the event. This age group is already in the workforce, so there is also the opportunity to send a care package to neighborhood firms to entice this audience to attend the event.

To measure the success of the event we will look at the engagement on social media, number of attendants, sales of the beer and food highlighted during the event.

Pro: Low costPro: Community eventPro: Aligns with the demographic in the areaCon: Because this product is preferred by men; we alienate half of the target

audience. Con: May be difficult to adapt to other locations

Conclusion & Recommendation:Although we believe all alternatives have the capability to successful and

each event will integrate values into the campaign, recommend Alternative B, “Meat” the Chefs. We have come to this conclusion through both primary and secondary research. Through a verbal survey, people in our target market overwhelmingly chose this alternative. In our secondary research, we found important statistics to back up our recommendation. While 54% of grocery shoppers choose a grocery retailer based on price comparison, 32% choose based off of promotions, 30% choose based off their loyalty cards and 17% choose based off of the selection of natural or organic foods.

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We have chosen Alternative B because it incorporates esteem (highly regarded chefs) with practicality (discount, recipe and loyalty card opportunity). In addition, people generally care about the quality of their meat and would prefer to buy natural or organic, if price allowed. Meat appeals to many different types of people - families, singles, couples, friends. Therefore, this event will appeal to those beyond our target market as well. Although this event will not apply to vegetarians, we still believe the benefits will outweigh this con. This alternative is measurable as well as offers people the chance to come back - for future “Meat” the Chefs events as well as for meat through the loyalty card program.

Creative Brief:Why are we advertising? What is the advertising objective?Whole Foods Market is advertising to convince consumers to go to the event, “Meat” the Chef. The advertising objective is to create value for customers enticing them to shop at Whole Foods.

Whom are we talking to?Men and women ages 25-34 who are young professionals, with steady jobs and disposable incomes. They are price conscious but willing to spend when value is for the best quality. These consumers often will shop at a variety of grocery stores to purchase their groceries. They shop at Whole Foods Market to take advantage of the specialty goods they provide, like meat, seafood, produce, and cheese.

What do they currently think?Customers may be uneducated, and unaware about the value Whole Foods Market offers, and unsure if the Whole Foods Market quality is worth the higher prices.

What would we like them to think?Whole Foods wants consumers to know that value matters to them and that they offer quality ingredients at competitive prices.

What is the single most persuasive idea we can convey?Whole Foods Market puts all of their resources into creating the best overall value for their customers.

Why should they believe it and what are the benefits to the consumer?Consumers should not sacrifice the quality of their food, especially meat products.

Are there any creative guidelines? What is the brand personality?The creative guidelines need to show Whole Foods as a value driven, a community oriented, quality brand that will not compromise the quality and care of their products.

Media Plan

1. What target audience should be reached by the media?

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Our target are Culinary Connoisseurs that consist of men and women ages 25-34 who are young professionals, with steady jobs and disposable incomes and an interest or passion for food or culinary arts.

2. To which geographic market(s) should the message be directed?The messages will be directed to the residential and business area around the Post Oak store, in the store itself, and at the restaurants the local chefs have come from.

3. How far into the target audience can the advertising reach given budget constraints?

The advertising will be able to reach a variety of segments within our target through the in store banners and displays, flyers at the cash register that will engage our target especially if they are buying meat products, food bloggers, the restaurant goers and various following on social media.

4. With what frequency should the message reach the target audience during the campaign?

Frequency is a critical component to this campaign to engage with Culinary Connoisseurs. As the event draws closer the frequency will increase. Similarly, the more Culinary Connoisseurs are aware of our event the more attendance and buzz will be created. With the in-store banner and flyers at the register, every time a customer shops at whole foods and is checking out they will receive a flyer reminder of the event with their purchase.  Also the in store banner allows for a high frequency for regular shoppers. Social media and bloggers will be a reminder after an overall awareness of the event is offered by Whole Foods in stores.

5. At which times should the message reach the intended audience?We will start promoting for the event one month before the event takes place. The flyers will be printed and at the register of Whole foods for all four weeks before the event. Social media engagement will be ongoing.

6. What type of media and/or specific vehicle provides the best match between the intended market and the actual audience?

The best media will be the in store banner and flyers at the registers because as our Culinary Connoisseurs buying meat in store and this encounter will be a relevant event for the customer. The second media that will provide a great match for our Culinary Connoisseurs will be social media and bloggers. Our target is technologically savvy and are passionate about cooking, therefore food blogs and pinterest boards for inspiration to find recipes are another avenue for advertising.

7. Which support functions will best ensure the effective performance of the selected media plan?

A communication planner will ensure that the campaign is running smoothly and moving parts are working together in unison with a distinct voice.

Additional Comments Depending on the budget, the “Meat” the Chef alternative can add or subtract

the amount of chefs at the event and could also be repeated once a month.

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Based off of promotional and first few days of success, it is important to account for the amount of meals to be pre-made in “Pieces to make the Whole” Drive-Thru.

Anyone of these alternatives could be carried out throughout the year.

Evaluation and MeasurementTo measure the alternative, “Meat” the Chef, we will use a variety of tools. First, we will measure the promotion of the event through our social media efforts. The amount of likes, shares, and comments will be measured to see the success of the promotion as well as the level of the engagement with consumers before the event.At the event, we will see how many people pick up the recipe cards from the chef’s station. The Whole Foods representatives will also be there to see how many people come by the event. In addition, the event will be measured through how many people sign up for the loyalty cards, and how many people buy the meat during the hours of the event.

ResearchWe conducted secondary research on Whole Foods Market, the geographic location of Whole Foods Market, the population and target market surrounding the store, as well as grocery retailing behaviors. Our secondary research came from Mintel reports, PRIZM Claritas reports, as well as websites such as Whole Foods Market’s website and social media pages as well as pages with information about craft beer, meat and loyalty programs. In addition to our secondary research, in order to choose our alternative, we conducted primary research. The respondents almost unanimously decided “Meat” the Chef would be successful and an attractive event pertaining to value.Sources: http://www.craftbeer.com/the-beverage/what-is-craft-beerhttp://academic.mintel.com.ezproxy.lib.utexas.edu/display/680491/http://academic.mintel.com.ezproxy.lib.utexas.edu/display/637799/ http://www.wholefoodsmarket.com/mission-values/core-valueshttp://academic.mintel.com/display/680600/#atom1http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookuphttp://www.mediapost.com/publications/article/231439/will-national-ads-help-whole-foods.htmlhttp://www.wholefoodsmarket.com/about-our-products/quality-standards/animal-welfare-standards

Research for Alternatives: More than 50% of consumers said they took some action, such as shopping

more frequently at a store or spending more on a single order to earn loyalty rewards.

Nearly 4 in 10 consumers prefer stores with loyalty programs 24% of males and 31% of females age 18-34 said price is the most

important when buying products and services more than half say they like to try new alcoholic beverages and about half

want to know more about what beverages pair with what foods.

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4 in 10 respondents say they want to know how these beverages are made beer drinks are looking more for premiumisation in the beers they choose

o 37% of respondents agree that smaller producers make better quality alcoholic drinks than larger producers

when selecting craft beer, respondents are most apt to say beer style factors into their selection, reflecting the many different varieties of craft beer and that craft beer drinkers are likely to drink craft beer because of the range of styles the category offers

ages 22-34 this group is interested in trying new types and flavors and will be the most open to new products.

o family, bartenders, and online sources = influential to their selectiono 25-34 year olds = key target audience for craft beero more willing than any other beer category to try new things but seek

some kind of guidance and familiarity o men are more engaged than womeno appealing to the interests of young consumers of legal drinking age,

with the goal of engaging them for the long haul will be particularly important

o Household income appears as the strongest determiner of craft beer purchase

keeping affordable offerings available will be important to engaging a wider consumer base

The importance of food pairing to the category can be seen in the fact that nearly half of users drink craft beer with a meal

General Research:Post Oak Whole Foods Market in Houston

Located near the Galleria Features: first in-store brewery more than 500 local Houston products, a

boutique-style eco-friendly clothing and accessory space, and a Souvlaki grill Demographics: 77056:

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Grocery Retailing: “More than half of primary grocery shoppers choose their specific retailer

because prices are better compared to other stores.” “Among those who shop in stores only, more than two thirds say they choose

certain retailers because they are located close to where they live and more than half say they know their way around the store.”

Nearly half of all primary grocery shoppers surveyed say they usually use coupons when grocery shopping and 42% look at retailers’ circulars either in-store or online to see what’s on sale.

Grocery Pricing and Promotion: Previously, consumers sought out the cheapest possible deal but today

consumers respond to pricing and promotional strategies that are more relevant to their individual needs.

While nearly all consumers are “price sensitive” the majority of shoppers also can be defined as “promotion sensitive.” The 53% of respondents that mostly buy what they need but find space for a few small treats are a prime audience for pricing and promotion strategies.

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Three out of Four women like the thrill of a bargain. Grocers might occasionally offer products at a substantial discount in order to foster a long-term relationship with female shoppers.

Half of parents switch brands based on specials -- 44% will continue buying a product at full price if they like it.

Mobile coupons can attract young consumers -- Half of respondents aged 18-24 would be more likely to shop at a store that offers mobile coupons.

Grocers are not limited in a race to the bottom pricing strategy, however. Strategic promotions can add value for each individual consumer without sinking a store’s overall bottom line.

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