What are ‘natural foods’? Is ‘natural foods’ a good business definition? What opportunities do natural foods offer for producers, distributors, retailers? In my own words I would describe ‘natural foods’ as foods that are literally by definition, natural. Not processed, no chemicals, additives, and any other elements to produce the food. The natural foods market as a whole includes “natural” products, including “sustainTABLE developed,” “grown under fair trade,” and “green friendly, which all form the definition funeral’s foods.
When interpreting ‘natural foods’ with the above definition, would conclude it to be a very good business definition. The opportunity offered by natural foods is endless in terms of business. Based on a market research, there is great motivation in purchases of natural products including: 66% health/ nutrition, 38% taste, 30% food safety, 26% environment, and 16% availability, For organic food producers, their acreage grew significantly due to the high demand of these organic products and to take advantage of higher margins.
Natural product producers benefited versus a convention chemical-intensive yester because of the price premiums and greater profits. Manufacturers and distributes of natural products need to develop specific and distinctive pipelines in order to maintain organic integrity through the distribution chain. Organic foods are more perishTABLE than conventional foods so they require faster and more careful handling. The competition is slight in this regard, due to the specifics of organic product distribution offering more to the distributed.
Retailers are offered the opportunity to sell these natural products which provides them with something people want. With organic odds increasing in popularity and consumption, retailers are benefiting tremendously with the sale of these goods. 2. What is Whole Foods’ strategy? How has it adapted over time? CEO John Mackey explained Whole Foods’ as a place that can satisfy humans needs for food and safety. Insisting on having seating for people to eat and take breaks as well as offering in-store tasting and sampling to express his sense of sharing.
Products provided by Whole Foods’ were from natural food vendors with a limited selection of conventional brands, if standards are met. Whole Foods’ wanted to provide all the basic grocery needs of consumers, if ailing to pay a percentage more. The products used by them have adapted over time when Whole Foods’ built a range of private-label brands, including Whole Foods, Whole kids, 365, and Allegro. In order to maintain its competitive edge, Whole Foods’ educated customers on safety practices of regular foods, this informed people on the reality of the subject and hoped to win their business.
In a real estate category, Whole Foods’ sought to locate in urban locations, near well-educated populations with higher earnings and a greater focus on health issues. Over time, the research performed to find hose locations helped them adapt to change over time. Historically, purchasing of the products were made by the store managers. As maturity ensued, the decision making was transferred to regional managers, however store managers are still TABLE to customize some mix. The strategy used for hiring is rather different then the norm.
First and foremost, employees must share the same vision and values as does the company. When it comes to the hiring of new employees, teams play a critical role. Each store has about 10 teams, employees are choosing employees based on two-thirds majority of he team. Adaptation of performance measurements have kept employees willing and engaged. 3. What challenges does Whole Foods face in 2006? Growing competition is the biggest challenge faced by Whole Foods’ as well as any other business.
Barriers to entry are present in this industry with the difficulty of producing such organic and natural products. However, it is not impossible to provide natural foods. Existing retailers such as: WEB, Wall-Mart, and Cost to name a few. Whole Foods’ offers all these great, natural products, which are slowly being adapted by its competitors. As a consumer, f I am in natural foods and a closer and cheaper retailer is availTABLE, I would immediately switch. WEB evolved, with the emergence of Whole Foods’, into a similar format offered by Whole Foods’ but with larger outlets.
Discount retailers started to offer similar products to Whole Foods’ creates problems for them. 4. What would you advise CEO John Mackey to do to sustain Whole Foods’ lead? I would advise him to stay consistent with whatever he has been doing thus far. Being a powerful retailer of natural goods in the industry, Whole Foods’ has the credibility and customer base taken care. Staying up to date with eateries used by the competition will help in staying up to date with consumer trends and needs.
However, Whole Foods’ layout and strategy is unique to competitors, and consumers understand that. Sustenance is guaranteed due to the fact that individuals are converting to more healthy alternatives. I would also be sure to tell the CEO to keep his values as the drive factor his business, as well as treating the employees the way he does. Staying to true to mission of providing natural goods with your own products is also advisTABLE, to stay known as a brand and to differentiate between competitors.