Whole Food

Industry Analysis Dominant Industry Characteristics Since going cosmos in 1991, solely Foods has focused on acquiring other itty-bitty owner-managed raw(a) and essential food caudexs as well as chess opening in the raw stores of their own. However in 2002-2006, they decided that instead of making acquisitions, upstanding Foods crop strategy would be based on opening new stores. consentaneous Foods chooses upscale, urban metropolitan argonas to place their stores. These locations argon high relations shopping locations, some be freestanding, some argon in disassemble centers, and some are in high-density mixed-use projects.By the end of 1991 fiscal year Whole Foods had 10 stores and by the end of 2007 they had 276 stores. By 2008, Whole Foods had stores in 36 states. The around important perseverance characteristic would be the market surface and growth rate. The combined gross revenue of foods and beverages labeled as earthy or essential about 62 billion in 200 7 represented about 7. 3 percent of the roughly 850 billion in total U. S. grocery store sales. 7. 3 percent of 850 billion total grocery store sales seem like a small number for a outsize market but the market is passive growing. According to the Organic Consumers Association, sales of original foods in the United States hit 17 billion in 2006, up 22 percent from 13. 8 billion in 2005. When natural foods and beverages (defined narrowly as those with no artificial ingredients) were lumped in with fundamental foods and beverages, the U. S. retail sales total came to 28. 2 billion in 2006, up from 23 billion in 2005. All this allegeation is a brief write up on the industrys position and the product life cycle.By 2008 original foods and beverages were available in nearly every food category and were available in everyplace 75 percent of U. S. grocery stores. These numbers show that industry is most certainly in rapid growth concerning sales. Offering organic and natural food at most grocery stores other than specialty stores in addition shows growth. While only about 1 percent of U. S. farmland was bear witness organic in 2005, farmers were become increasingly interested in and attracted to organic farming, chiefly because of the substantially higher prices they ould get for organically grown fruits, vegetables, and inwardness. This shows that the industry is still in early development because farmers that are non growing organic crops are becoming interested and attracted to organic farming. world able to charge a higher price and bring in more profit is an eye opener and it encourages farmers to start organic farming. some other industry characteristic in the organic and natural food industry is number of rivals.An important industry driving force is trade innovations. In October 2002 the U. S. Department Agriculture (USDA) officially established labeling standards for organic products, overriding two the patchwork of inconsistent state regu lations for what could be labeled as organic and the different rules of some 43 agencies for certifying organic products. By establishing labeling standards for organic products concerning what could be called organic insures that populate are receiving pure organic products. The new labeling course of study was non intended as a healthy or natural rubber program (organic products have non been shown to be more nutritious than conventionally grown products, according to the American Dietetic Association), but rather as marketing solution. By creating stricter standards it made it harder for growers, processors, exporters, importers, shippers and merchants to prove that their product were truly organic because they are required to provide a documentation verifying that they are certify to grow, process and handle organic products.With the issue of obesity becoming a bigger and bigger issue in our country, people are taking more interest of their personal health. Many companies are nerve-wracking to appeal to that population by making health changes to their products much(prenominal) as eliminating the use of MSG. To reduce the risk of obesity in children many schools are excessively making changes to their daily lunch menus such as acid out carbonated beverages and providing the students with healthier menu choices. Food Network stars such as Rachael Ray are also aware societies growing believe to eat healthier food so they trying to express this to their viewers.All of these examples hypothesize changing societal concerns, attitudes, and lifestyles. The new labeling system was not intended as a health or safety program but that is incisively what it is becoming. The association between natural and organic meant that it is safe to eat since these products are being held at a higher standard. Because of societal concerns there is a change in who buys the product and how they use it. For example more people are trying organic or natural food as a su bstitution to products that could be considered unhealthy. Instead of purchasing carbonated beverages consumers are trying different type of flavored water and teasIndustry Key Success FacDue to the growth of natural and organic food industry, the products are becoming more substantially accessible. By making the products more easily accessible the industry is determination that consumers want more knowledge on the product features and benefits. One marketing key success means would be courteous, personalized customer service. Whole Food spent about 0. 5 percent of its revenues on advertising, a much smaller percentage than conventional supermarkets, preferring instead to rely principally on word-of-mouth recommendations and testimonials from customers. Employees at Whole Foods stores take pride in being knowledgeable of their product and are eager to provide goodness customer consider. Having good customer relations helps them build clientele. Whole Foods also ensures that ea ch department is staffed with an employee that is knowledgeable about their products and always ready to resoluteness customer concerns and give feedback on the products. To provide excellence customer care they offer personal attention in every department in the store and when customers asked where an item was located, team members would often take them to the spot.The team members are quite knowledgeable and enthusiastic about their products and they take advantage of opportunities to inform and educate customers about natural and organic foods. Another success factor would be a talented workforce. Having team members that are skilled and dependent of providing information about their product to consumers is very important. There are a couple sources consumers can gain knowledge on natural and organic foods and they are the store, the internet and their peers.Information found on the internet is usually not reliable because anyone can post anything on there. Even though a blog o r website might be dedicated to the industry it is still not reliable because the information on there can be written by anyone. Information from your friends and family may or may not be reliable. Since the industry is still growing it might be a challenge for new customers to find someone to give them information and feedback on a particular product. This leaves consumers relying on the stores to give reliable knowledge on a product.