Whole Foods Marketing for Millennials
Whole Foods Market Inc., is opening a new line of stores focused on millennials, under the new name: 365 by Whole Foods Market. The idea is to create a chain that’s “fun and convenient,” the company’s new chief executive said in the statement. “A modern, streamlined design with innovative technology and a carefully curated product mix will offer an efficient and rewarding way to grocery shop.”
Whole Foods is creating the chain to help reinvigorate sales and get back its pioneer image. With Wal-Mart Stores Inc. and Kroger Co. pushing deeper into natural and organic food, Whole Foods has struggled with the perception that its groceries are too expensive and easily found elsewhere. The new store concept will have cheaper offerings.
The company says it is embarking on the new store concept after reporting quarterly revenue and same-store sales that trailed analysts’ estimates. Other proposed names for the new stores also included Dailyshop and Swiftgoods. It will be interesting to see how this new market positioning strategy is perceived by consumers.
Source: Craig Giammona and Leslie Patton. “Whole Foods’ New Millennial-Focused Chain Will Be Called 365” Bloomberg.com, June 11, 2015.
Discussion Questions:
1. What do you think the results will be for Whole Foods using this new market positioning strategy?
2. Would you have chosen 365 for the name of the new Whole Foods stores or would you have chosen one of the other proposed names?
