Segmentation
Whole Foods is a grocery retailer. They operate in a single operating segment according to their Form 10-K, which is "natural and organic food supermarkets." Within this single business, there are multiple customer segments that Whole Foods seeks to serve. Using different segmentation methods, such as demographic, psychographic, geographic and behavioral, this paper will seek to better understand how Whole Foods is segmenting the grocery market. The company's positioning can be understood in the context of its mission statement: "…devoted to the promotion of organically grown foods, healthy eating and the sustainability of our entire ecosystem." There are hints in there about the nature of Whole Foods' business. Implicit in this is also the reality that natural and organic foods are often more expensive to produce, and as a result cost more at the retail level.
Geographic
Probably the easiest of Whole Foods' segmentation to tackle is the geographic segmentation. The company operates mainly in the United States, with almost all of its revenues being domestic. International operations are only in three cities -- Toronto, Vancouver and London. The company website notes that there is some correlation between the size of a state and the number of stores that it has. California has 69 stores, by far the most, and even with its large population this is a high number of stores. Colorado also has a disproportionate number of stores, as does Massachusetts. The company seems to clearly target specific states, and it will require closer examination to determine why this is.
Looking at specific geographic regions, it is easy to see how Whole Foods engages in geographic segmentation. A quick look at South Florida shows that there are stores in the following locations: Plantation, North Miami, South Beach, Boca Raton, Coral Gables, Pinecrest, Aventura, Fort Lauderdale...
" (Guelph Food Technology Centre, 2008) This report additionally relates four "meta trends" in the packing industry which are those of: 1) Convenience; 2) Health and wellness; 3) Upscale experiences; and 4) Sustainability. (Guelph Food Technology Centre, 2008) The work entitled: "Generational Change and Marketing Indicators" states that five decades ago "when supermarkets were 'stores of the future' retailers and manufacturers pretty much knew where to find their customers. Food came from food stores;
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