Make the "Whole Foods" at Half Prices

Whole Foods Aims to Cut Prices but Keep Its Cachet

Firms and corporations alike are in the business to increase their profits and sell a product. Whole Foods brand, for example, promises high quality produce for a price. Since it’s founding, Whole Foods has always been recognized for its high prices and organic foods. As others saw that this “organic food” trend was growing, many big box grocery stores opted to include foods like these onto their store shelves. By doing so they also took a cut of Whole Food’s profit, something that is becoming more evident to Whole Foods and its investors. As a company with investors, it had to keep them happy and as such has to find alternatives to keep being profitable.

Although investors are an important part of a corporation we can’t rely on them all the time to remain profitable. A suggestion to Whole Foods was in order to reduce costs whole foods should become reliant on a more cost-effective distribution network that would reduce costs because all of the Whole Foods stock would be the same. This reduction in costs would allow Whole Foods to cut its prices which in turn would supposedly drive consumers to Whole Foods. The issue with this suggestion is that other Big-Box Retailers already offer organic foods at lower prices. Whole Food’s need to understand that their target market is not necessarily the average consumer but those who buy specialty items in their store and go out of their way to shop at the non-traditional grocery store.

While some fear that this change can present a threat to the Whole Foods image others like the “Chief Executive John Mackey said his chain remains a specialty store even as it adopts more conventional techniques”. He claims his store can still remain unique while integrating ideas from Big Box retailers. Although its still not a definitive decision Whole Foods should take into consideration their product, and realize what it is they are truly trying to sell. As Henry Chan, Communications Manager at Ardent Global, once said: “You have to know what it is you want to accomplish first before anything else.” In this case Whole Foods has to define their business model and ask themselves if consumers or investors drive their decisions. 

Photo

WSJ Article

Carlos Gutierrez

MKTG 3343