Amazon plans to reinvent the way people buy natural and healthy products by pushing Whole Foods to operate more like a traditional market. Effective in April of 2018, Whole Foods will no longer allow brand representatives to promote their products or check to make sure they are stocked and displayed correctly. Whole Foods will also be centralizing most of its decision making regarding the assortment of products across the country by choosing a higher percentage of the items stores will carry. In doing all of this, Amazon is hoping to boost sales at the struggling grocer by standardizing operations and prices. Market reports have showed improvements in traffic since the deal close likely because the chain lowered prices on items like eggs and milk. In essence, Amazon is turning Whole Foods into your traditional supermarket where you don’t have to worry about breaking the bank when trying to eat healthy.
Whole Foods has always been different in that it has let representatives of lesser-known products into the stores to promote their products. This however will no longer be happening with the changes that Amazon is about the bring about. This hurts companies that rely on having that representative in the store to market as well explain how their products work. These companies may take their products elsewhere in order to achieve proper marketing. It hurts these companies’ marketing strategy because they can’t rely on their old way of marketing. They also can’t reach their target market as effectively which will hurt these companies. However, Whole Foods will prosper. By taking away these representaives, Whole Foods believes sales will increase. A Whole Foods spokeswoman said having brand advocates in stores is distracting to employees and inefficient. In recent years, they have had these representatives there, but sales have declined and have brought scrutiny to grocer’s practices.
The new Whole Foods emphasizes natural and healthy products at an affordable cost. With this new outlook on the price sector of marketing, Whole Foods is reaching out to more people who may not have shopped at Whole Foods before due to how expensive it is. By cutting prices, they are reeling in more customers and in turn will be creating more revenue. The second P that this article deals with is product in that Whole Foods is completely changing the way they bring about their services and other company’s products to their shelves. Whole Foods is turning away from their old, unique system to adopt a more traditional way of bringing about products and services to customers. Because of this, we can expect to see a whole new set of products flooding their shelves as others find their way off of them. We also know that we will stop seeing representives all over the store floor.
We can see that Amazon is creating a traditional, more affordable market for people to obtain natural and healthy products. By doing this, they are changing a few major components of the marketing strategy of Whole Foods in order to reach out to a larger customer base. These changes will also bring about a more efficient and profitable grocery store rather than the struggling one we’ve seen in years past. I believe the changes set by Amazon are great and I can’t wait to start eating better for less!