Alternatives
Alternatives to the constraints whole foods has encountered is something will have direct
relation to their dominance in the market. One of the first constraints covered discusses the high prices
Whole Foods has on its products. To look for alternatives Whole Foods may need to delve into a
marketing concept its competitor’s employed which involves a rewards system. This advantages of this
system for customers is that it will reward them for frequently shopping at Whole Foods, and rewards
include such things as discounts on products, buy one get one free offers, and being informed about
sales before the general public is informed. Customers are not the only one with the advantages
because Whole Foods with this program can entice customers to become regular patrons rather than
the occasional window shopper. The negative side to offering customer these types of rewards can be
that customers have the potential of abusing the program, keeping sale items in stock, and trying to stay
away from being the company that people only shop at when they have a sale. ***
The next constraint is competition, and this is something Whole Foods has dealt with since its inception.
An alternative to this constraint from a dominance angle would be to buyout the competition rather
than compete against it. Whole Foods demonstrated this tactic by taking over such companies as Wild
Oats, but with removing the competition comes negative aspects. Negative aspects such as violating
anti-trust laws, which the Federal Trade Commission regulated, thereby modifying such deals so Whole
Foods does not become as powerful as it wants to be. Customers would have no advantages in this
alternative because it would essentially force them to become patrons rather than by choice. By forcing
customers to become patrons it would have a negative effect on Whole Foods image in and out of the
market. Another alternative to competition would be to formulate a different marketing strategy to
show that Whole Foods is better than the competition. Focusing on the competition would not be the
strategy; rather focusing on the Whole Foods image would be the center of the campaign. Putting
together testimonials from patrons and letting them show how Whole Foods is a better place to shop is
what the marketing strategy should be because if Whole Foods just starts to slander other companies it
has the potential of driving customers away.
The third constraint is the quality of the products that Whole Foods has at its stores. One alternative to
handle the quality issues would be to buy into farms, and be the actual producer rather than buying
products from other companies. By buying into the production of products Whole Foods can guarantee
and control the quality of its products. Whole foods will be integrating itself vertically because it will
able to add producer to its companies assets. A disadvantage of integrating vertically like this would be
the start up investment, and finding locations which it can buy that meet organic specifications. By
doing this Whole Foods can set itself up for a financial problem which can then lead to declining stock
prices. Another alternative to controlling the quality of it’s products would be to have customers
surveyed because it would lead to direct feedback on any issues patrons may have. Customers would
receive surveys in the mail on products they have recently purchased at the store, and this would be
done by monitoring the registers and pooling the customers purchase data then proceeding to pick
people randomly. By receiving direct feedback from the customers Whole Foods would be able to
adjust the quality of products which may be receiving negative feedback. A negative aspect of this
would be customers not completing the surveys, customers not being truthful, and suppliers not
adjusting their quality after reports have been sent to them.
The fourth and final constraint is social perception, and this is something Whole Foods has to be able to
improve upon if it wants to overcome the competition. One alternative Whole Foods can offer classes
or seminars on it’s company which will put the company as a whole in a better light. Classes can go over
things such as what products are carried at the stores, the standards of quality that are employed, and
how organic produce is different than standard produce. Seminars can be held at colleges where whole
foods sales are lacking, and any other markets which need revitalizing. Disadvantages to employing
seminars and classes are that competitors may copy the strategy which will take the niche of this
strategy away. Certain markets that this strategy is implemented may not respond which will result in
wasted investment money. Another alternative to social perception would be to offer incentives for
people to visit the stores. Incentives such as samples, cooking classes, and special offers for first time
customers can help the community see Whole Foods in a better light. By offering such incentives noncustomers may become first time customers which will in turn help build the patrons in that area. A
disadvantage to offering such incentives is abuse of these incentives which can lead to customers only
taking advantage of specials and not coming to the store regularly.