TRonMarketing

August 12, 2008

Rooibos Tea exposes Whole Foods

Filed under: BRANDS,Economy,Lifestyle,Marketing,Marketing /Lifestyle — Tony @ 7:50 pm

WHole Foods

WHole Foods

Whole Foods is one of those stores that met the boomers and the great wave of the happy days  Those were the years from 2000- 2007. We all remember those times   when being hip and cool meant paying the price.  It seemed to be so cool  – “hey we can be cool even though we have gobs of money look we are organic etc”.

I am a South African expat and I love  rooibos tea.  It’s tasty and it has loads of health benefits.

So how does this tie back to Whole Foods. Here is the rub- this is a company that  didn’t read the tea leaves and their roibos is crazily priced.  In the happy days they were unique when the selling point was luxury. Now  the  economy has turned, other competitors have joined the fray and  Health Foods seems to be a price gouger. There is nothing unique on their shelves. For half the price you can get what they have and more.

Their positioning is horrible and their revenues are consequentially down. Its no surpries that the  shareholders spoke. How the hell does  management explain why consumers are fleeing in droves.

May I suggest that it may be  a serious dose of management hubris coupled with an average selection and inflated prices.

In a nutshell – they are not positioned for the market. And may I say that their Rooibos tea is grossly overpriced. Simply put Whole Foods didn’t get it. They are on gross margin strategy and forgetting they need to read the market  have an authentic positioning.

Here’s my advice to Whole Foods: Dudes and Dudettes – smell the roses- reposition as the best priced deliverer of yummy and healthy foods.

Remember selling retail- is about the consumer and their delight.

Good luck Whole Foods !!!

Simple question- who was asleep at the switch ???

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