Upscale grocery store chain, Whole Foods Market, has launched a media agency review, according to sources. In its last annual report the company stated that advertising expenses totaled nearly $90 million in its fiscal-year 2015. It’s estimated that the company spends about $65 million annually on media. Previously, the Austin-based Whole Foods had worked with GSD&M (also based in Austin) for media. Two years ago, GSD&M was the media agency that launched the brand’s first national ad campaign. New York-based creative agency Partners & Spade was tapped to develop the creative approach.

1. NEW BUSINESS PITCH
Whole Foods, Whole People, Whole Planet.
December 2016

2. NAME BRAND PITCH TYPE
Media
MARKET DATE
November 21 , 2016
The Data You Need to Win This Pitch
DESCRIPTION
Upscale grocery store chain, Whole Foods Market, has launched a media agency review, according to sources.
In its last annual report the company stated that advertising expenses totaled nearly $90 million in its fiscal-year 2015. It’s estimated that
the company spends about $65 million annually on media.
Previously, the Austin-based Whole Foods had worked with GSD&M (also based in Austin) for media. Two years ago, GSD&M was the media
agency that launched the brand’s first national ad campaign. New York-based creative agency Partners & Spade was tapped to develop the
creative approach.
Whole Foods' $65 Million
Media Assignment Is In
Review
th
U.S.

3. Client Profile / Market
Whole Foods Market Inc. is an American supermarket chain exclusively featuring
foods without artificial preservatives, colors, flavors, sweeteners, or hydrogenated
fats. It is the United States' first certified organic grocer, which means it ensures, to
National Organic Program standards, organic integrity of the heterogeneous products
from the time they reach stores until they are placed in a shopping cart. It opened on
September 20, 1980, in Austin, Texas, its current headquarters. As of September
2015, it has 91,000 employees and 431 supermarkets in the United States, Canada,
and the United Kingdom, and has its main produce procurement office in Watsonville,
California.
As of 2015, founder John Mackey and Walter Robb are co-CEOs of the publicly traded
company, with John Elstrott as chairman. In November 2016, the company
announced that Walter Robb would be stepping down as co-CEO at the end of the
year and would remain with the company as a director. It became a Fortune 500
company in March 2005 and is the 30th largest retailer in the U.S., based on 2014
revenue.
FINANCIAL OVERVIEW
- Source: AccessConfidential.com -
COMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
15,390
90,900
+4.2
-
-
+8.4%
Ms. Natanya P. Anderson
Senior Marketing Director,
365
Mr. John Mackey
Co-Founder and Chief
Executive Officer
DECISION MAKERS by
Natanya.anderson
@wholefoods.com
John.mackey
@wholefoods.com

4. U.S. Grocery Market
$ 649B TOTAL SUPERMARKET
SALES
1.3% SALES GROWTH
2011 - 2016
3.4M EMPLOYED
PEOPLE
38K
SUPERMARKETS
IN US
($2 million or more in annual sales)
- FMI.com -
- Ibis World -
- FMI.com -
- FMI.com -

5. A Deeper Look into the Grocery Market
consumers choose their primary grocer is because
it’s conveniently located to where they live or work.
#1 REASON
$107.34Weekly Household
Grocery Expense
1.5
Average # of Trips to
Supermarkets per
Week
46,000 ftMedian Store
Size
- FMI.com -
- FMI.com -
- FMI.com -

6. Warehouse Clubs are gaining ground in the retail space
- NPD Group -
$420B
Warehouse Clubs added
660k
Jobs between 2000 and 2015
- NPD Group -
Warehouse Clubs Sales in 2013
WAREHOUSE CLUBS
SALES GREW
10.5x
BETWEEN 1992
AND 2013
•••
•••
A National Bureau of Economic Research study has
found that the evolution and growth of warehouse clubs
have been the most significant influences on the retail
sector over the last 15-20 years.

7. Retailers are extending beyond price and product selection in order to compete against each other, with more turning to
innovation and experiential retailing to hold onto – and grow – market share:
Retailers’ Innovations to Compete
Kroger
plans to invest
$2.5 million to build a
culinary center in
Cincinnati where it’s
headquartered in order
to train the chefs in
all its stores, and provide
a forum for them to
share ideas and
best practices.
Similarly, Walmart
recently debuted its
Culinary & Innovation Center
where it plans to
develop new private
label and branded
food items.
Select
Whole Foods Markets
feature amenities like a putting
green (Augusta, Georgia)
and a spa (Boston),
and some have
bike repair stations.
ShopRite in Morristown,
New Jersey offers an
in-store restaurant,
juice bar, oyster bar
and even a daycare center
for parents with children
in tow. A store in Hanover
Township in New York
includes a fitness studio
and a cosmetologist
on weekends.

8. Online Groceries
IN THE US, ONLINE GROCERY PENETRATION IS EXPECTED TO INCREASE FROM 8% TO 26% FOR FRESH FOODS &16% TO 28% FOR PACKAGED
Groceries (Fresh Food)
Groceries (Package Food)
Pet Food & Pet Supplies
Baby / Kid Food Products & Infant Formulas
Auto parts & accessories
Large home appliances
Home improvement items & tools
Personal care & household products
Sporting Goods
Office & school supplies for home use
Children’s Toys and Children’s Durables
Home furnishings & Accessories
Handbags & Accessories
0% 10% 20% 30%
Past 12 Months Next 12 Months
2%
30%
13% 41%
ONLINE GROCERIES’ MARKET SHARE OF
OVERALL GROCERY SALES
MILLENNIALS SHOP ONLINE
YOUNGER MILLENNIALS
(18-25)
OLDER MILLENNIALS
(26 - 34)

9. Couponing
BRAND MARKETERS’ PRIMARY OBJECTIVES IN 2017
Increase coupon
redemption 19%
Increase coupon
redemption 19%
“Mobile Marketing & Planning Report” - 3Cinteractive
36%
Coupon Delivery
received the strongest vote for a plan to
grow mobile marketing impact
“Mobile Marketing & Planning Report” - 3Cinteractive
40% consumers have left a store because
they left their coupon at home
“Mobile Marketing & Planning Report” - 3Cinteractive
When asked what innovations they’d like to see when grocery shopping, consumers pointed to
promotions and coupons customized to their personal shopping habits as the top improvement area.
“Mobile Marketing & Planning Report” - 3Cinteractive

10. $15.4B
Sales 2015 % change
+8.4%
433 Stores across:
96%
4%
U.S
Others
2014 Sales
Average store size (2015)
38,000
square feet
Stats: Whole Foods Market

11. 65%
SALES COME FROM PERISHABLES
Stats: Whole Foods Market
SAME-STORE SALES
DROPPED
2.5%
IN FISCAL 2016
This was the fourth consecutive
quarterly decline. Whole Foods has
been in its worst sales slump since
2009.
• • •
• • •
33%
SALES COME FROM EXCLUSIVE
BRANDS & PREPARED FOODS

12. Launch of 365 by Whole Foods Market
Lower cost and
convenience-focused
store that offers
mostly Whole Foods
private-label items
Has more automated
and mobile checkout
options, and provides
other cost and time
efficiencies.

13. DIGITAL COUPONS
Fast Food industry in numbersTaking on a Value Strategy
Whole Foods started an initiative to give
out digital coupons as an incentive to
price-conscious shoppers who would value
the discounts and download the Whole
Foods mobile app to get them.
Whole Foods Market is the leading Apple
Pay retailer in both transactions and sales
LOYALTY PROGRAM
10 percent off the
new member’s
first purchase
One-time coupon good for 15
percent off any department
and select free products1 2
“We are going to continue to maintain our standards
and promote our higher quality products.”
Promotions and price investments are becoming
an “integral part of our conversation, but we are
not participating in a race to the bottom.”
A.C. Gallo, Whole Foods Market President & CEO

14. Whole Foods Marketing
Whole Foods launched its
first-ever national brand
campaign in 2014
Advertising Expenses in 2015
$89M
“Our priorities include progressing to an always-on
unified marketing and media plan, using insights from
our customer data and analytics to improve the
relevancy, effectiveness and efficiency of our value
and marketing investments; intensifying our
personalization efforts, including the roll-out of our
optimized rewards program to all U.S. stores”
John MacKay, co-founder & co-CEO WFM
Instacart, an internet-based grocery
delivery service, offers fresh grocery
delivery to more U.S. homes than any
other food retailer
PURPLE CARROT PARTNERSHIP
In 2016, Whole Foods Market partnered with
Purple Carrot to sell vegan meal kits in their
stores. It’s the first in-store point of sale for Purple
Carrot, which until now has been purely
e-commerce. The move is expected to appeal to
the millennial market.

15. MILLENNIAL
GROCERY
SHOPPERS
QUICK DEFINITION:
Millennial Grocery Shoppers
Our Millennial Grocery Shopper demographic refers to
millennial consumers shopping at Whole Foods’ top
competitors, like Safeway, Kroger and Trader Joe’s.
We’ve excluded Whole Food Market fans in order to better
highlight the differences between Whole Food’s current
fans and the consumers buying the competition.
30%
60%
0
90%
13-17
• • •
•••
18-24 25-34 35-44 45-54 55-64
67%
FEMALE
42%
MARRIED
62%
WITH
CHILDREN
BEAUTY &
WELLNESS
168.3
FOODIES
167.9
HEALTH
CONSCIOUS
144.4
HOME
DECORATORS
& DIYs
143.7

16. 83%
Millennial Grocery
Shoppers
Compare the Millennial Grocery Shoppers
Demographic with Whole Foods’ Audience
Whole Foods’ Market
audience overlaps
with our Millennial
Grocery Shoppers
demographic by 80%
in top interests,
including:
Beauty & Wellness,
Fashion, Health and
Home & Garden

17. MILLENNIAL GROCERY SHOPPERS:
BEAUTY & WELLNESS
Whole Foods’ audience over
indexes as Beauty & Wellness
Aware (172.3)
Like Millennial Grocery
Shoppers, they are enthusiastic
about cosmetics (cosmetic
connoisseurs 189) and physical
activities (Active & Fit 192.8)
Skin care products collect very
high popularity points (172.7)
COSMETICS
CONNOISSEURS
184.0
ACTIVE & FIT
169.2
BEAUTY & WELLNESS
AWARE
168.3
CLICK HERE TO SEE
TOP BEAUTY BRANDS
SKIN
CARE
170.1
WHOLE FOODS’
AUDIENCE CROSSOVERS

18. MILLENNIAL GROCERY SHOPPERS:
FOOD
Whole Foods’ audience over
indexes as Foodies
(Foodies 153.9).
They are Thoughtful Eaters
(198.2) and enjoy cooking at
home (Home Chefs 193.8).
Organic & Natural Foods top the
ranking with 194.3 popularity
points, which makes sense since
this demographic enjoys Fruit &
Vegetables (179.5)
CLICK HERE TO SEE
THEIR FOOD BRANDS
FRUIT &
VEGETABLES
FOODIES
167.9
POPULARITY
CLICK HERE TO SEE
THEIR FAVORITE RETAIL STORES
THOUGHTFUL
EATERS
181.5POPULARITY
176.0POPULARITY
WHOLE FOODS’
AUDIENCE CROSSOVERS

19. Whole Foods’ audience over
indexes as Home Decorators
& DIY (175.9).
Like Millennial Grocery
Shoppers, they enjoy
watching Home & Leisure
Channels (177.7) and
reading Home & Garden
Magazines (173.5).
MILLENNIAL GROCERY SHOPPERS:
HOME & GARDEN
HOME DECORATORS
& DIYs
157.9
POPULARITY
HOME & LEISURE
CHANNELS
128.5
POPULARITY
HOME &
GARDEN MAGAZINES
122.7
POPULARITY
CLICK HERE TO SEE
THEIR FAVORITE HOME & LEISURE
CHANNELS
WHOLE FOODS’
AUDIENCE CROSSOVERS

20. Whole Foods’ audience is
equally interested in Kids-related
websites (147.6) but less
interested in Daily Deal Websites
(145.0).
Regarding mobile apps, Whole
foods consumers over perform
Millennial Grocery Shoppers in
both Food & Drink (176.3) and
Health & Fitness (180.8) apps.
MILLENNIAL GROCERY SHOPPERS:
WEB & MOBILE
FOOD & DRINK
151.5
HEALTH & FITNESS
141.7
TOP APPS
CLICK HERE TO SEE
THEIR FAVORITE APPS
DAILY DEAL WEBSITES
158.1
KIDS
147.6
TOP WEBSITES
CLICK HERE TO SEE
THEIR FAVORITE WEBSITES
WHOLE FOODS’
AUDIENCE CROSSOVERS

21. CONSUMER
INSIGHTS SUITE
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