AMF Consulting
“Always Innovative. Always Competitive. Always Moving Forward.”

Our Mission
 A team of dynamic professionals who specialize in developing
innovative strategies for our clients enabling them to
differentiate themselves from competitors and achieve
sustainable growth by seizing elevated opportunities,
allowing them to be Always Moving Forward.
"Always Innovative. Always Competitive. Always Moving Forward."

AMF Organizational Chart
Dureeti Gaga,
Founder & CEO
Praise Mafe, VP of
Strategic
Development &
Industry Analytics
Milkessa Gaga, VP
of Marketing
Bonna Dabala, VP
of Financial
Strategy
Savoy Davis, VP of
Corporate
Reputation

Agenda
 Company Overview
 Strategic & Internal Analysis
 SWOT
 PEST
 Porter’s Five Forces
 Financial Analysis
 Financial Comparison of Select Grocery Stores
 Financial Trends – Whole Foods (2011 to 2014)
 Recommendation
 Financial Predictions
 Projected Income Statement
 Projected Balance Sheet
 Summary
 Q&A

Company Overview
Bonna Dabala

Company Overview
Whole Foods Market: America's Healthiest
Grocery Store
 Whole People, Whole Planet
 #1 Organic Food Retailer in the World
 Pioneered Organic Movement
 Achieved Rapid Growth in 1990s Through Mergers &
Acquistions
 Celebrated 18 Consecutive Years as one of the 'Best
Companies to Work For' in 2015

Objective
 Scale up to 1,000 US Stores by 2022 while
managing all elements surrounding Whole Foods'
operational model.
 Innovate & Challenge Whole Food's Approach to
People, Process, and Technology
 Whole People, Whole Planet, Whole Experience.

Strategic & Internal
Analysis
Dureeti Gaga & Praise Mafe

SWOT
Strengths
• Consumer Loyalty &
Employee Engagement
• Consistent Quality
• Mergers & Acquisitions
• International Presence
• Brand Recognition
Weaknesses
• Negative Brand Perception
• Shopping Experience
• Locations
• Cannibalization
• Commanding Price Tag
• Lower-Cost Chain Strategy
Opportunities
• Strategic Locations
• 1,000 Store Goal & Social
Mission
• Millennial Marketing
• Health & Wellness Trend
Threats
• Competitors
• Discount Supermarkets
offer more alternative
products
• Some organic stores, such
as Kroger’s, have price &
quality advantage

PEST
Political
Factors
• Wages
Economical
Factors
• Locations
• Labor Costs
• Efficiency
• Infrastructure
quality
• Unemployment
rate
• Smaller Stores
Social Factors
• Culture
• Attitude/
Education
• New ads (TV,
Mobile, Online)
Technological
Factors
• How can Whole
Foods create
easy shopping
for customers?
• Apps,
barcode
readers,
Online/
delivery
options

Porter’s Five Forces
Competitive Rivalry:
Quality of other markets with
chains
Customer Loyalty to good and
cheaper products
Threat of New Entry:
Economies of cities new
stores will be located.
Mindset of Whole
Foods.
Buyer Power:
Price Sensitivity: the
price of products may
depend on location
Threat of Substitution:
If the original experience of
Whole Foods is substituted
with a different approach it
may affect the amount of
customers that shop at WF.
Supplier Power:
Unique programs for
consumers to build
connections
Ability to substitute
GMO foods with
Organic Foods

Financials
Bonna Dabala

0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
COGS Gross Profit Operating Expense Operating Income
Financial Comparison of Select Grocery Retailers, 2012
Whole Foods Costco Krogers Publix Industry Average
Source: Company annual reports, S&P Capital IQ: Industry Surveys, Supermarkets & Drugstores

Whole Foods Financial Trends: 2011 -
2014
Sales
 Sales
Profit
Trend Notes: The Whole Foods
revenue differences from 2011 -
2014 had considerable positive
jumps.
Trend Notes: The net income
changes from 2011 - 2014 are
positive boosts, yet Whole Foods
only had a 4% profit out of their
total revenue.

Recommendations
AMF Consulting

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Steady Expansion
Store Expansion Strategy
Store Size
Mix of
Smaller
& Larger
Stores
Geographic Segmentation
Suburban
College
Towns
Urban
Millennial
Boomtowns
Food
Deserts

Steady Expansion
Small Stores
Size: 18,000 to 30,000 sq. ft.
Supports Community Outreach
Introduces New Customers
Cost Effective
Percent of 1,000 Stores: 60%
Large Stores
Size: 35,000 to 45,000 sq. ft.
Supports Loyal Customers
Percent of 1,000 Stores: 40%
Overall Value
Small Stores allow Whole Foods to Reinvest in
Shopping Experience & Alleviate Showrooming

Community Outreach: Education &
Participation
College Towns &
Small Suburbs
• Small Stores
• Percent of 1,000
Locations: 30%
Food Deserts
• Small Stores
• Percent of 1,000
Locations: 30%
Millennial
Boomtowns
• Large Stores
• Percent of 1,000
Locations: 40%

Expansion Timeline
• Approximately 300 Locations in 2015
• Growth Strategy: 15 Locations Per QuarterPhase I: 2015-2016
• Approximately 360 Locations in 2016
• Growth Strategy: 22 Locations Per QuarterPhase II: 2016-2018
• Approximately 536 Locations in 2018
• Growth Strategy: 29 Locations Per QuarterPhase III: 2018-2020
• Approximately 768 Locations in 2020
• Growth Strategy: 30 Locations Per QuarterPhase IV: 2020-2022
• Achieve 1,000+ Locations at end of 2022
Final Year: 2022

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Maintain Customer Relationships
Listen
Experiment
&
Implement
Customer
Feedback
Site
Retargeting
Improve Relevancy
Bend Brand Television
Ads
Roll Out
Loyalty
Programs
Regular
Customer
Newslette
r Emails
Unexpected
Gifting
Offer
Discounts
to Return
• Current: 300
• Growth Goal: 15 Stores Per Quarter
• End: 360
Phase I: 2015-2016

Maintain Customer Relationships
Current
Customer
• 18-40 years old
• Affluent
• White
• Health &
Environmentally
conscious
• Working Parent
• Shops for Food
• Lives in Suburbs
Target Customer
• 18-30 years old
• College-Educated
• Budget Conscious
• Diverse
• Health &
Environmentally
conscious
• Tech Savvy
• Single
• Shops for Experience
• Live in Urban Areas

Maintain Customer Relationships: Site
Retargeting
Right
People
Audience
Segmentation:
•Current vs. Target
Customer
Targeting:
• Demographic
• Geographic
Right Ads
Online Display
Ads
Well-branded,
Creative Banner
Ads
Right
Places
Social Media
Sites
•Facebook
•Twitter
Search Engines
•Google
•Yahoo
Other
•YouTube
•Amazon

Maintain Customer Relationship: TV
Advertising
The Most Expensive
Option
• $50,000-$750,000 to
produce
• $35,000-$2 million to air
Reaches Large Audience
(96.1% own a T.V. Set)

Maintain Customer Relationships:
Bending the Brand
Bending the
Brand
Quality
• Keeping Brand
Promise
Selection
• New 365 Stores Offer
More Choices
• Non-GMO
Service
•Loyalty Program
•Unexpected Gifting
•Other Discounts
Value
• Extending Values
Matter Campaign

Maintain Customer Relationships:
Extending Loyalty Program
 The Changes
Community Outreach

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Recruit Right & Redefine Engagement
Hire Fewer Employees
In-Store
Invest in Effective Practices,
Training & Professional
Development
Recruit Right People
Corporate
Strengthen IT Department
Phase IV: 2020-2022
Current: 768
Growth Goal: 30 Stores Per Quarter
End: 1,008

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Omni-Channel Marketing
Leverage Technology
Stores Online Social Mobile
Redesign
Customer
Experience
Online Offline
Phase III: 2018-2020
Current: 536
Growth Goal: 29 Stores Per Quarter
End: 768

Why Omni-Channel?
Age of the
Customer
Whenever Wherever Anyhow
Any
Device
Goal
Re-Engage Customers • More than just price
• Market the experience

Omni-Channel Marketing: Store
The Difference
Smaller stores
Offers basic items
Lower price points
Introduces WF’s
brand and ideals

Omni-Channel Marketing: Online
Streaming
 40% of U.S. homes are subscribed to a streaming
service

Omni-Channel Marketing: Mobile
 Whole Foods Mobile App
Sign up with Email and Location
Push-Notifications
Ex: Coupons, Deals, and Information on
produce

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Retailing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Community Outreach & Corporate
Sustainability
Education &
Participation
Regional
Service &
Advocacy
Campaigns
Launch Mobile
Apps That
Keeps
Customers
Updated On
Regional Issues
Defined Goals
& Transparency
Implement
Strategic
Sustainability
Plan
Offer
Sustainability
Report
Phase II: 2016-2018
Current: 360
Growth Goal: 22 Stores Per Quarter
End: 536

Community Outreach: Education &
Participation
College Towns &
Small Suburbs
• Issue: Local Food
System
• Campaign: Buy Local,
Buy Often
Millennial
Boomtowns
• Issue: Food Safety
• Campaign: Prevent
Contamination
Food Deserts
• Issue: Food Access
& Security
• Campaign: Food
Justice
Goal
Strengthen Customer Engagement & Brand Reputation

Corporate Sustainability: Defined Goals & Transparency
Define
Sustainability
• Identify key
areas of
interest
related to
Mission &
Vision
Transparency
& Goal
Setting
• Specify Goals
• Discuss goals
among top
management
Strategies
Moving
Forward
• Set
Implementati
on Strategies
• Prepare
Evaluation &
Monitor
Metrics
Implement
Strategy
Monitor &
Report
Results
• Third-Party
Verification
• Publication
of
Sustainability
Report

Recommendation:
Phased Approach
Dureeti Gaga

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

Phase I:
2015-2016
Steady
Expansion
Implemented
Maintain
Customer
Relationships
Achieve Steady
Growth &
Encourage
Loyalty
Phase II:
2016-2018
Steady
Expansion
Recruit Right
& Redefine
Engagement
Maintain
Growth,
Employee
Engagement &
Fortified
Corporate IT
Phase III:
2018-2020
Steady
Expansion
Omni-Channel
Marketing
Maintain
Growth, Gain
Global Exposure
& Organizational
Flexibility
Phase IV:
2020-2022
Steady
Expansion
Concluding
Community
Outreach &
Sustainability
Growth Goal
Reached &
Brand
Reputation
Strengthened
Recommendation: Phased Approach

Financial Predictions
Bonna Dabala

Projected Income Statement
$ in Millions (except for
share amounts and net
earnings)
Phase I: 2015-2016 Phase II:2016-2018 Phase III: 2018-2020 Phase IV: 2020-2022
Sales 17,032.80 B 23,845.92 B 40,538.06 B 72, 968.51 B
Investment & other
income
13 M 13 M 16 M 17 M
Total Revenues or Sales 17,045.80 B 23.858.92 B 40,554.06 B 72,985.51 B
Cost of Goods Sold 10,009.6 B 10,869.2 B 11,728.8 B 12,588.4 B
Operating Income 5,559.6 B 6,063.2 B 6,566.8 B 7,070.4 B
Operating Expenses 4,411.7 B 4,727.7 B 5,063 B 5,369.9 B
Earnings Before Interest,
Taxes, Depreciation &
Amortization (MG)
1,076 B 1,206 B 1,336 B 1,466 B
Earnings Before Interest
& Taxes (MG)
1,076 B 1,206 B 1,336 B 1,466 B
Net Income Before Taxes
(MG)
1,704.6 B 1,203.2 B 1,331.8 B 1,460.4 B
Net Income After Taxes
(BD)
655 M 731 M 807 M 883 M
Number of Shares
Outstanding (BD)
373.6 379.2 384.8 390.4
Net Earnings per Share (BD) $1.76 $1.95 $2.14 $2.33

Projected Balance Sheet
As of December 31st, 2022
Net Working Capital $254 M
Total Assets $7,481 B
Long Term Debt $102.67 M

Steady
Expansion
Maintain
Customer
Relationships
Recruit Right
& Redefine
Engagement
Omni-
Channel
Marketing
Community
Outreach &
Corporate
Sustainability
1,000+ Stores Achieved

“
”
Always Innovative. Always
Competitive. Always Moving
Forward.
Q & A

Thank You!
Twin Cities LOT Chapter
Ani Loizzo, Whole Foods Culinary Director
K&G

Appendix

Food Desert Strategy

Food Desert: Fast Facts
What Are Food Deserts?
• Geographic areas with limited access to healthy food options.
Statistics
• Approximately 23.5 M live in food deserts
• Half are low-income
• About 2.3 M live in low-income, rural areas more than 10 miles away from
a supermarket
Example Locations
• Chicago
• Los Angeles
• New York City

College Towns

Millennial Boomtowns

Millennial Marketing

Site Retargeting

Omni-Channel Marketing: Redesign
Customer Experience

Image Sources
 www.simpli.fi
 http://heidicohen.com/wp-content/uploads/nielsen-millennial-report-feb-2014-US-Concentration.jpg
 http://www.meatpoultry.com/~/media/ImagesNew/MeatPoultry/Features_2014/Millennials_Infographic.ashx
 http://searchvalue.co/wp-content/uploads/2014/09/omni-channel-experience.jpg
 http://4.bp.blogspot.com/-
LrHpo5F3AcE/UIXArYtpYrI/AAAAAAAApZU/PKG0o3XRvWs/s1600/Lines+between+offline+and+online+shopping+blurring.png
 http://blog.legacyvacationresorts.com/wp-content/uploads/2014/11/black-family-watching-tv-thumb-400xauto-12483.jpg
 http://blogs.independent.co.uk/wp-content/uploads/2011/12/family-watching-tv201.jpg
 https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcTrnBdKu2WYZU-viw8IUZ8mO_I2hpQmPZF7m9d_E8UR4OkbEacPrw
 http://blogs-images.forbes.com/joelkotkin/files/2014/07/f835676da14f4787d14ad2ea731e36a8_3467.jpg
 http://d1jrw5jterzxwu.cloudfront.net/sites/default/files/article_media/hungry-food-desert-istockphoto.jpeg
 http://i.cdn.turner.com/cnn/2009/TRAVEL/11/02/college.towns/t1larg.burlington.jpg
 http://media.wholefoodsmarket.com/public/upload/images/general/365_WFM_Logo_(mainimage).jpg