Proposal to integrate Whole Foods' online and in-store marketing experiences.

1. MARCOM OWNED EXPERIENCE STRATEGY May 25, 2011 MTKG 540: Advertising and Promotions Stephanie, Manuela, Alissa, Suma, and Heather

2. The Challenge Form a coherent, integrated digital strategy that: Promotes growth Communicates Whole Foods’ unique selling proposition Advances the company’s repositioning 1 2 3 2 2

3. Current MarCom Snapshot

4. Whole Foods is... 4 4

5. Comprehensive Website 5 5

7. Store locator

8. Nutrition info

9. Shopping list6 6

10. Integrated Social Media 72,162 views, 421 uploads and 2,358 subscribers Real employees, Supplier stories, Recipes. 300+ niche accounts: global updates (corporate), topical tweets (cheese, wine and beer, recipes), metro areas (13 major cities), and individual stores (298 as of 5/1) Recipes, contests, health tips and company news, 567,657 likes. 250+ individual store fan pages focus on community events, sample times, vendor partnerships, special pricing and ticket sales for local events of interest 8,348 items and 174 sets 7 7

11. Email Marketing 8 8

12. SEO Strategy 9 9

13. Community Giving 10 10

14. Music Discovery & Film Festivals 11 11

15. Partnership with Top Chef 12 12

16. Social Media 13 13

18. Deliberate and specific targeting

20. Inability to link online efforts with purchase behavior and revenue14 14

21. The Strategy

23. Unites existing digital activities and magnifies their valueNot a discount card 16 16

24. Tying it all Together 17 17

26. Nutrition analysis – “Healthy Shopping”

27. Social responsibility analysis – “Responsible Shopping”18 18

28. Membership Program: Features Opt out of paper receipts 19 19

29. Membership Program: Features Personalized meal planning 20 20

30. Membership Program: Features Integrate with existing features – shopping lists, recipes, etc. 21 21

31. Membership Program: Features Local events and promotions updates based on “preferred store” settings 22 22

32. Membership Program: Features Contribution to social media, blogs, and forums – encourage communication 23 23

33. Whole Foods Shopper Segments EXPEDIENTS EPICURIANS EXPERIENTIALS EMBRACERS CORGANICS CONSCIONABLES Slide from Natural Marketing Institute’s Whole Foods Shopper Segmentation Study, February 2007

34. Messaging Concept We care about what you care about: healthy, sustainable, and delicious food that fits your lifestyle and your budget. Sign up for a Whole Foodies membership online or in stores—we’ll provide the tools you need to achieve your goals. 25 25

36. Utilize existing channels to promote program:

37. In-store displays

38. Cashiers explain program

39. Email newsletters

40. Website banners

41. Social mediaWhole Foodies 26 26

42. Promoting the Program Digital Receipts Opt out of paper receipts and help reduce waste Weekly Ad Sign up to receive your weekly ad by email Nutrition & Sustainability Track what you eat and where it came from. Budgeting Track your Whole Foods purchases. Shopping Lists Create and save your shopping lists Local Events & Specials See what’s happening at your Whole Foods store 27 27

43. Program Goals #1. To communicate Whole Foods’ unique brand and selling proposition 28 28

44. Program Goals #2. To advance Whole Foods’ repositioning: Back to Basics 29 29

45. Program Goals #3. To promote growth and drive revenue 30 30

46. Key Performance Indicators Track all metrics daily and analyze and review trends weekly. Create Customer Evangelists to provide regular feedback and employ a Loyalty Manager to convert those to strategic recommendations. Track on P/L. 31 31

48. 2% for increased trip frequency

49. 1% for realized synergies

50. Just under 0.05% for new customer acquisition

51. 0.05% for increased customer retentionTotal: 9% revenue increase 32 32

52. Alternatives

53. Option 1: Pickup 34 34

54. Option 2: Delivery 35 35

55. Option 3: Educational Kiosks 36 36

56. Option 4: CSA Partnerships 37 37

58. Not scalable across stores

59. Additional tactics, not a strategy vs. Whole Foodies Membership Program 38 38

60. Why Razorfish?

62. Technology Architecture & Development

63. Email & CRM (Atlas)

64. Advertising & Branding

65. Interaction Design

66. Social Influence Marketing

67. Search Marketing40 40 40

68. Questions and Discussion

69. Appendix – Exhibits 42 42

70. WFM Shopper Segmentation Summary Descriptors (% of all WFM Shoppers) Slide from Natural Marketing Institute’s Whole Foods Shopper Segmentation Study, February 2007

71. Each Segment Offers Unique Marketing Opportunities EXPEDIENTS: Regular “stop & shop” consumers…merchandise regularly used grocery items and prepared foods for increased sales. Opportunity to market store brand and value priced grocery items – they are least tolerant of prices. EPICURIANS: Specialty/gourmet are core purchases. Continually offer new, unique products with emphasis on gourmet food experiences. EXPERIENTIALS: Want to shop in an inspiring & distinctive environment for new, unique and interesting foods. Keep store and products innovative and fresh to maintain interest. EMBRACERS: Largest segment, shop for many diverse reasons. Opportunities to increase sales across multiple areas and various product categories. CONSCIONABLES: Core WFM Shopper. Continue to appeal to their inherent values and WFM’s traditional product offerings, especially natural/organic, locally-sourced, basic grocery items (including store brands). Personal care and supplements also offer opportunities. CORGANICS: Healthy living, pure food, organics are key drivers for this group. Stress WFM’s commitment to these issues. Opp’y for grocery items, frozen foods, PC, supplements. Slide from Natural Marketing Institute’s Whole Foods Shopper Segmentation Study, February 2007