Whole foods market Essay

Whole foods market

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            Consumers of the healthy natural and organic foods now have significantly increased globally. The consumers now more aware of the health benefits have an increased passion for this type of products. The emergence of this global awareness contibuted to the fast growth pace of the industry. With the large demand in the world market, there is a current industry trend to focus on the supply of these type of food products.

            Whole Foods Market is currently the world’s largest retailer of natural and organic food products supplying North America and the United Kingdom.There products include:  Farm produce, seafood, grocery, meat,poultry,bakery, prepared foods and catering, beer, wine, cheese, whole body, floral, pet products and household products. As of September 2007, it has 270 store locations in the US, Canada and the UK.

            To say the least, to get healthy has to have a high price. Whole Foods Market products are considered highly priced thus resulting to a created image of “ Whole Paycheck “.Recent surveys with American consumers in fact showed a reluctance to buy these products mainly due to its price. Scanning the market, Whole Foods Market in an attempt to eradicate this projected image, tried to lower down its prices in the market. The move, however, may cut down its profits and earnings according to a report of the Banc of America Securities.

            At the entry of Whole Foods Market in 1980, not many people in the US showed interests on their food source, the way they were being processed and the chemicals used to produce them. But due to the growing awareness of the ill effects of these chemicals and other preservatives with the threatening existence of diseases like Mad Cow Disease, the consumers’ alarming reaction was an increaese in the demand for organic and natural food. This opportunity led to the growth of the company who was then at the time very small. Despite the initially hard time penetrating the market , the company succeeded in making a name in the industry and now enjoying its current rank as the world’s largest and is very highly competitive.The company took advantage of the trend to become what it is today.

            Only few consumers trusted food products labeled as organic and natural. Taking note of this, Whole Foods Market played a key role to form the USDA National Organic Standards by labelling their products with certified organic and natural. This certified organic labelling advocacy led to gain momentum in consumer’s trust of its products as realized by its place in the world market today. Whole Foods Market succeeded in putting a distinction to its products from other products without relation to its price.

            Described at the Forbes.com, a recent  market observation revealed a market branding of Whole Foods Market products as extremely high priced.  The company alarmed with the image initiated to make an effort to drop its prices to counter the possible drop in demand.However, a consequence of this move will surely affect the company’s profits.A shifting in the demand may be be due to several factors. One to recognize is the ability of the consumers to pay may hold back the demand to purchase due to a decrease income of consumers. Significantly, however, if there is an increase in consumer income. Products can continually command its price due to the increased ability of the consumers to buy more products.

            Population can also affect the demand and supply. The larger the population, the larger will be the demand regardless of the price. As Whole Foods Market geared to expansion of its location, it results to high demand  and the setting to increase the supply.

            Preferences of the consumers is another factor. Trend can affect preferences. Since the world is pushing to a trend of healthy food, organic and natural products gained from this demand and an increased projection is seen as inevitable. To balance the demand, supply  have increased too.

            World Foods Market has created a niche in the food industry. It has successfully mixed business with social responsibility. The projection propelled the company to profitability and fame. They are highly driven by the desire to sell products of quality and healthful that results to continuing trust by the consumers.


Chapter Three: Notes – Supply and Demand. (2005). Retrieved August 8, 2008, from


Food Marketing Institute. (2007). Natural and Organic Foods. Retrieved August 8, 2008,         from http://www.fmi.org/media/bg/natural_organic_foods.pdf.

Schneiderman, R.M. (2007). Whole Foods Price Cuts May Lower Earnings. Retrieved   August 8, 2008, from http://www.forbes.com/markets/2007/01/19/whole-foods-  earnings-markets-equity-cx_rs_0119markets08.html

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