HWTR Blueprint

1
Shopper Segmentation Study Identifying Whole
Foods Markets Unique Shopper Segments
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
2
Table of Contents
Topic Page
Background and Methodology 3
Shopper Segmentation Analysis 10
Shopping Patterns 21
Reasons for Shopping WFM 29
Product Purchases 35
Attitudes and Opinions 49
Activities, Psychographics and Demographics 55
Summary Perspective 57
Appendix 61
3
Background Methodology

• Background
• The WFM shopper is evolving from the fringe
  consumer who was devoted to Whole Foods based on
  philosophies related to organic/LOHAS/community
  to a larger and more diverse, conventional
  consumer base (where WFM philosophies are not the
  main purchase drivers).
• This segmentation study allows WFM to identify
  six (6) unique customer segments whose differing
  attitudes and opinions impact their diverse
  shopping and buying behaviors. Understanding the
  diversity of these shoppers will allow WFM to
  tailor and target merchandising and marketing
  efforts to attract and retain customers.
• WFM had previously conducted a shopper
  segmentation study in 1999 which allotted Whole
  Foods Market consumers into lifestyle groups.
  In light of the changing marketplace, this
  updated segmentation reflects todays
  amalgamation of WFM Shoppers in a statistically
  valid fashion across a range of dimensions.
• Methodology
• Quantitative research of 941 Whole Foods Market
  Shoppers (those who have shopped within the
  past year), using NMIs ESP panel of WFM
  Shoppers
• Nationally representative sample of the U. S.
  population statistically valid at 95 confidence
  level to /- 3
• Conducted early December 2006 via online research
  methodology

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(No Transcript)
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WFM Shopper Segmentation Methodology
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
6
Segmentation Research An Overview

• Marketers conduct stratification/segmentation
  research to identify unique groups within a
  population. Some segmentations can be quite
  elementary looking at key demographic groups
  such as young men, married middle-aged women, or
  dividing customers into heavy and light user
  groups. Other approaches examine consumer
  attitudes and behaviors and use advanced
  statistical techniques to develop
  stratification/segmentation models based on
  drivers of consumer behavior.
• Such a segmentation model, based on advanced
  statistical techniques, was utilized to identify
  WFM Shoppers based on their shopping behaviors,
  attitudes and motivations.
• The result is a six-segment model comprised of
• Three segments that focus in varying degrees on
  the core WFM philosophies of natural/organic
  products for healthy living in conjunction with
  concerns for how products are made and the impact
  on the environment.
• Two segments that focus more on specialty/gourmet
  product offerings and a desire for a unique and
  interesting shopping experience, with little
  interest in organics.
• One segment who is driven to WFM primarily by
  convenience and whose focus is not toward either
  organics and healthy living or specialty items.
  Rather, they buy a myriad of diverse items and
  are driven by expedience.
• The following pages provide a brief
  methodological review of the segmentation
  technique. The segment profiles are then
  presented, mapping of the segments, and visual
  analysis comparing segment attitudes and behavior.

7
Methodological Review K- Means Cluster Analysis

• A k-means clustering method was used.  Cluster
  centers are defined as dense regions in the
  multivariate space based on a k-means
  segmentation of the attitudinal/behavioral
  variables from the survey (Q14). 
• The reproducibility (ability to consistently
  replicate the same segments) of the segmentation
  is 99 (which based on dozens of segmentations
  developed, is the highest ever seen).
• The optimal solution was determined to be 6
  segments, including a segment that was held
  constant from a previous solution because of its
  ability to capture the typical WFM shopper.
  The six segments are
• CORGANICS
• EXPERIENTIALS
• EPICURIANS
• CONSCIONABLES
• EXPEDIENTS
• EMBRACERS
• These solutions are mutually exclusive and
  identify in each consumer segment the levels of
  importance and specific motivational and
  behavioral drivers across a multitude of factors
• The overall objective of the ultimate cluster
  solutions are to
• Maximum differentiation between consumer groups
• Maximum homogeneity within each consumer group

8
WFM Segmentation Classification Migration

• Topics in green boxes represent drivers (reasons)
  for shopping at WFM
• Each successive level represents a more discrete
  defining classification of drivers for each
  segment

9
Segment Tendencies
Specialty Gourmet
gt55
Epicurians
Convenient Location
gt34
Allocations To (excludes Value) Read as
EPICURIANS allocate 55 of their points to
specialty/gourmet
Expedients
Natural Organic
gt51
Corganics
Unique Experience
gt28
Experientials
Consciousness
gt24
Conscionables
Embracers
Above Average
Below Average
Average
10
Shopper Segmentation Analysis
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
11
WFM Shopper Segmentation Composition
( of all WFM Shoppers)
EXPEDIENTS
EPICURIANS
EXPERIENTIALS
EMBRACERS
CORGANICS
CONSCIONABLES
12
WFM Shopper Segmentation Summary Descriptors
( of all WFM Shoppers)
EMBRACERS 35 Represents the typical WFM Shopper. Holds core values on health, importance of natural/organic, LOHAS issues and finds specialty/gourmet products and food experiences important. Been shopping WFM the longest and buys many different products and categories.
CONSCIONABLES 20 Embodies the core values and behaviors of the original WFM Shopper. Strong focus on organics and LOHAS issues. WFMs social/environmental consciousness are a driving force. Frequent shoppers who spend the largest proportion of monthly grocery bill at WFM. Skews younger, female, less affluent, more liberal minded.
CORGANICS 13 Strong organic orientation and shop WFM because they execute the organic mindset. Believers in the importance of healthy foods, and concerned about what is in food they eat and how its made. Frequent shoppers and big spenders. Skews female, households with kids.
EXPERIENTIALS 13 All about the experience. This segment strives for unique and fun food experiences. They primarily buy produce and specialty/gourmet items not particularly organic oriented. They are infrequent shoppers who arent heavy spenders. Profile is older, more traditional, with higher income.
EXPEDIENTS 9 Convenience is key. They are not drawn to WFM because of its organic orientation, values, or specific product offerings, but simply because of its proximity. Few regular purchases generally buy produce, prepared foods and a myriad of other items. Tend to be higher income males.
EPICURIANS 9 Driven to WFM primarily because of the specialty/gourmet offerings and are not particularly organic or LOHAS-minded. Infrequent shoppers who spend less compared to other segments. Are older, highly educated, retired.
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EMBRACERS Shopper Profile (35 of Shoppers)
( EMBRACERS)

• ATTITUDES OPINIONS
• Shop at WFM for a myriad of reasons
  natural/organic, specialty/gourmet,
  environmental/social consciousness, and the
  unique experience.. Strong advocates of
  organics, and believe in importance of healthy,
  natural organic foods, safe/clean environment,
  taking vitamins/supplements, and using
  natural/organic personal care, (though not as
  intensely as CORGANICS or CONSCIONABLES). Among
  most accepting of WFMs prices. Most likely to
  enjoy food trying new foods, gourmet cooking

• WFM SHOPPING BEHAVIORS
• Shop WFM 2.0X/month on average 18 shop weekly
• Been shopping WFM the longest 4.7 years on
  average
• Main reasons for first shopping WFM (sig.
  different than others)
• 1. Wanted healthier food
  natural/organics
• 2. Socially conscious/environmental
  reputation specialty/gourmet,
  
  hard-to-find items
• 3. Enjoy new stores prepared foods
• 4. Heard it was fun it was
  convenient buy supplements
• Spend 21 of monthly grocery bill at WFM
• Main categories always/usually bought, relative
  to other segments
• Specialty/gourmet (74), natural/organics (69)
• Specific items usually bought
• Produce, naturals/organic foods,
  specialty/gourmet products
• Also, cheese, grocery items, bread, dairy, fresh
  meat, store brands

DEMOGRAPHIC PROFILE Male 43 Female
57 Average age 48 yrs old Median income
74.3K Kids in HH 18 Post Grad 39
14
CONSCIONABLES Shopper Profile (20 of Shoppers)
( CONSCIONABLES)

• ATTITUDES OPINIONS
• Shop at WFM both because of its
  environmental/social consciousness and
  natural/organic foods.. Locally sourced food
  important, as are store brands. Among most
  likely to believe in the importance of healthy,
  natural organic foods, safe/clean environment,
  taking vitamins/supplements, and using
  natural/organic personal care. Strong believer in
  LOHAS concepts. Among most accepting of WFMs
  prices.

• WFM SHOPPING BEHAVIORS
• Second most frequent shoppers 2.2x/month on
  average 23 shop at least 1x/week
• Second longest WFM shoppers 4.4 years, on
  average
• Main reasons for first going to WFM (sig.
  different from others)
• 1. Healthier food natural/organics socially
  conscious/ environmental reputation
• 2. Carries products without certain ingredients
• 3. Supplements
• Among biggest spenders at WFM 28 of monthly
  grocery bill
• Main categories always/usually bought, relative
  to other segments
• Natural/organic (80) basic grocery items (56)
• Specific items usually purchased
• Produce, organic/natural foods
• Grocery items, dairy, bread, cheese

DEMOGRAPHIC PROFILE Male 36 Female
64 Average age 48 yrs old Median income
57.9K Kids in HH 18 Post Grad 34 Compared
to other segments -More likely to do yoga, arts
crafts, be involved in political and
environmental causes -Feel least financially
secure, most likely to be Democratic or
Independent
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CORGANICS Shopper Profile (13 of Shoppers)
( CORGANICS)

• ATTITUDES OPINIONS
• Shop at WFM primarily because of natural/organic
  products.. They like vegetarian offerings,
  products without certain ingredients. Strongest
  advocates of organics. Among most likely to
  believe in importance of healthy, natural/organic
  foods, safe/clean environment, taking
  supplements, and using natural/organic personal
  care. Among most accepting of WFMs prices.

• WFM SHOPPING BEHAVIORS
• Second most frequent shoppers 2.2x/month on
  average 26 shop at least 1x/week
• Been shopping WFM 4.1 years on average
• Main reasons for first going to WFM (sig.
  different from others)
• Healthier, natural/organic food
• Socially conscious/environmental reputation
• Products without specific ingredients, special
  dietary needs
• Supplements
• Among biggest spenders at WFM 28 of monthly
  grocery bill
• Main categories always/usually bought, relative
  to other segments
• Natural/organics (90), basic grocery items (59)
• Main categories never bought, relative to other
  segments
• Prepared entrees (41)
• Specific items usually purchased
• Organic/natural items produce
• Also, bread, dairy, dry grocery, cheese

DEMOGRAPHIC PROFILE Male 37 Female
63 Average age 49 yrs old Median income
73.0K Kids in HH 24 Post Grad 29 More
likely than other segments to do yoga and be
involved in environmental, religious activities
16
EXPERIENTIALS Shopper Profile (13 of Shoppers)
( EXPERIENTIALS)

• ATTITUDES OPINIONS
• Shop at WFM primarily because of the experience.
  Like the high quality, diverse selection of
  specialty/gourmet and ethnic products. Not
  strong advocates of organics or LOHAS issues.
  Enjoy new food experiences.

• WFM SHOPPING BEHAVIORS
• Among least frequent WFM shoppers 1.5x/month
  only 10 shop weekly
• Among the newer WFM Shoppers 3.4 years on
  average
• Main reasons for first going to WFM (sig.
  different from others)
• 1, Interesting, nice place to shop
• 2. Wanted specialty/gourmet foods, good
  produce section
• 3. Enjoy new stores, heard it was fun
• Spend least amount at WFM only 15 of monthly
  grocery bill
• Main categories always/usually bought, relative
  to other segments
• Specialty/gourmet (54)
• Main categories never bought, relative to other
  segments
• Natural/organic (14), basic grocery (16)
• Specific items usually purchased
• Produce, specialty/gourmet, fresh meat/poultry,
  bread, cheese

• DEMOGRAPHIC PROFILE
• Male 46
• Female 54
• Average age 51 yrs old
• Median income 83.9K
• Kids in HH 17
• Post Grad 31
• More likely than other segments to
• Be involved in marathons/triathlons
• Be Republican

17
EXPEDIENTS Shopper Profile (9 of Shoppers)
( EXPEDIENTS)

• ATTITUDES OPINIONS
• Shop at WFM because it is convenient.. Like the
  prepared foods and salad/hot food bar. Not
  strong advocates of organics, nor do they
  frequently buy them. Least accepting of WFMs
  prices.

• WFM SHOPPING BEHAVIORS
• Most frequent WFM shoppers 2.7x/month on
  avg 29 weekly
• Among the newer WFM Shoppers 3.5 years on
  average
• Main reasons for first shopping at WFM (sig.
  different than others)
• 1. Looked like interesting store
• 2. Was convenient
• Spend 22 of monthly grocery bill at WFM
• Dont buy any particular categories more than
  other segments
• Main categories never bought, relative to
  other segments
• Natural/organic items (14)
• Specific items usually purchased
• Few regularly bought besides produce
• Myriad of other items bought sometimes
  grocery, cheese, specialty, bread, dairy, fresh
  meat, store brands.

DEMOGRAPHIC PROFILE Male 59 Female
41 Average age 50 yrs old Median income
90.1K Kids in HH 18 Post Grad 39 More
likely than other segments to engage in walking
as exercise.
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EPICURIANS Shopper Profile (9 of Shoppers)
( EPICURIANS)

• ATTITUDES OPINIONS
• Primary driver to WFM is specialty/gourmet items.
  Also drawn by the unique, hard-to-find items and
  new products to try.. Not strong advocates of
  organics. Enjoy gourmet cooking.

• WFM SHOPPING BEHAVIORS
• Among least frequent WFM shoppers 1.5x/month on
  average 8 shop weekly
• Been shopping WFM 4.2 years on average
• Main reasons for first going to WFM (sig.
  different from others)
• Hard to find products specialty/gourmet foods
• Shop at WFM because of specialty/gourmet,
  unique products,
• Among lowest spenders at WFM 17 monthly
  grocery bill
• Main categories always/usually bought, relative
  to other segments
• Specialty/gourmet (86)
• Main categories never bought. relative to other
  segments
• Basic grocery items (23)
• Specific items usually purchased
• Specialty/gourmet
• Produce, cheese, bread

• DEMOGRAPHIC PROFILE
• Male 52
• Female 48
• Average age 56 yrs old
• Median income 75.8K
• Kids in HH 8
• Post grad 49 (most educated segment)
• Retired 38
• More likely than other segments to
• Do gardening, gourmet cooking
• Feel the most financially and mentally sound

19
Each Segment Offers Unique Marketing Opportunities
EXPEDIENTS Regular stop shop
consumersmerchandise 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 WFMs
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 WFMs
commitment to these issues. Oppy for grocery
items, frozen foods, PC, supplements.
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Summary Segment Comparisons
CORGANICS EXPERIEN-TIALS EPICURIANS CONSCION-ABLES EXPEDIENTS EMBRACERS
WFM SHOPPERS 35 20 13 13 9 9
MONTHLY SPENT AT WFM HIGHEST LOWEST LOWEST HIGHEST LOW AVERAGE
OF TOTAL GROCERY SHOPPING AT WFM HIGHEST LOWEST LOW HIGHEST AVERAGE AVERAGE
FREQUENCY OF SHOPPING WFM (AVG TIMES PER MONTH) HIGH LOWEST LOW HIGH HIGHEST AVERAGE
NATURAL/ ORGANIC FOOD PURCHASING HIGHEST LOW LOW HIGH LOWEST AVERAGE
SPECIALTY/ GOURMET FOOD PURCHASING LOW AVERAGE HIGHEST LOW LOW HIGH
SUPPLEMENT PURCHASING HIGHEST LOWEST LOW HIGHEST LOW HIGH
PERSONAL CARE PURCHASING HIGH LOW LOW HIGHEST LOWEST HIGH
STORE BRAND PURCHASING AVERAGE AVERAGE AVERAGE HIGHEST LOWEST HIGH
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Shopping Patterns
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
22
Frequency of Shopping WFM EXPEDIENTS Shop Most
Frequently
(Q2 - segment indicating frequency of shopping
WFM)
Lower case letters denote significant difference
at 95 confidence level
23
EMBRACERS Have Shopped WFM the Longest
(Q3 - segment indicating average number of
years shopping at WFM)
Average Years Shopped

EMBRACERS
CONSCIONABLES
EPICURIANS
CORGANICS
EXPEDIENTS
EXPERIENTIALS
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CONSCIONABLES, CORGANICS Spend The Most at WFM
(Q14 - segments indicating total amount spent
on groceries in a typical month/Q14a - amount
spent at WFM in a typical month)
Spend most overall, least at WFM
Spend least overall, most at WFM
Bar graph Total amount spent on groceries in a
typical month Boxed data and amt. of
monthly grocery bill spent at WFM
Lower case letters denote significant difference
at 95 confidence level
25
Comparison of Monthly Spending Patterns At WFM By
Category
(Q 15 - segments indicating average amount
spent each month at WFM on each category)
CORGANICS spend the most on Grocery Items
EXPERIENTIALS spend the most on Prepared Foods
Lower case letters denote significant difference
at 95 confidence level
26
In General, Most Shoppers Believe High Quality
Products Are Worth The Price At WFM
(Q.16 - segment indicating they agree
completely/somewhat with the statement)
Who Agree High quality products are worth the
price
EXPEDIENTS, even with the highest shopping
frequency, are least likely to believe higher
quality is worth a premium all other segments
are similar.
Lower case letters denote significant difference
at 95 confidence level
27
And Most Are Agreeable to Paying For
Hard-to-Find Items (Except EXPEDIENTS)
(Q.16 - segment indicating they agree
completely/somewhat with the statement)
Who Agree Im alright with paying more for
certain products at WFM because I cant find them
elsewhere
Despite the fact that they shop WFM primarily for
convenience, EXPEDIENTS are the least likely
segment to pay extra for hard-to-find items.
All segments significantly higher than EXPEDIENTS
28
But Only Core WFM Shoppers Are Likely To Be
Understanding and Forgiving of WFMs Prices
(Q.16 - segment indicating they agree
completely/somewhat with the statements)
CORGANICS, CONSCIONABLES, EMBRACERS are most
accepting of WFMs prices
EXPERIENTIALS, EPICURIANS, EXPEDIENTS are least
likely to be accepting
Lower case letters denote significant difference
at 95 confidence level
29
Reasons for Shopping WFM
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
30
Main Drivers of WFM Shoppers
(Q13 - segment indicating average number points
(out of 20) given to each statement as an
important reason for shopping WFM)
Avg. score for importance of shopping WFM (out of 20) CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Natural/organic foods 14.2bcdef 1.3 1.0 6.2bcef 1.8c 5.1bce
Specialty/gourmet foods 1.0 4.9ade 15.0abdef 1.8a 3.5ad 6.1abde
Environmental/ social consciousness 1.6ce 1.4c 1.0 7.1abcef 1.1c 2.6abce
Unique experience 1.2 8.3acdef 1.3 1.5 1.5 2.7acde
Convenient location 1.0 2.3acdf 1.0 1.6ac 10.2abcdf 1.7ac
Good value 1.4 1.9 1.4 1.8 2.0 1.7
Primary drivers
Lower case letters denote significant difference
at 95 confidence level
31
Product Drivers for Shopping WFM
(Q12a - segment indicating they agree
completely/somewhat with statement as reason for
shopping at WFM, plotted as a correspondence map)
32
Reasons for First Shopping at WFM Product
Drivers
(Q4 - segment indicating reasons first shopped
at WFM (sorted by total shoppers))
WFM Initial Shopping Product-Oriented Drivers CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Trying to find healthier food 85 bcdef 36 25 72bcef 26 57bce
Wider selection of natural/organic 82bcef 26 23 76bcef 20 61bce
Good produce section 45 51c 35 49c 40 51c
Wider selection specialty/gourmet 19 46ade 57ade 30a 32a 53ade
Hard-to-find products 37e 38e 61abdef 34e 17 47ade
Wider selection high-quality prepared foods 23 30 25 26 30 36acd
Carries products without certain ingredients 39bcef 10 8 34bcef 5 18bce
Wanted products for special dietary needs 30bcef 8 14 20be 7 19be
Wider selection nutritional supplements 23bce 7 2 19bce 6 19bce
Had a good salad bar 9 14 8 15 10 16a
Wider selection ethnic products 3 11a 18ae 14ae 6 17ae
Salad bar, ethnic foods NOT strong drivers
Lower case letters denote significant difference
between segments at 95 confidence level Circled
data represents primary drivers within each
segment
33
Store-Related Drivers As Reasons For Shopping WFM
Correlate With Segments Attitudes
(Q12b - segment indicating they agree
completely/somewhat with statement as reason for
shopping at WFM, plotted as a correspondence map)
Store Drivers for Shopping at WFM
34
Reasons for First Shopping at WFM Store Drivers
(Q4 - segment indicating reasons first shopped
at WFM (sorted by total shoppers))
WFM Initial Store-Oriented Shopping Drivers CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION- ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Reputation of socially conscious/ environmentally friendly 53bce 38ce 25 71abcef 25 52bce
Looked like an interesting store 29 57acdf 41 33 53adf 41a
Heard it was nice place to shop 29 54 acdef 31 32 25 39ae
Better alternative to regular grocery stores 39c 33 24 40ce 28 34
Enjoy trying new stores 20 43ad 31 22 36ad 39ad
Heard it was fun place to shop 15 41 acdef 16 18 24 26acd
Was convenient 11 12 7 21abc 49abcdf 21abc
Lower case letters denote significant difference
between segments at 95 confidence level Circled
data represents primary drivers within each
segment
35
Product Purchases at WFM
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
36
Categories Always/Usually Purchased At WFM
(Q4a - segment indicating they always/usually
shop for (category) at WFM)
When shopping at WFM, ALWAYS/USUALLY shop for CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Natural/organic items 90bcdef 33 33 80 bcef 29 69bce
Specialty/ gourmet items 32 54ade 86abdef 34 33 74abde
Basic grocery items 59bcef 38 26 56bcef 43c 41c
Ready-to-eat on the go foods 17 34a 33a 25 29 31a
Prepared entrees 11 25a 19 20a 22a 26a
EXPEDIENTS tend to purchase across multiple
categories
Lower case letters denote significant difference
at 95 confidence level
37
Categories Never Purchased At WFM
(Q4a - segment indicating they never shop for
(category) at WFM)
When shopping at WFM, NEVER shop for CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Prepared entrees 41bdef 26 33 22 28 26
Ready-to-eat on the go foods 27df 18 24 14 22 18
Basic grocery items 7 16ad 23adef 6 10 11d
Natural/organic items -- 14adf 14adf 1 14adf 2a
Specialty/gourmet items 9cf 5 2 5f 6 1
Lower case letters denote significant difference
at 95 confidence level
38
Comparative Summary Store Periphery Items
Purchased With Greatest Frequency
(Q8 - segment indicating they almost always buy
item when shopping at WFM (based on total
respondents in segment)
Buy almost always at WFM CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Cheese 25 18 30e 31e 10 33be
Fresh meat/poultry 24 28 16 29e 12 22
Fresh seafood 14 24 18 14 10 16
Fresh fruit 55e 39 38 54e 31 50e
Fresh vegetables 59bce 39 32 61bce 33 53ce
Bread 32 21 30 33e 16 26
Baked goods (not bread) 7 13 12 12 6 12
Dairy items 28 15 14 35bce 16 24
Salad/hot food bar 3 11 5 11 8 10
Prepared entrees 2 10 4 11 6 11
Ready-to-eat 5 12 8 9 9 11
No significant differences between groups in
purchase of food-to-go items
Lower case letters denote significant difference
between segments at 95 confidence level Circled
data represents primary drivers within each
segment
39
Comparative Summary Center of Store Items
Purchased With Greatest Frequency
(Q8 - segment indicating they almost always buy
item when shopping at WFM (based on total
respondents in segment)
Buy almost always at WFM CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Specialty/gourmet items 14 28 46ade 20 14 41ade
Natural items 62bcef 13 17 55bce 12 45bce
Organic items 69bcef 11 13 58bcef 10 45bce
Bulk foods 19b 6 10 17b 9 14
Store brand products 16 14 17 24 12 20
Frozen foods 15 8 8 18e 5 11
Dry grocery items 26e 15 16 30e 8 26e
No favorites relative to other
segmentspurchases spread out across multiple
categories
Lower case letters denote significant difference
between segments at 95 confidence level Circled
data represents primary drivers within each
segment
40
Opportunities For Increased Sales Among EMBRACERS
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Vegetables
Fruit
Natural Items
Organic Items
Specialty/gourmet
Cheese
Grocery Items
Bread
Dairy
Meat/poultry
Store brands
Seafood
Frozen Foods
41
Opportunities For Increased Sales Among
CONSCIONABLES
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Fruit
Vegetables
Natural Items
Organic Items
Cheese
Dairy
Grocery Items
Bread
Store brands
Meat/poultry
Specialty/gourmet
Frozen Foods
42
Opportunities For Increased Sales Among CORGANICS
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Natural Items
Organic Items
Vegetables
Fruit
Cheese
Grocery Items
Bread
Dairy
Meat/poultry
Frozen Foods
Store brands
Specialty/gourmet
43
Opportunities For Increased Sales Among
EXPERIENTIALS
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Vegetables
Fruit
Cheese
Specialty/gourmet
Bread
Meat/poultry
Grocery Items
Dairy
Seafood
Store brands
Natural Items
Prepared Foods
Organic Items
44
Opportunities For Increased Sales Among EPICURIANS
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Fruit
Vegetables
Specialty/gourmet
Cheese
Bread
Grocery Items
Natural Items
Meat/poultry
Store brands
Dairy
Organic Items
Strong opportunities for Frozen
Foodsparticularly those positioned as
specialty/gourmet
Seafood
Frozen Foods
45
Opportunities For Increased Sales Among EXPEDIENTS
(Q7/8 - segment indicating frequency of buying
items at any grocery store/ almost always or
sometimes at WFM)
Gap analysis Buy almost always/sometimes at
WFM/Buy elsewhere
Vegetables
Fruit
Grocery Items
Cheese
Bread
Meat/poultry
Specialty/gourmet
Dairy
Store brands
Natural Items
Seafood
Opportunities for Frozen Foodsposition as quick,
easy dinner/lunch items
Frozen Foods
Organic Items
46
Summary of Store Brand Usage
(Q7/8 - segment indicating frequency of buying
store brand items at any grocery store/ almost
always or sometimes at WFM)
Buy Store Brands at ANY Store
63 76 83 77 80 76
EPICURIANS highest usage overall, CONSCIONABLES
highest usage of WFM store brands
47
Purchase Patterns of Vitamins/Minerals,
Natural/Organic Personal Care
(Q8 - segment indicating they almost always buy
item when shopping at WFM (based on total
respondents in segment)
Usage Highest Among CORGANICS, CONSCIONABLES,
EMBRACERS
Lower case letters denote significant difference
at 95 confidence level
48
How Full and Consistent Are The Shopping Carts?
(Q8 - segment indicating they almost always buy
6 items at WFM)
Segment Who Always Buy At Least 6 Items At
WFM
Who Have At Least 1 Item They Always Buy
85 83 89 70 61 65
49
Attitudes and Opinions
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
50
CORGANICS, CONSCIONABLES (and to a lesser extent
EMBRACERS) Strongest Advocates of Organic
(Q.9 - segment indicating they agree
completely/somewhat with the statements)

• CORGANICS and CONSCIONABLES are significantly
  more likely than all other segments to agree
• Im concerned about hormones, antibiotics and
  genetic modification in foods
• Organics are better for the environment
• Organics are safer for children
• I wish I could buy more organics at my regular
  grocery store (Risk?)
• Organic foods are more nutritious and taste
  better than non-organics

I dont believe organics are worth the
price Significantly higher among EXPERIENTIALS,
EPICURIANS and EXPEDIENTS than other segments
51
Important Product Attributes for Key Segments
(Q.10 product attributes that are most
important to segment, as differentiated from
other segments)

• CORGANICS
• No pesticides
• Natural
• No artificial ingredients
• No trans fat
• Organically grown
• USDA certified organic
• No preservatives
• No artificial colors
• No artificial sweeteners
• Sustainable agriculture
• No GMOs
• Environ. friendly packaging
• Locally grown
• Fair trade ingredients
• Low glycemic index
• Vegetarian
• Gluten-free
• Vegan

• CONSCIONABLES
• No pesticides
• Environ. friendly packaging
• No trans fats
• Organically grown
• Sustainable agriculture
• No artificial ingredients
• USDA certified organic
• Natural
• Locally grown
• Fair trade ingredients
• No preservatives
• No GMOs
• No artificial colors
• No artificial sweeteners
• Low glycemic index
• Specific health claim
• Vegetarian
• Soy

• EMBRACERS
• Natural
• No pesticides
• No trans fat
• Organically grown
• No preservatives
• Sustainable agriculture
• No artificial ingredients
• Environ. friendly packaging
• USDA certified organic
• Locally grown
• No GMOs
• No artificial colors
• No artificial sweeteners
• Fair trade certified
• Vegetarian
• Vegan

Primary
Secondary
Tertiary
Most attributes less important than to CORGANICS,
CONSCIONABLES
Attributes are grouped by differentiations in
importance levels
4th Tier attributes for all segments include
Fortified, Lactose-Free, Kid Friendly
Attributes considered most important to
EXPERIENTIALS, EPICURIANS EXPEDIENTSNo trans
fat, Low cholesterol, Low fat.
52
Importance of Healthy Lifestyle Attributes
Stronger Among Core Segments
(Q11- segment indicating statement is
extremely/very important)
Extremely/very important CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Consumption of healthy, nutritious foods 94bcef 69 79 95bcef 70 86be
Living in safe, clean environment 89bce 71 73 95bcef 60 84bce
Consumption of natural foods beverages 80bcef 24 24 74bcef 25 60bce
Consumption of organic foods beverages 78 bcdef 17 17 68bcef 15 49bce
Taking vitamins, minerals, herbal supplements 66be 44 57 65be 51 61b
Usage of natural organic personal care 54bcef 17 13 53bcef 16 34bce
Usage of alternative healthcare professionals 48bcef 14 13 44bcef 14 31bce
Lower case letters denote significant difference
between groups at 95 level
53
LOHAS Issues Clearly Most Important to
CONSCIONABLES
(Q11- segment indicating statement is
extremely/very important)
Extremely/very important CORGANICS (a) CONSCIONABLES (d) EMBRACERS (f)
Using renewable resources 72 93af 68
Supporting cos that protect workers rights 63 88af 69
Supporting socially responsible business 60 86af 62
Using products made from recyclable materials 56 83af 63
Buying products grown using sustainable agriculture 60 82af 57
All issues are significantly more important to
these 3 segments than to EXPERIENTIALS,
EPICURIANS and EXPEDIENTS
Lower case letters denote significant difference
between groups at 95 level
54
Activities, Demographics Psychographics
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
55
Lifestyle and Physical Activities
(Q.17 significantly more likely than other
segments to indicate they have participated in
the following sports/hobbiesin past 3 months/Q18
significantly more likely than other segments
to be extremely/somewhat involved with activities)

• CONSCIONABLES
• Arts Crafts
• Yoga
• Environmental/ecology activities
• Local/state/national politics
• Feel least financially secure
• Democrat/Independent

• CORGANICS
• Yoga
• Environmental/ ecology activities
• Religious activities

• EPICURIANS
• Gourmet cooking
• Gardening
• Feel most mentally sound
• Feel most financially secure

• EXPERIENTIALS
• Marathons/triathlons
• Republican

• EMBRACERS
• Gourmet cooking
• Theater/arts/dance
• Yoga
• Environmental/ecology activities

• EXPEDIENTS
• Walking

56
Demographic Summary
(Demographic summary by segment)
CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
Male 37 46 52ad 36 59adf 43
Female 63ce 54 48 64ce 41 57e
Average age 48.6 51.1 56.1abdef 48.2 50.1 48.4
Married 52 60d 50 45 48 51
Children in HH 24c 17 8 18c 18 18c
Post grad 29 31 49abd 34 39 39
Retired 18 24 38abdef 20 24 23
Median income 73.0K 83.9Kad 75.8Kd 57.9K 90.1Kad 74.3Kd
White 88 88 92 84 93df 86
African-American 1 3c -- 2 3 1
Hispanic 2 1 5 2 3 2
Asian 1 1 -- 2ce -- 6abcde
Lower case letters denote significant difference
between groups at 95 level.
57
Geographic Summary
(Geographic summary by segment)
CORGANICS (a) EXPERI-ENTIALS (b) EPICURIANS (c) CONSCION-ABLES (d) EXPEDIENTS (e) EMBRACERS (f)
REGION
East 26 31 25 26 38d 28
Midwest 20e 15 16 16 9 15
South 24 29 29 31 21 28
West 31 25 31 27 32 29
MSA
lt100,000 6 6 4 4 3 4
100,000-499,000 8b 2 10b 8b 5 5
500,000-1,999,999 17 23 20 22 10 18
2,000,000 68 68 67 66 82abcd 73
Lower case letters denote significant difference
between groups at 95 level.
58
Summary Perspective
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
59
Reasons for Shopping WFMA Spatial Relationship
of Segments
(Q12a spatial alignment of segments depicting
relationships based on reasons for shopping at
WFM)
Shopper segments most closely aligned to WFM
values and philosophies
Very different motivations from other shopper
groups
60
WFM Strategic Marketing Opportunities

• WFM appeals to a diverse range of customers, each
  with unique needs relative to their interests,
  behaviors, and attitudes. WFM should target
  these individual segments to attract new shoppers
  and increase the market basket of existing
  customers.
• EMBRACERS (35 of shoppers) represent the core
  of WFMs shopper base one for whom healthy
  eating, social/environmental issues and
  unique/gourmet foods are all important, but who
  are not ardent or overly obsessive about any in
  particular. In totality, they embrace all things
  about WFM in a balanced fashion.
• The central WFM theme of Whole Food/Whole
  Planet/Whole People resounds most with
  CONSCIONABLES and CORGANICS (33 of shoppers),
  and to a somewhat lesser extent among EMBRACERS.
  Hence, the other third of shoppers are driven by
  other factors, which should be recognized.
• Specialty/gourmet products are the central
  reasons that EPICURIANS shop WFM, while
  EXPERIENTIALS are more enticed by the unique
  shopping experience that WFM offers. Both
  segments represent a targeting opportunity
  focusing on their respective drivers.
• EXPEDIENTS are a unique shopper segment of
  opportunity. They are driven primarily by
  convenience rather than any core interest and
  belief. However, because of the frequency with
  which they visit WFM (and their purchasing
  power), merchandising of key product offerings
  can be effective in increasing their WFM market
  basket.

61
Applying The Segmentation Model to WFM

• Further discussions should be held to determine
  how best to apply this segmentation to real-life
  WFM activities and initiatives. Examples include
• An exploration on how to identify the WFM shopper
  groups in order to develop targeted messages and
  communications strategies (e.g., through
  lifestyle activities, political affiliation)
• In-store merchandising, signage, etc. should be
  developed by segment to increase WFMs shopping
  basket (e.g., opportunity for gourmet frozen
  foods among EPICURIANS)
• Development of a private-label strategy based on
  the segments
• The WFM shopper groups will be measured over time
  through NMI research to determine composition
  changes
• These groups can also be used for specific
  quantitative or qualitative research (through the
  development of a predictive algorithm)
• Many other uses

62
Appendix
Prepared By The Natural Marketing Institute
NMI Study 3232-8
February 2007
63
Detailed Buying Habits of EMBRACERS Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Fresh vegetables 53 32 11
Fresh fruit 50 37 10
Natural items 45 36 4
Organic items 45 31 5
Specialty/gourmet items 41 33 8
Cheese 33 41 14
Grocery items 26 39 32
Bread 26 40 20
Dairy 24 35 28
Fresh meat/poultry 22 35 26
Store brand products 20 37 19
Fresh seafood 16 29 22
Bulk foods 14 20 16
Baked goods (not bread) 12 22 12
Frozen foods 11 29 41
Prepared entrees 11 21 12
Ready-to-eat 11 23 9
Salad/hot food bar 10 18 4
Vitamins, minerals 8 20 16
Personal care products 7 20 36

• Primary WFM Purchases
• Produce
• Naturals/Organics
• Specialty/Gourmet, Bread, Cheese, Grocery, Dairy,
  Meat

• Opportunities for WFM Purchases
• Frozen foods
• Grocery items
• Dairy, Fresh Meats
• Personal care

Natural/organic personal care fits well with
values of EMBRACERS
64
Detailed Buying Habits of CONSCIONABLES Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Fresh vegetables 61 25 9
Organic items 58 23 4
Natural items 55 29 3
Fresh fruit 54 34 8
Dairy 36 36 20
Bread 33 32 18
Cheese 31 42 16
Grocery items 30 40 23
Fresh meat/poultry 29 27 18
Store brand products 24 40 13
Specialty/gourmet items 20 36 7
Frozen foods 18 35 25
Bulk foods 17 23 12
Fresh seafood 14 30 10
Baked goods (not bread) 12 19 8
Salad/hot food bar 11 12 5
Prepared entrees 11 20 12
Personal care products 10 23 25
Vitamins, minerals 9 23 12
Ready-to-eat 9 19 8

• Primary WFM Purchases
• Produce
• Organic
• Natural

• Opportunities for WFM Growth
• Dairy
• Grocery items
• Frozen foods
• Personal care

Natural/organic personal care fits well with
values of CONSCIONABLES
65
Detailed Buying Habits of CORGANICS Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Organic items 69 20 1
Natural items 62 27 2
Fresh vegetables 59 26 7
Fresh fruit 54 31 9
Bread 32 33 18
Dairy items 28 35 17
Dry grocery items 26 41 22
Cheese 25 43 16
Fresh meat/poultry 24 31 19
Bulk foods 19 13 15
Store brand products 16 29 17
Frozen foods 15 30 27
Specialty/gourmet items 14 27 11
Fresh seafood 14 22 13
Vitamins, minerals 11 20 7
Baked goods (not bread) 7 20 12
Personal care products 6 24 33
Ready-to-eat 5 16 11
Salad/hot food bar 3 8 9
Prepared entrees 2 12 11

• Primary WFM Purchases
• Organic
• Natural
• Produce

Main

• Opportunities for WFM Growth
• Dry grocery items
• Frozen foods
• Personal care

Natural/organic personal care fits well with
values of CORGANICS
66
Detailed Buying Habits of EXPERIENTIALS Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Fresh fruit 39 37 17
Fresh vegetables 39 41 16
Specialty/gourmet 28 36 8
Fresh meat/poultry 28 34 28
Fresh seafood 24 21 22
Bread 21 42 27
Cheese 18 47 28
Dairy 15 31 46
Grocery items 15 42 42
Store brand products 14 31 31
Baked goods (not bread) 13 26 14
Natural items 13 32 7
Ready-to-eat 12 25 6
Salad/hot food bar 11 15 6
Organic items 11 28 7
Prepared entrees 10 31 11
Frozen foods 8 22 49
Bulk foods 6 10 18
Vitamins, minerals 6 6 17
Personal care products 5 8 41

• Primary WFM Purchases
• Produce
• Specialty/gourmet
• Fresh meat/poultry

• Opportunities for WFM Growth
• Meat, seafood
• Bread, cheese
• Store brands
• Frozen foods
• Grocery items, Dairy may be harder sell for this
  segmentnot organically-minded, and shop
  primarily for specialty items

67
Detailed Buying Habits of EPICURIANS Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Specialty/gourmet items 46 27 4
Fresh fruit 38 38 20
Fresh vegetables 32 42 19
Cheese 30 42 24
Bread 30 31 25
Fresh seafood 18 23 24
Store brand products 17 32 35
Natural items 17 31 14
Grocery items 16 39 43
Fresh meat/poultry 15 35 39
Dairy 14 35 46
Organic items 13 30 4
Baked goods (not bread) 12 25 14
Bulk foods 10 13 23
Ready-to-eat 8 26 6
Frozen foods 8 26 54
Salad/hot food bar 5 12 5
Prepared entrees 4 24 12
Vitamins, minerals 2 17 18
Personal care products 2 12 49

• Primary WFM Purchases
• Specialty/gourmet
• Produce
• Cheese, Bread

Main

• Opportunities for WFM Growth
• Cheese, bread
• Grocery items
• Seafood
• Store brand products
• Frozen foods

68
Detailed Buying Habits of EXPEDIENTS Segment
(Q7/8 - segment indicating frequency of buying
items at WFM)
Buy WFM Almost Always Buy WFM Sometimes Buy Elsewhere
Fresh vegetables 33 41 16
Fresh fruit 31 46 15
Grocery items 8 49 34
Cheese 10 40 32
Specialty/gourmet items 14 33 15
Fresh meat/poultry 12 36 35
Bread 16 32 32
Dairy 16 30 38
Store brand products 12 31 38
Natural items 12 30 12
Organic items 10 26 12
Fresh seafood 10 28 21
Frozen foods 5 33 49
Ready-to-eat 9 24 10
Salad/hot food bar 8 22 7
Prepared entrees 6 25 14
Baked goods (not bread) 6 26 15
Bulk foods 9 10 17
Vitamins, minerals 8 8 23
Personal care products 3 8 44
Main

• Primary WFM Purchases
• Produce
• Long list of other diverse purchases

Most items bought only sometimes

• Opportunities for WFM Growth
• Grocery items
• Fresh meat/poultry
• Cheese
• Bread
• Dairy
• Store brands

69
Weight Issues Equally Important to All Segments
(Q11- segment indicating statement is
extremely/very important)
Maintaining proper weight
Regular exercise
No differences between segments among these
weight-oriented issues
Losing weight
70
The Natural Marketing Institute 272 Ruth
Road Harleysville, PA 19438 Steve French,
Managing Partner phone [phone], ext
214 fax [phone] Steve_at_NMIsolutions.com www.
NMIsolutions.com