What Does Amazon Buying Whole Foods Mean from a Branding Perspective?

Let’s face it: Whole Foods has a reputation as being pretty pricey.  It’s easy to be lured by the aisles of customizable granola and organic cheeses and find that half of your grocery budget has been spent on a handful of items!  They’ve even been the victim of several class-action lawsuits due to accusations of overpricing their products.

Amazon, on the other hand, is known for its competitive prices, employing a variety of cost-cutting techniques to appeal to shoppers of any budget or income level.  In fact, this has always been a focus of their brand, from their start as an online bookstore, offering prices as close to at-cost as possible.

So how will these two seemingly-conflicting brands unite?

With this merger, Amazon plans to reduce the number of Whole Foods staff, as well as use their clout to switch up the inventory, resulting in lower prices that are competitive with Walmart.  They’re also continuing to develop their technology-based checkout system that allows customers with smartphones to pay for their purchases without ever seeing a cashier.

Amazon can bring personalization to the table.

Amazon is the king of personalization.  Do a little browsing and make a few purchases on their site and you’ll know exactly what I’m talking about!  They’ve developed an excellent algorithm to deliver recommended products based on your likes, dislikes, and purchases.  This leads to a positive association for their customers, who save valuable time browsing and valuable money by choosing the right product for them.

On the other hand, even though most grocery stores use loyalty cards, they’ve struggled with collecting accurate data that they can use to personalize their customers’ experience.  Amazon will be able to bring their valuable wealth of data and technology skills (specifically in data mining and artificial intelligence) to improve the experience of their customers as well as their marketing efforts.

The Amazon brand is familiar and trustworthy.

Amazon is a part of our lives in many ways.  We purchase products, rent movies, trade in old electronics, download video games, and even use their hosting services.  And with features like personalization, low prices, free shipping over a certain purchase amount, excellent customer services, transparent reviews and in-depth product information, they’ve proven themselves as worthy to be trusted.

This really opens doors for Whole Foods, expanding their reach to audiences who may not have purchased groceries from them in the past, or who thought they couldn’t afford to.  And, as we mentioned earlier, Whole Foods is struggling from a trust perspective after accusations of improperly weighing their products.

Plus, it’s exciting to see the ways in which Amazon will expand their convenience-driven, technology-focused company to the grocery industry.

Whole Foods appeals to customers as a luxury brand.

But, of course, Whole Foods has a lot to add to the equation, too.  Their products are known as unique, high-quality, and upscale – the exact reason that so many people are willing to pay more for them.  They also offer a wide variety of allergen-friendly foods and a wealth of ready-to-eat options like a juice bar and sandwich station.  Their locations are often found in affluent areas.

Plus, they also reach the millennial crowd with their hip, eclectic vibe, casual but helpful employees, and transparency when it comes to where their food comes from and how it’s made.

So just as Amazon helps Whole Foods reach a new audience, Whole Foods helps Amazon reach theirs as well.

What do you think about the merger?  Excited?  Concerned?  We’d love to hear your thoughts!