As the former director of national marketing for Whole Foods Markets Inc., John Moore has key insight into the merchandising initiatives that have helped propel the company to its position as the U.S.’ leading natural and organic retailer. Moore, who also was retail marketing manager for Starbucks Corp., now operates Brand Autopsy, an Austin, Texas-based marketing and business consulting firm.

MDR: What is the key factor that makes Whole Foods an attractive meat and deli destination?

JM: It’s the chain’s dual message of taste and value. Natural and organic to a lot of folks means healthy, but Whole Foods also has a lot of gourmet shoppers and foodies who realize that the best tasting food also is the purest. So we concentrated our message on those folks who appreciated the taste and the values behind the taste.

MDR: How does Whole Foods differentiate its proteins from those sold at conventional supermarkets?

JM: It makes sure the perishables are consistently high quality by following ingredient guidelines.

There is nothing fake in the meats, and that means such things as an absence of antibiotics and beyond.

Whole Foods also carefully studies the meat production methods when choosing ranchers and farmers to ensure the products are more tender and better tasting.

MDR: What steps does Whole Foods take to spotlight its meat and deli items?

JM: There is an emphasis on product presentation that conveys freshness, which is why most of the meats are merchandised at full-service counters. Stores also leverage the art of the butcher, who many conventional supermarkets that sell a lot of prepackaged meats don’t use as much. Having a butcher gives the customer confi dence that they can get special cuts or special attention. They will pay more for a better experience.

MDR: Why is there a strong emphasis on marketing prepared foods at the full-service deli counter?

JM: Because they are “approachable gourmet” items that often feature recipes that are not available at conventional supermarkets but which the Whole Foods shopper appreciates. Customers also are willing to pay more for a different experience, so Whole Foods tries to make common, uncommon, and ensure they are not merchandising from the same cookie-cutter as others. With the rise of food television shows and the Food Channel, people saw that they could be more culinary at home and that it is easier to have high-quality prepared meals than making Hamburger Helper.

MDR: What role do meat and deli associates play in the merchandising of proteins?

JM: The folks behind the counter are encouraged to interact and show their personalities to shoppers when they present food. It’s trying to do something different.

For instance, Whole Foods tries to get the people at the seafood counter to take on the persona of fi shmongers. Some actually have worn orange plastic garb rather than white coats.

MDR: How much merchandising autonomy is there for meat and deli managers in each location?

JM: They are given the power to do things that drive sales. It’s a unique company culture—which is bottom up rather than top down—where staffers have the ability at store level to experiment.

For instance, a meat department may sell soup because there is meat in the product. The department would then get credit for that sale, which is important because bonuses are based on sales and there is competition within stores to drive revenues. That is why Whole Foods often attracts higher-quality employees. The worker feels they are part of the process rather than a pawn in the company’s corporate strategy.

MDR: How does Whole Foods’ typically higher prices for meat and deli products affect its operations?

JM: Shoppers have come to appreciate natural and organic meats, so stores can charge consumers more for the items. Whole Foods raised the bar and now conventional retailers are trying to catch up. There also is a high end and low end regardless of the business and industry, and the companies positioned in the middle usually get lost because they become a commodity. So it’s not surprising that consumers choose to go to a high-end store like Whole Foods, or to a low-end chain such at Wal-Mart or Wal-Mart’s NeighborhoodMarkets.

MDR: What is Whole Foods’ meat and deli marketing strategy?

JM: The company would rather spend dollars to make the customer experience better than air television commercials. Whole Foods wants every store to offer a shopping experience that its customers would remark about to others. They want to attract more business through word of mouth. The company has never done a TV commercial and there is virtually no national marketing, but it might do regional print ads or radio spots.

MDR: What are some of Whole Foods’ other merchandising tactics?

JM: They sell private-label items, which is one way to offer somewhat lower prices without jeopardizing margins. Stores also emphasize sampling because customers will pay more if they know the food tastes good and understand where it came from.

MDR: How is Whole Foods positioned in the minds of shoppers?

JM: It gets into the conversation when people talk about grocery stores because they play into giving higher quality and a gourmet experience to customers. Whole Foods was founded as a health food chain, but the gourmet-seeking folks then found that the best-tasting food was also the purest food.

What has gotten lost with the rise of Whole Foods is that it still has relatively low market share among supermarkets, but high mind share among consumers.