It has supermarkets across Australia, supermarkets in New Zealand, and also 22 retail stores in India which are the joint venture agreement with Indian supermarket chain Tata. Woolworths has listed as a strong financial performance company with a 3. We, as passionate committed retailers, understand and lead our customers through excellence and a deep knowledge of our products and services and the world we live in. The key strategic priority for Woolworths is to build up a multi-option retailing in term of low price, good quality products and services, in stores experience to meet customer requirement.
Woolworths fired back, triggering seven years of intense price competition.
But now Coles has waved the white flag, indicating a move away from price-based marketingto a focus on other attributes, such as sustainability, local produce and community. Coles Good Things Aussie Sourcing Policy Research shows if price is the main selling point, shopper loyalty decreases and customers become more conscious of price.
Price wars are also costly for retailers. While operational costs wages, rent, bills remain fixed or go up, prices can't keep coming down. You eventually run out of margin. Coles' recent half-yearly results reflect this, with a drop in earnings of In contrast, Woolworths announced an But Woolworths dropped their "cheap, cheap" price-cutting campaign nearly two years ago.
Other retailers also get caught in the cross fire of price cutting. Case in point is Aussie Farmers Direct, which fell into administration this week saying they were: How this strategy came about Supermarkets are now looking beyond price to stand out. Both Coles and Woolworths are very similar in the brands they offer, prices, layouts, weekly specials and online channels.
The move away from price gets shoppers thinking about what is unique to each chain. So, rather than price, the focus has shifted to service qualitysocial programs and connecting with the community. Shoppers who are continually exposed to loyalty program logos, may eventually stop noticing these logos, or "switch off".
This is because of a behavioural tendency called "habituation". What these new strategies are trying to sell So, if Coles are no longer selling themselves on price, what are they selling? Coles' new approach is more subtle, selling themselves through aspirational stories and employing classic advertising techniques to do it.
These techniques are used in advertising to convey positive feelings and emotions associated with a particular experience. A simple way to achieve this in advertising is to feature people telling their own stories — as seen in the new Coles advert launched this week.
Woolies Commonwealth games With the Commonwealth Games near, both supermarkets are also featuring sports stars in their marketing. Woolworths' new campaign features athletes and their connection with fresh food, positioning the company, once again, as "Australia's Fresh Food People". Their advertisements feature an array of young, fit, attractive and successful athletes linking the athletic success with the purchase of products from Coles.
By moving away from price and focusing on a storytelling strategy, both supermarkets can engage consumers with a process called "internalisation".
This is where people accept the endorser's position on an issue as their own. Internalisation is a powerful psychological mechanism because even if the source used in the campaign is forgotten, the internalised attitude usually remains. Price doesn't create this effect. While food prices won't necessarily go up anytime soon, consumers shouldn't expect to see any further significant price drops.
Instead, Coles and Woolworths will draw attention to other important attributes. Faced with the expansion of Aldi across South Australia and Western Australia and the entry of German supermarket KauflandColes has recognised they can't keep fighting a battle on price alone.
Gary Mortimer is associate professor in marketing and international business at Queensland University of Technology and Louise Grimmer is lecturer in marketing at the Tasmanian School of Business and Economics at University of Tasmania.
This piece originally appeared at The Conversation. First posted March 07, Woolworths details 3-year strategy to become customer centric.
Supermarket giant will focus on data utilisation, product innovation, better customer service and value but isn't forgetting about price. Woolworths adopts an integrated competitive strategy, i.e. it utilizes a combination of both overall-cost leadership and differentiation strategies, in search for sustainable competitive advantage (SCA) over its rivals in the supermarket industry.5/5(29).
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Zarina serves as a director on the boards of Vodacom South Africa, Investec Group and Woolworths Holdings.
She was a partner at Ernst & Young, and previously held the position of executive director responsible for private banking at Absa. On January 26, , Coles fired the first shot in what would soon be dubbed the "supermarket price wars" by reducing the price of its own-brand milk to A$1 per litre.
Woolworths fired back. The Africa Shared Value Summit raises awareness of and advocates for the successful strategic implementation of the Shared Value business model – profit with purpose – in Africa.