Woolworth’s is the brand leader.
Woolworth’s prices, range and customer experience are far superior to Coles in my view as a shopper. But Coles are doing a fine job at challenging that view.
Both brands battle it out with big budget media spend. Coles have stuck to a consistent brand formula using personalities and price to great effect (…even though they are unlikely to win any creative awards). The new my5 proposition is well sold by Dawn. As Simon McDowell, Coles Marketing Director has stated in adnews: “Who are we trying to appeal to? Are we trying to appeal to 14 million bodies who shop at Coles every week, or are we trying to appeal to the advertising industry? You can guess what my answer is. We’re very clear on our brand and what it stands for. We’re very clear on our personality.” Nice to see an unapologetic marketing response.
Woolworths “the fresh food people” have a new agency and have recently embarked on a couple of pretty different campaigns – “Select” as posted earlier and this one for their equivalent of Coles “Flybuys”. Neither Woolworth’s campaign contributes directly to the core proposition of “fresh food”. This is done by Advertorial promos. Price seems to be tackled through short lead press ads.
The potential risk is that Woolworth’s looks like a challenger brand, following Coles and lacking consistency and a core proposition.
Further to which Coles are on an aggressive PR offensive as a Coles representative has said:
“Woolworths are playing catch-up again but what they have launched is a hastily pulled together program which does nothing for their customers. Their ‘extra special’ rewards program has simply taken the hundreds of promotions that they would have been running for all their customers anyway and made them exclusive to Everyday Rewards Customers. That’s why they were able to respond to my5 so quickly and it explains why they have not included any fresh items including fruit and veg, home brand milk and meat (these items are predominantly private label and so they can’t get them supplier funded)…”
This ad feels like a tactical effort before the strategic tour de force we all expect from Droga who are cutting new ground in many categories with outstanding creative.
The simplicity of the my5 Coles proposition is winning consumers – 5 regular buys registered and get a discount. The Woolworth’s Everyday rewards response is actually simpler and stronger on paper, but falls short as it is pitched as a response to the other guys. It even references (and therefore credits) the competition’s proposition.
I think that the Coles guys are getting to the Woolies guys…as McDowell concluded: “We take our brand and our business seriously, but we don’t take ourselves too seriously. We are trying to sell and serve with personality, to make ourselves warm and approachable.” I agree, the personality that matches the target (not necessarily all of the creative community) is there. Interesting use of “warm and approachable” versus Woolworth’s Select ads.
A great marketing battle in the making and I look forward to the next salvo from Woolworth’s and Droga as the strategy comes into full swing.