Woolworths Kicks Off New ad campaign

Woolworths merchandising marketing campaign emphasises low costs. picture: supplied

Woolworths has kicked off a brand new price-based totally marketing marketing campaign – its fourth in as a few years – to strengthen its $500 million investment into lower grocery costs.

the new marketing campaign, “at all times at Woolworths”, replaces the much-maligned low cost low cost campaign, which was criticised via marketers for dragging Woolworths downmarket and for mimicking Coles’ long-operating Down, Down campaign.

the brand new marketing campaign, in an effort to run in print, on-line, television and radio, emphasises on a regular basis value in Woolworths supermarkets slightly than one-off discounts.

Woolworths has launched its fourth grocery marketing campaign in as many years, claiming its costs are “all the time” low. photo: Louise Kennerley

That induced analysts to question whether Woolworths’ new supermarkets group, led via Brad Banducci and Dave Chambers, is transferring against an on a regular basis-low-value pricing (EDLP) technique moderately than a excessive-low pricing version  in an try and win back the belief of customers.

Woolworths plans to invest more than $500 million in reducing grocery prices to “neutralise” Coles and “contain” Aldi. The retailer has invested greater than $200 million into reducing prices this 12 months and claims its costs are actually as low cost, if no longer relatively cheaper, than a equivalent basket of groceries at Coles.

New value position

Woolworths said on Monday the  at all times at Woolworths campaign, created for the retailer by using Leo Burnett, was geared toward calling out its new worth place.

“Woolworths all the time calls out its worth supply to our shoppers, and the brand new ‘low costs, all the time’ marketing campaign does just that,” a Woolworths spokesman mentioned.

“It tells our shoppers than on lots of of products across our stores they may be able to predict the same low costs – week-in, week-out, the costs will likely be remaining on the low value.”

Proving that little is new on the planet of marketing, Woolworths’ newest campaign echoes Coles’ Low costs everyday message and borrows from KMart’s seven-year-old  all the time Low costs commercials.

the new marketing campaign will run along side Woolworths’ costs Dropped marketing campaign, which highlights the influence of recent value savings on the price of an average weekly grocery save.

As pronounced in  Fairfax Media last month, Woolworths was forced to tweak the Priced Dropped advertisements after global research firm Nielsen refused to advocate Woolworths’ claims that its prices had been more cost-effective than Coles’.

Woolworths will also continue to air its iconic fresh food individuals marketing campaign, along with pink Spot specials and regular promotions.

Key topics constant

Mr Banducci, Woolworths’ food workforce managing director, said in August that Woolworths’ advertising and marketing strategy would slowly evolve however the key subject matters – fresh meals and cheaper prices – would stay constant and messages would develop into extra cohesive. 

Analysts imagine Woolworths’ $200 million-plus value funding to this point has but to achieve traction with consumers and is likely to have had little impression on related-store sales in the September quarter.

Deutsche financial institution expects Woolworths’ similar-store meals and liquor sales to fall 0.5 per cent in the three months ending September after falling zero.9 per cent within the June quarter, while credit Suisse expects comparable-store sales to fall 0.eight per cent.

when put next, Coles’ similar-retailer gross sales – due for liberate on Thursday – are forecast to rise between 3.1 per cent and three.5 per cent within the September quarter after rising 3.6 per cent within the June quarter.

Analysts believe Woolworths’ related-retailer sales will toughen in the 1/3 and fourth quarters as the retailer laps susceptible sales closing yr and regains lost market share.