Coles vs Woolies: Where to next in the supermarket wars?
Lisa Ronson last week took the industry by surprise, announcing her departure as CMO of Coles. At a crucial time for the retail sector, Mumbrella’s Calum Jaspan looks at where things are now, and what next in the battle between fierce rivals Coles and Woolworths.
Seven years ago, Mumbrella asked the question “where did it all go wrong?” for Woolworths.
Today, there are many in the industry who are beginning to wonder if Coles is the one who has lost its way.
The surprise departure of one of Australia’s highest profile CMOs Lisa Ronson has only added fuel to the fire and the immediate industry reaction has been centered around whether or not she was pushed.
Suppose you can now discard principles from ever working with Coles or Lisa in the future. Heheheh.
Outstanding, objective analysis. Nice work.
“The Fresh Food People” is a simple, powerful statement first coined when supermarkets’ biggest challenge was winning share from the local greengrocer, back in the early 80s. Coles, on the other hand, has always been price/value focused and there’s not a lot wrong with that. Nor is there anything wrong with seeking to overlay green and sustainability credentials. But, with food costs spiralling, I know where they’re likely to get the best return.
Unfortunately for Big Red, their role is misunderstood. They have not been responsible for brand since Lisa Ronson and DDB rocked up with the incomprehensible “Value the Australian Way’. Rather, they have been the infantry, churning out retail, BTL and digital work in time frames and at prices that few agencies could get anywhere near. Watch this space, I reckon.
This is just what Mumbrella needs. Deep, detailed, considered pieces.
Well done Calum. Good to see Mumbrella slowly getting back into the detail that it has previously been renowned for.
More of this please!
I’m a marketer and a long-suffering consumer too!. Why can’t you guys try and keep it simple and see life through the eyes of a consumer and not try and be too pompous yourselves!
Woolies main message is “The fresh food people” – that’s clear and uncontroversial and is backed up by their advertising, especially involving kids sport and their colour scheme!
Whereas Coles says “Value the Australian Way” – I have absolutely no idea what that means! Does ANYONE!! And as for Down, Down!! What that says to me is that they admit to have been overcharging (Up, Up!!) for years!!
ALDI is no better with its (frankly) silly tag line “Good, Different”!! Although it is certainly different and probably competes in a different market sector.
Whether trying to focus on sustainability and concern for the planet for any of them, that remains to be seen – all of them still sell far too much in plastic packaging, including straws! It makes them seem hypocritical!!
IGA (which you didn’t cover) tries to emphasise the local nature of their business – that’s good, straightforward and worthwhile.
Note, I have no contact whatsoever with any of the B2C markets – just an educated observer!