Woolies encroaches on Coles in new savings campaign

Woolies encroaches on Coles in new savings campaign

Woolworths will tomorrow launch a huge savings campaign, slashing the prices of hundreds of products long term in a move that brings it closer to Coles’s perennial ‘Down down, prices are down’  positioning.

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The ‘Every Day Value’ price cuts will see fresh produce and brand-name goods reduced by up to 33% including MSA Australian beef, Tip Top bread, Western Star Butter and Arnott’s biscuit multipacks.

Coles’s marketing of recent years has focused on price-reduction, with the now ubiquitous big red hand symbolic of the ‘Down down and staying down’ messaging.

The value-based ‘Feed your family for under $10’ initiative has also been a cornerstone of its marketing output.

Woolworths, on the other hand, has built its brand around freshness and people, focusing recently on the paddock-to-plate journey and the everyday Australians it employs via campaigns from creative agency, Droga5. A Woolworths spokesperson today confirmed that Droga is also behind tomorrow’s price-cut campaign.

Tjeerd Jegen, MD of Woolworths supermarkets spoke out today emphasising Woolworths’ commitment to value.

 “While we know that Woolworths is consistently cheaper than Coles on a comparable basket across the store, we are constantly looking for new ways to offer our customers ways to save,” he said.

“The hundreds of Every Day Value price cuts that we are launching are just the beginning of our commitment to delivering more savings every day on essential family items.  These prices will stay down for at least six months, and we have even more great savings in store for our customers – every day.

“We have taken a single-minded focus to delivering savings to our customers, lowering the price of literally hundreds of our most popular products across the store. On average, customers will find between 40 and 50 Every Day Value price cuts in every single aisle.

Jegen described the delivery of savings as “Woolies’ bread and butter”, saying the supermarket had taken that ethos literally and applied price cuts to bread, butter and ham.

In October 2011 both supermarkets slashed the price of basic goods, including bread which dropped to $1.

But in a comparison of the effectiveness of the creative used by Coles and Woolworths to promote the cheaper bread, Coles won out.

According to The Newspaper Works, which conducted the survey, people who viewed both ads responded much more favourably to the Coles execution, the reason being that it correlated strongly with Coles' core brand positioning.