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Writer's pictureDean Tanya

Woolworths - Positioning and Differentiation

Woolworths Food - The "REAL DIFFERENCE"


When tasked with writing about a brand positioning and how it also differentiates itself, the first one that comes to mind is Woolworths. We all know that the retail space in South Africa is cutthroat and also quite dynamic. There is no space for copy cats and being original and first, is first prize.


When Woolworths was started in 1981, founder Max Sonnenberg believed that “success was in providing consumers with superior quality products at reasonable prices”. This has always been a factor in how Woolworths positioned itself as a brand in South Africa. Fast forward to 2022 and other factors, such as environmental impact, have become a part of the Woolworths positioning statement and includes:


Sustainable Farming

- Our preference is to avoid the use of GMOs in Woolworths-branded foods.

- We believe it is our ethical obligation to ensure that our suppliers treat all the animals in our supply chain with respect and in the most humane way possible. We believe animals should have lives worth living.

Energy & Climate Change

- Woolworths recognises that climate change is a major issue that the retail sector contributes to through our operations and our supply chains. We have concentrated efforts to mitigate and adapt to climate change.

Ethical Sourcing

- We have embarked on a journey to better manage our ethical supply chain and to take more responsibility for improving the lives of workers in our South African and global supply chains. In doing this, we partner with credible organisations and standards to increase transparency and encourage more sustainable practices.

Waste

On their website, Woolies refer to both Food Waste and Packaging.

- We have committed to reducing the amount of food wasted across our supply chain as well as finding ways to promote food security.

Water

- We’re doing all sorts of things to reduce water consumption, from harvesting rainwater at some of our stores to working with our suppliers to reduce water use through our Farming for the Future programme and our Water Stewardship Project in the Western Cape.


The Woolworths customer has always been the LSM 9-10 and in recent years included the 7-8 LSM, after re-strategising. The brand prides itself on delivering high quality products at afforable pricing and is constantly innovating across departments.


If the process of choosing a brand is simpler because the consumer remembers a differenciated brand over another, then Woolworths is far ahead of their competitors.

The truth is, everyone wants to be a Woolworths customer, no matter the LSM. People strive to be linked to a brand that they can trust. Woolworths goes beyond just innovation, they focus on enterprise developement in small communities, they have invested in food security in schools by means of permaculture food gardens. They are commited to improving education and serving the planet and community with the MySchool/MyVillage/MyPlanet, where literally every swipe counts.

When looking at the Woolworths website, they have gone above and beyond to ensure the trust is there when consumers need more information on products. Look at all their food items as an example. Each product has in detailed information, such as nutritional value and ingredients. They make use of promotions to further attract customers and have cut reduced prices on more than 200 food lines, giving them the opportunity to aggresively compete with other retailers.


Woolworths has a clear vision for the future: To be one of the worlds's most responsible retailers.

To conclude, I would like to point out that straight through the value chain, Woolies stand by their core values and how they have positioned and differenciated themselves in the market. As they say, their values aren't just word on an annual report - they are the foundation of their business. They guide the brand and give them direction to guide their behaviour.


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