Woolworths - The Difference
- Dean Tanya
- Apr 28, 2022
- 3 min read
Building a corporate brand reputation is not something that happens overnight, it is an ongoing process influenced by many factors that include products and services, employees, top management, relationships with suppliers, innovation, strategy, etc.
How have Woolies managed to maintain its reputation? Easy. They deliver on the promise to the customers and stakeholders.
Image Source: quanpayne.com
WOOLWORTHS REPUTATION
Woolworths' reputation is one of excellence, quality, ethically, environmentally, and sustainably sourced products. These are all the positive words that come to mind when one thinks of Woolworths as a brand. According to Walsh (2010), a customer forms a perception of an organisation based on their perception of the following:
How a brand treats its employees and customers: Keen to attract and retain the best retail professionals, Woolworths was among the first local retailers to offer employees a pension fund, medical aid, and maternity leave.
Financially stable and reliable: Woolworths can be considered to be financially stable in terms of its contributions to both turnover and operating profits.
The quality of its goods and services including the brand integrity: Woolworths was the first South African retailer to add "sell by" dates to its products in 1974.
The brands' contribution to society: Woolworths employs various strategies such as MySchool/MyPlanet/MyVillage, where they give back to charities, schools and other organisations. In 2007 the brand launched its GBJ (Good Business Journey), which plans to make a difference in eight key areas towards sustainability; Energy, Water, Waste, Sustainable Farming, Ethical Sourcing, Transformation, Social Development, and Health, and Wellness
A good reputation shows what customers think a brand is doing right in terms of its service, its products, its pricing, supporting local sustainability initiatives and operating as a reliable enterprise. As displayed above, it's clear to see that Woolworths can be considered as managing a positive reputation. Everything wrt its brand contact such as the Woolworths website and other digital channels is used to display the previously mentioned points.
ACCOUNTABILITY AND TRANSPARENCY
However, Woolworths as a brand certainly understands what role consumers hold in shaping the brand as well as its reputation. We live in an age of social media, where a brand's reputation can easily be tarnished. I refer to the incident in 2019, where Woolworths was called out for copying a local baby carrier, Ubuntu Baba.
Consumers quickly rushed to social media to voice their concerns whereas others were outraged that a multimillion rand brand could do something like this to a mom in Cape Town who made these carriers locally.
Image: iol.co.za
Woolworths accepted accountability for the 'mistake' and immediately called back all the stock from store shelves. The silver lining was that not only did Ubuntu Baba show an increase in sales but the stock was donated to disadvantaged mothers in under-resourced communities.
SUSTAINABILITY
The rise of the eco-conscious consumer has resulted in most brands having to be more mindful of their impact on both the environment and society. Woolworths' vision is to be the world’s most responsible retailer as they have always made so very clear with the Good Business Journey, placing it at the core of its business strategy.
Image: Woolworths
Today, consumers are more likely to form an emotional connection and purchase from brands that make them feel that they are doing the right thing by purchasing products from brands that care for the environment and people.
Woolworths doesn't only do this through its food offering but with clothes as well. In 2015 a GBJ highlight was "Woolworths Holdings Limited was the fastest-growing retailer in the world in the use of organic cotton and yarn"
CONCLUSION
Woolworths can also maintain its positive reputation by ensuring they achieve the 2025 GBJ goals and focusing on educating its consumers every step of the way
As Woolworths considers itself a brand-value-driven business, it has ensured that all of its sub-brands and categories are aligned to maintain those values. As long as they keep on doing that, they will maintain a positive reputation.
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