The New Way In Which Woolworths Is Tricking Its Customer
Woolworths has changed the way in which it promotes its ‘own’ brand products.
In the past, you have had to choose between brands like Kelloggs, Arnotts and Coke, then compared them with the store’s private labels like Homebrand and Smartbuy, which had the Woolworths name all over them.
However, over the last three months, Woolworths has introduced a new range of private label products, and it's different. As their name has disappeared.
On the shelves instead are names like Smitten and Apollo pet food, Chevron batteries and Little One's nappies.
It’s very similar to the tactic used by Aldi in their fight to grab customers from Coles and Woolworths.
Woolworths have said the new range was developed using insights from customers and delivered ‘quality and value’.
The research has shown that customers preferred not to have the trailers brand on the products they buy but marketing experts have said Woolworth's risk upsetting customers as they may feel ‘tricked’ into buying the home brand.
Retail expert, Gary Mortimer from the Queensland University of Technology, said he noticed Woolworths had changed tactics in the supermarket when he spotted a brand on the shelf last month.
“I came across a pack of grated cheese with the ‘Hillview’ brand and saw it was very sharply (well) priced,” he told news.com.au. “And then I looked closer and realised it was from Woolworths.”
As well as Hillview cheese, the list continues with Baxter's pet food, Softly fabric softener and Olsent light bulbs.
Some products, however, have just had their Woolworths logo removed with both the Herbal Sensations Shampoo and the ‘Gold’ range now being called their respective names, without their Woolworths branding.
Since 2008 Aldi Australia has seen its market share has risen from 5.5% to 12% and Coles has risen to 32%, leaving Woolworths struggling to stay ahead.