The Challenge
In 2004, Australia was not a developed market for supermarket own-brands. Five companies controlled 60% of all retail sales and own-brand penetration was low, 10% compared to 50% in the UK. Major brands dominated and own-brand was perceived as low quality. Australian retail giant Coles Group identified an opportunity to develop a strong own brand as a key strategic weapon in its battle to catch up with the country’s leading food retailer, Woolworths.
The Brief
Elmwood was commissioned to lead the development and implementation of a world-class own-brand strategy. Coles was looking to increase its own brand market penetration from 9% to 30% in three years and deliver up to $7billion in extra revenue. The design work needed to change the way Australian consumers thought about own brand and put Coles own brand on their shopping lists. It would also have to distinguish own brand from competitor brands and Coles from other retailers.
The Design
Based on the principle that Coles own brand makes consumers’ lives easier because they will eat better, save money and reduce waste, the launch was focused around the strapline ‘You’ll love Coles’. The ‘Coles curve’ graphic device, taken from the Coles logo, is used on packaging to create consistency across every range and stand out on the shelves. Every pack features product advocates – real customers and colleagues – who highlight the key benefits of each range. These everyday Australians endorsing each product help consumers feel the products are for ‘people like us.’
The Results
The first Coles own brand packs went on the shelves in summer 2005. Within a year, 50% of Australians had tried the new brand and 75% said they would buy it again. Coles own brand share is now 17%. ‘You’ll love Coles’ is now a recognised brand in Australia and 81% of Australian consumers now say that own brand usually represents extremely good value, with 99% of Australians saying they consistently purchase private label products. In the third and final quarters of 2006, private label brands rose 10% and 8% respectively.
