Consumer Influences
Woolworths have established many initiatives in response to low income earners in Australia. This is achieved through the “For Less For Families” and “Australia’s Favourite Lamb Cuts For Less Everyday” programs. These promotions were established in October 2012 for Christmas where many
disadvantaged families struggle to purchase food and gifts. The “For Less For Families” program aim to reduce prices on items that families use the most and are able to save money on their grocery bill. Reduced prices on food items are not permanent but have a duration of 3 months or less.
Examples of food items on sale include:
· Aussie Beef Sausages 680g Range:
- Established price: $4.68
- New price: $3.97
- Cost savings: $0.71
- Duration: 3/10/12 – 1/1/13
· Fab Laundry Powder 1kg:
- Established price: $4.49
- New price: $3
- Cost savings: $1.49
- Duration: 3/10/12 – 1/1/13
· Huggies Jumbo Nappies:
- Established price: $33
- New price: $30
- Cost savings: $3
- Duration: 3/10/12 – 1/1/13
· Quilton Toilet Tissues Pack 24 Rolls:
- Established price: $12
- New price: $10
- Cost savings: $2
- Duration: 3/10/12 – 1/1/13
· Sanitarium Weet-Bix 1.2kg:
- Established price: $4.60
- New price: $4
- Cost savings: $0.60
- Duration: 24/10/12 – 1/1/13
Woolworths’ “Australia’s Favourite Lamb Cuts For Less Everyday” program has permanently reduced the prices of lamb in response to low income earners. This has resulted from economies of scale in the lamb industry, where farmers are producing more and as a result expenses decrease. Examples of cheaper cuts of lamb include:
· Lamb Forequarter Chops:
- Established price: $12.99
- New price: $8.99
- Cost savings: $4
· Lamb Mid Lion Chops
- Established price: $24.99
- New price: $16.99
- Cost savings: $8
· Lamb Cutlets:
- Established price: $36.99
- New price: $24.49
- Cost savings: $7.50
Greater concern for environmental issues in consumers regarding caged-free eggs has resulted in
Woolworths separating free ranged eggs more clearly from caged eggs. The consumer trend has also led Woolworths to reduce the number of caged brands in their supermarkets and gradually removing their own Woolworths Select eggs which are not free ranged.
In response to minimising long supermarket queues, Woolworths introduced self-serve checkouts
for customers in 2008. The checkouts allow customers to scan, weigh and pay for grocery items using cash, credit or debit cards. Each Woolworths store will consist of 4 – 6 self serve registers with one supervising staff member for assistance.
The popularity of smartphones, such as the iPhone and Samsung Galaxy, and online shopping is
changing the retail sector. A global study conducted by Google, revealed that Australia has the second highest smartphone penetration in the word. At the end of 2011, 50% of Australia’s own a smartphone with an average of 25 apps. In response, Woolworths released a smartphone app in 2011. The app allows access to latest news, fresh food updates and information regarding picking, storing and cooking fruit and vegetables that are in season. Woolworths smartphone app includes many feature such as shopping via phone, shopping lists that are organised in aisle order, product finder, barcode scanner, recipes, exclusive offers, weekly catalogue specials for cost savings and store locators.
Woolworths have established many initiatives in response to low income earners in Australia. This is achieved through the “For Less For Families” and “Australia’s Favourite Lamb Cuts For Less Everyday” programs. These promotions were established in October 2012 for Christmas where many
disadvantaged families struggle to purchase food and gifts. The “For Less For Families” program aim to reduce prices on items that families use the most and are able to save money on their grocery bill. Reduced prices on food items are not permanent but have a duration of 3 months or less.
Examples of food items on sale include:
· Aussie Beef Sausages 680g Range:
- Established price: $4.68
- New price: $3.97
- Cost savings: $0.71
- Duration: 3/10/12 – 1/1/13
· Fab Laundry Powder 1kg:
- Established price: $4.49
- New price: $3
- Cost savings: $1.49
- Duration: 3/10/12 – 1/1/13
· Huggies Jumbo Nappies:
- Established price: $33
- New price: $30
- Cost savings: $3
- Duration: 3/10/12 – 1/1/13
· Quilton Toilet Tissues Pack 24 Rolls:
- Established price: $12
- New price: $10
- Cost savings: $2
- Duration: 3/10/12 – 1/1/13
· Sanitarium Weet-Bix 1.2kg:
- Established price: $4.60
- New price: $4
- Cost savings: $0.60
- Duration: 24/10/12 – 1/1/13
Woolworths’ “Australia’s Favourite Lamb Cuts For Less Everyday” program has permanently reduced the prices of lamb in response to low income earners. This has resulted from economies of scale in the lamb industry, where farmers are producing more and as a result expenses decrease. Examples of cheaper cuts of lamb include:
· Lamb Forequarter Chops:
- Established price: $12.99
- New price: $8.99
- Cost savings: $4
· Lamb Mid Lion Chops
- Established price: $24.99
- New price: $16.99
- Cost savings: $8
· Lamb Cutlets:
- Established price: $36.99
- New price: $24.49
- Cost savings: $7.50
Greater concern for environmental issues in consumers regarding caged-free eggs has resulted in
Woolworths separating free ranged eggs more clearly from caged eggs. The consumer trend has also led Woolworths to reduce the number of caged brands in their supermarkets and gradually removing their own Woolworths Select eggs which are not free ranged.
In response to minimising long supermarket queues, Woolworths introduced self-serve checkouts
for customers in 2008. The checkouts allow customers to scan, weigh and pay for grocery items using cash, credit or debit cards. Each Woolworths store will consist of 4 – 6 self serve registers with one supervising staff member for assistance.
The popularity of smartphones, such as the iPhone and Samsung Galaxy, and online shopping is
changing the retail sector. A global study conducted by Google, revealed that Australia has the second highest smartphone penetration in the word. At the end of 2011, 50% of Australia’s own a smartphone with an average of 25 apps. In response, Woolworths released a smartphone app in 2011. The app allows access to latest news, fresh food updates and information regarding picking, storing and cooking fruit and vegetables that are in season. Woolworths smartphone app includes many feature such as shopping via phone, shopping lists that are organised in aisle order, product finder, barcode scanner, recipes, exclusive offers, weekly catalogue specials for cost savings and store locators.