Brand Management: Sources of Brand Equity and Performance Evaluation of Woolworths

This report evaluates the brand value of Woolworths, the people involved in managing its brand image, various sources of Brand equity source and to evaluate brand performance. It includes the company's history, hierarchy, primary and secondary sources of brand equity, and report cards. The report concludes with recommendations for Woolworths.

Brand Management

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Executive Summary
The Woolworth Group is leading company of Australia with the name of company it is also
popular due to brand value in Australian and international market, which very useful in
building trust among customers. The company always provide its focus on the factors, which
are going to provide more satisfaction to the customers. The satisfied customers are an
example of great brand value. This report contains the various sources of brand equity and the
report card to evaluate the brand performance of the company.

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Contents
Introduction...........................................................................................................................................3
Company history/Background...............................................................................................................3
Company Hierarchy...............................................................................................................................4
Equity Source........................................................................................................................................5
Primary sources of Brand Equity.......................................................................................................5
Secondary source of Brand Equity....................................................................................................6
Report Cards..........................................................................................................................................7
Recommendations...............................................................................................................................13
Conclusion...........................................................................................................................................14
References...........................................................................................................................................15

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Introduction
Woolworths is a leading Australian company having its retail outlets across Australia and
New Zealand. The company is having its headquarters at Bella Vista, New South Wales
Australia and the key person who are playing important role in managing brand value of the
company are Gordon Cairns (Chairman) and Brad Banducci (CEO) (Woolworths,
2018a). This report designed to know the brand value of Woolworths, the people involved in
managing its brand image, to know various sources of Brand equity source and to evaluate
brand performance.
Company history/Background
Woolworths is a largest supermarket chain of Australia. Currently operating 995 stores across
Australia, the whole work of Woolworths relies on its team members at the store. In present
115,000 team members are working at stores of Woolworths in various department like
distribution centres, customer support, superior service, range, value, and convenience.
Woolworth considers being a most innovative retailer, as it understands the needs of
customers. Woolworths offers its customers option of online shopping through their
Woolworths Supermarket App and the best part of its App is they delivery grocery items
straight to the kitchen (Woolworths, 2018b). Woolworths master home enhancement
stockpiles constructed to stock more than 35000 dissimilar product lines from outdoor
furniture to new restrooms, complete with all the fitting and fixtures. Woolworths service
almost around 28 million loyal customers every week and has a big happy family of total
205000 employees including 6500 employees who have been working since 25 years. The
share of company listed on Australian Stock market (Woolworths, 2018a).

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On Friday, 5 December 1924 Woolworths has open its first retail shop at Stupendous Bargain
Basement in Sydney’s Imperial Arcade by Percy Christmas Founding CEO of Woolworths.
Previously company is not interested in developing chain of stores. However, when the
company offer the bargain price premises at Queen Street in Brisbane, they accept it and in
1929, in New Zealand they opened there first store and by 1930 the company had 16 stores at
Western Australia, Queensland and New South Wales (Woolworths, 2018c).
Company Hierarchy
(Source: Woolworths, 2018d)
Top-level management of Woolworths consist, Brad Banducci is the MD of Australian
Liquor, and Food, Christian Bennett has 25 years of experience in both private and public
sectors related to government works. Dave Chambedrs hired as Managing Director of
Progressive enterprises limited in July 2011. Amanda Bardwell hired as Managing Director
of Woolies for the Woolworth Groups in May 2017. Steve Donohue hired as the MD of
Endeavour Drinks in January 2018. Janmes Goth appointed as Chief strategy officer in July

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2014. Paul Graham is a Chief Supply Chain Officer Steve Greebtree is a MD of FoodCo,
Fuel. Johan Hunt- Chief Information Officer, Caryn Katsikogianis-Chief People Officern
(Woolworths, 2018d).
Equity Source
Brand Equity states as the value of brand. The company uses the phase when they are going
into a market to advertise their product. There are various ways to create equity for brand.
Equity for brand is the marketable value that derives from customer awareness of the brand
name of a specific service or product, rather than from the service or product itself (Huang
and Sarigollu, 2014). Woolworths equity of brand defines the value of having renowned
brand name across the world, the brand equity of Woolworths based on the idea of top
management which are related to activities which is going to increase the value of brand in
the market in monetary terms. Mainly there are two sources used by Woolworths to spread its
brand value, these are Primary and Secondary source.
Primary sources of Brand Equity
Primary source used by the company to identify the objectives and to gather information that
be used to improve the functions, services, and products. The company gains primary
information and data through qualitative research methods as well as quantitative research
methods (Buil, Martinez and Chernatony, 2013).
Surveys and Questionnaires: To gather information or data that will help in building brand
image is conducting survey and questionnaires, Woolworths conduct the questionnaire at the
time when its customers come to their store for shopping and when they do online shopping.
In Questionnaires, the company ask questions related to quality of service and product they
offer and ask the changes demand by the customers.

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Observation: There are two major observation techniques used by the company to observer
the interaction and communication with the subject. Under observation, the company
evaluate the behaviour of customers in relation to the image of brand the product and services
offer by them. The company will observer the behaviour of customers and its staff members
while both are performing their parts to find out the loopholes and to fill them to build the
better image in the market (Schivinski and Dabrowski, 2015).
Experimentation and Trials: By using this company, identify the various methods to make
customer satisfied. The company keeps on changing its packaging its rates and introduce
offers and discounts to attract more customers and to build good brand image among them.
Continuous trial and experiments is helping company in building good brand image in the
market. The company also organised events at their stores to enhance its brand value.
In depth Interviews: Time to time the staff members of Woolworths on orders of management
use to ask direct questions related to products, service, staff behaviours, various offers
introduce by the company, and other related changes they want to make at stores. The staff
members selects the customers when they arrive at stores for shopping and ask them
questions provided by management to them and then maintain record and pass it to top
management (Gyrd-Jones, and Kornum, 2013).
Secondary source of Brand Equity
Secondary source do not aim to gather information from scratch buy relies on already
available information from multiple sources. Secondary source based on data or information
that collects by other people and is available for either free or paid use for other.
Special events: to build the brand image among the people the company organise various
events at their stores and at other places. These types of events allow company to meet its
target customers directly. The company organise free food and drinks distribution campus for

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poor people this will fulfil the corporate social responsibility of company plus also help in
maintain its brand image in the company (Barreda, et .al. 2015).
Outdoor billboards: Outdoor Billboard is a very important and powerful tool which company
use to spread brand awareness among the population. Whenever the company introduce any
new product, any new brand, or any new offers for the public they take help of billboards.
The billboard is really help full in targeting mass customers as all people who walk or drive
by the road or train will able to see the message issue by the company on the billboards.
Use of Media: To make the people aware about the new products, services and offers beside,
outdoor billboards the company also take help of media to spread awareness. The media like
newspaper and television has a mass reach and maximum numbers of customers watch
television and read newspaper. When the company place their advertisement in newspaper
and on television, its brand image will automatically increase, as people believe that whose
advertisement comes on television is best brand (Rao, 2018).
Digital promotion: In recent marketing conditions, the digital marketing or digital promotion
consider the best way to entertain the people by introducing new and various offers and
services. The Woolworths has its online shopping website and mobile app, which enable
people in shopping products online, and company having various accounts on various social
media channels like Facebook, Twitter, Instagram, and many more. To promote product, and
to build brand image among the customers the company uses the digital methods
(Walkerstands, 2018).
Report Cards
1. Excels at delivering the benefits customers truly desire: The main reason the customer
trust Woolworths is they know what their customers want from them. The wants or

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desire not just includes products, it also includes services at store, the attitude of staff
members, and new discounts are schemes introduce by Woolworths for its customers.
The Woolworths provide its main emphasis on identifying the needs and desires of
their customers. After identifying the desires, the company immediately take action to
fulfil the desire of the customers at any cost because they know the value of satisfied
customers. If they keep their customers happy and satisfied then only the brand value
will increase in the market.
2. Stay Relevant: It is very important for every brand to stay connected with their loyal
customers. Woolworths use various options to stay connected with its customers. At
the time of billing customers provide there phone number and through e-commerce
site they get customers phone number plus their mail ids. By using the numbers and
mail ids, the company can connect with their customers. When every any offers or
schemes launch by the company for their customers, they can let their customers
know about that by sending text messages and e-mails. This is going to build the
brand image of the company in the eyes of customers and the loyalty of customers
always remains with them (Baumgarth, Kaluza, and Lohrisch, 2016).
3. The pricing strategy of company should base on customer’s perceptions of value: The
right blend of product quality, features, cost, design, and process is very difficult for
the company but it is well worth the efforts. It is important for company to follow the
perception of customers while deciding the value and cost of products at its store.
Woolworths consider this point and always trying to keep their prices low in
comparison to any other retail store in Australia. The pricing strategy plays very
important role in creating value or brand value of any company and in case of
Woolworths it is playing important role.

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4. Properly Positioned: to create brand value the Woolworths has taken many initiatives,
they has design their strategy with the help of which they can position their brand
name in retail industry very strongly, which provide them a strong and stiff position in
front of their competitors. To fight competition it important that the company should
position their product or service so strongly, that could not affected by the rivals. The
competitors always want to find a loophole in the system so that can affect the
company’s market and can shift their customers toward them. Brand positioning is
very important and the name Woolworths itself is a Brand name (Hur, Kim, and Woo,
2014).
5. Should be Consistent: To maintain the brand the Woolworth Group provide their
focus on factors which are really help full in providing right balance between
continuous market activities and changes demanded by the customers. The company
has many tie-ups with various companies who are help the group in maintaining
continuous market activities. It is very important for every business that it will
maintain their store full of products, which demanded by the consumers. When
consumer went to store to buy some products and those products are not available in
the store they will not going to return back to buy products in future and this is how
the brand name is been destroyed (Mitchelson, 2018).
6. Portfolio and hierarchy make sense: Woolworths start with single brand and after the
first brand established in the market then the company has, introduce various brands
by the name of company. The various brands of Woolworths are Delicious Nutritious,
Farmer’s Own Milk, Free Form Gluten, Gold, Essentials, Woolworths Range of Food,
The Odd Bunch, Little ones, Voeu, Apollo, Baxters, Your Majesty, Smitten, and Fery
(Woolworths, 2018b). Beside these brands of Woolworths Group, the company keep
brands of other companies also at their stores. This is the fact, if one product or brand

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of one company was get famous or established that company will definitely going to
introduce other brands in the market.
7. Use of coordinates a full repertoire: Robust brand mix and counterpart these features
to achieve a number of brand related tasks, such as reinforcing or enhancing customer
awareness of the brand or its helping and image to protect the brand both legally and
competitively. The Woolworths Groups has developed a trademark like logos,
symbols, slogans, packaging, and signage for its various products. However, the
various trademarks not much known among public (Winit, et. al. 2014). The people
know the store and its name but they not much known the logo design or slogan of the
company. The copyright of trademark is lies with company as company patents Logo.
8. Managers recognise what brand means to customers: The Top level management of
Woolworths understand the value of brand image and all the different observations,
behaviour, beliefs, attitudes, and customers assistant with their brands, whether create
deliberately by the company. The management of Woolworths is able to make
decisions regarding the brand with assurance (Buil, Chernatony, and Martinez, 2013).
They make a plan accordingly, that what customers like and do not like about a brand,
and what core associations are linked to the brand. The company give priority to the
customer’s wants and change they demand from the company to build the brand
image.
9. Brand Support Company in constant over the long run: The Woolworths understand
the value of brand equity. The company basis for brand equity requires that
consumers have the proper depth and breadth of awareness and strong, favourable,
and unique association with the brand in their memory. To enhance the brand value of
the company the management has designed various activities with the help of which
the company will gain the brand image in the industry and the customers are going to

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appreciate the brand value of the products and the brand value will automatically will
increased.
10. The Company evaluate source of Brand equity: To evaluate the brand image of the
company the Woolworth conducts a brand audit for the various brands introduce by
the company. The brand audit consists of detailed internal description of exactly how
the brand been marketed and a thorough external investigation, through focus group
and other consumer research, of exactly what the brand does and could means to
consumers (Lovett, Peres and Shachar, 2013). Brand audit are mainly useful when
they arranged on a periodic basis.
Woolworth Report card
S.No Title Weightage
(Out of
100%)
1 Brand Value 86%
2 Market Value 80%
3 Value in comparison to competitors (Coles and Wesfarmers) 74%
4 Excels at delivering the benefits customers truly desire 74.33%
5 Relevant 72.67%
6 The pricing strategy of company should base on customer’s
perceptions of value
85.33%
7 Properly Positioned 87.67%
8 Consistent 75%

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9 Portfolio and hierarchy make sense 80.67%
10 Use of coordinates a full repertoire 66.33%
11 Managers recognise what brand means to customers 76%
12 Brand Support Company in constant over the long run 76%
13 The Company evaluate source of Brand equity 69%
The weightage providing in table based on the brand value of the company, various services
provide by the company to its customers to develop long-term relation, on the bases of
market share of the company in retail sector. Position of company in comparison of its
competitors, on the bases of its promotion and pricing strategies, companies consistency and
relevancy, companies long term affairs and control of company’s management over
companies activities and functions (Heberden, 2012; Mitchell, 2017; Forbes, 2018;
Micheslson, 2018; Mitchell, 2015).
Recommendations
The company is having good brand image in the market, it consider being the top most brand
in Australian market. However, there is always a gap to fill and For Woolworths there is a
chance to improve it brand value little more (Malik, 2013). Woolworths is well-known brand
but from past few years, the reputation is not constant because of its competitors. To build
strong brand value the company can first need to identify its key Audience, which consist of
external and internal groups includes customers, partners, industry analysts, and employees.
Then in next step the company needs a critically determine the business goals because
building a brand image without knowing its long-term and short-term business goals is
ineffective and a waste of valuable resources. One the company will come up with the target
audience and business goal then the company will start its brand persona. After identifying
the brand persona the company will identify the key messaging, message will involve the

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unique aspects of the business and will be that much strong which will bring a value to the
company (Wirtz, et. al. 2013).
Conclusion
Woolworths is Australia’s leading supermarket retail chain, has great assets, people, and
capabilities, and have 500,000 online consumers and 14.6 million regular consumers who
believe in their products and services and show their trust toward brand by visiting stores
more frequently than ever before. The company has planned various strategies to build its
brand image and to maintain its current brand image. The company offers various services
and offers, which provide benefits to customers and build brand value of company.

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Research, 66(9), pp. 1484-1493.

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