Analysis of Communication Strategies at Woolworths Australia: Report

This report examines the communication strategies employed by Woolworths Australia, a major retail company. It analyzes the effectiveness of both online and in-store communication methods, comparing their impact on customer satisfaction and business outcomes. The study highlights the advantages of in-store interactions, emphasizing the ability of customers to physically examine products and receive immediate assistance from staff. Conversely, it critiques the limitations of online communication, such as delayed responses and the lack of non-verbal cues, which can lead to misunderstandings and decreased trust. The report concludes that while in-store communication fosters stronger customer relationships and reduces dissatisfaction, Woolworths must prioritize effective online communication to maintain its reputation and meet the needs of all shoppers. The report emphasizes the importance of clear and prompt communication, particularly in addressing issues related to online orders.

Effective communication
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Table of Contents
Introduction and report overview.....................................................................................................3
Discussion and analysis of findings.................................................................................................3
Report Analysis...................................................................................................................................... 4
References................................................................................................................................................ 6
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Figure 1 online and offline communication..................................................................................4
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Introduction and report overview
The term communication can be defined as the art of sending or receiving
messages that takes place in between two people. Adhering with a good form
communication is very important for a business so that it runs successfully and is able
to satisfy the needs and wants of consumers (Khanna and Sampat, 2015). In this
context the present study has focused on the concept of communication that takes
place in online or offline stores and find out how it can enhance or damage the
business. Focus has been given on Woolworths Australia which is an Australia based
retail company that offers groceries, health and beauty care products; household item
as well as stationery. The firm has a presence of more than 100 outlets all over the
nation which are inclusive of supermarkets as well as convenience stores
(Woolworths, 2018). The retail firm is doing fairly well in Australia and is far ahead
to major supermarkets being Cole and Aldi. This has been possible as the company is
offering more choices than before which is the best in terms of value as well as
quality (Why Woolworths is beating Coles and Aldi in Australia’s ongoing
supermarket war, 2018). This makes the shoppers opt for Woolworths than any other
retail supermarket store.
Discussion and analysis of findings
Figure 1 online and offline communication
(Source: White, 2018)
The company engages in both online and store communication with the
consumers so as to sell its product and services. But it has been found that
communication that takes place in store with the employees is a good one as
consumers can get a clear idea about the details of the products because they are able
to physically see them and get certain in all possible areas before buying. They further
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get an insight about the ongoing offers followed by getting a chance to express their
concern about issue faced by them if any. There is also a presence of friendly staff
that makes the comparison easier for them and vibrant atmosphere makes the
shopping experience a good one (Lian and Yen, 2014). Hence communication is also
improved as there is face to face client interaction with the employees that also aids in
building of good relations which can then be used to generate business for the grocery
store. Then there is also a presence of online stores where shopping takes place
through electronic commerce, mobile application of Woolworths, making payment
online among others. In this case there is a presence of very poor communication as
any enquiry can be made through phone call or email only and waiting for reply on
mails usually takes 3 or 4 days. It thus gets difficult for both the employees as well as
consumers to develop a feeling of trust towards each other (Zhou and Wang, 2014).
For example, in case the grocery item that has been bought online is not of good
quality in terms of nearer expiry date then the employee can be contacted through
mail or phone call that may not be in a situation to solve the problem immediately. He
may ask to return the product whose exchange is likely to take some time (Mittal,
2017). But if communication took place in physical store itself then the consumer will
definitely not buy the expired item on first case. Even if he buys it then he will have
an option to make change on an immediate basis by going back to the physical store.
Online communication further lacks facial expressions as well as gestures which can
increase the chance of misunderstanding between shopper and employee. This is as
the consumer may be highly dissatisfied with a particular product but on phone or
mail it may not look like a very difficult situation. However if communication takes
place in physical store then the magnitude of dissatisfaction can be judged by the
employee and steps can be taken by him accordingly. On the contrary, it has been
researched by Román and Riquelme (2014) that it is also true that written mails
provide for a better chance to explain the problem in detail as compared to verbal
communication. Moreover, communicating in physical store puts a time constraint on
the employees which does not gives chance for detailed explanation of either the
problem or its response (Zhu, Chang and Luo, 2016). Still, on-store communication is
a good one as it can decrease the chances of consumer dissatisfaction and the prompt
action of employee may further win long run loyalty from the end of shopper. But
online shopping can increase the chances of tarnishing the reputation of retail business
if communication does not take place properly (Eisingerich and et.al., 2015).
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Report Analysis
From the above report it can be analysed that shopping in Woolworths generally
involves for two forms of communication being the one that takes place in physical
store and the other that takes place online, through email or phone. Amongst both the
communication formats it has been found that in store communication is an excellent
one as there is a face to face interaction with the employees that makes it easier for
them to solve the issues faced by consumers. Moreover physical stores further reduces
the chances of complaints as the shopper gets a chance to feel, check and compare the
product before making a final buy (White, 2018). Communication through other
forms is however not that satisfactory as it may increase the chance of
misunderstanding due to absence of physical gestures thereby leading to an absence of
developing trust relations. The key in this respect is that Woolsworth should
understand the fact that the online shoppers are as important as the one who shop
from stores. This concept should be made clear in the mind of employees as well and
proper communication should be kept with shopper so as to develop
misunderstanding or increase the chances of issues with them. This should be taken
care especially when the scenario is with respect to late, wrong or low quality delivery
of the parcel (Zhu, Chang and Luo, 2016).
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References
Books and Journals
Eisingerich, A. B., Chun, H. H., Liu, Y., Jia, H. M., & Bell, S. J. (2015). Why
recommend a brand face-to-face but not on Facebook? How word-of-mouth
on online social sites differs from traditional word-of-mouth. Journal of
Consumer Psychology, 25(1), 120-128.
Khanna, P., & Sampat, B. (2015). Factors influencing online shopping during Diwali
festival 2014: Case study of Flipkart and Amazon. in. Journal of International
Technology and Information Management, 24(2), 5.
Lian, J. W., & Yen, D. C. (2014). Online shopping drivers and barriers for older
adults: Age and gender differences. Computers in Human Behavior, 37, 133-
143.
Zhou, Y., & Wang, X. C. (2014). Explore the relationship between online shopping
and shopping trips: an analysis with the 2009 NHTS data. Transportation
Research Part A: Policy and Practice, 70, 1-9.
Zhu, D. H., Chang, Y. P., & Luo, J. J. (2016). Understanding the influence of C2C
communication on purchase decision in online communities from a
perspective of information adoption model. Telematics and Informatics, 33(1),
8-16.
Román, S., & Riquelme, I. P. (2014). PERSONAL DETERMINANTS OF ONLINE
SHOPPING FRUSTRATION AND ITS INFLUENCE ON
CONSUMERS'POSITIVE WORD OF MOUTH. Journal of Electronic
Commerce Research, 15(2), 87.
Online
Mittal, T. (2017). Common problems faced by customers while shopping online.
[Online]. Available through: <https://yourstory.com/2017/04/common-
problems-online-shopping/ > [Accessed on 9th February 2018].
White, M. G. (2018). Advantages and Disadvantages of Online Shopping. [Online].
Available through:
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<http://online.lovetoknow.com/online-shopping/advantages-disadvantages-
online-shopping > [Accessed on 9th February 2018].
Why Woolworths is beating Coles and Aldi in Australia’s ongoing supermarket war.
(2018). [Online]. Available through:
<http://www.news.com.au/finance/business/retail/why-woolworths-is-beating-
coles-and-aldi-in-australias-ongoing-supermarket-war/news-story/
7c0e1ea754035499f71e6364b465345e > [Accessed on 9th February
2018].
Woolworths. (2018). [Online]. Available through: <http://www.woolworths.co.za/ >
[Accessed on 9th February 2018].
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