The document discusses the rebranding efforts of Waitrose, a major UK supermarket chain, highlighting its challenges during the 2008 recession and competition from discount retailers. The strategy aimed to establish a coherent identity with the new 'essential' label, emphasizing quality while appealing to cost-conscious consumers, which resulted in improved brand perception and market share. The campaign's success is reflected in increased profits, customer retention, and long-term sales growth despite market challenges.

1. Ais Konstantina | Kouroglou Elena | Papadimitriou Kostas | Sianna Nelly | Tsilivigkou Christina
Consumer Behaviour, Professor Dr Kokkinaki
The “Essential”
rebranding

2. Waitrose
identity
British chain of supermarkets
HQ in Bracknell, Berkshire, UK
Part of the John Lewis Partnership
Exporting to 58 countries worldwide

3. No6
Largest grocery retailer in the UK
353 | 30
Supermarket branches & “Little Waitrose”
Convenience stores

4. Famous customers
Queen Elizabeth
Prince Charles
& The British Royal Family

5. Competition
Black
BlackBlack
Black

6. History
1904
“Waite, Rose & Taylor” by Wallace
Waite, Arthur Rose and David Taylor
First store in Streatham 1955
1908“Waitrose” was formed
1983 Introduction of organic food
2007
2000
Leader in
Customer Satisfaction
& Service
Market leader
1937
The John Lewis Partnership
buys Waitrose
Recession2008

7. The Challenges of
the recession
❏ Sales growth slowed
❏ Reductions in income
❏ Shoppers in need of control over spend
❏ Waitrose is perceived as an expensive
main shop
❏ Consumers buy less from Waitrose
❏ Customers turn to cheaper options

8. The Answer from
the Competition
Tesco | Britain’s favourite discounter
Asda | Why pay more?”
Morrisons | Price Crunch
Sainsbury’s | Switch and Save
M&S | Dine in for £10

9. Main Problems
❏ Lack of unified own label
range to act as a safe net
❏ No differentiation
❏ Confused customers
❏ Couldn’t build loyalty through
private label products

10. “
Waitrose tried to pursue a more
fundamental goal, instead of
emphasizing on an advertising
campaign against competitors
re Branding

11. Reassure Quality
The new label is “not
just a cheap product”
reBranding The Risks
Retain Loyalty
Attract new customers
without losing old ones
Establish leadership
❏ Maintain market
leader perception
❏ not just another
“me-too”

12. 1200existing
200new
Fresh new coherent
identity
Continuous quality to
new label
Packaging: white, elegant
and simple
products

13. The “Essential”
identity
❏ Showcasing value for
money
❏ Lighter shoppers would
consider this new label
as of a vitally necessary
one .
❏ Avoiding words
implying “low quality”,
ie“value”, “basics”

14. The New Slogan

15. Communication
Channels
Dominated outdoor advertising
TV ads
Press Metro, London Lite, The
Independent
Online advertising
Direct mail

16. Communication
USE BIG IMAGE.

17. Halo effect+65%boost
Improved brand
perception as whole
Changed
consumer shopping
behavior
for all products, inc.
mature brands

18. +12.2%
Across the UK
+13.5%
product range
Market Share
boost
sales value
Retention
of loyal customers

19. 353stores
Across the UK
£6.3
Revenue in 2017
£4.3
Revenue in 2009

20. Long-term
effects
Increased profits,
through low cost
strategy
own label products have a
bigger profit margin by 10%
Opportunities to
enter new markets
The new product range opened
doors to new sectors
More motivated
employees
through lucrative bonuses
Negotiation
leverage
Due to strong own labels

21. Communication
effect
80% “essential”
brand awareness
Improved overall
perception

22. Return on
Marketing
Investment
+32.5%revenue
of £372m perception thanks to
“Waitrose Essential”
❏ Increase to the own
label
❏ Halo effect
❏ Longer & broader
effect of the
advertising campaign

23. Return on
Marketing
Investment
ROMI of 16,84£ to 1£
❏ Customer retention and
attraction
❏ Long term sales effect of
“Essentials” (372m£)
❏ The profit margin (32%)
❏ Low cost of the rebranding
(5,4m£)

24. Price reduction
Across the UK
Store expansion
38% of the total growth
Expanded product range
+200 lines boost
Had no effect
Competition
was not a problem
Other Factors

25. Consumer attitude
Across the UK
-14% media costs
however, the campaign
was successful
improvement
Store environment
impoved
Other Factors

26. Waitrose Offering
| Private labels
Essential
Waitrose
Waitrose Duchy
Organic
Waitrose 1
- Premium
Waitrose Lovelife
-the healthy choice
Heston Waitrose
by chef Heston Blumenthal

27. Waitrose Offering
| Other Initiatives
myWaitrose
loyalty card
Price-matching
with Tesco
Waitrose Food

28. Lesson 1
It is possible for a company to grow even in
the toughest of times without any
compromises
“They have managed to prove that even in
a recession, the search for value doesn’t
necessarily mean buying the cheapest”

29. Lesson 2
A high risk move of repositioning and
rebranding eventually paid off better than any
conventional ad campaign

30. Ethics- Fairtrade
premium positioning
Market Leader
Emphasis on quality
5* Customer Service
Employees as partners

31. Thanks
for your
time!