Rob Hadler Coles - DocumentCloud
Coles -‐ the Consumer Champion! A Reputa4on Management Case Study Robert Hadler 26 June 2013
Key messages • Coles is building customer trust by reducing prices • The silent majority is demanding lower prices • But the vocal minority don t like it & campaign against it • Customers and team members are confused • We use every PR tac4c possible to neutralise the noise • Elec4on year polarised views and increased risk • A game changer was required to focus on lower prices
30 years of food infla2on 200 180 160 140 120 100 80 60 40
Food
20 0 1972
1982
1992
CPI
2002
Rising cost of living
Consumers saving – not spending 75%
10% 8%
70%
6%
65%
4% 60%
2%
55% 50% 1995
0% -‐2% 1997
1999
2001
2003
Household Consump4on (LHS) Source: Australian Bureau of Statistics, May 2013
2005
2007
2009
2011
Household Savings (RHS)
8 out of 10 customers want lower prices
*Regional (non-capital city with population of 10,000 or more)
Sig higher (than lowest score in group)
Q1. General a@tudes Following are some statements that people have made about household shopping. For each, please indicate if you agree or disagree and whether that is strongly or somewhat. Firstly…
Our virtuous circle…
Down Down milk created a lot of noise
Rural & regional noise was loudest
There was the inevitable farmer protest…
A lot of angry farmer mee2ngs
Grandstanding agri-‐poli2cians…
We held our ground and worked pa2ently through the issues cycle
Shock
Down Down Milk 26 Jan 2011
Anger
Senate Inquiry 11 Feb 2011
Retribution .
Coles at Senate Hearings 29 March 2011
ACCC Clears Coles 22 July 2011
Response
Senate report says no harm 3 Nov 2011
Government no action needed 6 Feb 2012
Recovery?
We implemented a targeted stakeholder strategy to neutralise the noise Debunk the myths Coles Fact Sheet Active detractors
Passive detractors
Explain the Coles Story Media Release Uncommitted
Passive supporters
Manage
Active supporters
Partner Monitor
Push
Educate
Lobby
Engage
Collaborate
But the agri-‐poli2cal fallout con2nued aNer the Down Down milk anniversary
And the fallout intensified aNer we extended Down Down on the 2nd anniversary
The dairy industry started using social media
Farmer Power emerged as a poli2cal force
Bob KaTer jumped on the bandwagon
We started a social media campaign for customers & team members
We started a new adver2sing campaign
We issued grower success story booklets
We issued Fact Sheets to debunk the myths
The game changer A new milk deal with a farmer coopera2ve
An immediate shiN to posi2ve coverage
We created clear air for our price story
Trust – has improved every year… 2013 Edelman s Trust Index
Trust – beTer than our compe2tors 2013 Edelman s Trust Index
Key lessons • • • • • • •
The customer comes first – always!! Be prepared for fallout with other stakeholders Guard against a poli4cal and regulatory response Constantly strive to debunk the myths Be prepared to change the game to win the day You can s4ll build stakeholder trust in difficult 4mes The journey con4nues…..
Ques4ons?
Key messages • Coles is building customer trust by reducing prices • The silent majority is demanding lower prices • But the vocal minority don t like it & campaign against it • Customers and team members are confused • We use every PR tac4c possible to neutralise the noise • Elec4on year polarised views and increased risk • A game changer was required to focus on lower prices
30 years of food infla2on 200 180 160 140 120 100 80 60 40
Food
20 0 1972
1982
1992
CPI
2002
Rising cost of living
Consumers saving – not spending 75%
10% 8%
70%
6%
65%
4% 60%
2%
55% 50% 1995
0% -‐2% 1997
1999
2001
2003
Household Consump4on (LHS) Source: Australian Bureau of Statistics, May 2013
2005
2007
2009
2011
Household Savings (RHS)
8 out of 10 customers want lower prices
*Regional (non-capital city with population of 10,000 or more)
Sig higher (than lowest score in group)
Q1. General a@tudes Following are some statements that people have made about household shopping. For each, please indicate if you agree or disagree and whether that is strongly or somewhat. Firstly…
Our virtuous circle…
Down Down milk created a lot of noise
Rural & regional noise was loudest
There was the inevitable farmer protest…
A lot of angry farmer mee2ngs
Grandstanding agri-‐poli2cians…
We held our ground and worked pa2ently through the issues cycle
Shock
Down Down Milk 26 Jan 2011
Anger
Senate Inquiry 11 Feb 2011
Retribution .
Coles at Senate Hearings 29 March 2011
ACCC Clears Coles 22 July 2011
Response
Senate report says no harm 3 Nov 2011
Government no action needed 6 Feb 2012
Recovery?
We implemented a targeted stakeholder strategy to neutralise the noise Debunk the myths Coles Fact Sheet Active detractors
Passive detractors
Explain the Coles Story Media Release Uncommitted
Passive supporters
Manage
Active supporters
Partner Monitor
Push
Educate
Lobby
Engage
Collaborate
But the agri-‐poli2cal fallout con2nued aNer the Down Down milk anniversary
And the fallout intensified aNer we extended Down Down on the 2nd anniversary
The dairy industry started using social media
Farmer Power emerged as a poli2cal force
Bob KaTer jumped on the bandwagon
We started a social media campaign for customers & team members
We started a new adver2sing campaign
We issued grower success story booklets
We issued Fact Sheets to debunk the myths
The game changer A new milk deal with a farmer coopera2ve
An immediate shiN to posi2ve coverage
We created clear air for our price story
Trust – has improved every year… 2013 Edelman s Trust Index
Trust – beTer than our compe2tors 2013 Edelman s Trust Index
Key lessons • • • • • • •
The customer comes first – always!! Be prepared for fallout with other stakeholders Guard against a poli4cal and regulatory response Constantly strive to debunk the myths Be prepared to change the game to win the day You can s4ll build stakeholder trust in difficult 4mes The journey con4nues…..
Ques4ons?
