Shopping For Better Business

it may have taken a while but one of Australia's largest companies has realised that it cannot continue to do the same old thing and till continue to do good business.

Supermarket stalwart, Coles, has finally admitted that European import Aldis and the impending arrival of America's Costco is affecting the bottom line with news today that market competition is a good thing.

Considering Coles and Woolworths controls 80% of the nation's pantries, the belated revelation that competition improves quality (as well as drives down prices) actually comes across as amusing:

Gosh, gee says Coles marketing manager Joe Blundell:

It's staggering that supermarket retailing in a country like Australia that is so into food should be so backwards -- it's not right," Mr Blundell said.

"If you get different players all competing with each other it definitely raises the game."

The answer:

"Our marketing philosophy is quite simple, which is about listening to customers and making improvements that really matter and moving the bar," Mr Blundell said.

"So when we do something like the value meals campaign it's because customers have said we enjoy cooking at home but some of us have quite tight budgets and so can you help us out."

The value meals campaign, in which Coles ads feature low-budget meal ideas and recipes, was recently named by newspaper industry body The Newspaper Works as one of the most effective print advertising campaigns in the country.

Kudos to Coles, but it is an ample demonstration how large companies take longer than small companies to adapting to changing markets.

Also, as a part of Coles' self-examination, the You'll Love Coles home brands will have the names phased out. According to reports You'll Love Coles was seen as extortion not exhortation.

Still the silly pseudo-testimonials did hit the right note with entire discussion strings devoted to chronicling them.