The supermarket-telco connection
The correlation in the recent Roy Morgan research reflects how the supermarkets and telcos are positioned on quality and price in their respective markets.
Of people who mainly shop at Woolworth, 47 per cent are Telstra mobile phone customers, compared with 39 per cent of Coles’ main shoppers. Of Coles’ main shoppers, 22 per cent are Optus mobile phone customers, compared with 19 per cent of Woolworths’ main shoppers.
Roy Morgan Research says market positioning may hold the key to explaining this, with Woolworths more commonly associated with quality and Coles with price—just as Telstra and Optus are. The two supermarket giants have distinguished themselves as the ‘fresh food people’ and the home of ‘down-down’ prices, respectively.
As the chart below shows, Woolworths is more commonly associated with quality and Coles with price – just as Telstra and Optus are.
Michele Levine, CEO of Roy Morgan Research, said: “Recent news suggests Woolworths may be planning a greater push into telecommunications. Each supermarket is already offering mobile phone plans as a Mobile Virtual Network Operator (MVNO)—and the network owner it has signed on with is the best fit. Woolworths’ mobile services use the Telstra network, while Coles’ agreement is with Optus.
“As we’ve previously reported, mobile owners signed up with an MVNO tend to be seeking cheaper rates—but ALDIMobile customers are more likely to cite network coverage as a reason they picked the provider, reflecting the high score for its network operator, Telstra,” Levine said.