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Woolworths online strategy comes together

Just three months after it bought Inthebag, Woolworths has merged its offerings with that of its acquisition.
By Basheera Khan, UK correspondent, ITWeb
Johannesburg, 01 Oct 2001

Just three months after it bought Inthebag from the Wooltru group, Woolworths has merged its Web site (www.woolworths.co.za) with Inthebag (www.inthebag.co.za).

It means that the new site will offer an amalgamation of grocery shopping options, broader product catalogues and Woolworths` value-added information on baby care, nutrition and wine.

I have a feeling that Home Shopping will definitely give Inthebag a run for its money.

Basheera Khan, Journalist, ITWeb

This, of course, is only the beginning. Under the leadership of Audrey Briel, Inthebag has a number of additional services in the offing, including cellular services, and additional functionality relating to the Woolworths unit trusts, Visa credit and store card statements, and account management online.

The company has reduced its delivery fee, expanded its delivery times to include Sundays, and plans to extend the Inthebag reach to include Pretoria and Durban.

Facing the competition

All this speaks volumes of the perceived threat presented by Inthebag`s closest competitor, Pick 'n Pay`s Home Shopping (www.picknpay.co.za). After all, that grocery chain`s plans have been open for scrutiny since the beta version of the site went into its testing phase earlier this year.

It has a broader range of branded products for sale, a slightly larger consumer base in my opinion, and a more accessible brand than does Inthebag. And with the very spanky Web shopping interface, I have a feeling that Home Shopping will definitely give Inthebag a run for its money.

To be honest, I`m not entirely sure why Woolworths hasn`t consolidated the Inthebag brand along with the rest of the changes it is ringing in. It could have something to do with the embarrassment of having to write off the substantial cost of the brand campaigns that have been running for the better part of a year.

That said, there`s no denying that it`s a tough call to make. Branding a spin-off initiative independently of the parent company`s brand is a tricky manoeuvre. It took all of two weeks from launch before 20twenty`s campaign was amended to inform the public that it was a division of Saambou . This makes sense; after all, people are still wary of the unfamiliar, and that will almost certainly never change.

In my opinion, bringing the Inthebag and Woolworths offerings together is a smart move - but the confusion that may arise in marketing two separate brand identities is something to be cautious of. I wouldn`t be surprised to see a brand unification exercise coming down the line. It makes the most sense, and in the long run, it will definitely stave off the chances of brand dilution in the e-tail consumer market.

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