Woolworths uses brand leverage into the Insurance Industry
Australian major supermarket group Woolworths is expanding its insurance range of products for marketing to its customers.
Woolworths is expanding into the Car and Travel Insurance market backed by the Hollard Group, a leading international insurance provider and Swiss Re, one of the world’s largest re/insurers. The Woolworths Insurance division was formed in August 2011 by initially offering Pet and Life Insurance products and is soon to launch into Homes and Content cover.
The latest move will facilitate a wide range of Car Insurance products. These will include Comprehensive, Third Party Property Damage and Make Your Own Insurance, which allows customers to tailor their car insurance to their needs and budget.
Woolworths supermarket Everyday Rewards members who take out the new Car Insurance cover will be able to ‘turbo-charge’ their fuel discounts by a further four cents a litre on fuel for 12 months. Customers who purchase online can also receive other discounts.
Richard Enthoven, Managing Director of Hollard in Australia said “We are extremely proud to be Woolworths’ Insurance partner. Based on our extensive international experience distributing insurance in partnership with large retailers, we are confident that the Woolworths Insurance Car and Travel products will provide an attractive value for money option in the Australian insurance market.”
Woolworths’ entry and development into insurance not only builds on its strong brand reputation, but also its distribution network and its customer-base across its supermarket, liquor and hardware divisions.
As previously reported by Australian Food News, Woolworths was ranked as Australia’s “most valuable brand” by brand valuation consultancy, BrandFinance.
The expansion of Woolworths poses a further challenge to its retailer competitors because of the offered discounts that provide more incentives to strengthen the Woolworths customer bond with Woolworths.
It is also an illustration of the strength of a brand being used to develop new profitable lines of business without the need to acquire a new business.