Retail

Business Challenge:

As supercenters and other competitors entered its territory, a once thriving grocery chain fell into decline and customers defected, greatly weakening sales and market share. In 2005, Winn-Dixie filed Chapter 11 bankruptcy protection to give the company’s new CEO a chance to implement improvements and restore profitability.

The Silver Bullet Strategic Process:

Research indicated that customers had a poor perception of the Winn-Dixie brand and shopping experience. However, there remained some positive sentiment for the company that had been a part of southern life for so many years. Our strategic idea was to revitalize those emotional connections by publicly apologizing for the weaknesses of the business and making a genuine commitment to improve the Winn-Dixie experience for all customers.

The Creative Ideas:

The campaign kicked off with a promise of constant and passionate improvement, summed up by the positioning statement, “Getting Better All the Time.” Television spots invited customers to return to the stores and see something new and different happening at Winn-Dixie. A second round of commercials reinforced this message with customer testimonials about the improvements. As the turnaround strategy unfolded, Winn-Dixie associates were featured, thanking customers for giving the store a second chance. The radical notion of engaging consumers in an honest conversation through advertising served to reestablish the bond between Winn-Dixie and its customers at a time when most brands don’t get a second chance.

Today, the Winn-Dixie brand is thriving once again, and as stores are renovated, brand messaging is shifting from apologetic to inspiring. In the New Orleans region, the “Local Flavor” campaign promises that Winn-Dixie will always provide the freshest, most culturally relevant produce, meat and fish, from local suppliers whenever possible. The “Fresh Checked Everyday” campaign, introduced after major store renovations in the Jacksonville region, reinforcing Winn-Dixie’s commitment to high quality products and service. Supporting creative emphasizes the idea of Winn-Dixie as “your neighborhood store,” a resource that is not just in the community, but of the community.

Business Solution:

Shortly after beginning to work with On Ideas, Winn-Dixie emerged from bankruptcy and surged into a new growth mode. Same store sales are positive, customer count is consistently growing and remodeled stores are showing, on average, a 30% increase in sales. And as the successful partnership of Winn-Dixie and On Ideas reaches the five-year mark, Winn-Dixie’s stock price continues to be stable, even in this volatile economy.