Milking the Market: What's Behind the Coles-Woolworths Price War?

For supermarkets Coles and Woolworths, milk became the first weapon of choice in their rampant discounting war because consumers are emotionally attached to it. The battle for the hearts and dollars of Australian consumers has distressed the dairy industry, threatened small shopkeepers and prompted a Senate inquiry. It also has revealed the major supermarkets' brand power and, consumer advocates warn, their competitive bravado may have a serious kickback in shoppers' hip pockets. While all eyes are on the two protagonists' next moves, Australian School of Business marketing professor Paul Patterson suggests they are looking out for fresh competitors.