wawa case study

C A S E S T U D Y

THE WOWIN WAWA

THE WOWIN WAWA

THE WOWIN WAWA

A NACS academic case study of

Wawa Inc. provides lessons in

building a strong service brand.

By Neeli Bendapudi, Ph.D.

Wawa people — more than15,000 of them — are themost important componentto its strong service brand.

wawa.sup-2.qx 9/28/04 4:27 PM

To the buyer, the brand representsmuch more:l It is a promise of the level ofquality that will be delivered.l It is a risk-reduction mechanism,assuring the customer of the consis-tency with which the promisedquality will be delivered.l It confers a variety of intangiblebenefits. It can, for example, help aconsumer make a statement aboutherself (I drink only Evian water.), orindicate membership in a social group(He wears a Harley jacket.).

It is no wonder, then, that brandssurround us in all we do: the clothesand shoes we wear, the coffee wedrink, the food we consume or thecredit card we use.

WWW.NACSONLINE.COM2 NACS MAGAZINE SUPPLEMENT

C A S E S T U D Y

“What’s in a name?”Shakespeare mused.A great deal, if youobserve the power that brand names have over consumer attitudes,

beliefs and behaviors. The American Marketing Association defines a

brand as “a name, term, sign, symbol or combination of them that is

designed to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors.” This technical

definition examines the brand from the seller’s point of view.

The benefits of owning a strongbrand are many. Customers who arebrand loyal are more likely to patron-ize the business, pay a premium forthe product, be more open to brandextensions and be more resistant tocompetitors’ overtures.

The Store Customers Can’t Live WithoutIn the convenience store industry, Wawais an example of a chain that hassucceeded in earning that place of trust.The Delaware County Daily Times,which serves the area near the com-pany’s Wawa, Pennsylvania, corporatehometown, put that sentiment intowords in December 2003, proclaimingthat “Wawa is more than a corporation.From coffee, to commuters, to a place tomeet, it’s a way of life for many.”

The key to Wawa’s success is anobsession with satisfying the customer.Wawa associates are zealous about“simplifying their customers’ daily lives.”By delivering on this promise consistently,Wawa’s brand aspiration is to be “thebrand customers can’t live without.”

To study how Wawa is perceived by itsinternal customers (employees) and its

wawa.sup-2.qx 9/28/04 4:27 PM

external customers, NACS conducted anin-depth study of the Wawa operationthat involved observation and interviewswith top management, store associatesand customers. Stores in four of the fivestates in which Wawa operates werevisited. Some visits were coordinated byWawa, and store managers were toldabout them in advance. Just as manyvisits were unannounced.

Among the observations studied werethe comings and goings of customers, theupkeep of stores and interactions betweenWawa employees and customers. Wherethe visits were announced, the permissionof store managers was sought to approachand interview customers. Wawa providedstore coupons to thank customers for theirparticipation in the study. This reportsummarizes the key findings.

Service BrandsWhat can other convenience storeoperators learn from Wawa? First, it’simportant to establish a commonunderstanding of branding, particularlyas it relates to service.

Branding is a concern whether yousell goods (e.g. Ivory Soap) or services

(e.g. H&R Block tax preparation).In both instances, you want your brand to convey strong, unique andfavorable associations to the customer.However, in service industries, such asretail, the importance of the brand ismatched only by the complexity ofmanaging it, thanks to at least threeimportant issues.

First, the service brand is not static. Itis affected by every employee whodelivers the service; every employeeinteraction is a moment of truth thatbuilds or destroys a carefully cultivatedbrand image. Consider the effect of asurly employee on a store called“Friendly’s” or the consequence of agrouchy greeting on a storefront thatproclaims “Smiles!” Making sure youremployees understand, internalize andlive the brand is a key component of astrong service brand. A case in pointmay be airlines such as Southwest or JetBlue that use its employees as brandambassadors, reinforcing the marketingmessages about a fun atmosphere andcaring employees.

Second, a service brand is alsoinfluenced by the physical environment

NOVEMBER 2004 3

C A S E S T U D Y

The key to Wawa’ssuccess is an obsessionwith satisfying thecustomer. Wawaassociates are zealousabout “simplifyingtheir customers’ dailylives.” By delivering on this promiseconsistently, Wawa’sbrand aspiration is tobe “the brandcustomers can’t livewithout.”

LEFT Wawa operates more than 500 stores,including about 140 gasoline-selling storesthat boast between 4,700 and 5,600 squarefeet. ABOVE As ambassadors of the Wawabrand, many associates build relationshipswith regular customers.

wawa.sup-2.qx 9/28/04 4:27 PM

WWW.NACSONLINE.COM

C A S E S T U D Y

WhyWawa?Why is NACS presenting a case study on one of its innovative and

successful members? Well, it is quite simple. Providing insight on

leadership and how leaders can strengthen and grow a company is an

important role for NACS as it is a critical ingredient to the future success

and health of the convenience store industry.

The world — and this industry in particular — are continually changing, and it

is more important than ever that industry leaders have vision, strategic planning

skills and a keen focus on delivering profits. NACS has long been investing in

the development and presentation of leadership programs that provide the

platform for success through exceptional, industry-specific and long-term

development solutions for all of the key people in a retail organization.

In this case study of Wawa Inc., readers will gain insight on the

leadership, values and vision that have been instilled by Wawa executives

in each one of the company’s employees and have contributed to the

company’s success. The research

presented in this article and in a

presentation of these findings at the

NACS Show 2004, is part of the

leadership platform that NACS provides

for the industry.

As an overview to this case study, let’s

start where this story began. Wawa Inc.

traces its roots to businesses started by

family members of its current Chairman

and CEO, Richard D. “Dick” Wood Jr., as

early as 1803. In 1902, George Wood

opened a small milk plant in Wawa,

Pennsylvania, specializing in processing

and the home delivery of “doctor-certified”

milk. The Wawa Dairy enjoyed a

reputation for superior fresh products and

customer service. Then, in 1964, Grahame Wood, George Wood’s

grandson, saw an opportunity to create a new distribution structure for the

company’s dairy products, opening the first Wawa Food Markets in Folsom,

Pennsylvania. This store was an immediate success, and it marked the

beginning of the Wawa chain of food markets. From the beginning, Wawa

made a commitment to fresh food — selling fresh produce and featuring a

full-service deli. Over the years, the foodservice offer has expanded to meet

customers’ needs.

Today, the Wawa “family” has grown to include more than 15,000

associates with the number of company-owned convenience stores

exceeding 500, including more than 140 that sell gasoline. The

company is focused in a five-state region: Virginia, Maryland, Delaware,

New Jersey and Pennsylvania. The company is consistently recognized

by Forbes on its list of the top 200 privately held companies.

With annual sales exceeding $2.8 billion, Wawa serves over 150

million cups of coffee and builds more than 50 million hoagies and

sandwiches annually.

This year, Wawa celebrates its 40th anniversary and the end of the

storied career of Dick Wood, who has announced that he will retire.

Wawa as well as NACS and the convenience store industry, which

Wood served as NACS chairman in 1985, accordingly also celebrate

a great leader, a great inspiration and a great man.

Of course, as one leader retires, a new chapter begins at Wawa,

which will be left in goods hands with Howard Stoeckel, now

president and COO of the company, as Dick’s successor. Stoeckel

currently serves on the NACS Board of Directors and chairs NACS

leadership programming.

Wawa traces its origin to businesses started by family members of itscurrent Chairman and CEO, Dick Wood, as early as 1803. The dairy gotits start in 1902 and the first Wawa Food Markets store opened in 1964.

4 NACS MAGAZINE SUPPLEMENT

wawa.sup-2.qx 9/28/04 4:27 PM

of the retail store, or the “servicescape,”as it is dubbed. Because the customervisits the service factory (the hospital,the hotel or your store), she is verysensitive to the cues about quality thatare conveyed by her surroundings. Thismakes sense. You would probably noteat at a restaurant where the bathroomis not clean, reasoning, “If this is howthey maintain the space I can see, Iwonder how they maintain the kitchen,which I cannot see?”

The environment may have an evenstronger yet subtler effect, without thecustomer even being aware of it. Whenyou walk into a doctor’s office, you maybe uncomfortable if all the house plantsare dying, even if it simply means thatthe doctor is a poor gardener. You maybe similarly concerned if you visitedyour broker’s office to see him in a tie-dye shirt and flip-flops. Is this rational?Maybe not. But your emotional need isto see these environments reflect thepromises made by the brand (therestaurant will be clean; your moneymanager will be conservative).

The third challenge in building astrong service brand is putting in placeprocesses to ensure consistent servicedelivery. Because of the high humancomponent in service delivery, this isoften harder to do than ensuring thatgoods that come off an assembly line allconform to some quality standards.Recall that a key benefit of brands forcustomers is that they reduce risk (I willbuy XYZ soda because I know what Iwill get). Hence, the lack of adequateprocesses for managing service deliveryundermines the very essence of thebrand. These processes may involvetechnology, vendor partnerships andemployee training, among others.

The management of the people, thephysical evidence, and the processes in aretail store are all designed to deliver onthe brand promise, whether it isfunctional (we will get you out of thestore in the least time possible) and/oremotional (when you shop at our store,you will know you are among friends,because we will meet and greet you).The key is to understand customers wellenough to make the promise meaning-ful, relevant and credible. With thisprimer on branding and service brands,let us turn to what Wawa does tobecome a beloved brand.

Managing PeopleClearly, the most impressive aspect ofthe Wawa experience is the Wawapeople. You are greeted as you walk inand thanked when you walk out. Thereis a warm invitation to come back. Noneof this seems forced or muttered underthe breath.

How does Wawa accomplish this feat?They focus on selecting the best peoplefor the job. Wawa is also very open tolooking at non-traditional channels tofind applicants. For instance, for manyyears, Wawa has brought students from

C A S E S T U D Y

The key is tounderstand customerswell enough to make the promisemeaningful, relevantand credible.

NOVEMBER 2004 5

Dick Wood is the “head goose” at Wawa,which is the Indian word for “Canadagoose.” See the sidebar on page 13 of thissupplement to learn about the surprisingleadership characteristics of geese.

wawa.sup-2.qx 9/28/04 4:27 PM

overseas to staff busy locations on theNew Jersey shore during the summerseason. Wawa also hires many retireeswho come in to work for a few hours aday. These employees value their rolesand crave the social interaction.Observing people in part-time rolesgives Wawa the chance to recruit thebest among them to full-time positions.

All employees are given a four-hourorientation. This is supplemented byextensive in-store training. Anemployee may begin as a coffee host, bemoved on to deli, then to the cashregisters to make the transition easy.The central focus of the training isemployee safety. The attention to thismatter conveys to the employees thatthe company is doing more than payinglip service when it claims that its peoplecome first. In addition to surveillancecameras, Wawa also focuses on buildingstrong relationships with the commu-nity at large — and with the policeforce in particular — to increase safety.On-duty police officers have an openinvitation for a free cup of coffee atWawa, for example, and, for at least adecade, the company has staffed storesso that at least two associates are onduty at all times.

Mentoring seems to be a naturalaspect of life at Wawa. A number ofpeople interviewed talked about amanager, a supervisor or a co-workerwho encouraged them to pursue highereducation. Wawa reimburses tuition feesfor any field of study, reasoning that theconfidence and critical thinking peoplegain through higher education enricheslives, communities and ultimatelybenefits Wawa. In addition, a whole hostof in-house curricula is available toemployees.

Most significantly, employees atWawa are convinced that their topleaders truly have their best interests atheart. More than one employee told usthat the company would never ask themto do anything that was unethical, illegalor not the right thing to do. Communi-cation is key, and the watchword istransparency. Associates at all levels areencouraged to share their opinions,ideas or gripes. As one manager said, “Ifyou listen to the whispers, you won’tever have to listen to the screams.”

The company is also obsessive abouthighlighting and celebrating successesand milestones. Few companies I havestudied come close to Wawa in makingpeople feel good about reaching goals.Each year, Wawa inducts the top 20percent of store managers and storesupervisors into its “President’s Club.”Determinations are based on financialperformance and improvement over theprior year.

The President’s Club has becomemuch more than an incentive program;it is now an important part of Wawaculture. It’s a chance to celebrate,network and relax. President’s Clubinductees are invited to bring a guest toa three-night event in their honor.Inductees have traveled to extraordinarydestinations to celebrate success — thePocono Mountains, the Bahamas,


C A S E S T U D Y

Employees at Wawaare convinced thattheir top leaders trulyhave their bestinterests at heart.More than oneemployee told us thatthe company wouldnever ask them to doanything that wasunethical, illegal ornot the right thing todo. Communication iskey, and thewatchword istransparency.

President’s Club inductees travel to extraordi-nary locales to celebrate their success.

wawa.sup-2.qx 9/28/04 4:27 PM

Florida, Cancun and Jamaica, forexample.

The culmination of the event is thePresident’s Club ring ceremony. Theproduction has become a mini businesstheater, reflecting the environment, aspecial theme, a carefully choreo-graphed celebration and always amotivational message. Wawa searchesfor exciting venues for the ring cere-mony to create memories and inspireexcellence in the coming year. The ringshave been presented in major leaguebaseball fields, among ancient ruins, onmountain tops and on the beach.

But the very best part of the Presi-dent’s Club is the chance for Richard D.“Dick” Wood Jr., chairman and CEO;Howard Stoeckel, president and COO;and other members of the seniormanagement team to personally thankthe store managers and their spouses fortheir efforts and to spend time withthem. This occurs in many ways —from Wood’s opening-night humor(wearing a George Washington cos-tume; or dressed as a matador, or…) tothe dinner conversation. All of this helpscreate a family atmosphere for storemanagers. They, in turn, strive to createthe same atmosphere with their storeteams, who ultimately convey the feelingto their customers.

To provide store managers with thesupport to create recognition programsin their stores and celebrate theirassociates, Wawa holds a monthlyrecognition program geared toward thewhole store team called “Prize Patrol.”The program provides store managerswith a monthly recognition kit full ofWawa gear and treats. Items such as t-shirts, beach towels and pins areprovided for managers so that they canin turn use the items to recognizeassociates who help the team accom-plish goals, exceed standards and

provide excellent customer service.These items pack a powerful punchwhen it comes to recognition — andthey give the store manager a way to saythank you for a job well done.

Every month, the Prize Patrol goes onthe road to celebrate the store teamswith the highest scores in a monthlyWawa Brand Standards audit. The PrizePatrol features musicians, Wawamascots and an in-store party thatincludes the store team, their familiesand customers. Prizes such as GeorgeForeman grills and CD/DVD players areawarded to the teams.

Every quarter, the part-time associ-ates from the Prize Patrol stores areentered into a drawing for trips to aWalt Disney theme park. Several tripsare awarded each year. Once, a triparound the world was awarded to apart-time associate and her spouse.

The investment in people pays off.Many of Wawa’s greatest successesstemmed from ideas submitted byemployees. What’s more, turnoveramong full-time associates is animpressively low 22 percent, withturnover among managers at less than10 percent.

Managing Physical EvidenceWawa understands that people who aretime-starved and stressed appreciate

NOVEMBER 2004 7

C A S E S T U D Y

RIDING INTO THE SUNSETWawa Chairman and Chief Executive Officer

Richard D. “Dick” Wood Jr. will retire at the

end of this year after serving Wawa for 34

years. Upon his retirement, he will become

non-executive chairman of the Wawa board

of directors.

Wood holds a bachelor of science degree

in commerce from the University of Virginia

and an LLB from the University of Pennsylva-

nia Law School.

He was associated with the law firm of

Montgomery, McCracken, Walker and

Rhoads in Philadelphia, Pennsylvania, for

five years. In 1970, Wood joined Wawa Inc.

as general counsel. He served in various

capacities until becoming president in 1977

and chief executive officer in 1981.

Wood currently serves on the board of

Pardee Resources and The Children’s

Hospital of Philadelphia, Pennsylvania, in

addition to Wawa Inc. He is a past board

member of QuikTrip Corporation and served

NACS as its chairman in 1985. Throughout

his career, he also headed the boards of PQ

Corporation, Riddle Memorial Hospital and

Gulph Mills Golf Club.

Wood is a cousin of Grahame Wood,

founder of Wawa Food Markets.

Dick Wood traditionally finds a unique wayto thank President’s Club inductees.

wawa.sup-2.qx 9/28/04 4:27 PM

C A S E S T U D Y

“Wawaholics”Wawa has generated such strong loyalty,

especially to its coffee, that some customers

make multiple visits to the store each day. Wawa

associates affectionately dub them “Wawaholics.”

Just how good is their coffee? President and

COO Howard Stoeckel shares this news tidbit,

reported in a local paper:

“A 24-year-old man was noticed by passing

motorists on Bryn Mawr Avenue walking shirtless

and pushing an IV pole with the IV attached to his

arm. The man told police he left Bryn Mawr Hospital

because he needed a cup of Wawa coffee. He was

returned to the hospital by BMH security.”

While not as extreme a case, NACS

researchers spotted at least one “Wawaholic.”

One customer, who seemed to be buying a lot

of beverages, told NACS interviewers that he

was addicted to Wawa peach ice tea. He had

recently been transferred to a neighboring state

that did not have Wawa close by and so, on his

weekend trips home, he loaded up faithfully for

the coming week.

retail environments that are designed tominimize the hassles typically associatedwith business transactions.

This begins with a very large storefootprint. The gasoline stores, forexample, are between 4,700 and 5,600square feet. The exterior features anopen canopy design, allowing thecustomer to look past the gasolinepumps into the store. There are morethan 50 parking spots, and plenty ofroom to get in and out quickly.

Walking into a Wawa store is a treatfor the senses. The “spice” color décor iswarm, inviting and soothing. Despitethe very heavy traffic, the impression isone of competence and speed ratherthan hustle and bustle. The surround-ings are immaculate and the stores passthe bathroom cleanliness test withflying colors.

The eye is drawn to an impressivearray of fresh fruits and packagedsalads. The aroma of fresh Wawa coffee,brewed every 20 minutes, is strong and

stimulating. To smooth traffic flow inthe stores, Wawa separated the coffeearea into three sections: an area wherecoffee is brewed, an area where cus-tomers pour, and a third area wherecustomers can get dairy and othercondiments to make the perfect cup ofWawa coffee.

Technology aids the flow of traffic.Wawa stores feature touch-screenordering so that people can customizetheir orders (no onions, a little oil, extrapeppers). The technology also allowsthe store to make suggestions for cross-sell and up-sell opportunities. Afterplacing the order, the customer can takea couple of minutes to get a drink, drawmoney from the ATM and come back tofind that their food order is ready to go.

Wawa melds the high-tech with high-touch. Customers can watch their wrapsor hoagies being made to order. Cus-tomers interviewed in the storescommented on how reassuring it was tobe able to see the food and the people


Customers who make multiple visits to Wawa each day are affectionately referred to byassociates as “Wawaholics.”

wawa.sup-2.qx 9/28/04 4:27 PM

C A S E S T U D Y

making it. In order to ensure that allemployees are able to prepare the foodto order efficiently, Wawa also investsheavily in processes.

Managing ProcessesWawa monitors and manages carefullyall processes that affect the consumer orthe associate.

The attention to process begins with the selection of products andvendors. Vendors are viewed as keypartners; indeed, Stoeckel refers tothem as “the wind beneath our wings.”By actively partnering with vendors,Wawa is able to implement a win-winphilosophy.

Each year, approximately 16 externalsuppliers are selected as “Key Partners”by the company’s operations group.Twice a year, all store managerscomplete a standardized assessment ofall vendors on such dimensions asperformance, delivery accuracy,customer service and the like. Theresults of the survey are shared withvendors. In a follow-up meeting atWawa headquarters, vendors have anopportunity to discuss the feedback andto identify the next steps to improve-ment. Store managers, the people withthe greatest information on day-to-dayoperations, are thus actively engaged inimproving vendor performance and keypartner relationships.

While many companies recognize thatprocesses to improve vendor perform-ance are vital, not all companies arewilling to take the same hard-nosedapproach to analyzing the quality ofinternal support processes. Wawaunderstands that for store managers toprovide the highest possible service totheir customers, they need high-qualitysupport in turn from marketing, humanresources and other corporate supportfunctions. The same review process is

conducted with these internal supportfunctions and just as much pressure isfelt by these groups to improve theirperformance.

To pull everyone together, Wawa hasa bonus and profit sharing plan and anemployee stock ownership program(ESOP), which creates an ownershipmentality. Eligible employees share inabout 10 percent of the company’s baseprofits through profit sharing, and abonus plan is in place for store man-agers, administrative and management-level associates. This year, the ESOP wasexpanded to offer associates an oppor-tunity to purchase additional shares ofWawa stock. It is a mark of employeeconfidence that Wood’s announcementof the ESOP transaction was heartilyembraced by associates. The transactionwas successful and 27 percent ofcompany shares will be held by associ-ates as of the coming year.

A discussion of processes is notcomplete without examining how it allcomes together for the customer.Processes are in place to continuallygauge customer experience andevolving expectations of the brand.Mystery shopping is routine. Wawa alsostudies in minute detail what isinvolved in the customer co-producinga product, whether it involves the timetaken to customize coffee to one’s tasteor to use the touch-screen terminal toplace an order. This wealth of informa-tion allows Wawa to know how to staffstores and to design them to maximizeconvenience.

Wawa is a company that understandsthe value of building a strong brand bycommunicating it to and through itsemployees, and reinforcing it throughcomplementary physical evidence andprocesses. This ‘holistic’ vision of thebrand is why Stoeckel calls himself“The Brand Ranger.”

WAWA’S NEW LEADERHoward Stoeckel, who now serves Wawa Inc.

as president and chief operating officer, will

ascend to the company’s top position, becoming

vice chairman and chief executive officer in

January 2005 with the retirement of Dick Wood,

chairman and chief executive officer.

Stoeckel, who has served Wawa for 17

years, has held a number of titles with the

company: executive vice president and chief

retail officer, senior vice president of

marketing and vice president of human

resources. As president and chief operating

officer, he is currently responsible for store

operations, marketing, human resources,

supply chain, dairy manufacturing and

distribution and quality assurance.

Prior to joining Wawa, Stoeckel was

associated with The Limited as vice

president of human resources for its apparel

manufacturing division. Earlier in his career,

he worked in human resources capacities for

the Washington Gas Company in Washing-

ton, DC and John Wanamaker, a department

store chain in Philadelphia, Pennsylvania.

Stoeckel holds a bachelor of science

degree in business administration from Rider

University in Lawrenceville, New Jersey.

NOVEMBER 2004 9

Howard Stoeckel is the Wawa brand ranger.

wawa.sup-2.qx 9/28/04 4:27 PM

The processes, the physical evidence and the people matter in so far

as they impact the customer experience of the brand. What words

do customers use to describe Wawa? The following is a list of the

most common terms that customers used to describe what Wawa means

to them and why they shop at Wawa.

WWW.NACSONLINE.COM

C A S E S T U D Y

InCustomers’

Terms

One way customersshow that they trustWawa is throughextraordinarysupport of thecompany’s charityfundraising efforts.

10 NACS MAGAZINE SUPPLEMENT

wawa.sup-2.qx 9/28/04 4:27 PM

NOVEMBER 2004 11

1. TrustCustomers repeatedly used the word“trust” to describe Wawa. Trust cannotbe purchased overnight. It is a rarecurrency, hard-won over years, and it’sclear that Wawa has built a reputationfor being trustworthy.

In the 1950s and 1960s, for example,as more women entered the workforce,they frequently left house keys forWawa milkmen, who delivered dairyproducts directly to the customer’srefrigerator. Wawa has strived tocontinue to earn that trust.

After the terrorist attacks of September11, 2001, when the whole country wasreeling from an unbelievable andunbearable loss, Wawa became, for many,a place of refuge to gather, mourn,discuss and commiserate. Customersshowed their trust in Wawa through

donations to the Red Cross that totaledover $1.2 million in less than two weeks.

After Hurricane Andrew devastatedthe area Wawa serves in Virginia, Wawastores were the first to be up andrunning. Store managers told us aboutusing bottled water to make coffee sothat customers without power would beable to get a hot drink. They rentedgenerators so that stores could be keptopen. When other stores increased theprice of ice, Wawa held the line. Wawamanagers knew that these actions werenot going to turn a profit, but profit wasnot the goal. The goal was to be atrusted neighbor, one that could becounted on in times of greatest need.

2. FriendlinessMany of the customers interviewedreferred to the “friendliness” of employ-

ees as a key reason for coming back to Wawa.

A case in point is Larry, the coffeehost, at a store in Richmond, Virginia. Acustomer pointed to Larry and said,“The coffee and Larry here are whatkeep me coming back.” Larry greetedmost of the people who walked in byname and knew their coffee preferences.For instance, he said to one woman, “Iknow you want the CaramelCoffee…I’m brewing it and it will bedone in a minute.” This makes Wawalike “Cheers,” the bar of TV sitcomglory, “where everybody knows yourname and they’re always glad youcame,” as its famous theme songproclaims. The key to such friendliness

Dick Wood, posing for a NACS Magazineinterview in 2002, has built a culture thatputs customers first.

ABOV

E PH

OTOG

RAPH

BY

NICK

KEL

SH

wawa.sup-2.qx 9/28/04 4:27 PM

is the empowerment that the storemanager provides Larry, the coffee host.The manager said that he wantedentrepreneurs in his store. He allowsLarry to check the Wawa database tomonitor the daily coffee sales in hisstore versus other stores. This is a pointof pride for Larry and translates togoodwill toward customers.

3. QualityWawa has consciously followed a strongprivate brand strategy. Wawa-brandedproducts include the milk, juices andiced teas processed and packaged in itsown dairies. Wawa is also known for itsSizzli™ breakfasts, hoagies, wraps andhot-to-go bowls. The signature product,of course, is Wawa coffee.

Interestingly, in its original markets,the strong reputation for the quality ofits dairy products has made it easy forWawa to expand to a gasoline offer.Customers are convinced that a store that

delivers great dairy products will nothave much of a problem delivering fuel.In markets that Wawa entered morerecently, such as Virginia, customers havehad to try both the fuel and the food tojudge their quality. Once customersmove past trial, they seem to be quicklyconvinced that the food is better than atother convenience stores, and indeedthan at other food and beverage retailers.

4. ConvenienceAs mentioned earlier, Wawa is dedicatedto simplifying the lives of consumers.Almost as a mantra, managers atcorporate headquarters expressed that abad experience is the ultimate inconven-ience. In addition to tactical decisionssuch as moving to larger footprintstores, more multi-pump dispensingunits and re-arranging store layout tofacilitate traffic, Wawa also takes astrategic look at the products it carriesto increase convenience.


C A S E S T U D Y

Wawa stores combine high-tech innovationswith high-touch customer service.

wawa.sup-2.qx 9/28/04 4:27 PM

NOVEMBER 2004 13

C A S E S T U D Y

What’s a Wawa, Anyway?

No, Wawa is not baby talk for “water.” Wawa

is a Lenni Lenape Native American word for

the Canada goose. Wawa stores are named

for the area in Delaware County, Pennsylva-

nia, where its dairy was established in 1902.

The associates at Wawa will tell you that

geese make a great brand symbol and are an

inspiration for the company. Why? Read on.

Anthropologist Angeles Arrien may have

explained best why the goose makes such a

strong brand symbol in a 1991 lecture,

“Lessons We Can Learn From Geese,”

delivered to the Organizational Development

Network. Here are the five facts and lessons

he outlined in the lecture.

FACT 1: As each goose flaps its wings, it

creates “uplift” for the birds that follow. By

flying in a “V” formation, the whole flock gains

71 percent in flying range when compared to

the range possible if each bird flew alone.

LESSON:People who share a common

direction and sense of community can get

where they are going quicker and easier

because they are traveling on the strength of

one another.

FACT 2: When a goose falls out of

formation, it suddenly feels the drag and

resistance of flying alone. It quickly moves

back into formation to take advantage of

the lifting power of the bird immediately in

front of it.

LESSON: If we have as much sense

as geese, we stay in formation with those

headed where we want to go. We are

willing to accept their help and give our

help to others.

FACT 3: When the lead goose tires, it

rotates back into formation and another

goose flies to the point position.

LESSON: It pays to take turns doing the

hard tasks and sharing leadership roles.

FACT 4: The geese flying in formation

honk to encourage those up front to keep up

their speed.

LESSON: We need to make sure our

honking is encouraging. In groups where

there is encouragement, the productivity

is greater.

FACT 5: When a goose is sick,

wounded or shot down, two geese drop out

of formation to follow it down and to protect

it. They stay with it until it is able to fly again

or until it dies. Then, they join another

formation or catch up with

their own flock.

LESSON: If we have as

much sense as geese, we

will stand by each other in

difficult times as well as when

we are strong.

Wawa people pride

themselves on flying in

formation, working as a team.

In a press interview, Wawa

chairman and CEO Richard

D. “Dick” Wood Jr. declared,

“We tell people not just what

to do, but why.” Taking that

extra step to engage

associates creates a true

team spirit.

This team spirit manifests

itself in Wawa’s response to a

crisis. When a particular store or a region

faces natural disasters or personnel difficul-

ties, the manager can count on the entire

Wawa flock to provide support and “lift.”

After Hurricane Andrew hit the Virginia

region served by Wawa, store managers from

as far as New Jersey and Pennsylvania

boarded buses, traveling to Richmond,

Virginia stores to help managers there —

whether it was unloading supplies or cleaning

store fronts.

And, when it comes to encouraging one

another, as geese do by honking, Wawa

takes its honking seriously. It is hard to find

an organization that believes as much in

pride, celebration and recognition as Wawa.

After all, this is a company with an official

“Minister of the Magic,” Don Price, who views

it as his personal responsibility to celebrate

individual and store milestones. “Prize

patrols” swoop into stores that have

exceeded their targets with a touch of magic.

What’s more, store managers vote to

recognize their peers who best exemplify

Wawa values and team spirit, honoring them

with the “Golden Wings” award.

The company is also committed to giving all

employees the chance to lead in the form of a

commitment to promotion from within. More

impressively, Wawa managers mentor direct

reports to build their skills and knowledge

through education. Wawa subsidizes

employee education in any field, believing that

the breadth and perspective that education

affords builds better leaders.

Dick Wood explains his leadership approach during a 2002NACS Magazine interview.

PHOT

OGRA

PH, T

HIS

PAGE

, BY

NICK

KEL

SH

wawa.sup-2.qx 9/28/04 4:27 PM


Being focused on immediate con-sumption and frequent replenishmenthas helped the company to eliminateproduct categories that might beprofitable but which take the corporateeye away from the goal of sharply honedconvenience. Indeed, the company,unlike many convenience stores, doesnot carry lottery tickets. The primaryreason for this is that large jackpots arelikely to bring long lines of customers,inconveniencing regulars who havegrown to count on Wawa for a quick re-fuel of bodies and automobiles.

5. ValueWawa is focused on presenting anoverpowering offer.

Its coffee, for instance, was frequentlycompared by customers to Starbucks —at a much lower price point. Its sand-wiches and snacks, likewise, appear tobe positioned not so much against otherconvenience store snack fare but againstoffers from more prominent, dedicatedfood retailers and restaurants.

The value proposition is carefullyreinforced in every aspect of Wawa’soffer. Prominently displayed in theWawa stores is the ATM, which pro-claims there is no surcharge for usingthe service at Wawa. This resonatespowerfully with customers whogenerally resent having to pay to get“their” money out. Many customersmentioned that they loved the ability tograb a quick bite, and do some basicbank transactions on their lunch hour.

6. Good neighbor.Wawa is able to be big but act small;they are a multi-state, multi-storeoperation, yet each location has a localfeel. Key to this feeling is Wawa’s policyof being a good neighbor. Customersand associates mentioned Wawa’sinvolvement in support of local chari-ties, from Wednesday evening coffeecarts that provide beverages to parentsand families of children in the localChildren’s Hospital, to fighting AIDS,cancer, heart disease and hunger.

Each location has alocal feel. Customersand associatesmentioned Wawa’sinvolvement insupport of localcharities, fromWednesday eveningcoffee carts thatprovide beverages toparents and familiesof children in thelocal Children’sHospital, to fightingAIDS, cancer, heartdisease and hunger.

C A S E S T U D Y

Teamwork is a central part of the Wawa culture.

wawa.sup-2.qx 9/28/04 4:27 PM

NOVEMBER 2004 15

Goin’ to the Wawa, and We’re Goin’ to Get Married

While at corporate headquarters in Wawa, Pennsylvania, an

employee I was interviewing for this research shared an interesting e-

mail. It was a request from a gentleman asking permission to get

married at “his” Wawa store.

Through my research in many industries, I am no stranger to strong

brand loyalties, but this seemed over the top. How could a convenience

store inspire such fanatical loyalty that a couple would be content to

celebrate one of the most memorable moments of their lives there? This

clearly would have to be researched.

I arrived at the store, accompanied by its regional manager, Joe

Bendas. As we entered the store, the festive atmosphere was hard to

miss. It looked like a miniature chapel, with festoons everywhere. A lovely

Wawa gift basket awaited the lucky couple. The assistant store manager

baked a spectacular wedding cake. The store manager, Spencer

Robertson, posted notices outside the store that the store would be

closed for 45 minutes to celebrate the wedding. He also posted associ-

ates outside to explain to patrons who stopped by, and to offer them

coupons. This whole thing was enough of a novelty that many of the

patrons stayed to see the event.

The wedding invitation was shaped like a cup of Wawa coffee. The

families arrived, laughing about the venue, and commenting that this was

one setting they would never forget.

The associates were equally excited. Bendas made sure that all

associates could be a part of the big moment: “Twenty years from now,

these kids will still be talking about seeing a wedding at Wawa, and I don’t

want them to miss this,” he said.

After the couple was pronounced man and wife and cake and

coffee (courtesy of Wawa) had been served, I asked the newlyweds

how they decided to get married at Wawa. They shared that they

regularly saw one other at the Wawa store as they got their morning

cups of coffee. Familiarity led to conversation, conversation to

romance and eventually marriage.

The bride gave us a copy of a letter she sent to her friends and family

titled, “Why Wawa?” It concludes, “What better place to seal a bond, than

where it all began? ….It all began when and where we both least

expected. Now it’s OUR WAWA…more than just coffee.”

It felt like a family affair. The couple greeted employees by name,

and there was, of course, a great deal of joking and laughter about

how everyone could see the relationship getting more serious with

each day’s cup of coffee.

I took the opportunity to chat with other patrons who walked into the

store once it was re-opened and as Wawa managers offered coffee and

cake to these customers. Invariably, the response was surprise. One man

declared, “A wedding at my Wawa. Now I have seen everything.”

Asked to name another retail store, let alone a convenience store, where

they could imagine a couple wanting to get married, customers were

stumped. But at Wawa? “Of course,” they said, “It’s a part of people’s lives.”

ABOUT THE AUTHOR: Neeli Bendapudi received her Ph.D. from the University ofKansas and joined The Ohio State University in 1996. Professor Bendapudi’s researchdeals with customers’ willingness and ability to maintain long-term relationships withfirms and with the brands and employees that represent them. She also studies the effectof perceptions of service quality, service failure and recovery on customer relationships.

Professor Bendapudi’s research has been published in the Harvard Business Review,Journal of Marketing, Journal of Marketing Research, Journal of Retailing and in theproceedings of various national and international conferences. She serves on the editorialboards of the Journal of Marketing and the Journal of Consumer Psychology and is anelected member of the American Marketing Association’s Academic Council ExecutiveCommittee, a 12-person steering group for the 40,000 international AMA members.

Professor Bendapudi has received numerous teaching awards, most recently a nationalOutstanding Marketing Teacher award from The Academy of Marketing Science in 2003. Shealso has received The Ohio State University 2001 Alumni Distinguished Teaching Award, thehighest award bestowed by the University. Professor Bendapudi has received awards for her

teaching in undergraduate, MBA and executive MBA classes. Professor Bendapudi’s MBAclass on “Services Marketing” was cited in Business Week as one of the two mostrecommended courses in The Ohio State University Fisher College of Business program.

Professor Bendapudi is active in outreach activities through consulting, keynotespeaking and executive education. She has worked with Cardinal Health, Deloitte &Touche, The Limited and The Mayo Clinic among many others.

She has worked closely with NACS on a variety of leadership programs. Theresearch presented in this NACS Magazine supplement was conducted for a presentationat the NACS Show 2004 by Dr. Bendapudi and her husband, Venkat Bendapudi, Ph.D.,who serves on the The Ohio State University Fisher College of Business faculty ofManagement and Human Resources. Neeli presented a similar case study of QuikTrip atthe NACS Show 2003. She has also consulted with NACS to revamp its LeadershipAssembly and helped to coordinate the event in 2004.

Neeli can be reached at (614) 292-2959 or [email protected]. For moreon her research and teaching, visit http://fisher.osu.edu/~bendapudi_1/.

This summer, a couple was married at “their” Wawa.

wawa.sup-2.qx 9/28/04 4:27 PM

Now in its third year of publication, the NACS Magazine has been

characterized by readers as a leader in terms of providing authorita-

tive and relevant content to the convenience store industry. The mag-

azine was added to the NACS membership offer in March 2002 to

communicate with members about NACS activities as well as to

provide thought leadership on the industry’s most challenging issues.

The NACS Magazine is a benefit of NACS membership. If your

company is a NACS member and you do not currently receive the

NACS Magazine, call today to request your very own copy. Or, if

your company is not a member of NACS, call today to learn more

about the many benefits of membership.

That’s because the NACS Magazine was created by NACS members for NACS members.

Coincidence?We think not.

Authoritative.

Relevant.

NATIONAL ASSOCIATION OF CONVENIENCE STORES ■ (703) 684-3600 ■ WWW.NACSONLINE.COM

wawa_supplement_final.qx 9/29/04 12:17 PM

wawa case study

Documents