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CASESTUDY

THE WOW
IN 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 than

15,000 of them — are the
most important component
to its strong service brand.
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“What’s in a name?” Shakespeare mused. A great deal, if you The benefits of owning a strong
brand are many. Customers who are
observe the power that brand names have over consumer attitudes, brand loyal are more likely to patron-
beliefs and behaviors. The American Marketing Association defines a ize the business, pay a premium for
brand as “a name, term, sign, symbol or combination of them that is the product, be more open to brand
extensions and be more resistant to
designed to identify the goods or services of one seller or group of sellers
competitors’ overtures.
and to differentiate them from those of competitors.” This technical
definition examines the brand from the seller’s point of view. The Store Customers Can’t Live Without
In the convenience store industry, Wawa
To the buyer, the brand represents is an example of a chain that has
much more: succeeded in earning that place of trust.
l It is a promise of the level of The Delaware County Daily Times,
quality that will be delivered. which serves the area near the com-
l It is a risk-reduction mechanism, pany’s Wawa, Pennsylvania, corporate
assuring the customer of the consis- hometown, put that sentiment into
tency with which the promised words in December 2003, proclaiming
quality will be delivered. that “Wawa is more than a corporation.
l It confers a variety of intangible From coffee, to commuters, to a place to
benefits. It can, for example, help a meet, it’s a way of life for many.”
consumer make a statement about The key to Wawa’s success is an
herself (I drink only Evian water.), or obsession with satisfying the customer.
indicate membership in a social group Wawa associates are zealous about
(He wears a Harley jacket.). “simplifying their customers’ daily lives.”
It is no wonder, then, that brands By delivering on this promise consistently,
surround us in all we do: the clothes Wawa’s brand aspiration is to be “the
and shoes we wear, the coffee we brand customers can’t live without.”
drink, the food we consume or the To study how Wawa is perceived by its
credit card we use. internal customers (employees) and its

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LEFT Wawa operates more than 500 stores,

including about 140 gasoline-selling stores
that boast between 4,700 and 5,600 square
feet. ABOVE As ambassadors of the Wawa
brand, many associates build relationships
with regular customers.

The key to Wawa’s

external customers, NACS conducted an (e.g. H&R Block tax preparation). success is an obsession
in-depth study of the Wawa operation In both instances, you want your with satisfying the
that involved observation and interviews brand to convey strong, unique and
with top management, store associates favorable associations to the customer. customer. Wawa
and customers. Stores in four of the five However, in service industries, such as
states in which Wawa operates were retail, the importance of the brand is
associates are zealous
visited. Some visits were coordinated by matched only by the complexity of about “simplifying
Wawa, and store managers were told managing it, thanks to at least three
about them in advance. Just as many important issues. their customers’ daily
visits were unannounced. First, the service brand is not static. It lives.” By delivering
Among the observations studied were is affected by every employee who
the comings and goings of customers, the delivers the service; every employee on this promise
upkeep of stores and interactions between interaction is a moment of truth that
Wawa employees and customers. Where builds or destroys a carefully cultivated
consistently, Wawa’s
the visits were announced, the permission brand image. Consider the effect of a brand aspiration is to
of store managers was sought to approach surly employee on a store called
and interview customers. Wawa provided “Friendly’s” or the consequence of a be “the brand
store coupons to thank customers for their grouchy greeting on a storefront that
participation in the study. This report proclaims “Smiles!” Making sure your
customers can’t live
summarizes the key findings. employees understand, internalize and without.”
live the brand is a key component of a
Service Brands strong service brand. A case in point
What can other convenience store may be airlines such as Southwest or Jet
operators learn from Wawa? First, it’s Blue that use its employees as brand
important to establish a common ambassadors, reinforcing the marketing
understanding of branding, particularly messages about a fun atmosphere and
as it relates to service. caring employees.
Branding is a concern whether you Second, a service brand is also
sell goods (e.g. Ivory Soap) or services influenced by the physical environment

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Why Wawa?
Why is NACS presenting a case study on one of its innovative and customer service. Then, in 1964, Grahame Wood, George Wood’s
successful members? Well, it is quite simple. Providing insight on grandson, saw an opportunity to create a new distribution structure for the
leadership and how leaders can strengthen and grow a company is an company’s dairy products, opening the first Wawa Food Markets in Folsom,
important role for NACS as it is a critical ingredient to the future success Pennsylvania. This store was an immediate success, and it marked the
and health of the convenience store industry. beginning of the Wawa chain of food markets. From the beginning, Wawa
The world — and this industry in particular — are continually changing, and it made a commitment to fresh food — selling fresh produce and featuring a
is more important than ever that industry leaders have vision, strategic planning full-service deli. Over the years, the foodservice offer has expanded to meet
skills and a keen focus on delivering profits. NACS has long been investing in customers’ needs.
the development and presentation of leadership programs that provide the Today, the Wawa “family” has grown to include more than 15,000
platform for success through exceptional, industry-specific and long-term associates with the number of company-owned convenience stores
development solutions for all of the key people in a retail organization. exceeding 500, including more than 140 that sell gasoline. The
In this case study of Wawa Inc., readers will gain insight on the company is focused in a five-state region: Virginia, Maryland, Delaware,
leadership, values and vision that have been instilled by Wawa executives New Jersey and Pennsylvania. The company is consistently recognized
in each one of the company’s employees and have contributed to the by Forbes on its list of the top 200 privately held companies.
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

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
Wawa traces its origin to businesses started by family members of its currently serves on the NACS Board of Directors and chairs NACS
current Chairman and CEO, Dick Wood, as early as 1803. The dairy got leadership programming.
its start in 1902 and the first Wawa Food Markets store opened in 1964.

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of the retail store, or the “servicescape,” The third challenge in building a

as it is dubbed. Because the customer strong service brand is putting in place
visits the service factory (the hospital, processes to ensure consistent service
the hotel or your store), she is very delivery. Because of the high human
sensitive to the cues about quality that component in service delivery, this is
are conveyed by her surroundings. This often harder to do than ensuring that
The key is to makes sense. You would probably not goods that come off an assembly line all
eat at a restaurant where the bathroom conform to some quality standards.
understand customers is not clean, reasoning, “If this is how Recall that a key benefit of brands for
they maintain the space I can see, I customers is that they reduce risk (I will
well enough to wonder how they maintain the kitchen, buy XYZ soda because I know what I
make the promise which I cannot see?” will get). Hence, the lack of adequate
The environment may have an even processes for managing service delivery
meaningful, relevant stronger yet subtler effect, without the undermines the very essence of the
and credible. customer even being aware of it. When brand. These processes may involve
you walk into a doctor’s office, you may technology, vendor partnerships and
be uncomfortable if all the house plants employee training, among others.
are dying, even if it simply means that The management of the people, the
the doctor is a poor gardener. You may physical evidence, and the processes in a
be similarly concerned if you visited retail store are all designed to deliver on
your broker’s office to see him in a tie- the brand promise, whether it is
dye shirt and flip-flops. Is this rational? functional (we will get you out of the
Maybe not. But your emotional need is store in the least time possible) and/or
to see these environments reflect the emotional (when you shop at our store,
Dick Wood is the “head goose” at Wawa,
which is the Indian word for “Canada
promises made by the brand (the you will know you are among friends,
goose.” See the sidebar on page 13 of this restaurant will be clean; your money because we will meet and greet you).
supplement to learn about the surprising manager will be conservative). The key is to understand customers well
leadership characteristics of geese.
enough to make the promise meaning-
ful, relevant and credible. With this
primer on branding and service brands,
let us turn to what Wawa does to
become a beloved brand.

Managing People
Clearly, the most impressive aspect of
the Wawa experience is the Wawa
people. You are greeted as you walk in
and thanked when you walk out. There
is a warm invitation to come back. None
of this seems forced or muttered under
the breath.
How does Wawa accomplish this feat?
They focus on selecting the best people
for the job. Wawa is also very open to
looking at non-traditional channels to
find applicants. For instance, for many
years, Wawa has brought students from

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CASESTUDY

overseas to staff busy locations on the Mentoring seems to be a natural

Employees at Wawa New Jersey shore during the summer aspect of life at Wawa. A number of
are convinced that season. Wawa also hires many retirees people interviewed talked about a
who come in to work for a few hours a manager, a supervisor or a co-worker
their top leaders truly day. These employees value their roles who encouraged them to pursue higher
have their best and crave the social interaction. education. Wawa reimburses tuition fees
Observing people in part-time roles for any field of study, reasoning that the
interests at heart. gives Wawa the chance to recruit the confidence and critical thinking people
best among them to full-time positions. gain through higher education enriches
More than one All employees are given a four-hour lives, communities and ultimately
employee told us that orientation. This is supplemented by benefits Wawa. In addition, a whole host
extensive in-store training. An of in-house curricula is available to
the company would employee may begin as a coffee host, be employees.
never ask them to do moved on to deli, then to the cash Most significantly, employees at
registers to make the transition easy. Wawa are convinced that their top
anything that was The central focus of the training is leaders truly have their best interests at
employee safety. The attention to this heart. More than one employee told us
unethical, illegal or matter conveys to the employees that that the company would never ask them
not the right thing to the company is doing more than paying to do anything that was unethical, illegal
lip service when it claims that its people or not the right thing to do. Communi-
do. Communication is come first. In addition to surveillance cation is key, and the watchword is
cameras, Wawa also focuses on building transparency. Associates at all levels are
key, and the strong relationships with the commu- encouraged to share their opinions,
watchword is nity at large — and with the police ideas or gripes. As one manager said, “If
force in particular — to increase safety. you listen to the whispers, you won’t
transparency. On-duty police officers have an open ever have to listen to the screams.”
invitation for a free cup of coffee at The company is also obsessive about
Wawa, for example, and, for at least a highlighting and celebrating successes
decade, the company has staffed stores and milestones. Few companies I have
so that at least two associates are on studied come close to Wawa in making
duty at all times. people feel good about reaching goals.
President’s Club inductees travel to extraordi-
nary locales to celebrate their success. Each year, Wawa inducts the top 20
percent of store managers and store
supervisors into its “President’s Club.”
Determinations are based on financial
performance and improvement over the
prior year.
The President’s Club has become
much more than an incentive program;
it is now an important part of Wawa
culture. It’s a chance to celebrate,
network and relax. President’s Club
inductees are invited to bring a guest to
a three-night event in their honor.
Inductees have traveled to extraordinary
destinations to celebrate success — the
Pocono Mountains, the Bahamas,

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Florida, Cancun and Jamaica, for

example.
The culmination of the event is the
President’s Club ring ceremony. The
production has become a mini business
theater, reflecting the environment, a
special theme, a carefully choreo-
graphed celebration and always a
motivational message. Wawa searches
for exciting venues for the ring cere-
mony to create memories and inspire
excellence in the coming year. The rings
have been presented in major league
Dick Wood traditionally finds a unique way
baseball fields, among ancient ruins, on provide excellent customer service. to thank President’s Club inductees.
mountain tops and on the beach. These items pack a powerful punch
But the very best part of the Presi- when it comes to recognition — and
dent’s Club is the chance for Richard D. they give the store manager a way to say
“Dick” Wood Jr., chairman and CEO; thank you for a job well done.
Howard Stoeckel, president and COO; Every month, the Prize Patrol goes on
RIDING INTO THE SUNSET
and other members of the senior the road to celebrate the store teams Wawa Chairman and Chief Executive Officer
management team to personally thank with the highest scores in a monthly Richard D. “Dick” Wood Jr. will retire at the
the store managers and their spouses for Wawa Brand Standards audit. The Prize end of this year after serving Wawa for 34
their efforts and to spend time with Patrol features musicians, Wawa years. Upon his retirement, he will become
them. This occurs in many ways — mascots and an in-store party that non-executive chairman of the Wawa board
from Wood’s opening-night humor includes the store team, their families of directors.
(wearing a George Washington cos- and customers. Prizes such as George Wood holds a bachelor of science degree
tume; or dressed as a matador, or…) to Foreman grills and CD/DVD players are in commerce from the University of Virginia
the dinner conversation. All of this helps awarded to the teams. and an LLB from the University of Pennsylva-
create a family atmosphere for store Every quarter, the part-time associ- nia Law School.
managers. They, in turn, strive to create ates from the Prize Patrol stores are He was associated with the law firm of
the same atmosphere with their store entered into a drawing for trips to a Montgomery, McCracken, Walker and
teams, who ultimately convey the feeling Walt Disney theme park. Several trips Rhoads in Philadelphia, Pennsylvania, for
to their customers. are awarded each year. Once, a trip five years. In 1970, Wood joined Wawa Inc.
To provide store managers with the around the world was awarded to a as general counsel. He served in various
support to create recognition programs part-time associate and her spouse. capacities until becoming president in 1977
in their stores and celebrate their The investment in people pays off. and chief executive officer in 1981.
associates, Wawa holds a monthly Many of Wawa’s greatest successes Wood currently serves on the board of
recognition program geared toward the stemmed from ideas submitted by Pardee Resources and The Children’s
whole store team called “Prize Patrol.” employees. What’s more, turnover Hospital of Philadelphia, Pennsylvania, in
The program provides store managers among full-time associates is an addition to Wawa Inc. He is a past board
with a monthly recognition kit full of impressively low 22 percent, with member of QuikTrip Corporation and served
Wawa gear and treats. Items such as t- turnover among managers at less than NACS as its chairman in 1985. Throughout
shirts, beach towels and pins are 10 percent. his career, he also headed the boards of PQ
provided for managers so that they can Corporation, Riddle Memorial Hospital and
in turn use the items to recognize Managing Physical Evidence Gulph Mills Golf Club.
associates who help the team accom- Wawa understands that people who are Wood is a cousin of Grahame Wood,
plish goals, exceed standards and time-starved and stressed appreciate founder of Wawa Food Markets.

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“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 Customers who make multiple visits to Wawa each day are affectionately referred to by
weekend trips home, he loaded up faithfully for associates as “Wawaholics.”

the coming week.

retail environments that are designed to stimulating. To smooth traffic flow in

minimize the hassles typically associated the stores, Wawa separated the coffee
with business transactions. area into three sections: an area where
This begins with a very large store coffee is brewed, an area where cus-
footprint. The gasoline stores, for tomers pour, and a third area where
example, are between 4,700 and 5,600 customers can get dairy and other
square feet. The exterior features an condiments to make the perfect cup of
open canopy design, allowing the Wawa coffee.
customer to look past the gasoline Technology aids the flow of traffic.
pumps into the store. There are more Wawa stores feature touch-screen
than 50 parking spots, and plenty of ordering so that people can customize
room to get in and out quickly. their orders (no onions, a little oil, extra
Walking into a Wawa store is a treat peppers). The technology also allows
for the senses. The “spice” color décor is the store to make suggestions for cross-
warm, inviting and soothing. Despite sell and up-sell opportunities. After
the very heavy traffic, the impression is placing the order, the customer can take
one of competence and speed rather a couple of minutes to get a drink, draw
than hustle and bustle. The surround- money from the ATM and come back to
ings are immaculate and the stores pass find that their food order is ready to go.
the bathroom cleanliness test with Wawa melds the high-tech with high-
flying colors. touch. Customers can watch their wraps
The eye is drawn to an impressive or hoagies being made to order. Cus-
array of fresh fruits and packaged tomers interviewed in the stores
salads. The aroma of fresh Wawa coffee, commented on how reassuring it was to
brewed every 20 minutes, is strong and be able to see the food and the people

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WAWA’S NEW LEADER

Howard Stoeckel, who now serves Wawa Inc.
as president and chief operating officer, will
making it. In order to ensure that all conducted with these internal support ascend to the company’s top position, becoming
employees are able to prepare the food functions and just as much pressure is vice chairman and chief executive officer in
to order efficiently, Wawa also invests felt by these groups to improve their January 2005 with the retirement of Dick Wood,
heavily in processes. performance. chairman and chief executive officer.
To pull everyone together, Wawa has Stoeckel, who has served Wawa for 17
Managing Processes a bonus and profit sharing plan and an years, has held a number of titles with the
Wawa monitors and manages carefully employee stock ownership program company: executive vice president and chief
all processes that affect the consumer or (ESOP), which creates an ownership retail officer, senior vice president of
the associate. mentality. Eligible employees share in marketing and vice president of human
The attention to process begins about 10 percent of the company’s base resources. As president and chief operating
with the selection of products and profits through profit sharing, and a officer, he is currently responsible for store
vendors. Vendors are viewed as key bonus plan is in place for store man- operations, marketing, human resources,
partners; indeed, Stoeckel refers to agers, administrative and management- supply chain, dairy manufacturing and
them as “the wind beneath our wings.” level associates. This year, the ESOP was distribution and quality assurance.
By actively partnering with vendors, expanded to offer associates an oppor- Prior to joining Wawa, Stoeckel was
Wawa is able to implement a win-win tunity to purchase additional shares of associated with The Limited as vice
philosophy. Wawa stock. It is a mark of employee president of human resources for its apparel
Each year, approximately 16 external confidence that Wood’s announcement manufacturing division. Earlier in his career,
suppliers are selected as “Key Partners” of the ESOP transaction was heartily he worked in human resources capacities for
by the company’s operations group. embraced by associates. The transaction the Washington Gas Company in Washing-
Twice a year, all store managers was successful and 27 percent of ton, DC and John Wanamaker, a department
complete a standardized assessment of company shares will be held by associ- store chain in Philadelphia, Pennsylvania.
all vendors on such dimensions as ates as of the coming year. Stoeckel holds a bachelor of science
performance, delivery accuracy, A discussion of processes is not degree in business administration from Rider
customer service and the like. The complete without examining how it all University in Lawrenceville, New Jersey.
results of the survey are shared with comes together for the customer.
vendors. In a follow-up meeting at Processes are in place to continually
Howard Stoeckel is the Wawa brand ranger.
Wawa headquarters, vendors have an gauge customer experience and
opportunity to discuss the feedback and evolving expectations of the brand.
to identify the next steps to improve- Mystery shopping is routine. Wawa also
ment. Store managers, the people with studies in minute detail what is
the greatest information on day-to-day involved in the customer co-producing
operations, are thus actively engaged in a product, whether it involves the time
improving vendor performance and key taken to customize coffee to one’s taste
partner relationships. or to use the touch-screen terminal to
While many companies recognize that place an order. This wealth of informa-
processes to improve vendor perform- tion allows Wawa to know how to staff
ance are vital, not all companies are stores and to design them to maximize
willing to take the same hard-nosed convenience.
approach to analyzing the quality of Wawa is a company that understands
internal support processes. Wawa the value of building a strong brand by
understands that for store managers to communicating it to and through its
provide the highest possible service to employees, and reinforcing it through
their customers, they need high-quality complementary physical evidence and
support in turn from marketing, human processes. This ‘holistic’ vision of the
resources and other corporate support brand is why Stoeckel calls himself
functions. The same review process is “The Brand Ranger.”

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In
Customers’
Terms
T
he 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.

One way customers

show that they trust
Wawa is through
extraordinary
support of the
company’s charity
fundraising efforts.

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Dick Wood, posing for a NACS Magazine

1. Trust donations to the Red Cross that totaled interview in 2002, has built a culture that
puts customers first.
Customers repeatedly used the word over $1.2 million in less than two weeks.
“trust” to describe Wawa. Trust cannot After Hurricane Andrew devastated
be purchased overnight. It is a rare the area Wawa serves in Virginia, Wawa ees as a key reason for coming back
currency, hard-won over years, and it’s stores were the first to be up and to Wawa.
clear that Wawa has built a reputation running. Store managers told us about A case in point is Larry, the coffee
for being trustworthy. using bottled water to make coffee so host, at a store in Richmond, Virginia. A
In the 1950s and 1960s, for example, that customers without power would be customer pointed to Larry and said,
as more women entered the workforce, able to get a hot drink. They rented “The coffee and Larry here are what
they frequently left house keys for generators so that stores could be kept keep me coming back.” Larry greeted
Wawa milkmen, who delivered dairy open. When other stores increased the most of the people who walked in by
products directly to the customer’s price of ice, Wawa held the line. Wawa name and knew their coffee preferences.
refrigerator. Wawa has strived to managers knew that these actions were For instance, he said to one woman, “I
continue to earn that trust. not going to turn a profit, but profit was know you want the Caramel
After the terrorist attacks of September not the goal. The goal was to be a Coffee…I’m brewing it and it will be
ABOVE PHOTOGRAPH BY NICK KELSH

11, 2001, when the whole country was trusted neighbor, one that could be done in a minute.” This makes Wawa
reeling from an unbelievable and counted on in times of greatest need. like “Cheers,” the bar of TV sitcom
unbearable loss, Wawa became, for many, glory, “where everybody knows your
a place of refuge to gather, mourn, 2. Friendliness name and they’re always glad you
discuss and commiserate. Customers Many of the customers interviewed came,” as its famous theme song
showed their trust in Wawa through referred to the “friendliness” of employ- proclaims. The key to such friendliness

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Wawa stores combine high-tech innovations

with high-touch customer service. is the empowerment that the store delivers great dairy products will not
manager provides Larry, the coffee host. have much of a problem delivering fuel.
The manager said that he wanted In markets that Wawa entered more
entrepreneurs in his store. He allows recently, such as Virginia, customers have
Larry to check the Wawa database to had to try both the fuel and the food to
monitor the daily coffee sales in his judge their quality. Once customers
store versus other stores. This is a point move past trial, they seem to be quickly
of pride for Larry and translates to convinced that the food is better than at
goodwill toward customers. other convenience stores, and indeed
than at other food and beverage retailers.
3. Quality
Wawa has consciously followed a strong 4. Convenience
private brand strategy. Wawa-branded As mentioned earlier, Wawa is dedicated
products include the milk, juices and to simplifying the lives of consumers.
iced teas processed and packaged in its Almost as a mantra, managers at
own dairies. Wawa is also known for its corporate headquarters expressed that a
Sizzli™ breakfasts, hoagies, wraps and bad experience is the ultimate inconven-
hot-to-go bowls. The signature product, ience. In addition to tactical decisions
of course, is Wawa coffee. such as moving to larger footprint
Interestingly, in its original markets, stores, more multi-pump dispensing
the strong reputation for the quality of units and re-arranging store layout to
its dairy products has made it easy for facilitate traffic, Wawa also takes a
Wawa to expand to a gasoline offer. strategic look at the products it carries
Customers are convinced that a store that to increase convenience.

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What’s a Wawa,
Anyway?
No, Wawa is not baby talk for “water.” Wawa FACT 4: The geese flying in formation And, when it comes to encouraging one
is a Lenni Lenape Native American word for honk to encourage those up front to keep up another, as geese do by honking, Wawa
the Canada goose. Wawa stores are named their speed. takes its honking seriously. It is hard to find
for the area in Delaware County, Pennsylva- LESSON: We need to make sure our an organization that believes as much in
nia, where its dairy was established in 1902. honking is encouraging. In groups where pride, celebration and recognition as Wawa.
The associates at Wawa will tell you that there is encouragement, the productivity After all, this is a company with an official
geese make a great brand symbol and are an is greater. “Minister of the Magic,” Don Price, who views
inspiration for the company. Why? Read on. it as his personal responsibility to celebrate
Anthropologist Angeles Arrien may have FACT 5: When a goose is sick, individual and store milestones. “Prize
explained best why the goose makes such a wounded or shot down, two geese drop out patrols” swoop into stores that have
strong brand symbol in a 1991 lecture, of formation to follow it down and to protect exceeded their targets with a touch of magic.
“Lessons We Can Learn From Geese,” it. They stay with it until it is able to fly again What’s more, store managers vote to
delivered to the Organizational Development or until it dies. Then, they join another recognize their peers who best exemplify
Network. Here are the five facts and lessons formation or catch up with
he outlined in the lecture. their own flock.
LESSON: If we have as
FACT 1: As each goose flaps its wings, it much sense as geese, we
creates “uplift” for the birds that follow. By will stand by each other in
flying in a “V” formation, the whole flock gains difficult times as well as when
71 percent in flying range when compared to we are strong.
the range possible if each bird flew alone. Wawa people pride
LESSON:People who share a common themselves on flying in
direction and sense of community can get formation, working as a team.
where they are going quicker and easier In a press interview, Wawa
because they are traveling on the strength of chairman and CEO Richard
one another. D. “Dick” Wood Jr. declared,
“We tell people not just what
FACT 2: When a goose falls out of to do, but why.” Taking that
formation, it suddenly feels the drag and extra step to engage
resistance of flying alone. It quickly moves associates creates a true Dick Wood explains his leadership approach during a 2002
back into formation to take advantage of team spirit. NACS Magazine interview.
the lifting power of the bird immediately in This team spirit manifests
front of it. itself in Wawa’s response to a
LESSON: If we have as much sense crisis. When a particular store or a region Wawa values and team spirit, honoring them
as geese, we stay in formation with those faces natural disasters or personnel difficul- with the “Golden Wings” award.
headed where we want to go. We are ties, the manager can count on the entire The company is also committed to giving all
willing to accept their help and give our Wawa flock to provide support and “lift.” employees the chance to lead in the form of a
PHOTOGRAPH, THIS PAGE, BY NICK KELSH

help to others. After Hurricane Andrew hit the Virginia commitment to promotion from within. More
region served by Wawa, store managers from impressively, Wawa managers mentor direct
FACT 3: When the lead goose tires, it as far as New Jersey and Pennsylvania reports to build their skills and knowledge
rotates back into formation and another boarded buses, traveling to Richmond, through education. Wawa subsidizes
goose flies to the point position. Virginia stores to help managers there — employee education in any field, believing that
LESSON: It pays to take turns doing the whether it was unloading supplies or cleaning the breadth and perspective that education
hard tasks and sharing leadership roles. store fronts. affords builds better leaders.

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CASESTUDY

Each location has a

local feel. Customers
and associates
mentioned Wawa’s
involvement in
support of local
charities, from
Teamwork is a central part of the Wawa culture.
Wednesday evening
coffee carts that Being focused on immediate con- The value proposition is carefully
sumption and frequent replenishment reinforced in every aspect of Wawa’s
provide beverages to has helped the company to eliminate offer. Prominently displayed in the
product categories that might be Wawa stores is the ATM, which pro-
parents and families profitable but which take the corporate claims there is no surcharge for using
of children in the eye away from the goal of sharply honed the service at Wawa. This resonates
convenience. Indeed, the company, powerfully with customers who
local Children’s unlike many convenience stores, does generally resent having to pay to get
Hospital, to fighting not carry lottery tickets. The primary “their” money out. Many customers
reason for this is that large jackpots are mentioned that they loved the ability to
AIDS, cancer, heart likely to bring long lines of customers, grab a quick bite, and do some basic
inconveniencing regulars who have bank transactions on their lunch hour.
disease and hunger. grown to count on Wawa for a quick re-
fuel of bodies and automobiles. 6. Good neighbor.
Wawa is able to be big but act small;
5. Value they are a multi-state, multi-store
Wawa is focused on presenting an operation, yet each location has a local
overpowering offer. feel. Key to this feeling is Wawa’s policy
Its coffee, for instance, was frequently of being a good neighbor. Customers
compared by customers to Starbucks — and associates mentioned Wawa’s
at a much lower price point. Its sand- involvement in support of local chari-
wiches and snacks, likewise, appear to ties, from Wednesday evening coffee
be positioned not so much against other carts that provide beverages to parents
convenience store snack fare but against and families of children in the local
offers from more prominent, dedicated Children’s Hospital, to fighting AIDS,
food retailers and restaurants. cancer, heart disease and hunger.

14 NACS MAGAZINE SUPPLEMENT WWW.NACSONLINE.COM

wawa.sup-2.qx 9/28/04 4:27 PM Page 15

Goin’ to the Wawa, and We’re

Goin’ to Get Married
While at corporate headquarters in Wawa, Pennsylvania, an The bride gave us a copy of a letter she sent to her friends and family
employee I was interviewing for this research shared an interesting e- titled, “Why Wawa?” It concludes, “What better place to seal a bond, than
mail. It was a request from a gentleman asking permission to get where it all began? ….It all began when and where we both least
married at “his” Wawa store. expected. Now it’s OUR WAWA…more than just coffee.”
Through my research in many industries, I am no stranger to strong It felt like a family affair. The couple greeted employees by name,
brand loyalties, but this seemed over the top. How could a convenience and there was, of course, a great deal of joking and laughter about
store inspire such fanatical loyalty that a couple would be content to how everyone could see the relationship getting more serious with
celebrate one of the most memorable moments of their lives there? This each day’s cup of coffee.
clearly would have to be researched. I took the opportunity to chat with other patrons who walked into the
I arrived at the store, accompanied by its regional manager, Joe store once it was re-opened and as Wawa managers offered coffee and
Bendas. As we entered the store, the festive atmosphere was hard to cake to these customers. Invariably, the response was surprise. One man
miss. It looked like a miniature chapel, with festoons everywhere. A lovely declared, “A wedding at my Wawa. Now I have seen everything.”
Wawa gift basket awaited the lucky couple. The assistant store manager Asked to name another retail store, let alone a convenience store, where
baked a spectacular wedding cake. The store manager, Spencer they could imagine a couple wanting to get married, customers were
Robertson, posted notices outside the store that the store would be stumped. But at Wawa? “Of course,” they said, “It’s a part of people’s lives.”
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. This summer, a couple was married at “their” Wawa.

ABOUT THE AUTHOR: Neeli Bendapudi received her Ph.D. from the University of teaching in undergraduate, MBA and executive MBA classes. Professor Bendapudi’s MBA
Kansas and joined The Ohio State University in 1996. Professor Bendapudi’s research class on “Services Marketing” was cited in Business Week as one of the two most
deals with customers’ willingness and ability to maintain long-term relationships with recommended courses in The Ohio State University Fisher College of Business program.
firms and with the brands and employees that represent them. She also studies the effect Professor Bendapudi is active in outreach activities through consulting, keynote
of perceptions of service quality, service failure and recovery on customer relationships. speaking and executive education. She has worked with Cardinal Health, Deloitte &
Professor Bendapudi’s research has been published in the Harvard Business Review, Touche, The Limited and The Mayo Clinic among many others.
Journal of Marketing, Journal of Marketing Research, Journal of Retailing and in the She has worked closely with NACS on a variety of leadership programs. The
proceedings of various national and international conferences. She serves on the editorial research presented in this NACS Magazine supplement was conducted for a presentation
boards of the Journal of Marketing and the Journal of Consumer Psychology and is an at the NACS Show 2004 by Dr. Bendapudi and her husband, Venkat Bendapudi, Ph.D.,
elected member of the American Marketing Association’s Academic Council Executive who serves on the The Ohio State University Fisher College of Business faculty of
Committee, a 12-person steering group for the 40,000 international AMA members. Management and Human Resources. Neeli presented a similar case study of QuikTrip at
Professor Bendapudi has received numerous teaching awards, most recently a national the NACS Show 2003. She has also consulted with NACS to revamp its Leadership
Outstanding Marketing Teacher award from The Academy of Marketing Science in 2003. She Assembly and helped to coordinate the event in 2004.
also has received The Ohio State University 2001 Alumni Distinguished Teaching Award, the Neeli can be reached at (614) 292-2959 or [email protected]. For more
highest award bestowed by the University. Professor Bendapudi has received awards for her on her research and teaching, visit http://fisher.osu.edu/~bendapudi_1/.

NOVEMBER 2004 15
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Authoritative.

Relevant.
Coincidence?
We think not.
That’s because the NACS Magazine was created by NACS members for NACS members.

Now in its third year of publication, the NACS Magazine has been The NACS Magazine is a benefit of NACS membership. If your
characterized by readers as a leader in terms of providing authorita- company is a NACS member and you do not currently receive the
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