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It is rare for an advertising agency to enjoy the level of attention that Springer & Jacoby is currently attracting in Germany. True, others such as Saatchi & Saatchi have achieved it in their time elsewhere, but the fall from grace of what was once Germany's most respected creative hot shop, is currently a buzzing topic on the business pages of the nation's newspapers, prompting Sunday broadsheet Die Welt am Sonntag to take a closer look at what has caused its problems. To read the original article, in German, click on the link below (left) to be taken to the Die Welt am Sonntag website. Alternatively, click on the link below (right) to read a full English-language version, translated by From Europe With Love.
21.12.05
Over the past couple of years in continental Europe, brewers have linked with makers of household appliances to develop and market products which allow beer drinkers to enjoy the taste of a glass of freshly-dispensed draught beer in the comfort of their own home. With some success, says the Dutch daily newspaper Algemeen Dagblad. Heineken, which linked with Krups, has sold more than 150,000 of its 'BeerTender' system, the paper says, while Philips has sold 30,000 of its PerfectDraft systems - developed in conjunction with InBev - since October alone, prompting it to call on supplies from abroad. To read this story for yourself, in Dutch, click on the link below (left) to see it as published on the Algemeen Dagblad website. Alternatively, to see a longer version, in English, translated by From Europe With Love, click on the link below (right).
16.12.05
When Madonna's latest album, 'Confessions on a dancefloor', was released, tie-ins were set up with various telecommunications companies internationally to market the songs through a variety of channels. In France and in what what was probably the most sophisticated, multi-channel launch to date, Warner Music linked with France Telecom in a range of agreements, including the making available of hi-fi ringtones. But was it a success? Yes, says Thierry Chassagne, head of Warner Music France, speaking in the French newspaper Le Figaro. 'Confessions on a dancefloor' has so far sold 600,000 copies in five weeks, practically as many as the singer's previous album, Chassagne tells the paper. In terms of results of the link with France Telecom, Chassagne says that more than 500,000 digital sales have been achieved, with almost 200,000 hi-fi quality ringtones having been downloaded, in addition to 65,000 polyphonic excerpts from the first single taken from the album. In comparison, he says, most leading artists sell no more than between 60,000 and 90,000 ringtones. This degree of success has ruffled 'physical' outlets such as Fnac and Virgin Stores, Le Figaro counters and asks Thierry Chassagne how he would analyse their reaction. True, he admits, the additional digital channels upped the promotional pressure around the launch, but this was to the benefit of all those in the marketplace. Being digital, he continues, allowed Warner to measure consumer traffic and habits. If traditional outlet chains face competition from telecoms companies for future music sales, they themselves are going to have to look at getting into telephony, he concludes. The promotion around the Madonna album will then have served to open the dialogue between the different parts of an industry rapidly changing in shape. To read a longer version of this article, in French, click on the link below (left) to be taken to the Le Figaro website. Alternatively, click on the link below (right) to visit Warner Music France.
14.12.05
Just last week, Swiss supermarket chain Migros announced that it was to launch a range of alcohol-free wines. Good news for wine-loving shoppers who can still enjoy a drink while not needing to worry about drinking and driving. Bad news, however, for a number of farmers who have reacted angrily to the plan, says the newspaper Le Matin. Offered in red, white and rosé versions, the wines have in fact been produced in France since 1998 by a cooperative named 'Bonne Nouvelle' (which, coincidentally, means 'good news'). It is being introduced by Migros, the leading Swiss supermarket chain, on a trial basis and, if the trial proves successful, will be rolled out nationally in 2006. Traditional vineyard owners, however, may not be numerous among its customer base. "I haven't tasted it, but it doesn't sound too good", one farmer from Chouilly tells Le Matin. Another, Luc Massy, says he doesn't really see the sense in making wine without alcohol, unless it is perhaps meant to have some therapeutic effect. Alcohol, he says, supports the wine's bouquet. Without it, the drink is stripped of its substance Some have responded to the development with amusement. "This new product makes us smile a little", says one, Roger Burgdorfer from Domaine du Paradis, "but it really doesn't have much to do with us. Wine reflects the soul of the farmer, it's a way of living. Without alcohol, this drink, which does not merit the name of 'wine', is nothing more than a sort of fruit juice". Others, however, have reacted more strongly. Wine taster Christophe Venetz, says Le Matin, is categorical about the matter. "This type of product is more than neutral, it's completely depersonalised", he tells the newspaper. "Genuine wine has a character, it releases emotions. This is all about the globalisation of taste. I would even say that Migros is 'coca-colaising' wine. By taking the alcohol out of the wine, you're castrating it, definitively! What's more, the process of making wine without alcohol is relatively expensive and this does not, as a consequence, make it comparable or competitive with simple fruit juice". Click on the link below (left) to read this story for yourself, in French, on the Le Matin website. Alternatively, click on the link below (right) to visit Migros.
12.12.05
Makers of premium-priced branded goods have generally tried to look the other way as the discount grocery channel has grown across Europe. Now, however, it is so big and of such importance to overall retail sales that even companies such as Unilever can no longer ignore it. That, at least, is the conclusion one could draw from statements made by the company's group chief executive, Patrick Cescau, in Sao Paolo last week. Quoted in the Dutch online newswpaper Zibb, Cescau says that, on the one hand, European consumers are willing to pay extra for products of particular quality, but at the same time they want to be able to secure low prices on commonly-bought goods. "Everything in between is losing market share", Cescau says, announcing that, from now on, his company must look to serve both segments. "We have to better meet consumer needs", he continues. "There is now a big market out there, caused by changes in consumer demand, that we are not serving. The value-for-money equation for cheaper goods is different: one can imagine a detergent that freshens up clothes but doesn't get rid of the most stubboern stains". Cescau admits that Unilever already derives a substantial income from sales through discounters, but says that it is a route he intends to pursue more intensively. "They offer more than just a low price", he says. "The simplicity, clarity and accessibility in surroundings which can sometimes be attractive appeal to consumers". To read this story for yourself, in Dutch, click on the link below (left) to see it on the Zibb website. Alternatively, to visit Unilever's global website click on the link below (right).
12.12.05
Reichelt, a Berlin-based supermarket chain owned by the Edeka group, has reacted to consumer protest by taking a shower gel branded and promoted as being 'Erich's luxury' gel off its shelves. The Erich referred to is Erich Honecker, formed head of what was once East Germany. Despite the fact that sales have gone well, Reichelt has bowed to the protests of people who suffered under that regime and withdrawn the product from sale, says the news magazine Der Spiegel. Company spokesman Andreas Laubig plays down the decision, saying that the shower gel was only on a sale as a one-off promotion. Nevertheless, in future, he says, decisions on what products to include in such promotions will be subjected to more critical examination.
To read this story for yourself, in German, click on the link below (left) to visit the Der Spiegel website. Alternatively, click on the link below (right) to visit Reichelt.
12.12.05
The 'four Ps' of marketing, it seems (product, price, place, promotion), are no longer enough to stimulate the curiosity of consumers and induce them to purchase, says the Italian online business journal Tgfin.it. That is leading an increasing number of companies to seek to strengthen their market presence by forming strategic alliances. One company to have taken this route is the glass mosaic manufacturer Bisazza Mosaici. And with some success, given that sales have risen five-fold over the past five years and 20% in 2004 alone.
"For the last Milan car show", sales director Marco Piscitelli tells the journal, "we covered four Mini models using our mosaics. The unique results attracted customers and the press alike, with incredible benefits for our image. "We benefitted in terms of increased brand awareness in our traditional market and Mini was able to enter into the world of design, positioning itself as a brand in tune with the world of art". To read a longer version of this article, in Italian, click on the link below (left) to be taken to the corresponding page on the Tgfin.it website. Alternatively, click on the link below (right) to see the same article, translated into English by From Europe With Love.
08.12.05
Coca-Cola took advantage of a press conference in Paris on Wednesday to unveil a new drink brand, 'Cola Blak', writes the French news agency AFP. A mixture of traditional Coca-Cola and extracts of coffee, the drink will, first go on sale on January 15th 2006 in France, AFP says, before launching in the United States in April and in Spain 'before the summer'. Long rumoured to be in the pipeline, Blak is considered by Coca-Cola as being potentially as important to it as Coca-Cola Light, AFP says. "It creates a new category of adult drinks", spokeswoman Isabelle Hubsch boldly tells the agency. Blak is targeted at young adults "who are looking for a refreshing, invigorating boost during their working day", Ms. Hubsch adds. In contrast to the traditional red and white employed on the company's flagship brands, Cola Blak will be sold in black bottles that largely mask the container's contents. These include only 20 calories per 100 millilitres, around half of those contained in traditional Coca-Cola. The name 'Blak', Ms. Hubsch continues, was chosen to add to the sense of mystery around the brand, which is believed to be positioned in the same market territory as the recently-launched Pepsi Max Capuccino. This is the first time, AFP says, that the American-based multinational has chosen to premiere a major product outside the United States. To read this story for yourself, in French, click on the link below (left) to be taken to the Voila/AFP website. Alternatively, to visit Coca-Cola France although, as yet, there is no mention of 'Blak', click on the link below (right).
08.12.05
Dutch coffee maker Douwe Egberts has won a judgment from the European Patent Office forbidding any other company from making pads suitable for use with its popular Senseo coffee making system, writes the newspaper Algemeen Dagblad. The judgment handed down from the Antwerp-based EPO will affect a number of manufacturers of those similar to those of Douwe Egberts, whose patent on the design the ruling confirms, Algemeen Dagblad says. In the Netherlands, these include the supermarket chain Vomar and the coffee roaster Drie Mollen. Sara Lee, owner of Douwe Egberts, currently has court cases outstanding against these and other companies in Belgium and Germany. A joint venture between household appliance maker Philips and Douwe Egberts, Senseo first launched in the Netherlands in 2001 and has since gone on to become a success internationally, prompting manufacturers other than Douwe Egberts to produce their own, cheaper versions of the pads required to use the system. To read this story for yourself, in Dutch, click on the link below (left) to see it on the Algemeen Dagblad website. Alternatively, to visit the Senseo international website', click on the link below (right) .
07.12.05
German industrial conglomerate Beiersdorf is exploring new distribution avenues for its flagship Nivea skincare brand, says the advertising magazine Werben & Verkaufen (W&V). Among them is the world's first dedicated Nivea store, due to open in spring 2006 in Hamburg. The store, which will be spread over 3 storeys, will carry Novea's full range of facial and hair care, make-up, manicure and pedicure, colour therapy and massage products, W&V says. 17 Nivea-branded in-store shops are already operating in German department stores and performing well in terms of sales, Nivea says. The company is billing this latest opening as offering the customer a 'world of wellbeing for body and soul'. The company is aware of such outlets' potential as an active brand experience and will be making advisors available in store to give tips on a range of personal care issues. The store will be specifically designed to meet a growing demand for 'wellness quick-fixes', Nivea says. To read this story for yourself, in German, click on the link below (left) to be taken to the W&V website. Alternatively, to read the original press release from Nivea, again in German and as posted on Beiersdorf's corporate website, click on the link below (right) .
06.12.05
Inhabitants of the Belgian town of Hoegaarden are in uproar, says the newspaper Algemeen Dagblad, with the news that brewing giant Interbrew plans to move production of the 'white' beer which has made them famous to a factory at Jupiler. The move makes economic sense to Interbrew, which now owns Hoegaarden, given that it could enjoy economies of scale from using the same facilities it already uses to produce Jupiler-brand beer. That, however, is of little consolation to the good people of Hoegaarden, who would be left simply with a bottling facility for packaging the end product. Around half of the present workforce stand to lose their jobs as a result of the decision, Algemeen Dagblad says. And while Interbrew spokesman Lian Verhoeven seeks to reassure consumers that the taste of the beer would remain the same, not everyone is so convinced. It's more than just a matter of pride. Café owners fear for their income, given that the town of Hoegaarden would suddenly become less interesting to the thousands of tourists who currently visit each year. The unexpected closure, Algemeen Dagblad says, is a bitter blow for the brewery workers, too. "InBev says that Hoegaarden can be brewed anywhere, but that doesn;t take into account people's feelings", says union spokesman Hugo Coosemans, while Pierre Celis, who originally founded the brewery laments that: "it hurts to see something you built up so successfully yourself just disappear". To read this story for yourself, in Dutch, click on the link below (left) to see it on the Algemeen Dagblad website. Alternatively, to read up about Hoegaarden on InBev's typically global website, click on the link below (right) .
06.12.05
After much debate, France's National Assembly has finally adopted what is known as article 57 of the law on public health, says the newspaper Le Figaro. The article in question relates specifically to the advertising of food products but, as the heads of the French advertising agency association AACC tell the paper, rather than a step forward in protecting the public's health the law as approved is strongly disappointing. AACC president Hervé Brossard tells Le Figaro that his association has been working in close collaboration with the food industry, nutritionists and legal experts for over a year, as well as maintaining contact with politicians with a view to making the law as applicable and effective as possible. The decrees now published, however, will make the 'healthy' messages that accompany advertising for certain food and drinks products ineffective and unlikely to alter the eating habits of the French. Vice-president Christophe Lambert agrees that the law will prove counter-productive. "It's bad news for everyone", he says. "The information strips that go with the advertising campaigns will pollute the brands' messages without allowing the ads to communicate a clear and effective message in respect of health." "We are aware of the seriousness of the problem", he continues. "Childhood obesity and the concerns about other areas of the public's health mean action has to be taken. Advertising can play an active role in combatting this scourge by dealing directly with people's eating habits. But you have to respect the fundamental rules of communications. That will not be possible with these decrees when they are published next February or March. To read a longer version of this story for yourself, in French, click on the link below (left) to be taken to the Le Figaro website. Alternatively, click on the link below (right) to visit the site maintained by the AACC or click here to see the full article translated into English by From Europe With Love.
05.12.05
Spain's Institute for Women's Affairs is to set up a commission to monitor the portrayal of women in advertising, writes the newspaper El Mundo. The commission, the Institute's head, Rosa Peris, tells the paper, will be made up of advertisers, agencies and consumer associations. Its announcment follows the release of figures by the country's 'Sexist Advertising Observatory', which show that 171 complaints were made by members of the public in 2004. Although this figure is slightly lower than that recorded during 2003, when 177 complaints were made, 14 companies were asked to withdraw or change their advertising during the year. The Comission will come into operation in the first half of 2006, El Mundo says, and will release statements saying when it considers advertising unacceptable, although it has no formal regulatory capacity.
According to the sexist advertising observatory, campaigns for Axe men's care, Siemens household appliances, the soft drink Kas Naranja and rum brand Don Barceló (shown) were the most complained about. To read a longer version of this story for yourself, in Spanish, click on the link below (left) to see it on the El Mundo website. Alternatively, click on the link below (right) to visit the Don Barceló site or click here to see a fuller version of the article translated into English by From Europe With Love.
05.12.05
Germany is looking to capitalise on the fact that it is hosting next year's soccer World Cup to promote itself to foreign visitors, as well as boosting self esteem among its own citizens. Earlier this year, ad agency Scholz & Friends was appointed to head up the promotional effort and agency creative head has been outlining to the Swiss advertising and marketing magazine Persoenlich just what this involves and some of the creative ways his firm is going about presenting the comcept of Germany as Land der Ideen' (or 'the country of ideas'). Turner stresses that, in describing itself thus, Germany isn't suggesting that other countries don't have ideas but that the idea is to bring to the forefront what he believes the country is known for worldwide. One feature of the campaign, Persoenlich notes, involves the placing of an enormous pile of books on the Bebelplatz in Berlin, once the scene of a historic book-burning incident during Nazi times. That, says Turner, is just one of a range of initiatives, all taking the form of large sculptures. While they may have little to do with football, Turner points out that once 2006 has passed, Germany will still be there and the intention is to form a lasting image of the country's creative strengths in the minds of visitors. Official partners of the campaign include major companies such as e-On, BASF and Deutsche Telekom. To read a longer version of this story for yourself, in Italian, click on the link below (left) to be taken to the Persoenlich website. Alternatively, click on the link below (right) to visit the official 'Land der Ideen' website or here to read a longer version of the interview, translated into English by From Europe With Love.
05.12.05
Italians are thirsty for more and more information and are accessing it through a growing range of sources. At least that's the result of the 39th report produced by Censis, a research foundation set up to explore themes of socio- economic importance. Reported on the online business journal Affari Italiani, the survey classifies the population by their uptake of new and existing media services. Thus 'marginals' (using television only) and 'the poor' (who use no more than two media types) are identified, although in each case the number of people falling into these classifications is falling. The number of consumers who can be classified as 'average' (defined as making good use of media, without including the internet) is also falling, Censis says. The number of 'omnivores', on the other hand (and who use as many as seven types of media) and 'pioneers' (eight types and over) is growing. "Around 20% of the Italian population is truly taking advantage of the digital age", Censis says. This is proved by penetration figures for communications and entertainment devices: 90% of citizens have a mobile phone, 85% a video recorder and, in just one year, the percentage of the population owning a DVD player has risen from 21% to 60%. According to Censis, around 20 million Italians could be considered as internet users during 2005, equivalent to just over 40% of the population. To see what else the foundation discovered, either click on the link below (left) to read a fuller version of this article, in Italian, on the Affari Italiani website, or click on the link below (right) to see the full text of the press release on the Censis website.
05.12.05
Albert Heijn, the Netherlands' leading supermarket retailer, has unveiled the first of what it is calling a 'new generation' of stores, with a format designed to appeal both to those looking for standard presentation of top brands and to other (or the same) shoppers looking for goods at low prices with minimal presentational frills. These, in the style of 'hard' discounters such as Aldi and Lidl, will be sold from boxes, as delivered from the factory, while recognised brands - or 'A-Marken', as they are known in Holland - will be allowed a place on the shelves. Four openings are expected to follow in 2006, says the news site AgriHolland Nieuws. The motive behind the new format, according to Albert Heijn, is the changing expectations of consumers who now demand a combination of convenience and inspiration, helpful staff and attractive prices. Around 35% of stock in traditional Albert Heijn outlets bears the company's own brand, AgriHolland Nieuws says, but this percentage is much higher in the new-format stores. One feature of the new range is a selection of 60 products - sold under the 'Kies & Kook' ('Choose and cook') brand, which promises shoppers that, by buying for of them, they can put together a meal in 15 minutes for just 8 euros. To read a longer version of this story for yourself, in Dutch, click on the link below (left) to see it as published on AgriHolland Nieuws. Alternatively, click on the link below (right) to open up a video sequence in Windows Media Player format that gives an overview of what the new format looks like and posted on the website of the Dutch business newspaper Zibb.
05.12.05
Aldi, the discount grocery chain, is to launch its own mobile phone service this week, claims the German newspaper Bild. The service will be made available throughout the company's 4,000-plus strong network, Bild says, with experts predicting that, where the market leader goes, others will soon follow. The four leading network operators - T-Mobile, Vodafone, E-Plus and O2 - have long feared competition from mass market retailers. Vodafone has resisted the urge to cooperate with them, Bild says, although O2, which has a smaller market presence, has struck a deal with the coffee chain Tchibo. Aldi's service is launching with E-Plus as a partner and offers a 10 euro call voucher as an introductory gift. Once that has been used up, calls will cost 15 cents per minute for calls to German landline phones and other national mobile networks. Aldi customers calling each other will pay just 5 cents per minute. To read this story for yourself, in German, click on the link below (left). Alternatively, click on the link below (right) to visit Aldi's German website and check out the new service for yourself.
30.11.05
French insurance firm Maaf Assurances is offering holders of its complementary health policy a discount of up to 40 euros per year if they consume products with anti-cholesterol properties sold under Unilever's Proactiv brand, writes the newspaper Le Figaro. According to the two companies, who released a joint statement on Tuesday, the deal is destined to be a 'precursor' to other, similar initiatives and forms part of a drive to lower cholesterol levels and therefore lessen the risk of heart disease. Under the terms of the promotion, which will run under the name 'Pur bonus santé', policy holders will need to send their sales receipts to Maaf by 31st December 2006. For the first seven Proactiv products bought, they will receive a discount of 10 euros on the annual cost of their policy, rising to 22 euros per 14 products and 40 euros for 21 products, Le Figaro says. Products sold under the Proactiv brand include margarines, dairy drinks and yogurts. According to Maaf and Unilever, around 3 million Frenchmen currently purchase Proactiv goods. Announcement of the deal follows closely on a similar arrangement announced by Unilever rival Danone, which will link with another insurance company - AGF - from the beginning of 2006, offering advantages to buyers of its Danacol cholesterol-lowering products. To read a longer version of this story, in French, click on the link below (left) to be taken to the Le Figaro website. Alternatively, click on the link below (right) to visit Unilever's French website.
01.12.05
Austrian company Almdudler, maker of the herb-based lemonade drink of the same name, has been told by a Luxembourg court that its bottle design is not unique enough to benefit from EU trademark protection, says the newspaper Die Presse. Almdudler first applied for a '3-dimensional trademark' in 2001, claiming that its brand consisted of the particular shape of the bottle, plus its composition, which varies from clear in the middle to grained in the lower and upper parts. That request was turned down, a decision which the company decided to appeal to before the European Court of Justice. The Court, however, has confirmed the earlier decision, saying that the bottle was of a clear type generally used by bottlers of lemonade and therefore did not constitute a strong enough signal which might cause consumers to attribute its form to one manufacturer or another. Almdudler has thus failed to replicate Coca Cola, which has secured widespread trademark protection for its characteristic shaped bottle, including in the EU. To read a longer version of this story, in German, click on the link below (left) to go to the Die Presse website. Alternatively, click on the link below (right) to visit Almdudler.
30.11.05
Got a friend that can't stop telling you all about this or that new product with great enthusiasm? Well, if so, it could be that he or she is a 'buzzer', at least in the Netherlands. The latest films, CDs, games, cosmetics... buzzers get them all for free, as long as they promise to go around telling the world about their plus points, says the magazine Trouw. 'Buzzing' is the idea of the Amsterdam-based firm Buzzer, founded by Willem Sodderland, and capitalises on the fact that the most effective form of promotion is often word of mouth. "People are tired of all the commercials", he tells Trouw, "you have to reach them in another way. We let consumers speak for themselves, effectively making them marketers". Three main reasons lie behind buzzers' motivation, according to Sodderland. Firstly, status (they get products before other people hear about them), influence (both on people and on manufacturers) and having a story to tell. "We offer manufacturers a group of discriminating consumers who are please to tell people how satisfied they are with their product", says Sodderland. "The manufacturer gets free advertising and both sides profit from the deal". | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
