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Germany 
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Hand-filtered
news from the online mainstream and trade press designed to give you topical insight into
German advertising and marketing, life and lifestyles............. 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the fact that sales have gone well, Reichelt has bowed to the protests of people who suffered under that regime and withdrawn the product from sale, says the news magazine Der Spiegel.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.
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
With the number of corner grocery shops - affectionately known in Germany as 'Tante Emma Laden' (or 'Aunt Emma shops') - continuing to fall, their owners are being called on to develop their offer if they are to be able to compete with more modern and larger retail forms such as super- and hypermarkets, writes the newspaper Kölner Stadt Anzeiger. "The number has fallen by fully half in the past ten years", says Michael Gerling of the city's Eurohandelsinstitut (EHI) business college. The EHI forecasts that 2,000 corner shops will have closed in just one year by the end of 2005, leaving the number of such outlets at 33,000. In 1993, the figure was 56,000. "That's dramatic", says Gerling. But while many German shoppers would rate their local store as 'essential', this is not reflected in their shopping behaviour. Since 1993, average shop turnover has fallen by almost 30%, he calculates, with customer numbers falling by 13%. "Either the 'Tante Emma' shops change or they are going to die out", Gerling continues. As for how they might change, he suggests that they could offer home-made soups or lunches. "The market is about nutrition", he tells the Kölner Stadt Anzeiger. "That doesn't just mean ingredients for meals, but meals themselves". Click on the link below (left) to read this story for yourself, in German, on the Kölner Stadt Anzeiger website. Alternatively, click on the link below (right) to see a selection of photos of a typical 'Tante Emma' shop.
21.11.05
Aldi, which has built its success on offering low-priced, exclusive own label brands instead of the major brands to be found on the shelves of most retailers, is currently in talks with both Coke and Pepsi about stocking their drinks in its German outlets, writes the business newspaper Zibb.nl. Aldi's German operations are split into two, with each of them run by one of the billionaire brothers who own the chain. The discussions underway, Zibb says, relate to the company's stores in southern Germany ('Aldi Sud') and come shortly after confectionery maker Ferrero also agreed to have its products listed in the discounter's shops. Click on the link below (left) to read this story for yourself, in Dutch, on the Zibb.nl website. Alternatively, click on the link below (right) to visit Aldi in Germany.
26.09.05
Germany is looking to the biggest non-commercial advertising campaign in its history to help it pull itself out of its current subdued mood, writes the newspaper Der Standard. At the heart of the campaign, Der Standard says, is a new TV ad that uses the slogan 'Du bist Deutschland!' (in English, 'You are Germany!'). The spot, which broke on Sunday September 25th, will run for a period of four months on the country's leading channels, accompanied by full-page print ads in all major newspapers and magazines. Equivalent total investment of over €30 million backs the campaign, although no money will in fact change hands and all media space will be donated free. "Our aim is to establish a new mood that this country is going forward", Bernd Bauer, spokesman for 'Partner für Innovation, the organisation behind the campaign, tells Der Standard. To achieve this, the campaign hopes to motivate each individual to make their own personal contribution to lifting Germany out of its 'crisis'. "A butterfly can unleash a typhoon", TV presenter Sandra Maischberger is quoted as saying, with perhaps not the best sense of timing given events in the United States which coincide with the appearance of the campaign. Maischberger is one of over 30 well-known personalities lending their endorsement to the campaign. Others include the ice skater Katharina Witt, who asks in the TV ad: "Wie wär's, wenn Du Dich mal wieder selbst anfeuerst" (in English: "Imagine what could happen if you fired yourself up again). The general theme behind the push, Der Standard says, is encapsulated in the phrase: "Don't ask what others can do for you. Your are thoes others. You are Germany!". The work was produced by star ad agencies Jung von Matt and kempertrautmann, without a fee. Originally planned for June, the campaign was postponed on account of the parliamentary elections which took place this month. Its first appearance has been scheduled for 7.56pm on both the leading state-funded TV channels, ARD and ZDF, with the leading commercial channels following 17 minutes later. Click on the link below (left) to read this story for yourself, in German, on the Der Standard website. Alternatively, click on the link below (right) to go to the website set up to support the 'Du bist Deutschland' campaign and which, hopefully by now, should be up and running.
16.05.05
Germany's national railway company, Deutsche Bahn, is to copy the example of service stations and install corner shops - or 'Tante Emma Laden' ('Auntie Emma shops) - in 800 of its smaller and middle-sized stations, says the newspaper Der Standard. "Smaller supermarkets are being closed all over the place", spokesman Frank Gassen-Wendler tells the paper. "We aim to fill the gap in people's basic provision. DB Service Stores represent a development on the concept of the traditional corner store". 107 such outlets are already in operation at stations with at least 2,500 travellers or visitors per day. By the end of 2005, Deutsche Bahn plans to have 175 up and running. "We've had nothing but positive experiences so far", Gassen-Wendler continues. "If things continue to go well, we will be able to establish the outlets in up to 800 stations acros the country. In addition to snacks, newspapers, magazines and cigarettes, the outlets will also serve tickets - a useful item to stock in railway stations. The outlets will be awarded on a franchise basis offering, Frank Gassen-Wendler says, an good platform for setting up a new business with minimum risk. Click on the link below (left) to read this story for yourself, in German, at the Der Standard website. Alternatively, click on the link below (right) to visit Deutsche Bahn or here to see a picture of a typical 'Tante Emma Laden'.
09.05.05
Deutsche Bahn, the German railway company, is running a special offer which involves selling tickets through a 'high street' retailer for the first time, writes the newspaper Kurier. With a view to reaching new customer groups, the company is to make packages of two tickets available at all outlets operated by Lidl, the country's second-largest discount chain, between May 19th and 28th. Priced at € 49.90, the tickets allow buyers to write in themselves where they want to leave from and go to. They are designed to cater principally for journeys of up to 160 kilometres, the distance between Hamburg and Berlin, Kurier says. They will remain on sale while stocks last and are valid until October 3rd for single, second-class trips on all the company's trains, although supplements will be payable for premium forms of travel such as Deutsche Bahn's ICE 'supertrains'. "We are using this special offer to reach a new target market", company spokesman Jürgen Büchy told the press, especially "those who just wouldn't have considered travelling by rail before. Click on the link below (left) to read this story for yourself, in German, in Kurier. Alternatively, click on the link below (right) to visit Lidl in Germany.
03.05.05
Although not, perhaps, as fast as many had predicted, there is no doubt that the popularity of organically produced food is growing - in some countries, faster than others and with Germany leading the way. Now Rewe, one of the country's leading supermarket operators, is testing the viability of an all-organic format with the opening of a first, 720 square metre store in Düsseldorf, writes the newspaper Die Welt. The store, operating under the name 'Vierlinden', is to be managed by a Rewe subsidiary set up specially for the initiative, Biokonzept GmbH, Die Welt says. Its purpose. "We want to make organic produce a perfectly natural choice", managing director Elke Rieckh tells the paper. Over the coming year, two further 'Vierlinden' openings are planned, with a similar rate of growth planned for subsequent years. The shops will stock between 6,000 and 8,000 items such as fruit and vegetables, milk and dairy products, meat and wine, alongside non-food products such as cosmetics or cleaning materials. They will also carry goods branded with Rewe's 'Füllhorn' own label organic brand, which has been offering the company's customers an organic alternative in standard supermarkets since 1988. The German market for organic products grew last year alone by 10%, Die Welt says, to € 3.5 billion. Growth in the first quarter of this year has been even higher, at 15%, due both to a greater presence in traditional supermarkets and the advent of initiatives such as Rewe's. Click on the link below (left) to read a longer version of this story for yourself, in German, on the Die Welt website. Alternatively, click on the link below (right) to see Rewe's own press release about this event, taken from the company's website.
25.04.05
Germany's opposition politicians responded frostily to a plan announced by the German government this week to introduce a new logo for the 'Bundesagentur für Arbeit', or state emplyment office. Employment - or lack of it - is a hot topic at the moment in Germany, with official figures showing the number of jobseekers as exceeding 5 million. While it might have seemed a good idea to Helmet Schroder's team to mark the fact that the employment service has undergone extensive internal reform with a refreshed, external appearance, opponents of the plan found a number of ways to express their opposition this week, says the magazine Der Spiegel. The redesign is, in fact, minimal and will cost only in the region of € 100,000, Der Spiegel says, but that figure and, indeed, the plan itself were described by Green employment market expert Dirk Dückert as unnecessary, given that there are more important things to turn ones attention to. His counterpart at the FDP said the government shouldn't try to cover up its poor performance in terms of employment by giving the department an image campaign or "any similar knicknacks". Click on the link below (left) to see this story for yourself, in German, on the Spiegel website. Alternatively, click on the link below (right) to visit the official site of the German employment service.
18.04.05
In the wake of the high-profile failure of the British car maker, Rover, this week, after it failed to reach agreement with the only company interesteed in buying it, BMW, which still owns the rights to the Rover brand name, has said that it is prepared to sell the name if someone wants to make cars again using that name. BMW sold Rover to a management team for around €15, 5 years ago, but retained the rights to the name. Speaking to the news agency Agence France Presse this week, in a story carried in the German newspaper Sueedeutsche Zeitung, a company spokeswoman said that: "If someone is interested in manufacturing cars under the Rover brand, we are available to talk to them". Click on the link below (left) to see this story in its original form, in German, on the Sueddeutsche Zeitung website. Alternatively, to visit MG Rover and see what was, click on the link below (right).
11.04.05
Looking to check whether a slogan is already in use in German-language advertising? From now on, advertisers have a new resource to help them, says the online German trade magazine Media & Marketing, with the unveiling by Ahrensburg-based Schutz Marken Dienst (SMD) GmbH of 'slogany.de', a web-based index over 50,000 slogans, 100,000 headlines and around 150,000 nationally- and internationally-protected 'brand slogans'. In addition to the phrases themselves, slogany.de carries information about over 34,000 products and companies, SMD managing director tells Media & Marketing, with employees of the firm scouring about 100 publications each month for additions to its database. The search works like any standard search engine, with full users able to call up the terms themselves, who used them and when. The service comes with a cost, but those curious to try it out can click on the link below (left) to go to the slogany site. Alternatively - or additionally - clicking on the link below (right) will take you to adslogans.com, a similar although more established service, run out of the UK.
04.04.05
Germany's leading grocery discount chain, Aldi, has long resisted calls from customers to allow them to pay for their shopping, writes the online news magazine Focus. Reasons put forward by the retailer have included the fact that allowing customers to settle their bill electronically would slow down queues. In addition, Aldi considered, the charges levied on card payments constitute an unwanted extra business cost. Rivals such as Lidl started to accept electronic payments around two years ago. Now, it seems, Aldi is willing to play along and is to trial the system in two of its stores, in Essen, from this month. For years, Aldi checkout staff were obliged to memorise the stock number of every item on the store's shelves, thus allowing their employers to save the money they would otherwise have had to invest in modern electronic scanning equipment. Click on the link below (left) to see this story in its original form, in German, on the Focus website. Alternatively, click on the link below (right) to visit Aldi.
01.04.05
Products don't necessarily have to be expensive to be good. That, at least, is the message one German detective is trying to get across to German consumers. While it's not a crime to produce goods for other companies - typically retailers - to sell under their own brand name and often at lower prices, it is a practice many FMCG manufacturers have resisted for a long time. Now, however, Volker Schwörer has applied his professional skills in supermarket aisles to track down the real faces behind the host of 'no-name' brands on the shelves of stores such as Aldi, Lidl and Penny, says the online news magazine Focus. Cheaper yogurts, pizzas, ice creams and salami may be identical or at least very similar to much more expensive products from the likes of Humana, Ehrmann, Zott or Stockmeyer, Schwörer says. The 'brand detective' has published the results of his research on his own website.. click on the link below (left) to explore it for yourself. Alternatively, click on the link below (right) to see this story in its original form, in German, on the Focus website.
29.03.05
Otto, Germany's leading mail order firm, has terminated its contract with the model Heidi Klum, says the online magazine Focus, because she has become pregnant. Despite the fact that many women purchase using mail order and - and From Europe With Love does not wish to present itself as an expert in such matters - many women also find themselves in a state of pregnancy, Klum's father confirmed this Sunday that the Hamburg-based mail order giant had terminated its relationship with his daughter. The company, Klum says on her own website, "has used a clause in its contract and cancelled my contract, because I'm pregnant". Her current display of Otto's spring collection is due to remain on air until June, followed by a summer selection which, strangely, also includes babywear. Heidi's judgment of Otto's offering - "Otto find ich gut" ("I like Otto") - became the company's advertising slogan, the first campaign appearing in January 2004. Klum has now added a headline to her own website, switching the line to "Otto fand ich gut" ("I used to like Otto). She revealed recently that she was expecting her first child with her partner, the British singer Seal, Focus says. Her first child, a girl, resulting from a relationship with the Formula 1 team director Flavio Briatore, will be one year old in May. Otto has since issued a statement offering a different reason for its actions, stating that Klum had failed to keep appointments. To read this article for yourself, in German, follow the link below (left) to go to the Focus website. Alternatively, to indulge yourself (if male), click on the link below (right) to see a slideshow of pictures of a very pretty woman appearing in advertising for companies such as Otto, Douglas and McDonald's.
22.03.05
German is to run a € 20 million marketing and advertising campaign in connection with its hosting the 2006 football World Cup, writes the newspaper Die Welt. Speaking to the paper, Mike de Vries, managing director of FC Deutschland 06 GmbH, the company set up to manage business and organisational matters relating to the competition, said thsi week that: "the € 10 million so far planned to be contributed by the government and industry are only the beginning". The campaign will run using the slogan "Deutschland - Land der Ideen" (Germany - Country of Ideas) and be "strictly neutral" in political terms, de Vries says. Rather than reverting to traditional symbols, such as the Brandenburger Tor, its organisers plan to reflect what they believe is a new, forward-looking spirit, like that to be found in the country's football team, now managed by Jürgen Klinsmann and Oliver Bierhoff. Using sport as its starting point, the promotional initiative is designed to run throughout 2006 and into 2007, says Die Welt, with corporate partners able to buy into it by acquiring licenses costing between € 100,000 and € 1 million each. "Nothing brings the country together quite like football", de Vries says. "For that reason, this new logo could become a quality brand for us in the way that 'Made in Germany' once was". To read the original article for yourself, in German, follow the link below (left). Alternatively, click on the link below (right) to visit the website dedicated to the 2006 World Cup by the German football association.
As the ITB international tourism fair kicked off this week in Frankfurt, optimism was spreading around the German tourism industry, writes the newspaper Die Welt, basing its opinion on an interview with Michael Frenzel, head of the leading tourist company TUI. Asked how a poor economy and high unemployment rate could square with his assertion that the tourism business was functioning well, Frenzel tells Die Welt that the tourism businesss has 'uncoupled' itself from the general economy, a fact proven by current booking levels. Travel, he says, is 'in' again. His company's lates figures, Frenzel continues, show that bookings for the coming summer are looking robust, although a high proportion of bookings have been made on the basis of discount offers which bring with them low levels of profitability. In Frenzel's opinion, that 'high proportion' does not constitute a majority and for destinations such as France and the UK, for example, such discounts barely exist, not preventing TUI from posting double-digit bookings growth. TUI doesn't seek, Frenzel adds, to teach its customers how to book their holidays. On the contrary, it is there to spoil them. If they want to book 'last-minute', they can. But that is no longer the dominant trend. As a reason for this, he puts forward that last-minute bookings in high season can come up against bottlenecks, putting a brake on capacity or forcing operators to buy it up at short notice. After September 2001, he continues, over-capacity characerised the market, leading to very attractive one-off prices. While that was a unique occasion, however, it has left its mark, with an increasing number of people shunning package deals and putting together flight + hotel deals for themselves at the lowest possible price. "Things have changed", Frenzel tells Die Welt. "As long as the package holiday offers good value for money, it has a future. At the same time, the trend towards people putting together different components of a holiday - generally over the internet - has grown. 20% of our bookings are currently direct bookings, most of them using the internet. For us, this has opened up the individual traveller market - one that we were previously completely excluded from. The full interview with Michael Frenzel can be visited by following the link below (left). TUI can be visited by following the link below (right). If you want to book your holiday, From Europe With Love respectfully suggests that you 'go your own way'.
11.11.04
Germany's discount grocery retail giants are not normally noted for the quality of their service, with barebone presentation and a minimum of in-store assistance. One, however, looks set to break that image with news that Lidl is mounting a recruitment drive and planning changes at the checkout to ensure customers are served quicker and better, says the magazine Der Spiegel. Traditionally, Lidl and arch-rival Aldi keep the costs of their products low by making savings in personnel costs and store outfitting. That one of them is now willing to change its formula may be largely attributable to the longlasting consumer slump which , it appears, is now even affecting the discount sector. After years of unbroken growth, Der Spiegel says, sales at Aldi have been falling for some months: during September alone, according to market observers, revenues were down 3% on a like-for-like basis. According to the grocery trade 'bible' Lebensmittel Zeitung, Lidl is facing even harder times, with sales down 6% year on year. This is in part due to a price-war being waged between the two chains and Lidl may be admitting that that is not the right way to turn the situation around. Click on the link below (left) to read a fuller version of this article for yourself, in German, on the Spiegel website. Alternatively, to see what a Lidl checkout looks like on a good day, click on the link below (right).
Car industry expert Professor Ferdinand Dudenhöffer believes that stronger links need to be forged between the Smart small car brand and parent Mercedes if it is to survive, says the German business weekly Wirtschaftswoche. That, plus more intensive marketing in international markets, will be important to ensure Smart's long-term success, Dudenhöffer says. "The future of Smart will depend on sales", he tells the magazine. "On the product side, the offering is complete". Daimler Chrysler should review its distribution structure, he continues, so that Smart is more closely associated with its parent company at retail level and not only presented in outlets devoted to the Smart brand. "If the Mini from BMW works, then in principle so should Smart". Professor Dudenhöffer is Director of the Center of Automotive Research at the 'Fachhochschule' (technical college) of Gelsenkirchen. Click on the link below (left) to read the original article for yourself, in German, on the Wirtschaftswoche website. Alternatively, to find out more about Ferdinand Dudenhöffer - who has, in the past, held senior sales and marketing posts at Citroën, Peugeot and Porsche - click on the link below (right) top see a profile of him on the Business Village website.
28.10.04
Hard times are ahead for the likes of Snickers, Nescafé and Co., writes the newspaper Die Welt, with cheaper retail brands set to chase traditional manufacturer brands off German shop shelves over the next 5 to 6 years. That, at least, is the opinion of consultants A.T. Kearney. Kearney reckons that potential gains of € 300 million are there to be won by retailers over the period, thus boosting private label's share of the German grocery market to 35%. And that's not even counting hard discounters like Aldi. According to a study released to the newspaper by Peter Pfeiffer, head of A.T. Kearney's consumer goods and retail division, the majority of this increase in revenues would come directly from makers of traditional brands, with the most affected being those companies whose brands are only the 2nd- and 3rd-largest in their category. Brand manufacturers, Pfeiffer says, have already had to take big hits as discounters have grown their business over recent years, much of it deriving from the sale of own-label and 'no-name' brands such as Tengelmann's 'A&P' which retail, on average, at about 55% less than their branded counterparts. Now retailers are expected to try to extend their private label offering into premium segments. "Our studies show", Pfeiffer tells the paper, that the consumer perceptions between retailer and manufacturer brands have become blurred". Out of 500 interviewees spoken to by Kearney, practically all confessed to having a positive perception of own label, to the point where such products could now be labelled as "quasi brands". German retailers, however, have been slow to truly exploit the full potential offered by private label goods, unlike their foreign counterparts such as Carrefour and Tesco. Click on the link below (left) to read more about A. T. Kearney's view of the German private label market, in German, in the pages of Die Welt. Alternatively, visit Kearney's German website by clicking on the link below (right).
25.10.04
General Motors' problems in Europe have been well documented in recent weeks, with thousands of lay-ffs announced, production delays and calls for widespread restructuring which will greatly affect companies such as Vauxhall and German-based Opel. Under new proposals being put forward, the company's various operating divisions will be merged into a single entity with a European constitution, thus signalling the disappearance of historic, individual forms such as Adam Opel AG, an instutition in Germany. Should this happen, says the newspaper Die Welt, the Opel brand is likely to survive but as no more than a signature on cars that could be produced anywhere. Opel's German management is already said to have largely been relieved of effective power. Although the actual effect of the change in organisational structure will be far less than that of the current and forecast cuts, touching an institution such as Opel could have far-reaching ramifications, with generations of German car buyers having marked their lifestages by buying the Opel model to suit. The man in the brown comfort shoes, blue jeans and black and yellow-striped polo shirt, for example, spoken to by Die Welt. Now a pensioner but still, out of conviction, an 'Opelaner' (fan of Opel), this 65 year-old tells the paper that: "I have been driving Opel and nothing else for the past 40 years and I've never had a bad experience". His first car, he says, was a white Kadett, "with the old box shape". When he finished his studies, at the beginning of the 1960s, he moved on to a new model, before switching to the sportier Mantra with the advent of the 70s. Four further Opel models were to follow before he opted for a 'solid' Ascona. He, Die Welt says, is the personification of the loyal customer base Opel has accumulated over the years as he stands next to his hand-polished Astra - his current car - as it has its boot fixed on the court of his local Cologne dealership. It's not closing properly. "No problem", says workshop manager Jürgen Ziesel, as he sprays the lock with grease before testing it by opening and closing the hood. "Problem solved". Click on the link below (left) to read more about Opel's current problems and its customers for yourself, in German, in the pages of Die Welt. Alternatively, visit Opel's German website by clicking on the link below (right).
20.10.04
Lidl, the German discount grocery chain, has appointed the Munich PR agency Engel & Zimmermann to handle its affairs, writes the German advertising and marketing magazine Werben & Verkaufen (W&V). The one-year contract is designed to provide Lidl with strategic advice, W&V says, principally in the area of product PR. Like its rival Aldi, Lidl, the trading name of Neckarsulm-based Schwarz Gruppe, has traditionally been extremely conservative in matters of communications. Company founder Dieter Schwarz gives no interviews and does not even allow photos to be taken of him. This year, the two compaines have been waging a fierce promotional battle. In the first 5 months of 2004 alone, W&V says, Aldi spent 96 million euros on newspaper advertising, an increase of 45% over the previous year. Lidl spent 128 million euros over the same period, up 25%, according to figures from Nielsen Media Research. Rumours persist within the industry that Lidl is set to include TV advertising in its communications mix, says W&V, though these have not yet been verified. Click on the link below (left) to read this story for yourself, in German, in the pages of W&V. Alternatively, visit Lidl in Germany by clicking on the link below (right).
12.10.04
Beck's and Krombacher are the top brands on the German beer market this year, says the local advertising and marketing magazine Werben & Verkaufen (W&V), with Warsteiner, Radeberger and König losing ground. The judgment is based on the results of the first brand value ratings produced by Hamburg brand consultancy Dragon Rouge. Dragon Rouge's analysis attributes a brand value to Beck's of 551 million euros, followed by Krombacher (324 million) and Bitburger (128 million). While Veltins has been able to retain its 'value' of 89 million euros, teh consutlancy says, Warsteiner (121 million), Radeberger (45 million) and König (30 million) all lost ground. "We evaluated brand strength based on four core factors and 40 individual ones", Johannes Rellecke of Dragon Rouge tells W&V. Awareness, brand associations and potential for differentiation were all measured alongside complementary elements such as customer satisfaction, financial strength and innovation. "Becks", Rellecke says, "is the German beer brand with the most differentiated positioning", its cosmopolitan, lifestyle-oriented approach permitting it to command the largest price premium. While also well differentiated, Krombacher takes as the basis of its appeal naturalness, quality and authenticity. Click on the link below (left) to read this story for yourself, in German, in the pages of W&V. Alternatively, get ready for the 'Beck's Experience' (the line used by the brand in its advertising) and visit the Beck's website by clicking on the link below (right).
08.10.04
Only Milka chocolate manufactured by Kraft Jacobs Suchard (KJS) has the right to be packaged in lilac-coloured wrapping, according to a judgment made in a Karlruhe court this week, writes the newspaper Kurier. The judge ruled against a rival Verden-based company that had launched a chocolate and waffle mixture through Aldi stores, packaged in Milka-like lilac. That product has since been withdrawn. Lilac, said the judge, had come to 'embody' Milka and there was therefore a risk that consumers would assume other products sold in the same colour packaging were produced by the same firm. In general, Kurier says, colours can not be registered as trademarks as they are not normally understood as an indicator of origin. Milka, however, is an exception, the judge considers, because it has been proven before that a majority of consumers associate its packaging colour only with that brand. Lilac has been associated with Milka since 1901, when that colour was applied to the first packaging developed for the chocolate bar of that name. Since 1973, advertising for Milka has also been based around a lilac-coloured cow. A lawyer for Verdene Fabrik, that lost the case, says that the fact that brands can 'own' a colour gives major companies the opportunity to buy up the entire rainbow. Click on the link below (left) to read this story for yourself, in German, in the pages of Kurier. Alternatively, prepare yourself for a lilac experience and visit the Milka website by clicking on the link below (right).
07.10.04
Burda, the publisher, has teamed up with Werben & Verkaufen (W&V), the German advertising and marketing magazine, to conduct a poll among German shoppers to gauge satisfaction levels towards the shopping experience and advertising related to it, the magazine writes in its own pages. Among the results of the survey, it was found that one-third of those spoken to were 'tremendously' unhappy, especially younger shoppers and those in the early stages of their career. In all, just over 10,000 people were spoken to, using a variety of research companies which included Emnid, IFAK, Marplan and TNS Infratest. Schoolchildren, apprentices and students were especially critical (no surprise there, then), giving an average 'score' to their satisfaction with shopping of just 75, on a scale of 100, W&V writes. People from larger families also appeared disenchanted (average score 60) as did parents with small children (71). And as for the statement: "Advertising is necessary because otherwise you wouldn't get a good idea of everything that is available", just 35% of this group of shoppers felt they could agree. Those tending to say they are more satisfied with German shops tend to be older, conservative shoppers (index value 108), W&V says. This group is also quite brand-conscious and especially interested in fashion products, cosmetics, watches/jewellery and health products. They are more likely to say they like shopping in boutiques, Peek & Cloppenburg and C&A than they are to say they like discunters and department stores, the research found. Click on the link below (left) to read this story for yourself, in German, in the pages of W&V. Alternatively, click on the link below (right) to visit Burda, the other partner in the study and publisher of, among other things, the magazine Focus.
06.10.04
Back in June, Germany's high court decided against an attempt by the broadcaster RTL to block the introduction onto the German market of a device enabling viewers to block out advertising, writes the newspaper Der Standard. The decision, in favour of TC Unterhaltungselektronik (TCU), was expected to be contested by RTL but, according to TCU, the period within which RTL would be entitled to do so has expired without any such complaint being lodged. TCU now plans to start marketing the devices as soon as this November, Der Standard says, and seek a damages award against RTL for the expenses incurred during a long court case and the resulting missing revenues on account of not being able to sell its equipment. Click on the link below (left) to read this story for yourself, in German, in the pages of Der Standard. Alternatively, click on the link below (right) to be taken to the TCU website where its device - known as the Fernseh Fee, or 'TV fairy' - takes centre stage on the homepage.
05.10.04
The founders of the discount supermarket chain Aldi are, once more and by far, Germany's richest men, writes the newspaper Frankfurter Rundschau. Quoting research conducted by the magazine Manager, the paper says that Karl Albrecht and his brother Theo were able to increase their combined wealth by approximately €2.3 billion during 2003 to €30.3 billion - split roughly equally between the two. After the Aldi brothers comes Suzanne Klatten, a major shareholder in the pharmaceutical company Altana and in BMW. Others featuring in the top 10 include the widow of the founder of the Tchibo coffee and retail firm and Werner Otto, 95, who founded the country's leading mail order company. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Frankfurter Rundschau. Alternatively, click on the link below (right) to visit the German Aldi site of Sat 1 or here to visit the site maintained by Otto.
05.10.04
DHL has already recognised the difference that ebay has made to its business, becoming one of the auction platform's preferred partners, says Financial Times' German edition (FTD). Now the company's German subsidiary has gone one step further, by offering to handle the sale of products for the public via ebay, for a fee. In twelve Berlin post offices (DHL is owned by the German postal service, Deutsche Post), customers can take in items which are photographed, packed and stored ready for despatch, FTD says. That eBay has contributed significantly to DHL's business since the innovative web-based auction house grew into more and more areas - many of them professional - is evident from the fact that DHL says one in five of the packages it delivers in Germany already results from an ebay sale. The business DHL is entering has grown up informally as ebay has grown, with small operators springing up to handle the physical elements of the sale on behalf of others. Click on the link below (left) to read the rest of this story for yourself, in German, in the pages of Financial Times Deutschland. Alternatively, click on the link below (right) to visit ebay... who knows, you might find something you like.
05.10.04
Anke Engelke, presenter of TV station Sat 1's flagship late-night talk show, is to be 'relieved of her duties' on October 21st, writes the GErman magazine Focus, on account of falling viewer figures. The 38 year-old took over the format from the veteran Harald Schmidt in May, Focus says, but performance of 'Anke Late Night' since has failed to live up to expectations. The show is currently pulling in around 650,000 viewers nightly, equivalent to a 7% audience share, whereas parent company ProSiebenSat1 had been hoping for at least a double-digit share. By way of comparison, the rival talk show fronted by Reinhold Beckmann on state channel ARD at the same time is claiming an audience of around 1.6 million. The original deal struck with Engelke was for three years, Focus says, and involved the payment of around €40 million to the producers of the show, Cologne-based Brainpool, over that period. However, given that advertising revenues have been falling in line with viewer numbers, the show was heading for a deficit. In addition to pure numbers, advertisers are said to be unhappy because Engelke attracts a primarily female audience, while her predecessor Schmidt appealed more to a male target group with higher levels of disposable income. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Focus. Alternatively, click on the link below (right) to visit the site of Sat 1 or here to go direct to the page devoted to 'Anke Late Night'.
04.10.04
Not, perhaps, an entirely comfortable headline, but one which results from a ruling in Germany this week which shows that while some markets - such as that which exists in the UK - are relatively liberal, others take an approach which involves a very strict respect of the rules. According to the German sales and marketing website Absatzwirtschaft, a pharmacist who placed a lighted sign above his shop claiming to be both a 'pharmacy' and a 'perfume store' has run foul of the authorities. A Saarbrücken court found that the pharmacist in question devoted 26% (not approximately, exactly) of his floorspace to perfume items and other personal care brands. According to the rules applying to German pharmacies, however, only medication and "goods normally found in pharmacies" can be stocked in such outlets. According to the judge, this does not include expensive perfumes and nothing contained in new regulations dictating the parameters within which German pharmacists operate, introduced in Janury 2004, alters that fact. The description, the judge ruled, of the pharmacy as a 'perfumery' constituted a contravention of the rules applying to pharmacies and also of regulation covering unfair competition. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Absatzwirtschaft. Alternatively, click on the link below (right) to be taken to the site of Douglas, Germany's largest chain of perfumeries and definitely not a pharmacy.
01.10.04
TV moderator Thomas Gottschalk is Germany's most successful advertising front-man, says the local research and planning site Planung & Analyse. In surveys, 75% of respondents successfully connect Gottschalk - presenter of the popular 'Wetten das' entertainment show - with the brands he advertises. In second place - and further demonstrating that the question of personality in advertising really is a national phenomenon - comes Dieter Bohlen, followed by Franz Beckenbauer, the Klitschko boxing brothers and Verona Feldbusch, a female entertainer who seems to have advertised just about everything in Germany in recent years. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Planung & Analyse. Alternatively, click on the link below (right) to be taken to the page of the Haribo website which details its advertising activities and expenditure and shows stills from campaigns featuring Gottschalk, who serves as the public face of the company's jelly bears in Germany.
01.10.04
Tchibo, the German coffee maker which also operates a chain of retail outlets serving coffee and cakes alongside a range of special offer products, is proving true to its slogan of 'Jede Woche eine neue Welt' ('A new world every week'), by moving into the mobile phone market, writes the German advertising magazine Werben & Verkaufen (W&V). The move is a result of a tie-up with the service provider O2, W&V says, and will result in three different handsets appearing on the company's shelves from October 4th. At the same time, a campaign will break encouraging Germans to 'Tchibofonieren' (a play on the German word for telephoning. 'telefonieren'. 10-second TV spots will be accompanied by newspaper ads in major titles such as Bild am Sonntag, plus extensive promotional material, all designed and conceived by the Hamburg ad agency Scholz & Friends. The models on offer, W&V says, will cost betewen €40 and €130, come with pre-paid cards and be available through each of Tchibo's 900 German outlets, as well as on the internet. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of W&V. Alternatively, click on the link below (right) to be taken to the world of Tchibo or here to go directly to the page detailing the company's telecoms offer.
30.09.04
The difficult financial situation in many German households is having a noticeable effect on the amount of pocket money received by the nation's young people, writes the magazine Media und Marketing. German children, it says, have noticeably less disposable income available to them during 2004 than in previous years. Its claim is based on figures by the specialist youth research agency, Institut für Jugendforschung (IJF), which conducts an annual survey on the subject. According to the IJF, Germany's six to twelve year-olds will receive €1.44 billion this year, 29% less than in 2003. The figure is equivalent to an average per capita in income of €254 - a figure children are much more likely to attain if they live in the western part of the country, rather than the states previously known as East Germany. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Media und Marketing. Or you can click on the link below (right) to visit the site maintained by the IJF, a division of the Roland Berger management consultant group, to read more in relation to this and other stories, and in English and German.
26.09.04
A young man surrounded by two attractive women. He sprays himself with deodorant and a mosquito pricks him. A frog eats the mosquito, lands on a plate and is eaten by an old man. He gains strength and potency, but dies while making love to a younger woman and, lying in his grave, is consumed by worms. These then end up in a tequila bottle, from where they eventually end up in the stomach of a man and the effect starts to work again. Effective product and effective advertising, it seems: sales of the Lever-Fabergé-owned Axe brand rose by 18% after the ad had broken, making it brand leader in its market. And for the Hamburg ad agency, Lowe, that translates into a silver Effie, the name of awards given out annually to the campaigns which can be proven to have had a beneficial effect, typically on sales of the brand featured. Unlike Cannes Lions or awards from the Art Directors Club, says the newspaper Die Welt, Effies given out by the German ad agency association, GWA, are not meant just to recognise creative highlights, they are only awarded to campaigns which are of proven effectiveness. Typically this will be in the context of a new product introduction, relaunch, or a pursuit of market share, but the context will tend to be different for every brand. With Ebay, for example - which, along with the Procter & Gamble-owned toilet paper brand Charmin was the only entrant to be awarded a maximum Gold Effie at this year's awards - the objective was to construct a brand image that embodied fun and enjoyment. And, according to Franz-Rudolf Esch, marketing professor at the University of Giessen, that's what ad agency Jung von Matt achieved. "With its 3... 2... 1...mine" formula, the Ebay feeling, that is the emotional pursuit of an object of desire, authentically conveyed, he tells the paper. Ebay users, he said, received a hit in the head and the heart, while those who have seen the ad buy ten times more often than those who have not. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of Die Welt. Alternatively, click on the link below (right) to see a longer, English-language version, prepared by From Europe With Love.
23.09.04
German children should be obliged to read a newspaper as part of their school's standard curriculum, the head of the country's newspaper pubilshers association believes. Speaking at a press conference on Monday, Volker Schulze, head of the Bundesverband Deutscher Zeitungsverleger (BDZV) said that society itself was in danger if increasing numbers of people were either poorly informed or not informed at all. "A newspaper reach of 75% among the population over 14 years old, he told attendees, "cannot hide the fact that there are people who either don't read a paper, or don't read one very often". The international PISA study, he continued, shows that many schools release their students poorly prepared into the world of work. Newspaper pubilshers, he said, had recgnised this and put in place a scheme called 'Zeitung in der Schule' (which, imaginatively, translates as 'Newspaper in the School'). This, however, would not in itself be enough to get all children to pick up the habit. Click on the link below (left) to read a fuller version of this story for yourself, in German, in the pages of the newspaper, Der Standard. Alternatively, and to see coverage of the press conference and other BDZV activities, click on the link below (right) to visit its website.
22.09.04
44% of German women aged between 50 and 65 are currently employed, according to the latest edition of Germany's largest consumer survey, the Verbraucher-Analyse (VA). The figure may not seem remarkable, but it serves to illustrate the changes that have occurred as the '68er generation' - that is, those people who were old enough to be students during 1968 - has matured. Ten years ago, for example, just 28% of 50 to 65 year-old women were in employment. Despite having apparently less available time, certain leisure activities are on the increase. 81% (compared to 74% in 1994) say they enjoy going out to restaurants, while 29% (versus 22%) actively practise sport. And while, in 1994, only 46% of the same age group held a driving licence, today the figure is 64%. The Verbraucheranalyse is conducted yearly, principally to help media owners and advertising agencies gain an accurate picture of their audiencess and target groups. Its principal backers are the publishers Bauer and Axel Springer and its reports are based on interviews with around 31,000 consumers. Other findings from this year's edition show that changes have occurred in other age groups, too. Among 14 to 19 year-olds, for example, the 1994 survey showed that just 33% of girls and 25% of boys took particular care of their appearance. The corresponding figures today are 41% and 30% respectively - mainly expressed through greater use of cosmetics by girls and hair-styling products by young men. In other areas, however, the study shows that some concerns have decreased in pertinence. While in 1994, 61% said they looked out for products that were environmentally friendly, now just 34% say they do so. To read a fuller version of this story for yourself, in German, in the pages of the marketing magazine Persoenlich, just click on the link below (left). Alternatively, to see more information relating to the 2004 Verbraucheranalyse on the site maintained by Bauer, just click on the link below (right). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
