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08.05.04

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Warsteiner switches strategy to gain market share
Bärbel Unckrich and Frank Roth, of Horizont, interview the company's MD.

Background: Advertising for the Warsteiner brand was handled for over 20 year by the agency B/W Werbeagentur, in Düsseldorf. Then, the beer appeared accompanies by the slogan "Mit grösstem Vergnugen" ("With the greatest pleasure"). In 1999, the account moved to J. Walter Thompson, which installed the slogan: "In den goldenen Momenten des Lebens" ("For life's golden moments"). After a 2001 pitch, BBDO won the Warsteiner business, but lost the 50 million euro account this year to Ogilvy & Mather Special. While advertising claims have altered over the years, the Warsteiner brand has retained its claim of being: "Des einzig Wahre" ("The only true beer").

Interview

Horizont: Warsteiner has had to cede market leadership this year to Krombacher. How do you plan to get the top position, that you held for many years, back?

Gustavo Möller-Hergt: Of course we want to be number 1 in the German market again. And when you ask Germans about beer brands they are familiar with, 65% of them spontaneously say Warsteiner, making us no. 1 by some distance.

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To attain that status again in terms of sales, we have to turn as many screws as are necessary to establish the brand and the company in that position.

Horizont: What do you mean, specifically?

Gustavo Möller-Hergt: It starts with employee training, takes in repositioning of our products, their prices and the terms and conditions in the wholesale trade, plus communications.

Horizont: What role will communications play in this restructuring?

Gustavo Möller-Hergt: Warsteiner is a strong brand with established calues such as luxury and success. That's the basis on which we build our brand communications. The repositioning takes into account new trends in consumer behaviour.

Horizont: That sounds very like what your competitors are currently trying to do. Take Diebels, for example, which has taken up its old advertising jungle again.

Gustavo Möller-Hergt: I think we are showing something new - but the consumer will have the last word. We asked our agency to analyse the changes in calues that are taking place in society. During that process, we came across a consumer model which is valid internationally, which is all about real values - on the one hand, success in the workplace, on the other determined to enjoy the simple things in life. The most important value driving this consumer is lasting authenticity.

Horizont: Some time ago now, Veltins made some advertising attacks against its competitors in the beer market. Do you think the competition has now got sharper as a whole?

Gustavo Möller-Hergt: We took those "attacks" with good humour. I think it's fine when someone wants to "sail in our wind". Setting yourself apart from others can be fun, it adds a little pepper to the soup. Such measures are OK as tactical moves. I think it's dangerous as a creative advertising strategy, however. We feel that in a beer market which is consolidating, one needs a certain aggression - but not against ones competitors. It's much more a question of defining a clear concept and positioning, which distinguishes your brand from others.

Horizont: Will you, in order to make this clear in comparison to your competitors, be adding to your 50 million euro communications budget?

Gustavo Möller-Hergt: If necessary, yes we will. We already plan to lift it a little over the coming year. Apart from that, we are seeing a shift in our overall marketing costs. We will be concentrating more in promotions and less on sponsoring, although we will still be involved there. But right now I cannot tell you much more. But it should be a little exciting.