Archive for month: June, 2020
Cult Brand Jägermeister: “People drink less but better”
Until the end of the nineties, the well-known herbal liqueur was consumed exclusively as a lean bitter by a target group of 55plus. Falling sales figures forced Jägermeister to take action. Since the spectacular relaunch of the brand, which also opened up new young target groups into the party and club scene, things have been going steeply uphill with the deer that adorns the logo.
In late November 2019, Professor Hans-Christian Riekhof invited Gunar Splanemann, Head of Global Innovation and Design at Jägermeister, to a workshop for marketing students at PFH Göttingen. Under the title “People drink less but better”, Splanemann, Riekhof and the students discussed the question of whether there will be a re-evaluation of alcohol consumption against the background of current societal trends. How do you deal with people drinking less, but differently and often simply better? The following interview was a direct result of the exciting discussions.
Prof. Riekhof: Jägermeister is active globally. There, consumer behavior differs considerably. How does a medium-sized company deal with this challenge?
Gunar Splanemann: Ultimately, there is no way around localizing and adapting innovation strategies for certain regions of the world. Generally speaking, Jägermeister stands for ice-cold shots and hedonistic nights in large or smaller groups. However, the rituals, contexts and taste preferences in the regions of this world are different. The maturity of a market also plays a decisive role. From our point of view, it makes no sense to introduce new Jägermeister products into a market if the core brand is not yet established. We have therefore only introduced our latest innovations Cold Brew Coffee and Scharf in relevant markets. For example, Cold Brew in the USA and UK, because the topic is established there.
Increased health awareness affects the market segments of the cult brand Jägermeister
Prof. Riekhof: You call it the “Killer Bet”: the bet on future consumer behavior. What do you expect in terms of your target group’s handling of alcohol, partying, exuberance?
Gunar Splanemann: We assume that the general changes in consumer behavior, namely a stronger differentiation of target groups, a stronger health consciousness, a pronounced ecological sensitivity and a generally more demanding consumer behavior will also have a lasting impact in our market segments.
Responsible handling of alcohol can be very well combined with the desire for moderation, exuberance, cheerfulness, living in the here and now, enjoying the moment, joie de vivre, but also with responsibility. This must and will be expressed in the Jägermeister brand.
Prof. Riekhof: You cooperate with trendy clubs in Berlin. What is the idea behind this? Is there a long-term agenda, or is it more of a trial and experimentation?
Gunar Splanemann: We have always been closely connected with nightlife and its protagonists. We get a feel for relevant currents, ideas and inspirations from this network. We have to be where our customers are. We need to know how the core target group ticks and how they party.
Together with insiders and designers, we develop concepts for the nightlife of tomorrow. The range extends from new drink recipes, ideas for new products to new service ideas around the night.
How the cult brand Jägermeister reaches new target groups
Prof. Riekhof: The Jägermeister motto is “For the best nights of your life.” What specific associations do you want to evoke with this statement, and how do you visualize this motto, what kind of imagery is called for?
Gunar Splanemann: Our brand is an integral part of nightlife. We believe that nightlife is and should remain an essential, creative free space. Our brand is a commitment to this lifestyle, in addition to the iconic and high-quality product. A lifestyle that is urban, open, tolerant and just for the special nights.
Prof. Riekhof: The classic Jägermeister product has not really changed in recent decades, but there are now a number of very remarkable line extensions. What do Jägermeister Manifest and Jägermeister Cold Brew, two of the most important new products, stand for?
Gunar Splanemann: Jägermeister Manifest clearly has a premium claim and therefore clearly distinguishes itself from the classic Jägermeister in terms of design and positioning. This allows us to reach new target groups, but we also have the chance to grow with the existing target groups, to continue to accompany them and thus to take into account a gradually changing lifestyle.
Cold Brew Coffee, on the other hand, offers the classic herbal character of Jägermeister and rounds it off with a very well harmonizing coffee and cocoa note. This creates a whole new world of experience, which is particularly relevant for the US and UK markets, as the cold-brew principle is very well established there.
Developing Jägermeister as a premium brand and thinking differently
Prof. Riekhof: One of the customer insights that could influence the future orientation of Jägermeister is the realization “Consumers drink less but better”. This results in the task of further developing Jägermeister towards a premium brand. Where do you see the most important levers to achieve this in the medium term?
Gunar Splanemann: The levers are the same ones we generally apply in marketing for positioning. Fortunately, we have a very high-quality product, a huge fan base, and an icon as a brand. This allows us to work very well and create authentic communication to meet the ongoing trend of premiumization in a relevant way.
This is helped by our product know-how, our herbal expertise, and not least the Jägermeister attitude of doing things differently than others. The additional value and the added value for our fans thus comes from a very solid basis and a unique approach. As a result, the brand grows, gains new target groups and remains – and this is particularly important to us – true to its core.
Prof. Riekhof: Many cult brands are moving towards creating something like a Mecca of the brand, a kind of pilgrimage site where people meet to experience the brand, to experience it, to deal with it. Are there similar considerations at Jägermeister?
Gunar Splanemann: Yes, there are considerations. But it would be too early to reveal more about this at this point. Just this much: it will be a great experience!
Prof. Riekhof: Thank you very much for the interview!
Photo and photo detail: Mast-Jägermeister SE
More information about Jägermeister:
www.jagermeister.com/de-DE
Locandis and InnoGreen Introduce Indoor Navigation Based on LED Lights
Innovation in in-store navigation: Searching for products in hardware or supermarkets can be very tedious. The ideal solution: enter the desired item into a search field on the app on your smartphone and conveniently navigate to it. The corresponding digital technology has already been impressively implemented by the company locandis and is constantly being developed. App-based digital customer cards with integrated product search and in-store navigation.
Practically free of charge for hardware stores
Until now, the technical effort for a comprehensive infrastructure of the necessary beacons was relatively high, explains Stefan Brinkhoff, CTO of locandis. With a now closed strategic partnership between locandis and InnoGreen, an innovative LED light manufacturer based in Heppenheim, significant relief is now available. Both companies have now presented a prototype in which these small Bluetooth transmitters are installed in InnoGreen’s LED lights. Some of the advantages: the additional effort for the installation of the beacons is eliminated, the power supply of the beacons is ensured via the lighting, very low maintenance effort. This means that a hardware store can be equipped for in-store navigation practically free of charge, says InnoGreen Managing Director Olaf Tieben. “In August of this year, we will present a first hardware store where the new system is installed.”
Effective: Combine in-store navigation with location-based marketing
From a business and marketing perspective, in-store navigation is attractive. Especially for retailers with complex assortments and areas from approx. 3000 sqm. locandis customer projects demonstrate the resulting additional sales with more relaxed, longer staying customers. “We expect that the locandis in-store navigation based on InnoGreen lights will pay for itself and be self-supporting from the second year onwards”, says Dr. Hans-Christian Riekhof. The CEO of locandis also points to the lucrative combination of in-store navigation with location-based marketing campaigns: “This is an important revenue driver that further improves the business balance sheet.”
Links:
Here you can learn more about the topic of Location Based Marketing
Studies on the topic:
– Location-based Marketing: The willingness to pay for push messages on the customer’s smartphone
– The use of traditional and digital customer cards in retail, system catering and tourism
