Archive for month: May, 2022
Kaufland Attacks Discounters with Low-Price Campaign
Kaufland is once again attacking the discount trade. The message that the company can also do discount cheap – this message is currently being communicated to the target groups via a current TV commercial. Over 7,000 items at discount prices, more than 300 special offers every week, plus extra discounts with the Kaufland Card: With the Kaufland price campaign “Now more than ever – Save more with Kaufland”, the Schwarz subsidiary wants to demonstrate this price competence and relies on a humorously designed TV commercial. This refers to the company’s successful discount cheap campaign, with which Kaufland humorously drew attention to its low prices as early as February of this year, writes the Lebensmittelzeitung.
Kaufland price campaign focuses on cheap shopping
Christoph Schneider, Managing Director Marketing Germany, explains that the issue of price is playing an increasingly important role for many people in the current time. “Our new campaign ‘Now more than ever’ consciously addresses this and puts the issue of cheap shopping in the spotlight. Our clear promise to our customers: At Kaufland, the customer continues to shop at a low price and can save money through particularly many offers.”
Pricing expert Riekhof: Is positioning against discounters the best option?
Pricing expert Hans-Christian Riekhof, Professor of International Marketing at the Private University of Göttingen, views the strategy of the Kaufland price campaign somewhat critically. “In times of rising prices, a price campaign certainly makes a lot of sense. Whether positioning against discounters is the best of all options, however, should be questioned. After all, Kaufland is making fun of itself, because in the TV spot, the young mother didn’t ‘get’ the whole issue either. It’s probably more complicated than you think.”
Links
Report on the Kaufland price campaign in the Lebensmittelzeitung (Paywall):
https://www.lebensmittelzeitung.net/handel/nachrichten/preiskampagne-kaufland-greift-erneut-den-discount-handel-an-165133?crefresh=1
Screenshot: Kaufland TV commercial
Sales Marketing on the Communication of Price Increases
In times of the Corona pandemic and the Ukraine war, it is a difficult task to communicate price increases successfully. Under the title “Trapped in the Price Spiral”, the marketing magazine Absatzwirtschaft investigates the question of how brands can still succeed.
In the confusion of raw material shortages, tearing supply chains and record inflation as effects, it is becoming increasingly difficult for brand companies and retailers to adjust prices and to communicate this successfully. In answering the most important questions on the subject, the magazine also sought the assessment and advice of Hans-Christian Riekhof, Professor of International Marketing and expert in price management at the Private University of Göttingen.
Pricing expert Riekhof: Price controlling is underdeveloped in many companies
In response to the question of how marketing should accompany the communication of price increases, he assigns the task to marketing to announce increases and prepare end consumers for them. These messages would always also indirectly address competitors.
At the B2B level between manufacturers and retailers, the role of marketing is less. Here, marketing or product management must develop the line of argument, but the actual implementation of the price increases is the responsibility of sales, the pricing expert is quoted. Subsequently, good price controlling is required, i.e. the subsequent analysis of one’s own price strategy, “a function that is underdeveloped in many companies”, according to Riekhof.
Photo/Screenshot: ©Eva Vasari
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Links
Read the full article on absatzwirtschaft.de:
www.absatzwirtschaft.de/gefangen-in-der-preisspirale-233977
Read/download the full article as pdf:
https://www.unicconsult.com/wp-content/uploads/2022/08/Gefangen-in-der-Preisspirale-Absatzwirtschaft.pdf