Archive for year: 2022
Kaufland Attacks Discounters with Low-Price Campaign
/in Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofKaufland 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
Pricing-Newsletter No. 59 (2022): When incentive systems prevent the implementation of the pricing strategy
/in Pricing Newsletter/by Prof. Dr. Hans-Christian RiekhofIn vielen Unternehmen sind die Anreizsysteme auf die Erreichung von Umsatzzielen ausgerichtet. Die Durchsetzung von Preiserhöhungen oder allgemeiner: die Durchsetzung der Preisstrategie hat dann zwangsläufig nur begrenzte Chancen. Wo liegen die größten Chancen, preisstrategische Ziele in der Vertriebsmannschaft zu verankern?
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Sales Marketing on the Communication of Price Increases
/in News / Insights, Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofIn 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
Harry G. Frankfurt: Too Much Bullshit is Being Spoken
/in Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofWalsrode App: City relies on Multi-Retailer App
/in Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofPress Information
Hamburg, April 13, 2022.
New Dimension in City Marketing: Walsrode App displays retail offers location-based on smartphones
One for all, all for one: With the “Walsrode App” for the city of Walsrode, visitors and residents will soon receive individual offers from local retailers as well as information about events and attractions directly on their smartphone. The Multi-Retailer App bundles information, services and coupons from participating retailers based on location and directly at the user’s location. The implementation of the app was initiated by Gronemedia, the publisher of the Walsroder Zeitung, and the city of Walsrode. On March 31, the “Walsrode App” was launched – and is now intended to build a bridge to stationary retail.
The user parks in downtown Walsrode – and is informed that her trusted hairdresser still has appointments available. The cinema visit is already planned – and just before entering, the user’s smartphone reports: “Today two tickets for the price of one.”
These are just two of countless examples of how analogue and digital experiences merge in the “Walsrode App”. Based on position data, visitors and residents receive push notifications about offers from participating retailers as well as information about events, retailers and shops, and restaurants in their vicinity.
For a shopping experience on site with added value
Many different shops and restaurants, a wide range of goods: This is what makes city centers attractive for strolling. But the share of e-commerce is growing and making it increasingly difficult to meet customer needs in stationary retail.
One answer, also for city marketing, are digital solutions like the Multi-Retailer App from locandis. It guides visitors via smartphone to attractions and offers and can be used for playful exploration of the city center in addition to delivering coupons, messages and invitations to city festivals, for example.
The daily information and offers are maintained by the editorial staff of the Walsroder Zeitung via a separate web frontend and sent out regularly via the app. In addition, users have access to background information, opening hours and price information. “With the “Walsrode App” we create a completely new shopping experience. The app builds a bridge between the smartphone and local retail,” says initiator and Gronemedia managing director Clemens Röhrbein.
Location Based Services: Online and offline merged
“The location- or target group-specific information of this new city marketing tool reaches visitors and residents exactly where they are,” says Prof. Dr. Hans-Christian Riekhof. Since 2018, the locandis managing directors and founders Prof. Dr. Hans-Christian Riekhof and Stefan Brinkhoff have been active in the fields of real-time location systems, so-called Real-Time Location Systems (RTLS), and Location-Based Services. Their idea: to enable visitors to access relevant information based on location and personal preferences. The users of the app could receive the messages either via a GPS connection in the city center, via Bluetooth using the locandis locators in the shops, or directly without the influence of the location.
Interested parties can download the app for free in the Google Play Store and in the App Store. It strictly adheres to data protection regulations and a multi-level opt-in procedure protects user data from data misuse during registration in the app. But even without providing personal data, the “Walsrode App” can be used. “Users then have access to offers and deals that are released for unregistered users. With a registration, however, they secure unrestricted access to all exclusive offers,” explains Stefan Brinkhoff.
Strengthening local trade
“Our goal is for the app to develop into a joint digital customer card from Walsroders for Walsroders,” says Clemens Röhrbein. For him, the advantages of this solution are clear. “Especially for smaller retailers, the app is a good opportunity to join a kind of cashback system, which due to high costs, such as with Payback, is otherwise only interesting for large companies.” In addition, the “Walsrode App” is intended to support stationary retail: “We don’t want a discount slingshot, but a small trigger in the moment of truth that brings about the transaction, the purchase.”
Pricing-Newsletter No. 58 (2022): When does it make sense to align pricing with the competition?
/in Pricing Newsletter, Pricing Newsletter/by Prof. Dr. Hans-Christian RiekhofUnsere Studien zeigen seit Jahren immer wieder klar: die meisten Unternehmen richten ihre Preise an den eigenen Kosten oder aber am Wettbewerb aus. Doch für nur ganz wenige Unternehmen macht es wirklich Sinn, sich an der Konkurrenz zu orientieren. Das ist das Thema dieses Pricing-Newsletters.
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Nobel laureate Daniel Kahneman on mechanisms that distort our decisions
/in Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofNobel laureate Joseph Stiglitz on oil company price increases and a possible war tax
/in Quotes/by Prof. Dr. Hans-Christian RiekhofThe Digitization of Stationary Retail – Prof. Riekhof on the PFH Podcast
/in Unkategorisiert/by Prof. Dr. Hans-Christian RiekhofIn the current episode of the podcast “Beyond the Knowledge”, Prof. Dr. Hans-Christian Riekhof, CEO of the company locandis and Professor of General Business Administration at PFH Göttingen, talks about the opportunities of digitization in retail and presents the results of a current expert survey on the theme of Instore Navigation. According to Dr. Hans-Christian Riekhof, the three major challenges for trade in the coming years are:
- to realize an experience-oriented and high-quality design of the store areas
- to improve delivery capability and logistical processes.
- to drive digitization also in stationary retail and to communicate with customers not only face-to-face, but also via smartphone.
In an expert survey, Prof. Riekhof examined the digitization of retail. What are the major challenges for retail and how will the marketing concepts of retail develop in the future? These and other topics are discussed in the third episode of the PFH Podcast “Beyond the Knowledge”.
You can access the entire podcast episode here and then listen to it on all common podcast channels.
More about the company locandis:
www.locandis.de
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- develop concrete ideas for quick wins in pricing and assess their feasibility.
- create a reliable estimate of the performance improvement that can be achieved through a pricing project.