Posts

On Monday, 11.11.2019, the Private University of Göttingen hosts the company Fricke, a specialist in agricultural machinery and commercial vehicles. The lecture provides insights into the complexity of pricing for millions of spare parts.

11.11.2019│ Göttingen – Fricke Agricultural Machinery on Pricing for Spare Parts in the B2B Environment

/in /by

On Monday, 11.11.2019, the Private University of Göttingen (PFH) hosts the company Fricke. A corporate group that specializes in agricultural machinery, garden technology, and commercial vehicles and is present with 64 locations in 25 countries. At the invitation of Prof. Dr. Hans-Christian Riekhof, Kai Ostendorf, Head of Pricing & Material Master Data Management, is coming.

In his 90-minute lecture, Ostendorf provides an insight into the wholesaler’s pricing in the B2B environment – both before and after the implementation of a pricing tool.

Pricing for spare parts is a particular challenge. This applies not only when it comes to agricultural machinery. After all, it is not enough to offer products in a simple “manufacturing cost plus x” approach and wait to see how the market reacts. Web-based platforms tend to help buyers increase price transparency, but given the complexity and variety of variants, there are natural limits here. The price structure is also very different depending on the submarket and degree of specialization, for example when thinking about spare parts for historical agricultural machinery.

The OEMs (Original Equipment Manufacturer) tend to pursue a high-price strategy for their original spare parts. Distributors counter this with their own cheaper product lines, which they have manufactured in China. Kai Ostendorf describes in his lecture how it is possible to find the “right” prices for 11 million spare parts. A pricing tool is used, which he introduced at Granit Parts together with an external service provider.

The PFH is pleased to welcome interested parties this evening, external guests are welcome.

Location:
PFH Private University of Göttingen
Weender Landstraße 3-7
37073 Göttingen

Date/Time:
Mon, 11.11.2019, 18:00 – 19.30 hrs

The event is free of charge. Registration is required, please by mail to Wieschollek@nullpfh.de.

Photo: Fricke Agricultural Machinery

Participants can once again learn a differentiated approach to the challenges of strategic pricing in 2020 at the seminars of pricing specialist Hans-Christian Riekhof.

The Pricing Seminar Dates for 2020 are here

/in /by

The right pricing can have a significant effect on business success, on sales and profit margins. However, many companies still do not have a formulated pricing strategy or – if they do – neglect relevant aspects in the pricing processes and underestimate the dynamics of the markets and the influence of their pricing policy.

Participants can once again learn the right approach to the challenges of strategic pricing in 2020 at the seminars of Hans-Christian Riekhof. For the coming year, there are currently four dates available in Hamburg from the long-experienced pricing specialist:

on 19/20 March 2020
on 18/19 June 2020
on 1/2 October 2020
on 3/4 December 2020

In the intensive seminar, the marketing professor of the Private University of Göttingen (PFH) provides participants with relevant and immediately applicable expert knowledge about strategic pricing. Participants learn in a practical way how to formulate the building blocks of a long-term pricing strategy, the correct review of pricing processes, how to improve price communication and how to introduce efficient price controlling.

The venue is the proven Gastwerk Hotel Hamburg. With its stylish ambience and ideal premises, with its pleasant tranquility and good service, it offers the ideal framework for Professor Riekhof’s intensive seminar.

Links:


Learn more about the Pricing Seminars here.
Read what previous participants have to say!

Interested parties can now register for one of the seminars.
Secure one of the coveted places now!

A video preview has now also been released for the 7th Göttingen Marketing Day, which is about the topic "Marketing in times of digital upheaval".

Preview for the 7th Göttingen Marketing Day

/in /by

A video preview has now also been released for the 7th Göttingen Marketing Day. Here is the Video teaser on Youtube.

This year’s theme: Marketing in times of digital upheaval. For the event, the PFH Private University of Göttingen and initiator Dr. Hans-Christian Riekhof, Professor of International Marketing, have again invited high-profile companies with exciting lectures. The spectrum ranges from medium-sized companies to global players.

In addition to the international fashion companies Hugo Boss and ABOUT YOU as well as the medium-sized companies Einbecker Brauhaus AG and Hörgeräte KIND, the exclusive luxury brand Bugatti also offers an exciting lecture. Also: MAN as a B2B corporation and the top communication agency Jung von Matt with their example of the Berliner Verkehrsbetriebe as a regional B2C service provider.

Further information and the program overview

 

Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. The project, which initially runs in the pilot region of Berlin and Brandenburg, raises questions in its orientation.

Pricing at Lidl: Discount store attracts with app as digital customer card

/in /by

Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. In Berlin and Brandenburg, customers can use the new customer loyalty app “Lidl Plus”. With this, they receive special offers and features such as discount coupons, digital receipts or the flyer ready for every purchase. It is noteworthy that the coupons are not delivered location-based, says pricing expert Hans-Christian Riekhof.

Lidl Digital Customer Card

The free app, available from the Apple and Google app stores, serves as a digital customer card. Lidl has come up with a number of “exclusive benefits” for users. For example, a 5-euro welcome coupon, new digital discount coupons for selected products and savings benefits with the so-called “Lidl Plus crackers”. Also scratch cards with further coupons and price advantages with partners, e.g. at Lidl-Photos, Lidl-Travels, FlixBus and regional, activate providers in the app.

In return, the discount giant receives valuable customer data. Lidl can thus compensate for the major disadvantage of stationary compared to online trading, where it is common to collect and evaluate customer data. Based on customer profiles created from this, the app can then make offers to the customer that Lidl assumes the customer needs at this time.

With the customer data, Lidl sends suitable offers to the app users

According to Lidl, customers do not see different prices based on their data. However, there is indeed a price difference in favor of the app users – compared to customers who do not use the app.

With the digital customer cards, Lidl is faster than e.g. Aldi, the main rival, says Hans Christian Riekhof. The pricing expert finds it interesting that the app is advertised on various local channels – here the example Out Of Home. Even more noteworthy is that the coupons are not delivered location-based. “You could also deliver the push notifications in front of the store, in the store and maybe even directly on the shelf. This would significantly increase the relevance – measured by opening and redemption rates – according to our project experience. Maybe this will come in the second expansion stage”, says Riekhof.

Which campaigns promise particular success can be read in the News from locandis.

By the way, the project of the digital customer card, which is currently running in around 250 Lidl markets in the pilot area Berlin and Brandenburg, is planned to be extended to all of Germany during the year 2020.

Note:
Also read our empirical Study on Digital Customer Cards in retail, system catering and tourism (Riekhof/Brinkhoff 2018).

Further links:

Lidl:
https://unternehmen.lidl.de/pressreleases/190612_lidl-plus

Advertising and Selling:
https://www.wuv.de/marketing/lidl_bringt_digitale_kundenkarte_als_app


Photo at the top: Lidl Germany
Photo: UNICconsult Strategy Development GmbH

Kaufland has expanded its private label offering. The new brand "K-Favourites" is aimed at those who want to "treat themselves to something special in everyday life." In terms of pricing, private labels are an important, strategic component of the retail assortment and can - if used correctly - contribute disproportionately to the company's results.

The K-Favourites Line: Strategic Pricing for Private Labels at Kaufland

/in /by

The food retailer Kaufland has now expanded its private label offering. The new value-added brand “K-Favourites” offers around 160 items. It is aimed at all people who want to “treat themselves to something special in everyday life.”
The quality brand complements the price spectrum between entry-level and premium.

The brand is intended to offer clear added value, such as extraordinary ingredients, a special place of production or
a long maturation period. The range extends from pasta and meat to chips and chocolate to dairy products and delicatessen. It is supplemented by products from the pet food and hygiene sectors. “Private labels are more than just a remake of A-brands today. With the top products from K-Favourites, we are going our own, confident way”, explains Stefan Hüttemeister, Managing Director Brand Management International at Kaufland.

Pricing for private labels: Kaufland occupies not only the entry-level price ranges

Dr. Hans-Christian Riekhof, Professor of International Marketing at the Private University of Göttingen, sees private labels as an increasingly important, strategic component of the retail assortment. “They contribute – if done correctly and especially in the long term – disproportionately to the company’s results. In addition, they help to create a price architecture in the assortment in which the entry-level price ranges are also adequately represented.” For the pricing expert, they are both “assortment and price strategically an extremely important response of the trade to
the price pressure in the market”.

What is remarkable about the Kaufland strategy, which other retailers also strive for, is that with the private labels not only the entry-level price ranges are occupied, says Riekhof. “Such an assortment and price strategy will have to be worked on in the long term in order for it to fully pay off. The brand manufacturers in the middle price ranges will be the first to notice when they are delisted.”

Photo: © Kaufland

Further links:

Kaufland Homepage:
https://unternehmen.kaufland.de/presse/pressemitteilungen/pressemitteilungen-detail.y=2019.m=09.n=neue-eigenmarke-k-favourites.html

Lebensmittelpraxis:
https://lebensmittelpraxis.de/handel-aktuell/25311-k-favourites-kauflands-neue-eigenmarke-2019-09-03-11-12-34.html

Supermarktblog.com:
https://www.supermarktblog.com/2018/09/25/k-favourites-ist-da-jede-woche-eine-neue-kaufland-eigenmarke/

Focus (Preview, 26.03.2019):
https://www.focus.de/finanzen/news/vollsortimenter-und-discounter-kaufland-mit-neuer-mittelpreismarke-favourites_id_8670631.html