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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. Is positioning against discounters the best option?

Kaufland Attacks Discounters with Low-Price Campaign

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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

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

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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