Premium advertising is only available at Migros for the time being
Retailer Exxtra has expanded the campaign for Migros' premium line, Sélection, into a cross-media concept. The competition is waiting to see what happens.
Retail Exxtra has expanded the campaign for Migros' premium line Sélection into a cross-media concept. In our consumer and affluent culture, luxury and wealth are being redefined. The insignia of the new luxury is no longer pomp and splendor, but exclusivity, authenticity and omission. Those who offer consumers tasteful perfection in quality, exquisiteness and individuality can secure substantial competitive advantages.Coop forged aheadDriven by the downward price spiral, Swiss retailers discovered this customer need for themselves a few years ago. In the winter of 2004, Coop was the first major retailer to forge ahead in the trading-up trend with its own Fine Food brand, which at the time comprised five items - one year before the launch of the permanent low price line. According to Coop CEO Hansueli Loosli at the annual media conference, the target group-oriented line was expanded with "great dynamism". Today, the silver gourmet line, which is particularly strong in the convenience sector, comprises around 120 items and is being continuously expanded, explains press spokesman Karl Weisskopf.
Despite its first-mover advantage and the fact that it has met its targets, Coop's premium label has not yet been given its own advertising platform. Apart from packaging and POS materials, the advertising measures are limited to a few advertisements before the most important holidays, recipes and PR articles about the manufacturers in the member magazine. There seem to be several reasons for this: Firstly, Coop expects Fine Food to generate sales of around CHF 40 million in the current year (Coop's retail sales amounted to around CHF 14 billion in 2005). Secondly, the differentiation of the gourmet line from long-listed branded articles in the upper price range is far more demanding than that of the permanent low price line, which was introduced a year later, comprises three times as many articles and already generates ten percent of private label sales.
"Our aim is to offer the greatest variety and freedom of choice in terms of range, quality and price," says Weisskopf, referring to the more recent image campaign "Coop - for me and for you". This aims to be the answer to the entire range of needs between mass and exclusivity.
The Federation of Migros Cooperatives took a different approach: Ten years after launching the discount line M-Budget, it responded to the change in shopping behavior last October with the Sélection line at the upper end of the price spectrum. According to the company, Christmas business has been very pleasing and sales of the premium line are steadily increasing. "We are expecting annual sales of a good CHF 100 million," says media spokesman Urs Peter Naef confidently (the Cooperatives' retail sales in 2005 amounted to around CHF 14.6 billion).
There is already talk of a Sélection community that now has around 50,000 members; the extended customer base includes at least a quarter of a million households. In order to increase this number, Migros is focusing on an independent appearance of the label on the one hand and on greater advertising pressure on the other. According to the marketing managers at FMC, the focus of Sélection is on anchoring the brand positioning, expanding the product range and cultivating the core customer base. Over the course of the year, Migros wants to make new products appealing to them and increase the range to around 80 items.
Longing for a better lifeAs the Sélection line is less convenience-oriented than Coop's, the advertising team focuses on the core message of "the greatest possible care in the selection and production of products". The authentic implementations and stories from the regions of origin take this core idea into account and are intended to awaken consumers' longing for genuine enjoyment and a better life. The advertising budget is several times higher than that of the competition in order to convey these values.
The best proof of this is the continuation of the campaign, which was launched a few days ago in the familiar documentary style with new advertisement subjects. In the meantime, it has blossomed into a closely interlinked cross-media concept (see text on the right), which delivers new content for a variety of media and media vehicles at a high cadence. But that's not all: at the end of April, in-house agency Exxtra will follow up with a two-minute long spot in the Meteo block of the SF channels. The film, which conjures up the genuine atmosphere of southern Italy in restrained tones for the Sélection pasta, was shot by the Oscar-winning director of "Cinema Paradiso", Giuseppe Tornatore. The stylish premiere will be followed by cut-down versions in measured quantities in upmarket broadcasting environments, says Stefan Erhart, Exxtra's general manager.
The Manor chain also launched its premium Gran Delizia line in August 2005. However, it did so on a greatly reduced scale as far as the Markom media in the Above the Line area is concerned. "We have designed special shelves for the line so that it stands out at the POS. Additional communication measures, from posters and shop windows to booklets and tastings, support the line there," explains Marketing Director Maurice Calanca. DM, the Internet and traditional advertising round off the mix. He sees the importance of Gran Delizia, as with the other own brands, primarily in the differentiated positioning of Manor in the market, i.e. to prevent the gourmets of Manor's clientele from migrating to the competition.
Even discount chains are trying to make a touch of everyday luxury affordable. Under different circumstances, of course. But nevertheless with special labels and products that, according to the communication managers, can hold their own in internal and external comparisons. Sven Bradke, spokesman for Aldi Suisse, puts into perspective the plan circulated by the media that the German discounter wants to introduce a premium label, as was conceived in England for test purposes. The premium trend is being monitored very closely. But "we are concentrating on the product range and continuity in our positioning. We want to offer top quality at reasonable prices," he says. The lack of a premium line does not mean that Aldi's own brands do not have premium products. The Aldi beer, for example, achieved the top score in the K-Tipp test, and the Aldi Suisse organic products are in the premium category.
Denner has also been building up its sub-brand since the change in product range strategy. It is called "Look fort the Best" and is easily recognizable by the high proportion of red on the packaging on the shelves. The name itself explicitly emphasizes that this is not a no-name budget line, explains Eva-Maria Bauder, Head of Corporate Communications. As a discounter, the Denner brand remains credible if it tries to offer branded rather than premium product quality. The range now comprises around 330 items from the food, non-food and near-food sectors and is almost fully assembled. "However, we have never advertised this product line separately, but always within the familiar framework," says Bauder, i.e. alongside branded products in advertisements and the fortnightly mailings. Nevertheless, the company has noticed that its own brand is being increasingly well received by customers and is increasingly replacing competitor products in its target market.
Luca Aloisi
Despite its first-mover advantage and the fact that it has met its targets, Coop's premium label has not yet been given its own advertising platform. Apart from packaging and POS materials, the advertising measures are limited to a few advertisements before the most important holidays, recipes and PR articles about the manufacturers in the member magazine. There seem to be several reasons for this: Firstly, Coop expects Fine Food to generate sales of around CHF 40 million in the current year (Coop's retail sales amounted to around CHF 14 billion in 2005). Secondly, the differentiation of the gourmet line from long-listed branded articles in the upper price range is far more demanding than that of the permanent low price line, which was introduced a year later, comprises three times as many articles and already generates ten percent of private label sales.
"Our aim is to offer the greatest variety and freedom of choice in terms of range, quality and price," says Weisskopf, referring to the more recent image campaign "Coop - for me and for you". This aims to be the answer to the entire range of needs between mass and exclusivity.
The Federation of Migros Cooperatives took a different approach: Ten years after launching the discount line M-Budget, it responded to the change in shopping behavior last October with the Sélection line at the upper end of the price spectrum. According to the company, Christmas business has been very pleasing and sales of the premium line are steadily increasing. "We are expecting annual sales of a good CHF 100 million," says media spokesman Urs Peter Naef confidently (the Cooperatives' retail sales in 2005 amounted to around CHF 14.6 billion).
There is already talk of a Sélection community that now has around 50,000 members; the extended customer base includes at least a quarter of a million households. In order to increase this number, Migros is focusing on an independent appearance of the label on the one hand and on greater advertising pressure on the other. According to the marketing managers at FMC, the focus of Sélection is on anchoring the brand positioning, expanding the product range and cultivating the core customer base. Over the course of the year, Migros wants to make new products appealing to them and increase the range to around 80 items.
Longing for a better lifeAs the Sélection line is less convenience-oriented than Coop's, the advertising team focuses on the core message of "the greatest possible care in the selection and production of products". The authentic implementations and stories from the regions of origin take this core idea into account and are intended to awaken consumers' longing for genuine enjoyment and a better life. The advertising budget is several times higher than that of the competition in order to convey these values.
The best proof of this is the continuation of the campaign, which was launched a few days ago in the familiar documentary style with new advertisement subjects. In the meantime, it has blossomed into a closely interlinked cross-media concept (see text on the right), which delivers new content for a variety of media and media vehicles at a high cadence. But that's not all: at the end of April, in-house agency Exxtra will follow up with a two-minute long spot in the Meteo block of the SF channels. The film, which conjures up the genuine atmosphere of southern Italy in restrained tones for the Sélection pasta, was shot by the Oscar-winning director of "Cinema Paradiso", Giuseppe Tornatore. The stylish premiere will be followed by cut-down versions in measured quantities in upmarket broadcasting environments, says Stefan Erhart, Exxtra's general manager.
The Manor chain also launched its premium Gran Delizia line in August 2005. However, it did so on a greatly reduced scale as far as the Markom media in the Above the Line area is concerned. "We have designed special shelves for the line so that it stands out at the POS. Additional communication measures, from posters and shop windows to booklets and tastings, support the line there," explains Marketing Director Maurice Calanca. DM, the Internet and traditional advertising round off the mix. He sees the importance of Gran Delizia, as with the other own brands, primarily in the differentiated positioning of Manor in the market, i.e. to prevent the gourmets of Manor's clientele from migrating to the competition.
Even discount chains are trying to make a touch of everyday luxury affordable. Under different circumstances, of course. But nevertheless with special labels and products that, according to the communication managers, can hold their own in internal and external comparisons. Sven Bradke, spokesman for Aldi Suisse, puts into perspective the plan circulated by the media that the German discounter wants to introduce a premium label, as was conceived in England for test purposes. The premium trend is being monitored very closely. But "we are concentrating on the product range and continuity in our positioning. We want to offer top quality at reasonable prices," he says. The lack of a premium line does not mean that Aldi's own brands do not have premium products. The Aldi beer, for example, achieved the top score in the K-Tipp test, and the Aldi Suisse organic products are in the premium category.
Denner has also been building up its sub-brand since the change in product range strategy. It is called "Look fort the Best" and is easily recognizable by the high proportion of red on the packaging on the shelves. The name itself explicitly emphasizes that this is not a no-name budget line, explains Eva-Maria Bauder, Head of Corporate Communications. As a discounter, the Denner brand remains credible if it tries to offer branded rather than premium product quality. The range now comprises around 330 items from the food, non-food and near-food sectors and is almost fully assembled. "However, we have never advertised this product line separately, but always within the familiar framework," says Bauder, i.e. alongside branded products in advertisements and the fortnightly mailings. Nevertheless, the company has noticed that its own brand is being increasingly well received by customers and is increasingly replacing competitor products in its target market.
Luca Aloisi
