Only the cheapest is good enough

M-Budget For the expansion of Migros' low-cost line, Exxtra is relying on quirky low-cost spots. Deep into the infinite abyss of the January recession, where hard-pressed consumers turn the franc over three times, a happy, green message is spreading: M-Budget, the discount range from retail giant Migros, promises relief for those in need of money. In 1996, the first budget products appeared on Migros shelves - today there are around 200 of the typical green-packaged items. This expansion of the product range is now being widely communicated. House agency Exxtra created a campaign with PR, POS measures, radio and TV spots and promotions. The unique fillet - or rather boiled meat - is the new commercials, which are so consistently trimmed for economy that they are already a hit.
"The commercials will certainly not go down well with everyone," admits Claudia Haueter. But the Deputy Head of Marketing Communications at the Federation of Migros Cooperatives (FMC) seems to be able to live with that. Switzerland's largest retailer didn't even want to use pre-tests as a safeguard. The nine low-budget TV commercials, which cost just CHF 120000 to produce, are likely to polarize the public. After all, the last time the Lipo furniture commercial with the cheroot-smoking Prolo offshoot looked this unabashedly cheap.
As if Exxtra's creative team had not already been challenged enough with its strict cost-cutting approach, it also pushed the limits of advertising asceticism by choosing the relatively expensive medium of television. The modest budget had a decisive influence on the advertising idea, says Client Service Director Michael Gassler looking back.
Lousy, amateurish - iconic?
The plot: In the commercials, the creation of the low-budget production is shown as a movie within a movie. The style of the strips conveys inimitably that M-Budget also saves money in advertising. "It's about a film crew made up of dilettantes who try to shoot a commercial under the most adverse circumstances with the sparsest of props and a ridiculous budget," says CD Dieter Hofmann, describing the content. Everything that could possibly go wrong goes wrong: The sets are terrible and the presenters are just as untalented as the film crew. The whole thing is underlined by the poor lighting, the lousy plot and the unusual picture quality, as the commercials were shot on video. The advertising is therefore stingy in favor of the consumer: "M-Budget. More budget for you."
According to Gassler, the parody fireworks, which were produced in an old, state-owned studio in Kiev and are fired off in selected environments during prime time, are likely to be continued soon. If the next season succeeds just as well in poking fun at the atmosphere and symbolism of discounter advertising, Migros' budget program is likely to achieve cult status with further segments.
"The commercials will certainly not go down well with everyone."

Claudia Haueter, Head of Marketing Communication FMC
I believe that we should focus more on our performance and advocate lower prices with corresponding quality and better quality at higher prices. There should be a vacuum in the middle," says Jörg Brun, Head of Marketing Food/Non Food at FMCG. His success seems to prove him right
give: While Migros' retail sales only improved by 1.8 percent, the low-cost line grew by six percent to 209 million francs.
The potential remains huge: M-Budget comprises around 200 products compared to 200,000 articles, with which the retail giant turned over 16.8 billion francs in 2003. This is another reason why Jörg Brun is hardly worried about the risk of cannibalization: "Let the consumers decide which articles they want and in what quality. There are also budget products that don't sell well." (la)
Exploring the pain threshold of bad taste: TV commercials for M-Budget.
The small advertising budget provided Exxtra with the advertising idea.
M-Budget Nothing is too cheap for Migros' low-price range - Exxtra's new campaign is so lousy that it is sure to achieve cult status >> page 7
Luca Aloisi