"Comparative advertising should also be allowed here"
Kurt Schmid, CEO of Lowe in Zurich, on his unease with Swiss advertising culture
Kurt Schmid, CEO Lowe, Zurich, on his unease with the Swiss advertising culture "Comparative advertising should be allowed here too" Around 100 people met at the Lowe Forum 2002 in Zurich last week to discuss the topic of "growth". Kurt Schmid had invited them. He heads the Zurich branch of Lowe, the fourth-largest communications group in the world.
Agencies in an international network are currently groaning under the tough conditions imposed by corporate headquarters. Instead of cowering, the management of Advico Young & Rubicam (AY&R) recently resigned as one. Last week you had a visit from Sir Frank Lowe, the chairman of your network. Were you also put under pressure?
Kurt Schmid: There's no question of that. Of course, every agency group has margin targets that are not always easy to achieve. We have no problems at all in this respect. We find dealing with people from Lowe's head office very inspiring.
Can you understand the AY&R management's desire for more entrepreneurial freedom?
Schmid: I can understand that. I have a lot of sympathy for AY&R people who want to go their own way. Our situation is very different. We have a lot of autonomy.
Swissness is in demand all over the world. Swiss consumer products have sex appeal abroad. But young Swiss people prefer to wear Calvin Klein and disdain Calida. They prefer to drink Starbucks coffee from paper cups rather than good old Merkur coffee. Adidas and Nike are popular, Raichle is disappearing. Do Swiss marketing people no longer understand their business?
Schmid: Advertising works far too much with stereotypes and clichés instead of focusing on diversity. We use the same four archetypes of people over and over again. Our advertising is far too well-behaved, too uniform, too cautious. This has to do with the fact that we are all so nice to each other. Calida is trying to copy Calvin Klein. But people are not stupid and prefer to buy the original. What's more, Swissness has no sex appeal in Switzerland, whereas abroad it is part of multiculturalism.
Calvin Klein also knows how to provoke and polarize. Why does almost nobody in this country dare to do that?
Schmid: We lack open communication. Occasionally we are startled by the grounding of Swissair or attacks on our banking secrecy. Such irritations rarely last longer than a few weeks, after which we return to our leisurely daily routine. We forget that a fierce cut-throat competition is raging around us, which will also fundamentally change our markets.
That sounds like a curtain sermon. Are the Swiss too nice and don't realize what's going on around them?
Schmid: I miss the fighting spirit of Richard Branson, who sees his business as a crusade. The Englishman raises his pirate flag to hit the competition at its most sensitive point on the battlefield. He would never be satisfied with 1.5 percent growth, as our augurs are forecasting for the current year.
Are you calling for a marketing war?
Schmid: No, not exactly. I want to rouse the Swiss to vigilance, because marketing is something very combative. Under pressure from international providers, Swiss brands are increasingly losing ground. People in this country don't want to take note of this because we are so addicted to harmony. We have too many agreements and gentlemen's agreements. Instead of cowering and haggling, we should analyze our competitors more intensively and be more self-confident.
Do you see Switzerland as an island of the blessed, surrounded by business sharks?
Schmid: Foreign entrepreneurs are out to conquer, and those who can't oppose them will sooner or later fall by the wayside. Aggressive foreign brands such as Starbucks meet with almost no resistance in Switzerland. Ikea is putting pressure on Micasa and Interio, Smirnoff vodka on Zuger Kirsch. Swiss companies are far too cautious in their marketing and are lulled into a false sense of security.
The SVP is showing how aggressive political marketing can be used to become the leading force in the conservative camp. Are you proposing a corresponding cultural change for marketing communication?
Schmid: What bothers me about the SVP campaigns is their doggedness. I would put it like Andy Warhol: "Being good in business is the most fascinating kind of art."
But that's a fancy way of describing what marketing is supposed to do.
Schmid: I would argue that advertising should become more direct and aggressive, which has nothing to do with doggedness. Comparative advertising should also finally be allowed. The economic battle for market share in Switzerland is still not being fought hard enough. Our marketing people watch almost idly as one brand after another comes under pressure.
What you are criticizing happened to you yourself: Your agency, GGK Basel, was taken over by Lowe and recently even said goodbye to its Swiss agency name, which was closely associated with Swissair. Instead of Lowe/GGK, you are now just called Lowe. How much brand value have you sacrificed?
Schmid: I don't know. I don't think very much. GGK is a myth that unfortunately can no longer be revived. GGK is now Swiss advertising history. No agency can live on the past alone - no matter how glorious it may be.
Having mythical qualities is the best thing that can happen to a brand. Myths are long-lived by nature. Didn't you ring the death knell for the GGK too soon?
Schmid: No. With the retirement of Paul Gredinger, the name GGK faded irrevocably. The name no longer has any appeal. It wasn't so hard for me to say goodbye because the Lowe agency group embodies many of the values of the good old GGK.
A bid of 1.2 billion was recently made for the Swissair brand name. Has no foreign investor shown any interest in the GGK name?
Schmid: As far as I know, no one has come forward yet. If I get a good offer, I'm happy to negotiate, because we still own the trademark rights for GGK Basel. Interview: Samuel Helbling
Agencies in an international network are currently groaning under the tough conditions imposed by corporate headquarters. Instead of cowering, the management of Advico Young & Rubicam (AY&R) recently resigned as one. Last week you had a visit from Sir Frank Lowe, the chairman of your network. Were you also put under pressure?
Kurt Schmid: There's no question of that. Of course, every agency group has margin targets that are not always easy to achieve. We have no problems at all in this respect. We find dealing with people from Lowe's head office very inspiring.
Can you understand the AY&R management's desire for more entrepreneurial freedom?
Schmid: I can understand that. I have a lot of sympathy for AY&R people who want to go their own way. Our situation is very different. We have a lot of autonomy.
Swissness is in demand all over the world. Swiss consumer products have sex appeal abroad. But young Swiss people prefer to wear Calvin Klein and disdain Calida. They prefer to drink Starbucks coffee from paper cups rather than good old Merkur coffee. Adidas and Nike are popular, Raichle is disappearing. Do Swiss marketing people no longer understand their business?
Schmid: Advertising works far too much with stereotypes and clichés instead of focusing on diversity. We use the same four archetypes of people over and over again. Our advertising is far too well-behaved, too uniform, too cautious. This has to do with the fact that we are all so nice to each other. Calida is trying to copy Calvin Klein. But people are not stupid and prefer to buy the original. What's more, Swissness has no sex appeal in Switzerland, whereas abroad it is part of multiculturalism.
Calvin Klein also knows how to provoke and polarize. Why does almost nobody in this country dare to do that?
Schmid: We lack open communication. Occasionally we are startled by the grounding of Swissair or attacks on our banking secrecy. Such irritations rarely last longer than a few weeks, after which we return to our leisurely daily routine. We forget that a fierce cut-throat competition is raging around us, which will also fundamentally change our markets.
That sounds like a curtain sermon. Are the Swiss too nice and don't realize what's going on around them?
Schmid: I miss the fighting spirit of Richard Branson, who sees his business as a crusade. The Englishman raises his pirate flag to hit the competition at its most sensitive point on the battlefield. He would never be satisfied with 1.5 percent growth, as our augurs are forecasting for the current year.
Are you calling for a marketing war?
Schmid: No, not exactly. I want to rouse the Swiss to vigilance, because marketing is something very combative. Under pressure from international providers, Swiss brands are increasingly losing ground. People in this country don't want to take note of this because we are so addicted to harmony. We have too many agreements and gentlemen's agreements. Instead of cowering and haggling, we should analyze our competitors more intensively and be more self-confident.
Do you see Switzerland as an island of the blessed, surrounded by business sharks?
Schmid: Foreign entrepreneurs are out to conquer, and those who can't oppose them will sooner or later fall by the wayside. Aggressive foreign brands such as Starbucks meet with almost no resistance in Switzerland. Ikea is putting pressure on Micasa and Interio, Smirnoff vodka on Zuger Kirsch. Swiss companies are far too cautious in their marketing and are lulled into a false sense of security.
The SVP is showing how aggressive political marketing can be used to become the leading force in the conservative camp. Are you proposing a corresponding cultural change for marketing communication?
Schmid: What bothers me about the SVP campaigns is their doggedness. I would put it like Andy Warhol: "Being good in business is the most fascinating kind of art."
But that's a fancy way of describing what marketing is supposed to do.
Schmid: I would argue that advertising should become more direct and aggressive, which has nothing to do with doggedness. Comparative advertising should also finally be allowed. The economic battle for market share in Switzerland is still not being fought hard enough. Our marketing people watch almost idly as one brand after another comes under pressure.
What you are criticizing happened to you yourself: Your agency, GGK Basel, was taken over by Lowe and recently even said goodbye to its Swiss agency name, which was closely associated with Swissair. Instead of Lowe/GGK, you are now just called Lowe. How much brand value have you sacrificed?
Schmid: I don't know. I don't think very much. GGK is a myth that unfortunately can no longer be revived. GGK is now Swiss advertising history. No agency can live on the past alone - no matter how glorious it may be.
Having mythical qualities is the best thing that can happen to a brand. Myths are long-lived by nature. Didn't you ring the death knell for the GGK too soon?
Schmid: No. With the retirement of Paul Gredinger, the name GGK faded irrevocably. The name no longer has any appeal. It wasn't so hard for me to say goodbye because the Lowe agency group embodies many of the values of the good old GGK.
A bid of 1.2 billion was recently made for the Swissair brand name. Has no foreign investor shown any interest in the GGK name?
Schmid: As far as I know, no one has come forward yet. If I get a good offer, I'm happy to negotiate, because we still own the trademark rights for GGK Basel. Interview: Samuel Helbling
