Denner advertising manager Stefan Maegli, who has been with the company since New-Denner (2001), talks about the discounter's new direction in marketing communication.WW New-Denner was launched four years ago. Traditional advertising started just under a year ago. Why so late? Stefan Maegli We did our homework first, i.e. clearing out the stores, improving the product range and quality and winning back trust. The Markom measures based on this were only planned for the final phase from the outset.
But now they come in a concentrated and unusual form. How
Have the changes to the advertising presence been accepted internally?
The jolt that went through the company and the small administration was palpable and was mainly received positively. We wanted to shake people up again and make the new spirit tangible. The reaction was most successful on the front line, where more than 2,500 people work, because they felt more valued. The focus was placed on people, minimum wages were raised and all "grievances" were corrected.
However, the latter was hardly decisive for the change of course at Denner.
It was a necessity, because you can only survive in the market with a certain size. Without any fundamental debate, it was clear that Denner had to continue to grow. A clear realignment was therefore unavoidable.
How many advertising agencies did you work with during the implementation of the concept?
In 2002, we pitched for the opening advertising of the new branches. Christinger Partner managed the external appearance of the sales outlets according to our specifications. WHS was responsible for the original launch communication during the conversion phase. For the phase after completion, we wanted to advertise at image level for the first time. A radio and later a poster concept from Bonaparte came into discussion for this. Since last April, we have been expanding our advertising presence with ViznerBorel. However, this process took two years of persuasion. Only gradually, with each new subject that went on air, did those responsible in other areas that are more traditional acquire a taste for witty, intelligent image advertising.
But the Denner piggery ads will continue to exist.
That was our compromise, because the pork belly is under close scrutiny because it creates frequency. But you still have to optimize it massively. Regardless of whether it's image or pork belly, it's important to be present with the right message to the right people. Both measures benefit from each other if they are implemented consistently.
How has the advertising budget developed during the New Denner concept? during the project phase, investments increased by over 25 percent to cope with the whole thing. Now we have an additional, substantial amount again. There has been a shift: whereas previously 95 percent was spent on campaigns, today more than 15 percent is spent on image-building measures. It is clear that we are in a launch phase that is budgeted higher in proportion to sales than at a later stage, when the core message will be well established.
Can you already see changes in the structure of your clientele as a result of the repositioning? we are conducting an image track to determine the target group in which we have gained relevance. Statistically and empirically, nothing can be said yet. That will take time. But from what I hear, we are reaching more and more people from higher income segments.
In the initial phase of the realignment, Denner wanted to have 400 super discounters at the end of the conversion. You are a long way from that.
We have set ourselves the target of finding 100 additional locations of our own within five years. Franchising opportunities have increased again due to the changes at Primo/Vis-à-vis. There are still locations that we would like to have. Even on greenfield sites.
In other words, where the competition from the north will soon be advancing. How do you feel about the market entry of Aldi and Lidl?
Discounting will certainly become more popular in the initial phase. As we have done our homework and Denner has clearly positioned itself within the sector for the next five years, we are already in a good position. Of course, we still have potential to step on the gas, for example in the wine segment.
Profiling not only through the permanent low-price battle: ViznerBorel shows in the Denner TV commercial that discounters also have a sense of humor.
Interview: Luca Aloisi