Battle in the January hole
Retail pioneer M-Budget is responding to Coop's launch of its discount line and aims to make it difficult for German discounters to enter the market.
Retail pioneer M-Budget is reacting to Coop's low-cost line launch and wants to spoil the market entry of German low-cost suppliers.While first mover Migros saw the frequency-generating potential of M-Budget in its nine-year-old low-cost product line at the time of its market launch, today it is about much more: market share and sales. Because what consumer organizations were unable to achieve with their price comparisons, foreign competitor chains such as Carrefour, Aldi and Lidl have managed to do by finding the right locations: Suddenly, alarm bells are ringing throughout the retail sector. With a remarkable show of strength, Coop pushed ahead with its permanently low price line (WW 01/05) and put the Migros budget brand in a tight spot despite its wider range of 250 articles. Apparently, the prevailing opinion is that M-Budget's pioneering role, cult status and high level of acceptance among shoppers will not be able to withstand the price argument for long. In order to defend its image as price leader, the response to Coop's "Prix Garantie" announcement was not long in coming. Even before Coop was able to present the new brand on the shelves on January 10, Migros placed the first ad for this year's "Prix Garantie" in the Sunday press.
M-Budget campaign. An original soundtrack that makes use of press articles and headlines that addressed the weak economic situation and hesitant purchasing behavior in Switzerland in 2004.
The large-scale advertising and poster campaign combines the sometimes demanding headlines from the press with the most popular M-Budget products and counters them with charming and succinct comments. In a striking green budget look and with the typical Migros tongue-in-cheek tone, the creatives at the Exxtra agency wanted to anchor the message that Migros is ready and willing to take up the challenge in the increasingly tough price war. And so the emerging competitive situation should not be limited to a price war. The M-Budget posters alone will be displayed in around 4,000 locations and at major railway stations.
Forecasts about the impact on the advertising industry are still too cloudy. We are therefore eagerly awaiting the industry statistics from Media Focus to find out more about retailers' media strategies.
Taken at its word: M-Budget turns headlines into reality.
The reality of the headlines catches up with Migros. M-Budget
reacts with a campaign by Exxtra >> page 14
Luca Aloisi
M-Budget campaign. An original soundtrack that makes use of press articles and headlines that addressed the weak economic situation and hesitant purchasing behavior in Switzerland in 2004.
The large-scale advertising and poster campaign combines the sometimes demanding headlines from the press with the most popular M-Budget products and counters them with charming and succinct comments. In a striking green budget look and with the typical Migros tongue-in-cheek tone, the creatives at the Exxtra agency wanted to anchor the message that Migros is ready and willing to take up the challenge in the increasingly tough price war. And so the emerging competitive situation should not be limited to a price war. The M-Budget posters alone will be displayed in around 4,000 locations and at major railway stations.
Forecasts about the impact on the advertising industry are still too cloudy. We are therefore eagerly awaiting the industry statistics from Media Focus to find out more about retailers' media strategies.
Taken at its word: M-Budget turns headlines into reality.
The reality of the headlines catches up with Migros. M-Budget
reacts with a campaign by Exxtra >> page 14
Luca Aloisi
