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Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
Selling to the German Consumer - An Amárach Research Briefing June 2011
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Selling to the German Consumer - An Amárach Research Briefing June 2011

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Germany's consumer market is worth €1.5 trillion. That's a lot of opportunity. But German consumers are a demanding lot: giving special priority to quality, but never losing sight of value. …

Germany's consumer market is worth €1.5 trillion. That's a lot of opportunity. But German consumers are a demanding lot: giving special priority to quality, but never losing sight of value.

The good news for Irish businesses is that Germans have very positive attitudes towards Irish goods and services.

Given that Germany will be Europe's strongest growing consumer market for the foreseeable future, then now is a good time to respond to Die €1.5 Billionen Gelegenheit!

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  • 1. Selling to the German Consumer An Amárach Research Briefing June 2011 © Amárach Research
  • 2. 2 Background Amárach Research believe there is huge potential for Irish companies, both small and large, to achieve a presence within the lucrative German market. Amárach’s Access Europe service aims to help Irish companies gain a greater understanding of the German market. Amárach Research have undertaken a survey of German consumers to identify key insights and opportunities for Irish businesses within the German Market.
  • 3. 3 Research Methodology A questionnaire was designed by Amárach Research Fieldwork was conducted focusing purely on the German market  Online methodological approach  The total sample was 1,001  Quotas were set to achieve a nationally representative sample of the German population Interviewing was conducted between 28th April and 20th May 2011
  • 4. 4 C. Sample Profile – I Gender Age Social Class Region % % % % 16-24 13 North 16 (e.g. Niedersachsen, 14 Hamburg etc.) 25-34 Male 50 ABC1 58 South 38 35-44 19 (e.g. Bayern, Baden Württemberg) 45-54 20 East 18 (e.g. Berlin, Sachsen)Female 50 C2DE 42 55+ 34 West (e.g. 28 Nordrhein- Westfalen, Hessen) Quotas were set on age, gender, social class and region to achieve a nationally representative sample.
  • 5. 5 C. Sample Profile – II Marital Status Household Income Children % % % Up to €20k 26 Married/ Yes 59 Anco-habiting 63 average of 2 children €20k - €40k 28 €40- €60k 15 €60- €80k 9 Single 25 €80- €100k 2 No 41 €100k+ 2 Widowed/ Refused divorced/ 18 12 separated Majority are married/cohabiting and have children.
  • 6. 6 ContentsMAIN FINDINGS: Section 1: Household Spending and Consumer Confidence Section 2: Purchasing Behaviour Section 3: Online Shopping Section 4: Attitudes Towards Ireland
  • 7. SECTION 1:Household Spending and Consumer Confidence
  • 8. 8 Household Responsibility (Base: All adults 16+ – 1,001) Responsibility for Responsibility for Main Bills and Budgeting Food/Grocery Shop % Higher for Male: 75% % Single: 75% Higher for females: Widowed/divorced: 96% 80% Higher forHigher for Married/Married/ Mainly responsible co-habiting: Mainlyco-habiting: 69% 45% 66% responsible37% Jointly Jointly 34% 28% Lower for responsibleresponsible Married/ co-habiting: 3% 61% No responsibility 7 in 10 (69%) are mainly responsibly for household bills and budgeting while 2 in 3 (66%) are responsible for main food shop. NB: It was a recruitment criteria for respondents to be at least in part responsible for the household shopping
  • 9. 9 Household Spending Vs Last Year (Base: All adults 16+ – 1,001) Household Expenditure Food and Grocery Bill % % Increased a lot (+5%) Increased a lot (+5%)Increased a little (<5%) Increased a little (<5%) Stayed the same Stayed the sameDecreased a little (<5%) Decreased a little (<5%) Decreased a lot (-5%) Decreased a lot (-5%) Don’t know Don’t know 2 in 3 (66%) have increased household expenditure compared to last year while 7 in 10 (69%) show increase in grocery spend. Consumers were more likely to have experienced a sharp increase in household expenditure if they have children or are between 45 and 54 years old.
  • 10. 10 Reasons for Change in Behaviour Vs Last Year (Base: All adults 16+ – 1,001) Why Why Increased? Decreased? (Base: Those who increased spending - 744) (Base: Those who showed decrease - 84) % % Everything is getting more expensive 45 Change in circumstance 15 Increased food prices Everything is getting 16 more expensive 13 Higher utility costs/energy costs 14 Less disposable income 11 Change in circumstances 8 Shopping around 11 Higher petrol prices 7 Increased savings 8 Buy better quality products 6 Buy less 8 Shop differently 8 Majority spending more, mainly because of inflation. Those spending less are doing so because of a change in circumstances (loosing job etc.).(All others 5% or less)
  • 11. 11 Outlook and Attitudes – Consumer Confidence (Base: All adults 16+, 1,001) Totally Totally Disagree Agree (1) (2) (4) (5) Neither 4/5% /nor (3)I am confident that my income is secure 11 14 29 15 31 44%Germany’s economy will continue to be stable 7 12 34 8 39 42%I am less worried about losing my job than 16 15 15 14 40 29%I was beforeI am more relaxed about spending money 32 20%than I was a few months ago 24 24 16 4 Less than half of German consumers are confident about the security of their income & the German economy. Nearly a third (29%) are less worried about losing their job against a similar proportion who hold the opposite view. Suggests that Germans will be cautious spenders for the foreseeable future, given the state of the European economy, with only 1 in 5 being more relaxed about spending money compared with a few months ago.
  • 12. SECTION 2:Purchasing Behaviour
  • 13. 13 Purchasing BehaviourThe majority of grocery shopping happens in supermarkets – between 55% - 73% of produce is bought in supermarkets – followed by discounters (between 32% - 62%)German consumers buy the best they can afford – ABC1s do most of their grocery shopping in supermarkets, except for meat, cold meats & bread/cakes, where they tend to ‘trade up’ and purchase at specialists (butchers/bakers) – C2DEs do most of the grocery shopping at discounters, except for meat, cold meat & bread/cakes; here their trade up is to buy at supermarkets or butchers/bakersOrganic food shops serve a niche market – Lifestyle decision – Across age bands & socio economic groups – Requires a certain income (typically €40k+) to be able to pay the ‘organic premium’ – Important to note: increased availability & choice of organic produce in supermarkets and even discounters
  • 14. 14 Purchasing BehaviourFor meats, cold meats & fish, supermarkets are clearlypreferred over discountersThe same is true for dairy productsShoppers were more likely to buy fruit & vegetables at adiscounter, compared with meat or fish productsTinned food & confectionary are more likely to be boughtat discounters, compared with other food products – Suggests that consumers don’t expect a quality benefit by buying these products from a supermarket, but decisions are based on cheapest price
  • 15. 15 Purchasing BehaviourMeat & cold meats are frequently bought at the butchers – NB: • German butchers offer not just meat and poultry, but cold meats, pre-prepared dishes, local delicacies, salads, tinned meats, and sometimes offer a take away service • Traditionally, butchers operate on a local level, producing their own meats. – Offers reassurance regarding traceability & quality of the meat & accountability of the butcher
  • 16. 16 Purchasing BehaviourFor bread and cakes, bakers are the preferred source – Typically, family run, local businesses – But some regional chains exist – Supermarkets offering breads & cakes often do so through a separate bakery within the premises
  • 17. 17 Purchasing Behaviour20% never buy wine or beer and 29% never buy spirits12% buy beer and 18% buy wine from ‘other sources’These are likely to be specialist drinks retailers and in the case of wine –wine producersSpecialist drinks retailers offer non-alcoholic and alcoholic drinks in largevolumes – Selling by the crate – Empty crate & bottles are returned for replacement & recycling
  • 18. 18 Purchasing Behaviour1 in 10 shoppers buy fruit and vegetables straight from thefarmerAlso popular: weekly farmers’ marketsGermans enjoy and celebrate seasonal produce, e.g.: • Asparagus season • Strawberry season • Federweisser • Beaujoulais Nouveau
  • 19. 19 Supermarket and Discount Store Use (Base: All adults 16+, 1,001) Supermarket Discount Store % % Kaufland 19 Aldi 25 Edeka 19 Lidl 24 Rewe 16 Netto 13 Real 11 Penny 7 There is a greater variety of national and regional supermarket chains, compared with discounters. Discounters operate on a national level. Product placement in a national supermarket and/or a discounter is likely to achieve the greatest exposure to a large number of consumers. Product placement in a discounter may achieve highest consumer exposure, but needs to be weighed up against price & image & brand considerations & target consumer market. The focus on a regional supermarket chain will facilitate controlled market entry trials.(All others less than 5%)
  • 20. 20 Purchasing Decisions (Base: All adults 16+, 1,001) Disagree Totally agree Neither (1) (2) (4) (5) % 4/5 /nor (3)It is important to shop around – 1 30 60 9 90%The origin of product is important to me 35 42 25 25 67%You can get better deals online 36 37 22 32 59%I prefer to stick to what is tried and tested 27 39 12 40 51%I am prepared to pay more for 11 15 31 14environmentally friendly products 29 45%A good relationship with a supplier is moreimportant than saving a bit of money 7 13 30 11 39 41%It is exciting to try new products fromaround the world 8 14 31 10 37 41%I would borrow money to payfor a holiday 58 18 7 2 15 9% Very few (9%) would borrow money for holiday, this indicates a certain level of risk aversion. A large majority (90%) feel it is important to shop around.
  • 21. 21 Product Quality and Characteristics (Base: All adults 16+, 1,001)Which factors reinforce product quality Not at all A little A Lot (1) (2) (3) % 2/3 Test results (Stiftung Warentest) 91% TÜV Approved 86% CE Certification 82% Endorsement by expert 79% Trade magazine review 79% Product literature 78% Recommendation by 76% friend/relative Brand/reputation 70% Country of origin 65% Newspaper article 61% Advertising 36%
  • 22. 22 Product Quality and CharacteristicsAll factors were important, except advertising – BUT: advertising has of course an important role to play in terms of raising product awareness and building your brand in GermanyMost important factors in convincing German consumers re productquality were: – ‘Test’ results & TÜV approved = ie German certifications ahead of CE marking, Stiftung Warentest – A German consumer organisation involved in investigating and comparing goods and services in an unbiased way. – Founded in 1964. – Very well-known & has an established reputation as an independent and reliable organisation. – The foundation has a considerable influence on the buying behavior of consumers. – Good ratings are often given great prominence in product advertising and on product packaging. – Stiftung Warentest carries out more than 200 comparative product tests and investigations of services from nearly all areas of everyday life every year.
  • 23. 23 Country of Origin – Impact on Product Choice (Base: All adults 16+, 1,001) NegativeNeutral Positive (1) (2) (3)GermanFranceIrelandItalyHollandBritainUSAIndiaChina The majority (75%) are ‘patriotic’ towards German goods. A product coming from Ireland is regarded as positive by nearly 1 in 3 of German consumers. This is in line with results from other European countries, except Great Britain, where results were less favourable. There was strong negative disposition towards products from China and India. Germans were mostly indifferent or negative to the ‘brand’ US. ➜ ‘Made in Ireland’ is likely to positively influence German consumers’ purchasing decision. ➜ Irish manufacturers should ensure clear differentiation from Great Britain.
  • 24. SECTION 3:Online Shopping
  • 25. 25 Internet Access and Online Shopping (Base: All adults 16+ – 1,001) Internet Access Smart Phone (or other at Home mobile internet device) % % Shop Online % 99% 1% No 44% 56% NoYes Yes No 7% Yes 93% 25 – 34 year olds 61% ABs 59% Nearly all (99%) have internet at home and 9 in 10 (93%) shop online.
  • 26. 26 Products Purchased Online (Base: All who shop online – 936) Never Sometimes Regularly % % % Books/magazines 19 49 32 Clothing 18 54 28 Banking and finance 49 27 24 Holiday/flights 30 48 22Entertainment – games, music, movies 27 53 20 Medical goods/drugs 43 39 18 Electrical equipment 15 68 17 Computer software 25 59 16 Computer hardware 33 52 15 Telecoms/internet services 39 46 15 Insurance 61 31 8 Sports equipment 43 49 8 Jewellery 61 35 4 Arts & crafts 78 20 2 Groceries 77 21 2 Books and magazines are the items most regularly purchased online, followed by clothing and travel. Split attitude towards online banking (50/50). Groceries are least purchased.
  • 27. 27 Other Products Purchased Online (Base: All who shop online – 936) Toys DIY Animal food/products Gardening Car productsproducts/plants Furniture Collectors items e.g. Presents/Vouchers Coins/stamps
  • 28. 28 Most popular websites used regularly to shop online (Base: all who shop online – 936) % % % % % % 65 52 12 10 6 5 Amazon and Ebay are the most popular sites used to shop online with 2 in 3 (65%) using Amazon regularly. Large variety of websites were used – over 200 different websites were mentioned.(All others less than 5%)
  • 29. 29 Importance of Different Factors When Buying Online (Base: Who shop online – 936) Not at all Very important important Neither % 4/5 (1) (2) (4) (5) /nor (3)Product return/opt out options – 1 33 58 8 91%Cost of delivery – 1 33 58 8 91%Secure payment option (e.g. Paypal) 12 30 59 8 89%Selection of products/services – 3 45 39 13 84%Speed of delivery – 4 48 35 13 83%Ease of navigation 13 42 38 16 80%Translated into German 25 30 45 18 75%German contact number 25 35 38 20 73%Origin of product/service 14 45 27 23 72%Supplier Rating 26 42 26 24 68%Customer comments/forum 3 9 41 19 28 60%German company 4 8 34 18 36 52%Online testimonials 4 9 34 15 38 49%Recommendation by 3rd party 7 14 26 8 45 34%Product return / opt out options and cost of delivery are the most important factor when buying online – may present a challenge to Irish companies to compete with mainland suppliers.Other essentials: Secure payment option, translated into German and a German contact number. (NB: Only 14% rate their English as very good, and 46% quite good, leaving 40% with poor or no English). (Q.2.7)
  • 30. SECTION 4:Attitudes Towards Ireland
  • 31. 31 Attitudes Towards Ireland Ireland = Die grüne Insel (Base: All adults 16+, 1,001) % Green Island 61 Beautiful nature/scenery/countryside 31 Unspoiled nature 25 Island 17 Hospitality/nice people 12 Butter 11 Economic crisis/unemployment 11 Rough climate 11 Holiday destination 9 Agriculture/organic/high quality produce 8 Sheep/cows 8 Whisky 8 Old/traditional 4 Ireland is most commonly perceived as a green island with beautiful scenery and nature, and indeed butter.* All others under 4%
  • 32. 32 Prominence of Irish Brands in Germany (Base: All adults 16+, 1,001) Primary Ever Ever Used Heard of Bailey’s Irish Cream Higher for 35-44 55 77 year olds: 82% Kerrygold 60 75 Higher for 55+ 80% Guinness 34 62 Ryanair 12 48 Tullamore Dew 16 32 Kilkenny Beer 14 27 Aer Lingus 3 20 Old Irish Marmalade 8 17 House of Ireland 1 16 Butlers Chocolates 4 15KerryGold and Bailey’s are very popular with 3 in 4 having heard of these brands.As is to be expected: brand awareness and usage higher amongst those who have visited Ireland.
  • 33. 33 Irish Products – Wish to Buy More Easily Where Live (Base: All adults 16+, 1,001) % Would like to be able to buy Butter 33 Irish products more easily Cheese 32 Whiskey % 26 Tea 23 Beer 20 Jams/ Preserves 20 Lamb 17 27% No Yes 73% Chocolate 16 Beef 16 Bacon 15 Biscuits 14 Music 14 Clothing 12Other sweets/confectionary 11
  • 34. 34 Irish Products – Wish to Buy More Easily Where Live Delicacy / Fine Food Marmelade55+ Lamb Cheese (m) Beef (m) Butter Broad Appeal / Family Food BaconAge Beer (m) Treat / Indulgence Food Young Men on the Make Biscuits (w) Whiskey Clothes TeaChocolate (w) (m) (w) (w) Sweets Music (w) 18 €20k Income €60k+ C2 SEG AB
  • 35. 35 Ireland as a Holiday Destination (Base: All adults 16+, 1,001) Have you ever visited Ireland? % Yes, more than 2 years ago 8%No 90% 2% Yes, in past 2 years More likely to have visited Ireland: • 25 – 34 year olds • 55+ year olds • ABs • €40K+ • Fluent in English
  • 36. 36 Overall Impression of Ireland (Base: All adults 16+, 1,001) Totally Totally disagree agree Neither (1)(2) (4) (5) % 4/5 /nor (3)Ireland is a great holiday destination 45 24 43 24 67%I would be concerned to do business withan Irish company because of financial 7 19 4 6 64 10%problems the country hasI am less likely now to visit Ireland 40 9%because all of the negative press 25 26 63 Ireland viewed as a great holiday destination and negative press not having a major affect. Nevertheless only 2% came here in past 2 years.
  • 37. 37 Visiting Ireland (Base: All adults 16+, 1,001) Likely to Visit Rating as a Destination % %Very Likely (10) 3 6 9% Very Good (10) (8-9) 17 (6-7) 14 53% (4-5) 25 (8-9) 36 More likely to visit (2-3) 15 Ireland: 52% (6-7) • 18 – 24 year olds 27 • C1 • €40K+Very Unlikely(1) 37 • No children (4-5) 16 (2-3) 3 Very Bad(1) 1 Disconnect exists as majority rate Ireland as a good Holiday Destination yet only 1 in 10 (9%) likely to visit.
  • 38. 38 Holiday Activities Enjoyed by Germans (Base: All adults 16+, 1,001) % City Sightseeing 81 Relaxing/Doing nothing 68 Going to the beach 67 Shopping 59 Hiking 49 Visiting museums/Galleries 45 Organised bus roundtrips 30 Cycling 29 Going to theatre/shows 17 Camping 9 Those likely to visit Ireland Fishing 6 particularly enjoy the following Horse riding 4 holiday activities: Golfing 2 • Sightseeing • Shopping • Visiting museums/galleries • Hiking & cycling • Organised bus trips • Going to the theatre/showsAll other activities less than 2%
  • 39. 39 Countries Where Germans Have Been on Holiday in the Last 2 Years (Base: All adults 16+, 1,001) % Have been on holidays in Germany 66 the past 2 years. Austria 19 Italy 19 % Spain 18 France 13 Turkey 13 No Holland 10 12% Switzerland 9 88% Yes England 8 Denmark 6 Greece 6 USA 6 Czech Republic 5 Croatia 5 Egypt 5 Outside of Germany Austria, Italy and Spain are popular destinations. Germans visit 1.3 destinations on average per year = 1 – 2 holidays/paAll other activities less than 5%
  • 40. 40 Most popular Destinations for those likely to visit Ireland (Base: All likely to visit Ireland - 162) % Germany Austria Spain France Italy England Switzerland Denmark Holland USAIreland’s ‘‘competition’’ – Most offer easier/cheaper access – Austria/Switzerland/France & Italy offer summer & winter holidays – Austria/Switzerland/Denmark offer similar imagery as Ireland • Beautiful nature, peacefulness, freedom – Spain, France & Italy offer warm weather & beach holidays – England & USA for anglophiles
  • 41. 41SUMMARY & CONCLUSIONS
  • 42. 42 Summary & ConclusionsThe research confirmed: opportunities for Irish products exist inthe German market – 73% of German consumers welcome the introduction of more Irish products to the German marketAs far as food products are concerned, they were particularlyinterested in: – Dairy products (to build on the success of KerryGold) – Whiskey & beer – Meat (lamb & beef) – ‘Breakfast items” : tea, marmalade / jam & baconAlso popular were: chocolates, biscuits & sweets = indulgencefood & treats
  • 43. 43 Summary & ConclusionsPortrait of a German consumer:– Shops around– Looks for value for money • Quality of a product is key– Is an informed shopper • Reads technical product information & test reports– Takes a conservative approach • To spending money, eg holidays on credit is not an option • To product choice, eg ‘tried & tested’ over ‘exciting & new’– Experienced online shopper: • Seen to offer better value for money
  • 44. 44 Summary & ConclusionsWhat will convince German consumers of product quality? Consumers place great value on German test reports, certifications & expert opinion Origin of a product can positively or negatively influence product choice Favourably disposed towards Irish products More so than UK and/or US Important to achieve clear differentiation German consumers believe that specialisation & personal accountability ensure better quality products worth paying a little extra for, e.g. butchers & bakers
  • 45. 45 Issues for Consideration: ‘Product’Know who your German target market is – May be different from your Irish/UK market • Eg: ‘Young whiskey drinkers’  Ensure marketing strategy and planning fit with the German target marketDetermine the best positioning for your products – E.g orange marmalade currently considered more of a delicacy, rather than everyday breakfast item ➜ Do you go along with existing perceptions? • Sell as a premium product ➜ Do you aim to change perceptions via POS, advertising, etc? • Achieve wider consumer appeal
  • 46. 46 Issues for Consideration: ‘Product’Make sure you are aware of German market ‘peculiarities’ thatmay affect your sales & success – Areas where things work differently, compared to the Irish market • E.g.: the selling & buying of drinks – Will require: ➜Different packaging – larger packs or crates ➜Recycling considerations need to be taken into account – Limit the use of secondary packaging – Different material – Less use of single portion packs
  • 47. 47 Issues for Consideration: ‘Place’ Target product positioning will determine the type of retailer you will wish to place your products with: – Low price / high volume: discounters, with national coverage – Higher price / possibly lower volume: supermarkets • More diverse channel with regional & national chains & their own brand positioning➜ Consider initial market trials – Test in one region first, which is very feasible in Germany
  • 48. 48 Issues for Consideration: ‘Place’Given the popularity of online shopping, websites present anexcellent opportunity to promote and sell non-grocery items.Particularly: – Clothes – Travel & TourismCritical for success: ➜ Secure payment option ➜ Product return option ➜ Competitive delivery cost and speed ➜ Translated into German ➜ German contact number
  • 49. 49 Issues for Consideration: ‘Price’ Income levels in Germany are (still) lower compared with Ireland However, the standard of living in Germany is high – Lower cost of living – Lower retail prices E.g. 1l bottle of carbonated water: – German supermarket: 30c – 50c – Aldi/Lidl Germany: 13c – 15c – Aldi/Lidl Ireland: 25c – 39c – Tesco Ireland: 25c - €1.86➜ Irish businesses need clear understanding of retail & wholesale pricing structures – Margins not comparable with Ireland – The cost of transport & logistics needs to be factored in
  • 50. 50 Issues for Consideration: ‘Promotion’Successful branding as a ‘premium, high quality’ brand is critical – Low margin on ‘commodity’ products‘Made in Ireland’ likely to positively influence food/fmcgpurchasing decision – Reinforces important associations of: • Free-range • High quality • Family run & specialist • Skill, experience & traditionTo demonstrate that you are serious about the Germanconsumer and the German market, packaging, advertising, POS,websites, etc have to be in German

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