Rewe in Germany has launched a “low-cost” 360-degree marketing initiative promoting its economy private label line, Ja. The campaign was designed by Rewe’s lead agency Thjnk and starts with a series of short videos on YouTube, with the theme ‘The cheapest spot of the year’.
In the first of the YouTube videos, a film team is looking for premium locations to shoot – without having to pay for them. The spots are clearly targeting a young audience and mimic the authentic style of typical non-commercial videos on YouTube.
Not so long ago, there was no need for retailers in Germany to think extensively about marketing investment to drive sales of their private label ranges. One of the main advantages of such lines was that investments in marketing remained low. The simple fact that the retailers themselves could choose the position of the ranges in store, as well as developing any instore marketing, kept costs down. That said, the amount of promotional activity for both budget stores and ranges have increased significantly in Germany in recent years.
Discounters’ so-called “supermarketisation” has been happening in Germany for some time and has been reflected in new marketing initiatives. In late-2015, Aldi Süd surprised shoppers as well as the industry with an unprecedented, extensive poster campaign. A couple of months later, it launched TV spots followed only recently by a pop-up bistro in Cologne. Following such unexpected marketing, it is a logical move for Rewe Group to remind shoppers about its entry price line, which is of course directly competing with the private labels of the discounters.
It is also a perfect time to target young and trendy shoppers with economy lines. Millennials are not hesitant when it comes to purchasing affordable alternatives to the big brands and are therefore actively choosing budget private labels. At the same time, the retailer's own brands have unintentionally become chic and cult brands in their own right. So why not push this development further and lure these shoppers instore? A channel such as YouTube would seem a great choice for such a move.