by Peter Löcke //
Inflation and recession. Germany in a severe economic crisis. Germany brings up the rear of all industrialized nations with the latest forecast of negative economic growth. Robert Habeck seems increasingly touched and is already taking refuge in mentally into space. Formats with emigration tips are increasingly springing up in the media. Skilled workers who can afford it are leaving Germany. The people who stay here turn over every cent in their wallets three times.
This is truly an unfavorable time for price increases. If, thanks to inflation, they do take place, a company usually justifies such price increases coyly. They are justified with the increase in their own energy and operating costs, which the company unfortunately has to pass on to the end consumer. In an apologetic tone of voice, linguistically packaged with the euphemism price adjustment. Not so Penny. Penny raises prices voluntarily. Penny raises prices with proud ideological values and advertising.
The food discounter from the Rewe Group launches the campaign True costs and temporarily raises the prices of nine selected products. The reactions to this are predictable. Politics like Leading media describe the action sympathetically and explain to the public why the discounter is acting in this way. The citizens and Penny customers, on the other hand, react indignantly and threaten to withdraw their love and purchases. The tenor in the social media? No more Penny for Penny. In a state of indignation and anger, people often overlook things.
Hence an attempt to take a sober look at the campaign from a distance.
What is the "True Cost" campaign about?
Penny is adding an environmental surcharge to nine of its products for one week from July 31 to August 5, 2023. The discounter wants to indicate the true price of a product and, for the first time, include not only economic but also social and ecological cost factors. A market economy first. These "new" cost factors are climate, water, soil and health. These new costs were modeled by sustainability scientists at the University of Greifswald and the Nuremberg Institute of Technology. This has all been "scientifically tested". That's what it says in bold print in the brochure.
The actual advertising message
The promotion within the promotion, Penny's actual advertising message, is exciting. If you click through the nine more expensive offers, alias non-offers, you realize that the price increases vary greatly depending on the product. Both good and bad brands are presented, products with large and small ecological footprints. As a customer, you have the supposed choice. Please feel free to reach for the delicious plant-based, climate-neutral vegan schnitzel. You will have little or no impact on the environment. Only 14 cents extra cost for meat substitutes and a guilty conscience, only five percent environmental impact. However, if you choose the Vienna sausages on offer or a certain type of cheese, you are an environmental offender. Unfortunately, an environmental surcharge of almost one hundred percent is required here. According to science. From a marketing perspective, it is interesting that one of the evil products, whose price has almost doubled, serves as the eye-catcher of the campaign. So please do not (!) reach for the prominently placed 8 slices of Maasdamer. This week, the cheese costs €4.84 instead of the usual €2.49. If you absolutely want it anyway, please buy it with a guilty conscience. This immediately raises the question: is this advertising, anti-advertising or an aggressive re-education of the customer towards politically correct nutrition? A re-education that, if necessary, should take place via the price.
A look behind the scenes
The anger of many customers is pre-programmed. On the one hand. On the other hand, marketing experts are not stupid people. So why does a large corporation launch such a campaign, even though it does more harm than good? Why is Rewe launching a price increase campaign, even though the typical Penny customer is watching his wallet and is not the well-heeled Green voter who wants to and can afford ecological sustainability in every product? One can only speculate. One possible explanation is that Penny was ill-advised and believes in a big image boost. After all, the advertising campaign is riding the draught horses of climate and sustainability. In addition, the proceeds from the price increase campaign go to a good ecological cause called "Zukunftsbauer". There is another explanation: the entire campaign is a test and trial balloon.
A look into the future
Perhaps you have read the article Woker Madness Wallstreet read. It describes how BlackRock and co, but also big politics, are forcing companies to market themselves "woke". Rainbow marketing at all costs, even if it harms their own company. If necessary, with billions in losses like those suffered by Anheuser-Busch and Target following their advertising. The exciting question is whether what happened and is happening with the rainbow issue should now also happen with food. Is Penny's campaign an isolated case or will other food companies follow suit with similar campaigns? I would be happy if the former were the case. Nevertheless, I'm betting every penny that the latter will happen.
Articles identified by name do not necessarily reflect the opinion of the publisher.
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6 Responses
Vandana Shiva's book "Who feeds the world?" shows possible solutions. The problem of overexploitation of the soil is probably the primary one. The same comes from Alan Savory. In "Holistic Management" he postulates a reduction in CO2 through the regeneration of soils, interestingly with livestock farming. So we don't need lab-grown meat. Nor do we need agrochemicals, it's just a shame that Bayer and its ilk won't make any profits. It won't make speculation with food any easier either. Can we afford that? Is that what we want? How does it work? Sesame Street - already forgotten? "Why, why, why? If you don't ask, you stay stupid." At least we can't afford that, I'm afraid.
Dear community, apart from any ideological considerations, I would simply like to remind you that the typical discount store prices for animal foods - not just meat, but also dairy products, for example - and other products derived from animal by-products ALWAYS go hand in hand with animal cruelty on a greater or lesser scale. In my opinion, the question is not so much the price, not the question of ideology or re-education, but simply whether we want to continue to accept animal cruelty on the current scale as the norm, while in Germany and neighboring countries dogs, cats and canaries are decadently pampered - regardless of whether they think it's great or not.
PS. The Greifswald Gaugler in the "Tagesthemen" sounded to my ears like a medieval juggler, and a bad one at that, I didn't even give him half my attention.
A very exciting look at this questionable, ominous action, which literally incites theories about its conspiracy - sorry: explanation! I would also shy away from putting a penny on the counter-bet.
Die Ersatzreligion und das goldene Kalb dieses Zeitgeist heißt “ Klima- und Umweltschutz “ und treibt immer neue Blüten. Der mündige Bürger ist zu einem Relikt der Vergangenheit geworden. Wenn der Bürger sich nicht freiwillig und voller Begeisterung dieser neuen Religion beugen will, muß er halt über den Preis “ sanft “ dazu gezwungen werden. Zwang hat viele Gesichter. Den großen Unternehmen und den von ihnen gesteuerten Politikern winkt indes bei diesem “ Ablasshandel “ das große Geld und befriedigt den Machtanspruch. Es ging und geht im Grunde immer um Profit…..und wenig bis gar nicht um Idealismus. Der eine oder andere konforme Bürger mag da aus Überzeugung und dem guten Gewissens wegen mitmachen. Darin liegt der Verkaufstrick. Den hatten schon die Kirchen in der Vergangenheit traurig drauf. Die hatten schon in der Vergangenheit das ewige Leben und die Erbsünde erfolgreich vermarktet und am versprochenen Seelenheil unermessliche Reichtümer angehäuft. Der Mensch muss bloß über das schlechte Gewissen “ motiviert “ werden und an das Versprochene fest glauben. Man sieht, diese so simple, wie auch durchschaubare Verkaufsstrategie verspricht heute noch Erfolg. Als “ Ungläubige “ halte ich persönlich weder etwas von der Kirche, noch von Ersatzreligionen und widersetze mich, solange es geht…….
I think Penny - as REWE cheap goods - has a bad standing compared to competitors like Aldi and Lidl. The service for complaints is much worse. The stores don't look good and the price is still too high. This ride on the climate horse is a trial balloon. They have nothing more to lose.