Grundig products are returning to the UK market. What brought about this move, and what was your role in facilitating it? And what does the UK and Ireland offer to Grundig?
The Grundig brand has provided quality electronic products in Europe since 1946, and has a strong heritage in the UK, with British consumers remembering the brand for its German design and quality products. We tested home appliance product concepts with British consumers two years ago, and found that the stylish looks and high quality of the range brought something exciting to the market. We ensure that our products are energy efficient, contain useful technological innovation, and deliver on award winning design. In fact, we have already won six coveted Red Dot Design Awards for our collection.
British and Irish consumers are open to new ideas, so launching a brand with a strong retro past and with high quality and design credentials resonated. My team and I led the consumer research and developed the appropriate channel strategy working with sales to deliver exclusive ranges for Currys and Nolte Kitchen Studios. We launched the brand officially this July, after having optimised our website, and then rolled out the ‘Built to Last’ consumer campaign a month later. Our sales at Currys went up to fivefold during the campaign so we knew there was real consumer interest in this range. Since then, the consumer interest and the sales of Grundig appliances have been exponentially increasing.
Having spent over 20 years’ experience in the industry, what was your previous experience of bringing a brand into a new market?
I successfully drove LeapFrog, a children’s electronic learning brand, to number one position in the UK against the likes of Fisher-Price and V-Tech, using consumer insight and a strong multi–media campaign including TV and digital. More recently, I launched a multi–brand website for Premier Foods, with the goal of helping busy parents create easy meals and treats for their family. During peak season, we were competing with strong recipe sites and delivered over 100,000 consumers to the site when we launched our TV campaign.
Are household goods, which can be perceived as quite functional, a difficult product to market successfully?
Quite the opposite, it is our job to help consumers understand just how vital household appliances are to everyday life. I know people can’t live without their iPad or mobile phone, but can you imagine a week without your fridge or washing machine? It is my role to help consumers realise just how far household appliances have come and how technology has benefited their performance. Our washing machines sense how dirty your clothes are and choose the right cleaning programme accordingly, our dishwashers can wash fine crystal in the upper basket and heavily soiled pots and pans in the bottom rack - at the same time, and our refrigerators keep food fresher for longer with Duo Cooling and Fresh Guard technology.
What bearing has new technology and trends, such as the internet of things, had on the new Grundig line?
There is a lot of talk about connecting appliances to consumers through their smart phones and computers. It is clear that connected appliances are the future but the execution needs to be right. For instance, you might be able to turn on your oven from the comfort of your office, but is it a good idea to leave a raw chicken in the oven the whole day? We are developing connected technology for Grundig appliances which deliver a true benefit to the consumer.
A key area where we are spending a lot of time is in helping consumers make the right choice when they are browsing and shopping on the internet. The latest stats show that approximately 40-50% of appliance purchases are done online, and about 90% of consumers use the internet in their purchase journey. With our website we make it easy to go online, see the products, view videos, and tell consumers where they can buy these products. This is a real benefit to consumers as they want an easier shopping experience, gathering product information in the comfort of their own home. We invest in digital technology and digital advertising in order to facilitate an easy online consumer journey.
How pressing is the concern that Grundig’s previous reputation in the UK could undermine the new range, regardless of quality? How are you trying to avoid this?
The Grundig brand had a brief period in its history in the 2000’s where there was lack of investment into it’s products. Luckily our parent company bought the Grundig brand outright a few years ago and has restored the design aesthetics and quality promise that consumers are looking for from a premium, reliable brand and introduced new home appliance lines. As a statement of quality, we also give a comprehensive five year warranty on all our products to re-assure consumers that we are back in the UK with a range they can believe in.
What expectations, or targets, do you have for Grundig’s UK return?
We expect Grundig to be one of the major premium home appliance brands in the UK within the next three to five years. We hope to expand into other category areas like small domestic appliances, audio/visual products and continue to be known and trusted in the UK as a stylish and quality premium home appliance brand.
Are there any models, or successes, that you’d like to replicate with Grundig?
Our German colleagues have over 500 products available for use in the home - from small and major domestic appliances to flat screen TVs to connected radios and even personal care. Currently Grundig is one of the leading brands in Germany and Nordic countries. We believe the Grundig brand has strong equity also in the UK and we can create a success in this market with our unique design and a strong product offering to consumers.
Quick questions
1. What time do you get up in the morning? It varies between 5.30am and 6.20am
2. What’s the first thing you do when you get to the office? Say hello to people, grab a cup of coffee, plan out the day with the critical tasks for the day and week
3. What do you do to relax? I jog a few times a week and spend time with my kids who are seven and three years old. They keep things in perspective.
4. What app can’t you live without? More important than any app is the smart phone technology which allows me to be effective in my job anywhere I am in the world.
5. What campaign do you wish you had come up with? The latest MacMillan nurses campaign was truly inspiring and memorable. To fall over must be the way someone feels when diagnosed with cancer, and MacMillan’s outreach over the last few years, I am sure, has helped to push their brand awareness and the charity’s overall effectiveness.
6. Your single piece of advice for a new marketer? Respect your consumer. Focus on consumer insight and know why customers are buying your product or service. To focus solely on technology, apps, or big TV campaigns is to lose sight of your purpose.
7. What keeps you up at night? Aside from my three year old daughter, my job. Most of my creative ideas come at night so I keep a pen and paper by my bedside. The chicken scratches are barely legible the next day, but it does work.
Teresa Arbuckle is marketing director for UK and Ireland, Grundig
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