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expert look
We’re also experiencing an exciting situation right now: I’m delighted
that a lot of new brands are being created at the moment
in a completely new quality. It’s often young people taking their
ideas to the market, in England for example or even more so in
America. Let’s take the example of chocolate: I know about 15 new
chocolate brands – of which quite a few are likely to succeed in
the long term. I think this small example also answers the “Mediamarkt”
question. Such “Mediamarkts” will continue to play a
role in future. In the case of many price-driven products, however,
it’s only a question of time until they disappear from the market.
does the internationalization of a brand always have to be difficult?
How can you be successful against all the odds?
peter schmidt: In the case of car brands, we can see that it also
works quite well – as long as companies have the necessary
power and their products the desired quality. VW for example,
or BMW, have a strong global brand. And the Mercedes star is
still shining brightly around the world – despite the difficulties
of the Daimler-Chrysler phase. Jil Sander has been similarly successful.
As I mentioned before, she succeeded in establishing an
unusually strong position in Japan and the USA. Jil Sander is even
Many companies seeking
an established brand in France and
growth have to ask them-
England.
selves the question: “How do
we enter new markets with
our brand?”
peter schmidt: I think entering
international markets is
“Brands are competing
in a much more complex
environment today than just
a few years ago.”
Peter Schmidt
This example clearly demonstrates,
by the way, that a number of factors
need to combine for a company to
have success. Firstly, there was a
very clever strategy behind the international
expansion. Japan was
a difficult step to make for a
chosen as it has a strong affinity for
brand. First of all, it’s obvi-
German products. Then the product
ously necessary to break out of the small German market, but itself was right; people immediately liked the perfumes. Timing
I’ve also witnessed many brands fail in their attempts to gain a was also critical: at the time, women wanted to be more inde-
foothold abroad. If Melitta is successful in Europe, the USA or pendent, not as quiet. And finally, Jil Sander’s personality and ap-
Brazil, then that deserves tremendous respect. On its first foray pearances rounded off the brand image.
overseas, Hugo Boss suffered losses in the millions. It took quite If I wanted to go international with my brands, I would go from
some time for the brand to establish itself. The company was only country to country – basically, in the same way as Melitta does.
able to hold out so long because its domestic European business I also believe that a company needs several major brands to be
was doing so well.
profitable. And – this is a fact these days – you also need the
There are many companies today who enjoy an international
reputation but have only few brands. There are two reasons for
necessary funds to build up awareness in a market.
this. The first: if you take a branded product abroad, you generally How would you assess Melitta’s approach of establishing a dif-
encounter markets which are already occupied. You will be facing ferentiated brand architecture over the years under the Melitta
well-established mid-size companies and financially strong major
corporations. Both will use their power and experience to repel
umbrella?
you as quickly as possible from their market. On top of this fierce peter schmidt: It was important to do this! The company rec-
competition, you will also have to accept increased costs. And ognized that you shouldn’t stretch the Melitta brand too far. It’s
the second reason: if you want your branded product to be rep- simply not possible to offer coffee and household products under
resented on a market, you have to know the local conditions very the same brand without causing damage. Toppits, Swirl, Cilia are
well. To use the example of coffee for a moment: in Spain, coffee all brands which were invented and launched on the market. And
enjoyment is different to what it is in the USA or Brazil.
Melitta has been consistent and successful in pursuing this ap-
proach. It says a lot about the substance of Melitta that this process
went so smoothly and that the market accepted the products
so willingly as brands.
It was right to free the Melitta brand from those products which
have their own expertise and a different appearance. Coffee has
to succeed in different markets to those of food wrappings, for
example. Each branded product speaks its own language and
requires its own individual design. In the sense of brand architecture,
however, people should also be able to recognize that
the products come from the same house. That’s a difficult task,
which companies regularly have to solve.
You mention the umbrella under which a brand manufacturer
has to group all of its branded products. What would a company
like Melitta have to consider if it wanted to make a benefit
claim valid for all its brands?
peter schmidt: First of all: Melitta is regarded as a competent
and credible company. This is a common link which the various
product brands benefit from – despite their inherent differences.
Let’s not forget, coffee stands for “enjoyment” and household
products for “work”, and this basic difference should not be ignored.
However, the umbrella is still possible: if a company with many
strong brands wants to communicate a common benefit claim, it
must first recognize its own dimensions. Only those companies
which recognize their size and thus accept their diversity, will also
recognize the need for a representative which stands for all their
brands. In the case of family-owned branded goods companies,
this is often the owners themselves. Gabriele and Konrad Henkel,
for example, defined the brand personality as representatives
of their company. At Melitta, it’s the Bentz family. Such familyowned
companies have a fantastic opportunity which corporations
don’t have in this form: to use real people for the credible
communication of values which may stand for a wide variety of
products.
Finally, Mr. schmidt: what is your vision for the brand?
peter schmidt: Why shouldn’t we be a little audacious and say
that brands are like people. There are loud ones and quiet ones,
Brands: ValuaBle Constants
garish and conservative – and there are human characteristics
which we can recognize in brands. There are some people whose
very appearance earns them respect, and those who we don’t immediately
take notice of – but then on careful inspection respect
all the more. You will never satisfy all customers with a single
brand, but always those who fit to you.
Peter Schmidt
The Hamburg-based product designer Peter Schmidt is
one of Germany’s leading designers. Over several decades,
his work has helped define the image of many brands.
Examples in the field of perfume include Hugo Boss, Laura
Biagiotti and Jil Sander. However, his wide range of work
has also encompassed corporate identity, magazines and
international museums such as the Museum of Modern
Art. Following the successful establishment of the Peter
Schmidt Group, he now works on selected tasks with just
a small team. One of his latest projects is a revamp of the
traditional “4711” brand.
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