Exclusive Interview
Exclusive Interview Dieter Grajer Dieter Grajer, Managing Director Home & Garden Products of Alfred Kärcher GmbH & Co. began his career with Kärcher in 1985. An engineering technician, he first worked in the Materials Planning Department. From 1991 he was Manager in Charge of Factory Engineering and Maintenance at the Bühlertann works, where in 1995 he became Plant Manager. In 2002, he was appointed Vicepresident, Development of Professional Products, and in 2007 he joined the firm’s Board of Management, where he serves as Managing Director of the Home & Garden business unit. About KÄrcher Kärcher employs more than 9,000 people in 57 countries and 93 subsidiaries. The family firm manufactures its cleaning machines in Germany, Italy, Romania, the United States, Brazil, Mexico and China. In 2011, the cleaning specialist posted its highest-ever sales revenues, euro 1.7bn, and sold 8.25 million machines, more than ever before it its 77-year history. RESPECT FOR THE ENVIRONMENT PLAYS KEY ROLE AT KÄRCHER Company founder Alfred Kärcher and his wife Irene were of the belief that sustainable economic success — stable finances and income — was only possible if social aspects such as respect for others and commitment to society are taken into consideration. Kärcher Pushes its Home Line Dieter Grajer explains how the company is expanding into the domestic market Dieter Grajer is Managing Director, Home & Garden Products, of cleaning machine manufacturer Alfred Kärcher. IFA International Editor in Chief Richard Barnes asked him about the company's current retail strategy… Kärcher now has a very wide range of more than 3,000 products, a good half of which are targeted at private households. We began including these machines in our range 18 years ago and initially sold “Our decision to develop an exclusive range for electrical stores was the right move for continued growth. ” them via DIY stores and specialist tool shops. Four years ago we expanded our global distribution system and in the course of doing so increasingly turned to Environmental protection has played a key role at Kaercher since the 1970's. “The best form of energy is energy which is not used.” That is the basis of Kärcher’s approach to environmental protection, sustainability and energyefficiency. And this philosophy is applied throughout the company. For example, its plastic injection moulding plant at Winnenden, southwest Germany, heats an adjacent building resulting in an annual saving of 19,000 litres of fuel oil and 51,300 kg of CO2, the equivalent of a mid-range car travelling 225,000 kilometres. electrical stores. We felt it was important for customers to be able to buy our machines where they buy their other domestic appliances. So, two years ago we brought to market the Kärcher Home Line, a special range for electrical retailers. We can only position ourselves as fullrange suppliers of efficient machines for domestic cleaning in partnership with them. Do you think that it is possible to grow even faster than you have been, or is this retail move more about maintaining steady, medium-term growth? Our decision to develop an exclusive range for electrical stores was the right move for continued growth. We made use of our first two appearances at the IFA consumer electronics and technology show to convince trade visitors of the benefits of Home Line. We are getting very positive feedback, as reflected, for example, in listings by major buying syndicates. The basis of our success, along with our powerful range of products, is our systematic marketing concept. We will continue the campaign with print and TV advertising. We are taking part in our third IFA in Berlin this year and are pleased to consolidate our already highly successful cooperation with our trading partners. What new products are you highlighting this year? Here at IFA we are presenting our new DS 6.000 vacuum cleaner with water filter. This energy-efficient machine, scheduled to be available on the market from January 2013, meets very high hygiene standards in domestic cleaning and will give relief primarily to allergy sufferers and people who are sensitive to dust. That is because its efficient filtering system reliably traps even small particles. As a result, the vacuum exhaust is noticeably fresher and cleaner than the ambient air. Another main focus is on our steam cleaners and the very successful WV 75 plus window vacuum. How will you use your strong brand image to help get the message across that Kärcher is providing household solutions? Dieter Grajer Managing Director Home & Garden Products of Alfred Kärcher GmbH & Co We have found that Home Line products benefit greatly from the reputation of our established brand. Previously, our private customers knew us, mainly, as a manufacturer of pressure washers and wet and dry vacuums. In addition to their high degree of innovation and high quality, Kärcher machines are a byword for being easy and convenient to operate, achieving the best possible cleaning results and saving time compared with conventional cleaning methods. We are building on this and investing heavily in marketing Home Line products in print media and on TV. Our trading partners are responding very positively to the new range too. Passage 2.1/4.1 Stand 101 20
spotlight on USA Region Innovation from USA Drives Sales America may be home to many of the world’s largest technology companies, but it is America’s small-to- midsize companies that the US treasures for their innovation. These “small” companies may actually be quite large by European standards. Multinational companies like Microsoft, Apple, and Intel create world-class innovation, but one has to also appreciate the large ecosystems that help make these companies great. IFA International is a great place to see many of America’s innovators, those new and clever products that help Europe’s retail sales. “(...) the most advanced consumer electronics companies, have a lot to learn about what we’re doing” Noel Lee Monster CEO and Founder Monster’s Marketing Ménage à trois “There’s a revolution going on, things are changing fast,” declared Monster Inc. CEO and founder Noel Lee to a packed house during an inspired IFA keynote address. “The fusion of entertainment, sports, fashion and consumer electronics is causing an explosion in the way people market and how people view our products, especially headphones,” Lee enthused as rap singers, basket ballers, DJs and fashion models joined in to spread the Monster gospel. Lee, then a drummer looking for a superior headphone cable, founded Monster in 1979 in California and has since created the bestselling headphones above US0 on the planet. With Monster headphone lines worn by megastar athletes and entertainers like Olympic swimmer Michael Phelps and Lady Gaga, Lee was well-qualified to state his views on the state of consumer electronics and the power of high octane marketing. “The smart marketeers, the most advanced consumer electronics companies, have a lot to learn about what we’re doing,” said Lee, asserting that the bestsounding headphones alone are not enough. A threepronged marketing strategy targeting the holy trinity of entertainment, fashion and sport has seen Monster craft collaborations with iconic rapper Dr Dre – the Beats by Dr Dre signature headphone line revolutionised the industry – and fashion labels like Diesel, who has codesigned popular modish headphone ranges. Lee warned that putting an artist’s name on a pair of headphones was not itself a guarantee of success. The process must be “authentic”, the “artist has to feel it, the celebrity has to really love the product”, he said. Lee also made a big announcement on a new exclusive line of headphones made in collaboration with Nokia. The Purity Pro line will feature fashion colours, Bluetooth, and will instantly pair with Nokia products, meaning they switch on when you turn your phone on. Hall 3.2 Stand 135 • Editor’s Note: As we go to press on Tuesday, the Head Monster was announcing at IFA a new alliance with Viacom, global music and entertainment company. Unveiled at IFA was the new diamond-shape DNA brand headphones from Monster. www.ifa-international.org IFA International • Wednesday 5 th September 2012 21
