Introduction Jgermeister: Jgermeister is a special case in the field of liquors.

While most brands being now owned by big global companies, Jgermeister is still run as a mid-sized, family owned company in Germany with a portfolio of almost one core product. This makes it especially hard to be competitive on a global basis and survive against bigger companies with all their expertise and economies of scale. Jgermeister is a special product of its own while also being handled by very innovative business man to write a success story of its own. The unique part of its history is that the current brand image was significantly formed by the actions in the US market and transferred then to other countries, including its country of origin Germany.

Chapter 2 - International Marketing Challenges. Explained by the example of Jgermeister The liquor of Jgermeister was created in 1934 by Curt Mast and was sold for the first time in 1935. Wilhelm Mast founded the company in Wolfenbttel in 1878 already, but they produced vinegar at the factory before that. The original recipe of Curt Mast is still being used today and is the companys best kept secret. It consists of 56 botanical ingredients, including many different herbs, spices, woods, roots, blossoms, fruits and seeds. Combined with the unique distilling expertise, a product was created that is unrivaled in its product category segment. The name Jgermeister translates to Master Hunter, the profession still existing in Germany that describes an employee of the districts hunting authorities who regulates the regional hunting. The logo is a stag surrounded by forest branches and with a a shining cross between its antlers. This is referring to the legend of Hubertus, who is the German patron saint for hunters. (Jgermeister 2011) The innovative marketing approaches of Jgermeister have been started by Gnter Mast, the grandson of Wilhelm and nephew of Curt. (Welt 2011) Gnter Mast agreed to sponsor the German Bundesliga club Eintracht Braunschweig in 1973. But besides conventional banner ads in the stadium, he came up with a very new form of advertisement: Shirt advertising. The Jgermeister logo was now seen on the front side of the clubs jersey, which was revolutionary at that time. Ten years later when Eintracht Braunschweig has gone bankrupt, he agreed to being elected as the president of the club. He not only managed to implement more company-like structures into the management, but also tried to rename it into Jgermeister Braunschweig. The German football association DFB did

not agree on this act and prohibited it, but nevertheless it was great publicity for Mast and the Jgermeister brand. He also created his a slogan for print ads that have been shown with over 3000 subjects, some controversial as well. By those very unique marketing actions, Mast succeeded to make Jgermeister the best-sold liquor in Germany. But by the end of the Gnter Mast era in the early 1990s, Jgermeister was stagnating and having an old target group. That is when Hasso Kaempfe took over to rejuvenate the brand and bring out Jgermeister to the rest of the world. In 2001, 54% of the worldwide sales have taken place in foreign countries, 25% alone in the US, which let them replace Germany as the biggest market for Jgermeister. (Spiegel 2002)
http://www.spiegel.de/spiegel/print/d-22078355.html

Sidney Frank was not trailing behind Gnter Mast as one of the crucial and most influencing people on the brand. He acquired the rights to sell and distribute Jgermeister in the southeastern United States in 1974. Eleven years later he was the exclusive distributor for the whole USA. Sales were still not going up to that point where it was very successful business until a story was published in the Baton Rouge Advocate on May 12, 1985 that told about a popular drink Liquid Valium that was served in a famous bar in New Orleans Bourbon Street. Basically it was only shots of cold Jgermeister, but the rumors about the doping effects the liquor really flourished the attention and demand for it. Sidney Frank took advantage of this by handing out copies of the article to college bars over the country and convincing bars on Bourbon Street to serve cold shots of Jgermeister. This was strategically very smart, because New Orleans is a very popular party destination among American college students for events like Mardi Gras and Sugar Bowl. So after students tried this new liquor, they spread the message on their campus and to their peers being the best promoters at no-cost for Jgermeister. http://www.fundinguniverse.com/company-histories/Sidney-Frank-Importing-CoInc-Company-History.html

That was not it for Mr Frank. In 1988, he created the role of the Jgerette, which is attractive woman dressed in sexy clothing whose task is to animate men at bars to drink Jgermeister. Additionally they had to hand out promotional gifts of the brand as well. Soon, Jgerettes have been employed all over the country. Another revolutionary idea was the tap machine in 1993. Since Jgermeister was mostly served as an ice cold shot, a way to serve it quicklier was needed. Before that, the bottles were

cooled in freezers and then poured into the glasses. The tap machine managed to chill the contents of three bottles while enabling to just tap Jgermeister at the perfect temperature. Plus it created some advertising of itself with big brand banners on them.
http://www.fundinguniverse.com/company-histories/Sidney-Frank-Importing-Co-Inc-CompanyHistory.html The tap machine can be ordered online and it offers the commercial users a profit calculator so they can easily see when the investment of $328 for the tap machine amortizes itself, which is nice feature to persuade potential buyers to purchase it. http://www.tapmachineinc.com/core/bar.cfm Jgermeister has recently come up with a handy version for private consumers: The six bottle cooler. It enables the same tap function while chilling the bottles in a conventional cooler box so consumers can use it on-the-go and take everywhere they want. This extends the brand experience. http://www.sidneyfrank.com/jagermeister/press-releases/jagermeister-6-bottle-cooler.html Another big element of the marketing mix of Sidney Frank for the Jgermeister brand has been event marketing and sponsoring. They made themselves a name by hosting and sponsoring a lot of rock and metal concerts. This mean was also easily applicable in Germany and other countries around the world. The brand was also advertised with different sweepstakes like the Jger For Life action that gave consumers the chance to win a tattoo appointment with one of the very best tattoo artists. The sweepstake was accompanied with online community where the brand loyalists could upload and present their own tattoos. http://www.sidneyfrank.com/jagermeister/press-releases/jager-life.html The success of Jgermeister in the US was on the rise. In 1999, over half a million of cases consisting of six one-liter bottles have been sold. It has become the number one selling imported Liqueur and shot brand in the United States. http://www.sidneyfrank.com/ In 2010, 84.6 million bottles have been sold, which is the best result in the companys history.

http://www.handelsblatt.com/unternehmen/industrie/jaegermeister-mitrekordabsatz/3897622.html

One of the biggest changes was in the process of consuming. Jgermeister was served in the USA either as a shot, on the rocks or with non-alcoholic drinks (in Germany mainly as an after-dinner drin and popular for its medicine-like value).

Chapter 3 - International Marketing Strategies. A case study of Adidas and PUMA.

Adidas and PUMA were originally started as one company in Germany, in year 1924 by brothers Rudolf and Adi Dassler, under the name of Gebrder Dassler Schuhfabrik with headquarters in Herzogenaurach. The company quickly became successful and began its cooperation with German Ministry of Sport to sponsor German Soccer team. During the Berlin Olympic Games in 1936 almost every member of the team wore Adidas shoes and American sprinter Jesse Owens won 4 gold medals wearing Adidas. In 1948 after a crisis in relations between the brothers Adi Dassler left to form his own shoe company, Adidas. Rudolf Dassler renamed his company to PUMA Schuhfabrik. This event marked the beginning of rivalry between the brothers and their companies. Both companies have the same roots and origins. However, they create different image and share different visions as an effect of different advertising campaigns. PUMA brand associates with fashion, style, and sport. It achieves its image through partnerships with celebrities and famous designers. PUMA not only competes with traditional rivals in the sport footwear industry (for example Adidas, Nike) but also with fashion brands. One of the main concepts of brand image is to promote active lifestyle and engage customers in experiencing active lifestyle. Adidas in contrary to PUMA associates strictly with sports and athletic performance. Despite the fact that Adidas products are characterized by innovative design, they are perceived as rather unfashionable products. Adidas competes in the sporting footwear industry by focusing on performance, sport style and heritage. In response to the sports lifestyle trend promoted by PUMA, Adidas has developed product lines with famous designers and has focused on the timeless and classic nature of their brand. In 2010, the PUMA started After Hours Athletes campaign. As part of the campaign PUMA hosts parties offering its participants sports games which can be played with a drink in hand. These sports include darts, ping-pong, bowling, karaoke, foosball and the sport of scoring phone numbers. PUMA has also signed contracts with three-time Olympic gold medalist and sprint world-record holder Usain Bolt and Formula 1 world champion Sebastian Vettel to promote products in a series of events.

PUMA also promotes through various campaigns a lifestyle that is called PUMA VISION. The aim of the campaign is to increase social and environmental awareness. According to the CEO of PUMA, a better world is better for our business, our stakeholders, and our consumers, not only for today but for tomorrow, too (Zeitz, 2008). The PUMA VISION is based on four key aspects: Fair: for those who enjoy sports that are not perceived as a traditional sport. Honest: not everyone is an athlete - some of us are After Hours Athletes. Positive: promoting new, alternative sports to engage people in physical activity. Creative: Revolutionizing what is considered a sport. In their marketing campaigns PUMA involves such stars and celebrities like Gwyneth Paltrow, Madonna, Serena Williams (early in her career), Nicolas Anelka or the Jamaican Olympic Team, who are perceived as a cool group of laid-back athletes. PUMA has also cooperated with Monarchy/Regency, a film and television production company. As a result of this cooperation, PUMA products were promoted in such series as Will and Grace and Friends or in the movie Pretty Woman. Connections with Hollywood enabled PUMA to promote their products on a global scale at little to no cost. Adidas Impossible is Nothing campaign aimed to strengthen position on the American market and to reach the target audience for Adidas products (young people involved in sports, between 12 and 24 years). Impossible Is Nothing was launched in February 2004 with television, print, and internet advertising. The first ad presented young Muhammad Ali running along the modern sports stars like David Beckham or Tracy McGrady. In the background of the commercial, Alis daughter Hannah narrated, Some people listen to themselves, rather than listen to what others say they remind us that once you set out on a path, even though critics may doubt you, its okay to believe there is no cant, wont, or impossible. They remind us it is okay to believe impossible is nothing. Second advertisement presented Muhammad Ali sparing with his daughter, Laila. He was training her to become a boxer. In the background of the commercial Laila narrates: Impossible isnt a fact; its an opinion. The campaign was also run on the internet. On the official website of Adidas there were twenty famous sports stars presenting their Impossible is nothing histories. Fans were also encouraged to interact and share their own stories, the best of which were awarded prizes by Adidas.

The campaign was a huge success. It not only encouraged young people to become more active, but also improved the image of Adidas. It allowed company to increase its sales by 10% on a year-to-year basis and increased market share in the United States. Adidas won many awards, including Silver EFFIE Award and Golden Lion Award at the festival in Cannes. Adidas was also named the 2004 Marketer of the Year by Footwear News (Sunset, 2008). Another famous campaign by Adidas is The Brotherhood campaign. It involves six NBA All-Stars: Kevin Garnett (Boston Celtics), Tim Duncan (San Antonio Spurs), Gilbert Arenas (Washington Wizards), Dwight Howard (Orlando Magic), Chauncey Billups (Detroit Pistons) and Tracy McGrady (Houston Rockets). The campaign was first aired in 2008. It is characterized by seasonality (runs only during the NBA season) and consists of short, 30 second ads that are aired during the games. The main slogan of the campaign is Its on Me for my Brotherhood. The message is that even though the players create a Brotherhood, each member carries responsibility and is responsible for doing his part to strengthen the team as a whole. The ads focus on the strengths of the two men, demonstrating how Adidas basketball footwear and apparel improves their performance and ultimately strengthens their Brotherhood (Adidas, 2011). Adidas is the official sponsor of the NBA and NFL and is the largest producer of hockey equipment. Their brand ambassador is David Beckham, who with help of other celebrities promotes Adidas in every region of the world. Adidas also sponsors events such as the London Marathon and Adidas Sundown Marathon in Singapore. Adidas has also been promoting their products in NASCAR, sponsoring drivers such as Dale Earnhardt, Jr. and Tony Stewart. PUMA is involved in sponsoring individual players, teams and whole representations. It sponsors for example Formula 1 teams (Ferrari, Mercedes GP), Polish National Soccer Team or English and Scottish National Rugby Teams. In 2012 PUMA also became a sponsor of Borussia Dortmund. On the list of famous sportsmen sponsored by PUMA are: Michael Schumacher, Diego Maradona, Nicolas Anelca, and Pele. The last sportsman made PUMA famous during the finals of World Soccer Championships in Mexico in 1970, when he asked the referee seconds before the first whistle to allow him to tie his shoe. Pele kneeled down and the whole world saw him tying laces on his brand new PUMA shoes (PUMA, 2011).

Both companies are also using social networks to promote their products. Adidas is among the top 20 companies to have registered the biggest fan bases. A significant contribution has Adidas Originals, the official Facebook fan page of Adidas. PUMA is not as successful as Adidas but still places in the top 50 companies. Adidas is using their pages to keep fans updated about every new move of the company. However, the level of interactions with fans is rather poor. The pages are oriented rather on selling and promoting new products than on engaging in relations with the customers. PUMA on the other hand is focusing on keeping their pages social. They have involved in their internet campaigns stars like Ussain Bolt or Diego Maradona, whose 50th birthday has largely contributed to increasing PUMAs fanbase (InRev, 2010). In conclusion, despite the shared origins both companies took different approach towards branding and target their customers in different ways. While Adidas promotes performance and sportsmanship, PUMA focuses on enabling young people who are not athletes to enjoy sports and alternative physical activities. The products of both companies also differ. PUMA footwear is perceived as fashionable, Adidas is viewed as sporty. Even though they are competitors on the same market, PUMA and Adidas seem not to be directly engaged in a brand war.

Bibliography:
1.

Zeitz, J. (2008). PUMAVision: The Background Story. http://vision.puma.com/us/en/category/background/

2.

InRev, 2010. Brand Fight in Facebook. Adidas vs PUMA. http://inrev.com/pdf_report/Puma_Vs_Adidas_Facebook.pdf Sunset, B., 2008. Impossible is Nothing Campaign. http://marketing-casestudies.blogspot.com/2008/01/impossible-is-nothing-campaign.html

3.

4. 5.

PUMA, 2011. http://www.puma-buty.pl/index.php/historia.html Adidas, 2011. http://www.adidas.com/pl/homepage.asp

http://www.wiwo.de/unternehmen/auslandsstrategie-wie-jaegermeister-die-usaeroberte/5674318.html http://www.wiwo.de/bilder/nachrichten-und-meinung-die-weltweit-beliebtestenschnaepse-/4728812.html?a=false&p=2#image http://www.spiegel.de/thema/mast_jaegermeister/ http://www.spiegel.de/spiegel/print/d-22078355.html http://www.spiegel.de/spiegel/print/d-13524635.html http://de.wikipedia.org/wiki/Mast-J%C3%A4germeister http://www.spiegel.de/spiegel/print/d-14024342.html http://www.spiegel.de/spiegel/print/d-13510075.html http://www.welt.de/wirtschaft/article12694532/Der-Mann-der-Jaegermeister-zurLegende-machte.html http://www.wiwo.de/unternehmen/getraenke-jaegermeister-braucht-einekurskorrektur-seite-4/5674316-4.html http://www.tapmachineinc.com/core/bar.cfm http://www.jagercups.com/index.cfm??&fromsplashpage=1 http://www.wiwo.de/unternehmen/nachruf-jaegermeisters-spruecheklopfer-isttot/5249184.htmlhttp://www.presseportal.de/pm/65566/952977/die-welt-trinktjaegermeister-die-groesste-deutsche-spirituose-steigt-in-die-internationalen-top-10 http://www.tapmachineinc.com/media/pdf/j99manual.pdf http://www.welt.de/sport/fussball/article13610500/Wer-erfand-eigentlich-dieTrikotwerbung.html http://www.handelsblatt.com/unternehmen/industrie/jaegermeister-mitrekordabsatz/3897622.html

http://www.autonews.com/section/GLOBAL03 http://www.tnsglobal.com/_assets/files/TNS_Global_Market_Research_5_Critical_Issues _for_the_Chinese_auto_industry2009.pdf http://www.tnsglobal.com/request-download.aspx?request=1&page=13 http://blogs.tnsglobal.com/tns_automotive/ http://www.tnsglobal.com/marketresearch/67EEAE43E09740118452FB7305E6BCBA.aspx