Media-Saturn

In terms of sales and number of employees, Media-Saturn is METRO GROUP’s second-largest sales line and No. 1 among consumer electronics stores in Europe. Media Markt, Saturn, online retailer Redcoon and the Russian online shop 003.ru, which joined the Media-Saturn group of companies in July 2012, do business autonomously in the marketplace and compete against one another. Europe’s leading online platform for the distribution of digital media, 24‑7 Entertainment, is part of the sales line as well. In addition, Media-Saturn holds a stake in xplace, a technology service provider with a leading position in the European market for interactive customer information. In October 2012, the sales line also purchased a stake in Flip4New, Germany’s leading provider for the online purchase of used electronic products. The sales brands Media Markt and Saturn are characterised by attractive prices, a large selection of innovative products, a comprehensive assortment of top brands, the best service and creative, eye-catching advertising. A decentralised organisational structure, dedicated staff and entrepreneurial boldness are the heart of the company’s philosophy. They underpin international growth. Media Markt and Saturn apply a multichannel marketing approach in which the stationary business is closely linked to online shops. Redcoon and 003.ru, on the other hand, are discount providers of electronic products that sell these exclusively online. With its interest in Flip4New, Media-Saturn once again expanded its area of business: customers now can exchange used electronics for shopping vouchers at saturn.de and at numerous Saturn stores.

A culture of competition

Media Markt, Saturn, Redcoon and 003.ru conduct their business independently of one another. The arrangement nurtures competition among the sales brands and boosts their performance. In addition, the individual Media Markt and Saturn consumer electronics stores are generally positioned as independent companies in which the local managing director holds a stake of up to 10 percent. This results in broad decision-making freedom and flexibility. For example, advertising campaigns, product selection and personnel planning are managed directly by the consumer electronics stores. Staff also have a high degree of independence in the operating business. This increases identification with the company, strengthens motiv­ation and encourages – not least – customer orientation. After all, employees are in direct contact with customers and have a first-hand understanding of their needs and local business conditions. The organisational structure of Media Markt and Saturn ensures that employees can react flexibly to these.

Comprehensive selection and service

Media Markt and Saturn view themselves as trendsetters in their sector, a fact that is reflected in the product range, product displays and store design. The entire assortment in flagship stores – marquee stores in excellent locations – includes up to 100,000 items, particularly small and large electronic devices as well as entertainment electronics and media. The sales brands also offer such services as financing, warranty extension, repair and disposal of old devices and appliances. Under the umbrella of Power Service, Media Markt and Saturn provide a number of additional services, including delivery, setup, data recovery, the inspection of built-in units and satellite systems, and maintenance packages. The selling space in the consumer electronics stores ranges from 1,000 to 18,000 square metres.

Dual online strategy

Consumers are increasingly going online to learn about products and to obtain goods and services. The Media-Saturn group of companies has responded to this trend in its dual online strategy. While Media Markt and Saturn increasingly serve customers both at stationary stores and in online shops, Redcoon and 003.ru have exclusively positioned themselves as online retailers. The objective is to also lead the European market in online consumer electronics retailing.

A core element of this effort is multichannel marketing in which the consumer electronics stores are closely linked to an online shop. As of the end of 2012, for example, Media Markt and Saturn customers in 10 countries could obtain products by shopping either from home, on the go or in their local consumer electronics store. Products can be ordered online and, if available, picked up on the same day at the nearest store. If a customer needs add­itional assistance with the product purchased online, he or she can also get this at a selected Saturn store. In some cases, service packages can also be booked online. Media Markt and Saturn have specially optimised their online offer in Germany for smartphones so customers can shop while they are on the go. Saturn’s mobile online shop received the Mobile Agency Award from the Internet company Google in August 2012. Multichannel marketing will continue to be systematically expanded in all countries where Media Markt and Saturn do business. As of the end of 2012, customers in Austria, Germany, Greece, Italy, the Netherlands, Pol­and, Sweden, Spain and Switzerland, among other countries, could shop online at Media Markt and Saturn. The objective is to introduce multichannel marketing in all other countries.

Furthermore, Media Markt and Saturn have been offering digital products – including music and film files, video games, computer programs and e-books – online for several years now. 24‑7 Entertainment GmbH, a subsidiary of the Media-Saturn group of companies, launched JUKE in 2011. This online service provides customers with unlimited access to 20 million titles through a subscription system. Customers can order this service in the online shops of Media Markt and Saturn as “Media Markt musicflat powered by JUKE” or “Saturn musicflat powered by JUKE”.

The second core element of the online strategy of Media-Saturn is pure online retailing. Redcoon is one of the largest discounters for television sets, digital cameras, notebooks, stereos, car stereos and household appliances in German-language online sites. The sales brand is represented in a total of 10 European countries. With Redcoon, Media-Saturn can target price-conscious consumers who shop online and do not expect additional services. In Russia, Media-Saturn does business in this segment by way of the company 003.ru, which joined the group of companies in July 2012.

Own-brand family completed

In 2010, Media Markt and Saturn began to offer own brands in Europe: “ok” for the budget price segment and “KOENIC” for high-quality small and large household appliances. Media-Saturn also introduced the “PEAQ” brand for consumer electronics as well as the “ISY” brand for accessories. As a result, the consumer electronics stores cover all price segments and an array of product categories. To assure the highest possible product quality, the sales line is working closely with well-known brand-name manufacturers. Products from the 4 own brands are available in most countries where Media Markt and Saturn operate stores. Both sales brands are also gradually including these products in the assortments of their respective national online shops.

Strong marketing campaigns

Media Markt and Saturn are known for their spectacular advertising campaigns and memorable slogans – in Germany and in other countries, too. Media Markt and Saturn advertisements are designed to inform, polarise and attract people. During the financial year 2012, the sales brands once again launched marketing campaigns that got people’s attention. Both Media Markt and Saturn launched major advertising campaigns in Poland and Ukraine in the summer of 2012 that were related to the UEFA EURO 2012 football championship that was held in those countries. In Germany, Media Markt began positioning itself in the autumn of 2012 with the slogan “Verrückte da draußen: Willkommen beim Preis.” (For the crazies out there: welcome to the price.). With this campaign, the sales brand is intentionally focusing on a younger target group that gains independence with the help of new technologies. For its part, Saturn further refined its brand message “Soo! muss Technik” (Technology: the way it has to be!). The campaign spotlights the sales brand’s passion for and expertise in technology. As part of their multi­channel marketing strategies, both Media Markt and Saturn have mod­ified their marketing concepts and expanded their social media activities. At the end of 2012, Saturn Germany was one of the 20 most popular brands on Facebook. Media Markt is increasingly focusing on integrating all media. In the process, the sales brand will fill each individual channel with content depending on the needs. Saturn regularly publishes the gratis customer magazine “Turn On”, which unites print and online media. In November 2012, Redcoon, too, launched an extensive campaign that comprised television advertisements for the very first time. The slogan: “So viel billig gab’s noch nie.” (There’s never been so much so cheap.).

Dynamic expansion

In Europe, Media-Saturn has already turned its vision into reality: being No. 1 in consumer electronics retailing. As of the end of 2012, the sales line had 942 stores in 16 countries and operated an online sales channel in 2 additional countries. In 2012, Media-Saturn had 49 more consumer electronics stores than in the previous year. Media-Saturn will continue to expand and open additional stores in Germany and around the world during 2013. However, we have decided to discontinue our sales line in China and have formed the necessary financial provisions. This decision is based on the experiences and forecasts of the 2-year test phase that ended on 31 December 2012.