罗兰贝格—Strategy evaluation and Sales & Marketing.ppt

SHA-4309-03690-08-15b.PPT-x,B.Strategy evaluation and Sales&Marketing,SHA-4309-03690-08-15b.PPT-x,B1.Strategy evaluation,SHA-4309-03690-08-15b.PPT-x,B1.1 Corporate strategy analysis,SHA-4309-03690-08-15b.PPT-x,Geberits corporate strategy in China is to promote exposed,and concealed cisterns and tank fitting products,Vision,Strategy,Shanghai,Daishan,Aims at being the leading brand and supplier of high quality water-saving and maintenance-free plumbing products and being the market leader in concealed plumbing technology,Aims at being the leading brand and supplier of flushing products with superior quality and being the market leader in flushing technology,Concentrate sales and marketing resources to promote exposed and concealed cisterns,Concentrate sales and marketing resources to promote tank fitting products,Geberits corporate strategy,Penetrate into China market promoting exposed,concealed cisterns and tank fitting products,SHA-4309-03690-08-15b.PPT-x,Although GSHA developed a strategy when founded,strategic objectives havent been achieved,Upper end,Strategy as original,De-facto situation,Position,Product,Channel,Brand,Chantier,concealed cistern,Focus on retail channel,complemented by selected projects,Premium brand,Not clearly defined,Public products,concealed cistern,Chantier,BWO&Traps,HDPE&Pluvia1),Mainly through projects(around 70%)2),Not a well-recognized brand yet,1)By order of sales performance:2000(1-7)2)Roland Berger&Partners analysis,SHA-4309-03690-08-15b.PPT-x,In general,GDAIs strategy is more simple and in the right direction,Position,Product,Channel,Brand,Medium to high end,Tank fitting products,OEM channel,Premium brand,Strategy as original,De-facto situation,High end achieved,medium end in development,Incomplete product range in the medium end segment,Through OEM selling to ceramic providers,High reputation among industry,SHA-4309-03690-08-15b.PPT-x,The vision of GSHA is neither shared within the company,nor is it communicated,“I have no idea what our company aims at in China“one regional sales manager“Geberit is doing its business without any direction“one department manager“We dont know what Geberit is,is it a sanitary product provider or sanitary accessory producer?”one distributor in Shanghai“We seldom know what the top management s development target is,nor do we understand our companys goal“one department manager,Comment,SHA-4309-03690-08-15b.PPT-x,The core competence of Geberit Europe has not been successfully transferred to Geberit China,1,2,3,4,5,6,Core competence(Europe),Advanced technology,Superior quality,Good pre and after sales services,Good technical support,Brand/reputation,Strategic relationship with distributors and influencers(e.g.installers,architects,etc.),High technology,High quality,Havent been well set up,Poor technical support,Not established,Not established,Core competence(China),SHA-4309-03690-08-15b.PPT-x,The differentiation strategy that could be applied to Geberit Europe cant be successfully implemented in China,Premium technology&innovation,Premium quality,Premium customer services,Premium brand&reputation,Differentiation strategy(High pricing),Geberit(Europe),Geberit(China),Technology is considered as advancedQuality is regarded as reliableCustomer services are not satisfactoryBrand awareness is low,+,+,-,-,SHA-4309-03690-08-15b.PPT-x,B1.2 Product strategy evaluation,SHA-4309-03690-08-15b.PPT-x,The current product portfolio is unbalanced.Long-term strategic focus should be on concealed cistern,tank fittings,Pluvia and HDPE instead of adding Chantier,Market potential,High,Competitiveness,Low,High,Tank fittings,Pluvia,Concealed cistern,HDPE/Mepla,Public products,Traps&BWO,Chantier,Source:Roland Berger&Partners analysis,Current Geberit product strategic focus,SHA-4309-03690-08-15b.PPT-x,B2 Sales&Marketing,SHA-4309-03690-08-15b.PPT-x,The central region sales account for more than half of all Geberit region sales and concealed cistern and public products account for more than 60%of current sales,Central,North,South,Concealed cistern,HDPE&Pluvia,Public products,BWO&Traps,Chantier,1)2000 1-7,SHA-4309-03690-08-15b.PPT-x,Geberits products are sold through 3 channels:retail and project sales through distributors and OEM,Existing sales channel,Geberit,GSHA,GDAI,Distributor,Project,Distributor owned retail outlets,Sub-distributors,OEM,Ceramic providers,SHA-4309-03690-08-15b.PPT-x,Each of Geberits distributors has its own channel orientation,focusing on retail business or project sales,Project,Retail,Gegerits top 10 distributors,Xiamen Hai Sheng,Shanghai SEC,Guangzhou Hua Run,Shenzhen Xin Yue,Shanghai Zhong Xin,Nanjing Jin Lin,Beijing Jie Xin Te,Retail,Project,National channel sales structure,Source:Roland Berger&Partners analysis,SHA-4309-03690-08-15b.PPT-x,B2.1 Retail channel GSHA,SHA-4309-03690-08-15b.PPT-x,The core process of Geberit retail sales should be divided into four steps:targeting of retail coverage;coverage execution,retail performance and after sales services,Process,Phase I,Phase II,Phase III,Targeting of retail coverage,Coverage execution,Retail performance,Phase IV,After sales services,Ownership,Geberit,Distributor,Retailer,Geberit and distributors,Content,Region and city selection priorityNumber of retail outlets etc.Product distribution target,Sub-distributor network development Product distribution targets,Product displayPricingMerchandiser trainingProduct combination,InstallationWarranty/maintenance,SHA-4309-03690-08-15b.PPT-x,GSHA has no clear retail coverage target,Geberit lacks clear planning of retail network development,Product distribution target is missing(sell what product to which distributor according to their strength and weaknesses,Regional practice varies significantly,both in terms of retail coverage and product distribution,Problem,Outcome,SHA-4309-03690-08-15b.PPT-x,There are significant differences among different regions with regard to retail coverage,SHA-4309-03690-08-15b.PPT-x,Geberit has neither intention nor leverage to monitor distributors network operations and there are no guiding policies in setting up sub-distributor network,“GSHA only sets sales volume target,we can not influence our distributors”one regional sales manager of Geberit“Unlike Kohler,Geberit has no distribution network development policies to guide us”one distributor in Nanjing,Jiangsu province“Geberit Shanghai only cares about sales figure.They have no clear planning”one distributor in Guangdong province,SHA-4309-03690-08-15b.PPT-x,There are a number of factors affecting Geberits retail sales,Factors affecting,Signigicant differences from region to region GSHA does not provide enough display board,lighting boxes and product catalogue to distributorsGeberit image shop/counter concept hasnt been implemented(initiated by Mr.Schuette)Poor marketing support,For same products,there are noticeable differences among distributors even in the same city,along the same street Certain products pricing too high(Chantier,BWO&Traps),Geberit distributiors have limited knowledge of Geberit product know-how,installation and application technologyIntensive training is a must,The selection of toilet bowl to combine with Duofix or Chantier varies region by regionDistributors select toilet bowls themsleves,Product display,Pricing,Merchandiser training,Product combination(Chantier,Duofix),SHA-4309-03690-08-15b.PPT-x,Distributors in different sales regions select ceramics by themselves,Example:Duofix,Shanghai,Beijing,Guangzhou,Shenzhen,Southwest,Hangzhou,Nanjing,SHA-4309-03690-08-15b.PPT-x,As to ceramic provider selection,there exist disparate responses both within and outside the organization,“Geberit should not choose Swell as the partner.Swell is a low end brand”one regional sales manager of Geberit“If only you promote Geberit as a leading plumbing technology provider,it doesnt matter with whom you are combined to sell”another regional sales manager of Geberit“In selecting Swell,Geberit has made a mistake.As a leading premium brand,Geberit should go for Laufen,Duravit etc.”one distributor in Shanghai“Given the stock shortage of Europe-imported wall-hung toilets and lack of ceramic ourselves,we dont have many options.With the aid of Swell,we could increase market influence.”one distributor in Sichuan,Example:Duofix,SHA-4309-03690-08-15b.PPT-x,B2.2 Project channel GSHA,SHA-4309-03690-08-15b.PPT-x,The core process of Geberit project sales consists of four main steps that Geberit should follow,Steps,Project completion and ongoing,Ownership,Project owner and developer,Design institute,Construction companyDecoration company,Project approval related institutionsDistributor and Geberit(after sales services),Geberit,Sell-in stage1),Decision maker,Influencer,PipingDuofix,Project owner or developer,Design institute,Public productsChantier,Project owner or developer,Installation companyDecoration company,1):The earlier to get in,the more opportunities Geberit will have to win the tender,Phase I,Phase II,Phase III,Phase IV,SHA-4309-03690-08-15b.PPT-x,A number of bottlenecks do exist hindering project sales business,with Duofix and piping system in particular,Current bottlenecks to project sales,Application and installation is not in the same line with current industry habits(Duofix)Lack of industrial standard for siphonic roof drainage system(Pluvia and HDPE),Incompetence of application and services department personnel both in terms of technical knowledge and technical support,Both distributors and sales staff lack technical knowledge and product know-how to carry out the business,Poor management commitment on Pluvia business,Application and installation standard,Technical competence,Product know-how,Management commitment,SHA-4309-03690-08-15b.PPT-x,The fact that both staff and distributor lack technical know-how and receive poor technical support from GSHA application and services department leads to difficulties in selling Pluvia,“Geberits technical engineers cant even answer my questions.How can I handover big project to these inexperienced people”one design architect in Xian,Northwest China“I feel very disappointed with application and services department of GSHA.I have spent more than thirty thousand RMB on building-up relationship,and I lost the tender just because XX couldnt give design drawing to architect on time”one distributor of Geberit in Nanjing,Jiangsu province“I have never seen a company who refused doing such kind of big business.I dont understand”one distributor in Shenzhen,South China“Frankly speaking,I dont understand Pluvia and personally I do think it will be difficult for me to be in charge of Pluvia selling”one sales staff in South region,Example:Pluvia,SHA-4309-03690-08-15b.PPT-x,B2.3 OEM channel GDAI,SHA-4309-03690-08-15b.PPT-x,Typical OEM sales channel falls into four phases,Phase I,Phase II,Phase III,Phase IV,SHA-4309-03690-08-15b.PPT-x,There are a number of factors hampering current sales operations of GDAI,Current problems,Do not understand clearly customers needsUnsatisfactory product development/customisationSlow market responsiveness,High price hinders sales,Lack of communications between Geberit sales staff and OEM clients,SHA-4309-03690-08-15b.PPT-x,B2.4 Marketing,SHA-4309-03690-08-15b.PPT-x,Unclear marketing strategy and improper marketing functions lead to low marketing results and brand awareness,Current marketing operation,Marketing department has no clear planningThe so-called marketing department does not perform its functions except organizing very few seminars and providing display board and lighting boxesRegional sales get almost no support from GSHA marketing departmentMost of the time sales staff in different regions conduct marketing operations according to their own preferences(e.g.product display,advertising),Unclear marketing strategy,Improper marketing structure and function,Low market awareness,Different product image in different marketsHigh personnel turnover rateHigh marketing cost,SHA-4309-03690-08-15b.PPT-x,B2.5 Benchmarking:Kohler(China),SHA-4309-03690-08-15b.PPT-x,Although Kohler and Geberit came into China around the same time(1997),business achievements of Geberit lag behind Kohler,Kohler(China),Geberit(China),*Year 1999,SHA-4309-03690-08-15b.PPT-x,Unlike Kohler who centralizes sales and marketing functions,Geberit divides sales and marketing into two separate parts without achieving synergy,Kohler,Foshan plant for ceramic,Shanghai plant for bathtub,Beijing plant for faucet,Kohler China sales and marketing company(Shanghai),Geberit,PurchasingIndependent production operationDelivery to customer,Business planningSales and marketing operationCentral customer service centre(CCSC)PricingCustomer order processingDeliveryAfter sales service,Around 50 authorised distributors nation-wide,Distributor network,GSHA,GDAI,Sales and marketing,Sales and marketing,Ceramic providers,OEM,Distributor network,CCS,SHA-4309-03690-08-15b.PPT-x,Kohlers distribution channel strategy is divided into four stages with retail market sales as the strategic focus for the future,Content,Project sales stageI,Project sales stage II,Project/retail salesIII,Retail/project sales IV,Significant efforts put into development of retail distribution network(due to shrinking project business)Projects on-going,Increasing brand awareness among end users,Output,Current stage,Future,Past,Past,SHA-4309-03690-08-15b.PPT-x,Having successfully set up distribution network focusing on project sales,Kohler is extending retail network massively,Kohlers distribution network,Kohler wholly depends on distributors to do business-has set up strong business partnership with distributorsAround 50 authorised distributors in Kohlers national distribution network,Kohler has spent lots of effort on developing sub-distributor network and increasing retail outlets,Kohler China adopts regional protective policies to help local distributors win projects,-Local sales staff will provide support in project bidding-If distributors other than local one also attend bidding,Kohler will offer preferential project price of less than 5%of origional one to local didtributors,Around 70%of Kohlers current sales volume is achieved through projects,Kohler product:Unlike Geberit,Kohler can provide one-set solution to customers,Distributors work has been mainly project-oriented,however,strategic focus has been switching to retail sales,SHA-4309-03690-08-15b.PPT-x,Customer services of Geberit lag far behind that of Kohler China,Analysis,Kohler(China),Geberit(China),Kohler(China)requires its distributors to employ Kohler Technical Specialist(KTS)to deal with pre-and-after sales servicesKohler(China)provide KTS with technology training and relevant supportIn addition,technical staff from Kohler sales representative office will further support KTS,Services functions are not clearly definedPractice differs region by regionMostly covered by regional sales staff themselvesIn case of technical problems that cant be solved,sales