Case-Study
Segment Reorientation
Transforming OEM Sales : A Strategic Shift to Customer-Centric Solutions
Company Details
A business segment organization for industrial automation products and solutions, as part of a well-known full-line manufacturer of industrial electric and electronic controls and systems.
Challenge
The existing approach was product-oriented, focusing on selling components and driven by opportunities. This limited competitiveness and resulted in losing market share. The goal was to reorient the business towards a customer service-oriented approach, emphasizing application-oriented component selling and focusing on customer segments.
Measures & Approach
An external consultant developed a comprehensive OEM strategy for the company. The strategy was rolled out in selected European and Asian countries over a period of 1.5 years. The implementation began with a thorough potential analysis in each country, followed by the creation of solid business plans. Dedicated OEM teams were established, and they immediately engaged in cross-selling activities. These activities were supported by intensive training programs tailored to the needs of each country and central marketing campaigns to boost visibility and engagement.
The strategy also included the development of an OEM Toolbox, which provided all relevant information and ensured global access. A product training concept was successfully launched to equip the teams with the necessary knowledge and skills. Additionally, value-added services in logistics were set up to enhance the delivery process, and the motor application product pipeline was adapted to meet OEM market requirements.
Results & Achievements
The reorientation of the OEM business was successfully rolled out in 12 countries. The focused sales and marketing activities, along with value-added solutions in logistics and service, led to a 9.1% increase in short-term cross-selling business. Over the first three years post-rollout, the project achieved double-digit mid-range million sales, translating to a 10.2% CAGR.
Conclusion
The new OEM approach significantly improved the company’s market position and was a key factor in the successful acquisition. The strategy was integrated and continued in the newly formed Europe, Middle East, and Africa regional organization, ensuring sustained growth and customer satisfaction.