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Group 3
Deepak Manchanda-Roll No-09
Md Harun Rasheed-Roll No-24
Nishant Kaul-Roll No-68
Pragati Baronia-Roll No-72
Case Background
Siemens AG,founded in 1856 has long history &pride
itself with quality and durability
Siemens Expanded its market primarily on basis of
Technological competence and close relations with Large
customer.
Siemens Building Technologies(BT) is an SBU of Siemens
AG dealing in Building Automation and Fire Safety
BT is further divided into five BU,Fire detection product
and services is part of one BU.
About 50 % of BTs Business are life cycle and other half
is through pure product basis.
Siemens fire detection has mix of pure product and life
cycle business among its different product categories.
Other Segments
M2
Fewer features than M1 segment Euro 48 M estimated value
Price is 30-40% lower than premium M1 Segment.
Comply International certification
End user and Installer both are decision makers with more influence of Installer
MNCs with production unit in China.
M3
Largest Segment(Euro 130 M) with high growth rate.
Dominated by Local supplier with local products
Only comply to national Chinese standards
After sales service & AMC is not applicable in this segment
Installers are decision makers driven by price.
Go to Market Strategy in
Chinese Market
Development of new product under Siemens
Cerebus Brand, Production is planned in China.
Development of new VAP for M3 in Tier 2 & Tier 3
Cities.
By that time use of Existing VAP of M2 segment for
M3 market
Provide training for M3 VAP and will also receive
technical and marketing support by Siemens.
Clear segmentation for M2 and M3 market through
CerebusPro & CerebusEco.
After Sales service will be through Certified
service partners.
Recommendations
Mathias should give Carsten a go ahead immediately
because of pressure from competitors and huge
opportunity in Chinese market.
Siemens should enter Chinese M3 market by organizing
trial camps for installers.
Also take existing VAP network route for entry by price
differentiation and trade discounts.
At the same time Siemens should invest in developing
VAPs in Tier 2 and Tier 3 Cities.
Simultaneously, Siemens should also develop
production capacity in order to meet demand for coming
years as projected 2.5 Lacs in IInd year.
Product differentiation through added features also.
After sales service through certified service will be other
differentiation.
Thank You