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    Group 10 - Siemens CerberusEco in China

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    ronitr209
    Siemens produces fire safety and security products including fire detection systems, voice evacuation systems, and mass notification systems. They want to enter the Chinese market, which has three tiers (M1, M2, M3) of complex to simple fire detection systems. Siemens' strategy is to create new lower-cost products, CerberusRO and CerberusECO, to target the M2 and M3 tiers, establish local capabilities in China, and gradually enter the higher tiers. Key issues include developing low-cost products locally while protecting IP, identifying and training local partners, and competing with established local manufacturers. Recommendations include leveraging existing M1 channels, partnering with installers

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    Group 10 - Siemens CerberusEco in China

    Uploaded by

    ronitr209
    72 views9 pages
    Siemens produces fire safety and security products including fire detection systems, voice evacuation systems, and mass notification systems. They want to enter the Chinese market, which has three tiers (M1, M2, M3) of complex to simple fire detection systems. Siemens' strategy is to create new lower-cost products, CerberusRO and CerberusECO, to target the M2 and M3 tiers, establish local capabilities in China, and gradually enter the higher tiers. Key issues include developing low-cost products locally while protecting IP, identifying and training local partners, and competing with established local manufacturers. Recommendations include leveraging existing M1 channels, partnering with installers

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    Siemens produces fire safety and security products including fire detection systems, voice evacuation systems, and mass notification systems. They want to enter the Chinese market, which has three tiers (M1, M2, M3) of complex to simple fire detection systems. Siemens' strategy is to create new lower-cost products, CerberusRO and CerberusECO, to target the M2 and M3 tiers, establish local capabilities in China, and gradually enter the higher tiers. Key issues include developing low-cost products locally while protecting IP, identifying and training local partners, and competing with established local manufacturers. Recommendations include leveraging existing M1 channels, partnering with installers

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    72 views9 pages

    Group 10 - Siemens CerberusEco in China

    Uploaded by

    ronitr209
    Siemens produces fire safety and security products including fire detection systems, voice evacuation systems, and mass notification systems. They want to enter the Chinese market, which has three tiers (M1, M2, M3) of complex to simple fire detection systems. Siemens' strategy is to create new lower-cost products, CerberusRO and CerberusECO, to target the M2 and M3 tiers, establish local capabilities in China, and gradually enter the higher tiers. Key issues include developing low-cost products locally while protecting IP, identifying and training local partners, and competing with established local manufacturers. Recommendations include leveraging existing M1 channels, partnering with installers

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Siemens CerberusEco

    In China
    Group 10
    Aman Jain 024006
    Parichita Raghav 024033
    Pulkit Dhanava 024036
    Ronit Guha Roy 024042
    About Siemens
    • Established on October 12 1847 by Werner Von Siemens & Johann Georg
    Halske to produce pointer telegraphs
    • Dominated in mainly telecommunications , heavy electrical equipment &
    data processing systems
    • Expanded mainly through technological competence and expansion to
    large customers
    • By 2007 , revenues increased by £77 billion and FCF £6.8 billion
    Siemens Fire Safety & Security products
    • Main parts of this business were fire detection systems, voice evacuation
    systems, danger management & mass notification systems
    • Mainly used to detect unwanted presence of fire and alarm the mass, help
    them evacuate the affected area and taking control measures to control fire
    and smoke
    • Siemens portfolio consists of three distinct solution categories – Sinteso
    for life cycle business, Synova for product business and Management
    Stations.
    Fire Detection System In China
    M1 M2 M3
    Definition Complex-high tech , multiple Less features as compared to Simple product but reliable
    features – immunity to high M1 but are fast and have with stub line technology, no
    humidity , short cut adjustable and anti disturbance polarity and a simple labyrinth
    protection , compensation for mechanism and were humid
    tough environment proof
    Standard International certification International certification National Chinese standard
    standards (EN , UL standards (EN , UL (CCCF

    Origin or making Home country of respective Locally produced by MNC Local suppliers with local
    MNC products
    Market size 1.1 mn units Price 30-40% lower than M1 17 mn units
    £28 million value 3.2 million units , £48 mn in £103 mn in value
    value
    Customer type End users heavily involved in End users have specific budget Price driven
    decision making levels and preferred well Brand not likely the criteria
    known brands
    Influencers Design institutes, installers Installers Installers
    Major competitors Siemens , GE and Honeywell - GST
    Go To Strategy
    • Creation of new product category Siemens Cerberus – CerberusRO for M2 and CerberusECO for M3
    • Establish local footprint in Chinese M3 market and benefit from strong growth rates
    • Build local market expertise and low-cost capabilities that could be used by Siemens around the
    world
    • Mitigate risks by gradually entering M2 and M1 market
    • Attack tier 2 & tier 3 cities and upper residential buildings & commercial buildings
    • Use existing sales force and at the same time attract new VAP to increase market cover
    • Main focus was to create a clear cut difference btw M2 and M3 products through product, price and
    feature and sales channel
    Contd….

    • Discounts were planned according to the volume, order size and level of
    hierarchy
    • Service was indirect and directed only through hotline or certified service
    partners
    • VAP would be provided with technical support & training programme
    • Production & its R&D would both take place in China with the help from
    headquarters located in Switzerland
    Key Issues
    • Dilemma whether to go with the above mentioned Go To strategy or not
    • Not sure whether the R&D team would be able to develop product within cost and time
    frame
    • Ip issues and high staffing cost in China
    • Identifying and training of VAP would be costly and time cumbersome
    • Not easily to compete with the local manufactures in M2 and M3 segment
    • Fear of losing grip in the M1 segment
    • Whether a clear cut differentiation would be possible btw RO and ECO product range
    Recommendations

    • Use of the existing channels by Siemens as they have a strong hold in the M1
    segment and already have a market reputation
    • Try and work closely with the installers as they are a main source of distribution for
    M2 and M3 segment products and direct selling to them may also help to save cost
    • As the sales increase more focus should be done on increasing the number of VAP
    to increase market coverage
    • Local brands having a good local footprint should be identified and piggybacking
    could be thought of as an idea
    THANK YOU !!

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