LOGSTOR in Germany By Claus Brun EVP, Sales & Marketing, Europe 06/06/2013
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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LOGSTOR identity LOGSTOR is • the world’s leading manufacturer of pre‐insulated pipes for energy efficient transportation of gases and liquids for district energy - district heating and cooling, solar, marine and industrial purposes - and oil and gas.
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The LOGSTOR Group Facts & figures •
Headquarters in Denmark
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1,200 employees
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Annual turnover > 250 MEUR
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The World’s largest producer of highquality pre-insulated pipe systems for temperatures ranging from –200 to 250°C
Sales Production Joint venture Cooperation
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10 plants in Europe, 2 in Asia
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15 Sales units
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Distributors in more than 30 countries
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More than 5,000 km pre-insulated pipes every year
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More than 175,000 km LOGSTOR pipe supplied to date
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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LOGSTOR in Germany History • 1970 – 1993 distributor • 1994 sales subsidiary • 1995 acquisition of German Panisovit • 1999 Merger of Løgstør Rør and Tarco • 2005 Merger of Løgstør Rør and ALSTOM Power Flowsystems. New name LOGSTOR • 2006/2007 acquisition of distributors 06/06/2013 CLB
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LOGSTOR in Germany LOGSTOR Deutschland GmbH • Headquarters in Handewitt near Flensburg. • Local functions: Sales, back office, technical support, warehouse, service and administration • Offices in Oberhausen, Rostock and Denkendorf • 58 employees in total (20 in service)
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Handewitt
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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Market and competition
Market • • • •
Sale to energy distributors (district heating plants) Sale through contractors Maket size approx. 160 million Euros LOGSTOR market share approx. 25-30%
Competition • • • •
Tough price competition High service level High delivery performance standards High quality standards Technical support before, during and after installation
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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Get a good start in Germany
Type of representation • • • •
Think carefully about how you enter the market Distributors/agents can be difficult to manage Direct sales is an option Direct local representation may well be the optimum choice
Germany is a big market • • • • • • •
Start with the most attractive region Segments – not all customers have the same attractiveness Always check the creditworthiness of the customer Clarify technical specifications and standards Deliver on time – do not make promises you cannot keep Study the conditions of the tender/contract carefully Always written agreements
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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Organisation and management
Organisation • • • •
Small scale start and then build up the organisation Relatively low salaries and wages Be thorough when you hire Be aware of cultural differences
Management • • • • •
Employees have faith in authorities Ask the employees what they think Involve key employees in decisions Reward initiative and extraordinary results Follow up and check
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LOGSTOR in Germany – our experience Agenda • Presentation of LOGSTOR • LOGSTOR in Germany • Market and competition
• Get a good start • Organisation and management • Conclusion 06/06/2013 CLB
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Conclusion Germany – the largest economy in Europe Before you start • Analyse the potential and the competitive situation • Determine targets and strategy • Choose the best type of representation • Build up the business in steps • Make sure your product and service level match the needs of the market