Online Dealer and End-User engagement. Robbert van Dijk International Marketing & e-business Manager

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2 Online Dealer and End-User engagement Robbert van Dijk International Marketing & e-business Manager

3 Global Facts Forecast Million Employees Sales offices 24 Distribution Centers 9 Employee Satisfaction 8.0 Customers Products Order lines per day

4 History Internationalization

5 History From 2000: Focus on Europe Think global Centralized: Stocking Purchase IT Marketing E-business Act local via local sales offices One company, One brand; KRAMP

6 Merger Kramp & Grene 2013

7 Mission Our aim in everything we do, with the help of our business partners, is to make it easy for our customers to do business with Kramp. It s that easy.

8 Vision & Ambition Our Vision Be the essential partner in the world's agriculture parts and accessories business Our Ambition Achieve 1 billion revenues in 2018 by growing share of wallet at existing and new customers and improve efficiency with a great team of people

9 Core values These values form the basis of our thoughts, actions and behavior and makes us proud on Kramp! Customer First Together Entrepreneurship Engaged

10 Customers 5/6 Customer satisfaction Rate 2015 Agricultural Dealers Forest & Grasscare Dealers OEM Construction Dealers Customers

11 X ( ) Turnover Grene Kramp Budget

12 Product Categories Agricultural Machinery parts Tractor & Vehicle Parts Shop & Workshop Hydraulics Transmission & Pneumatics Garden parts

13 Product brand strategy Purchase stock value OE parts and A-Brands Private Brands

14 Services & Solutions Business Solutions Technical Services & Solutions Academy Retail Services Online Services

15 Distribution Centers The Netherlands Germany United Kingdom France Russia Denmark Poland Finland Sweden

16 UBR s Wide assortment Product availability Fast delivery E-Business Innovative Services & Solutions

17 E-Business Innovative Webshop Cylinder Configurator Kramp Online Service Merchandise webshop

18 Webshop Visits / week Avg. basket 137,15 Avg. Lines / basket 3,63 Avg. turnover / line 38,13 Order lines / day * Average webshop facts per day

19 Webshop Order lines per day Manual Online

20 From single channel to multi-channel

21 Multi-channel distribution

22 Etail solution for dealers History 2005 Pilot customers in the Netherlands 2007 Kramp Partner Program (Kramp Webshop) 2008 Start Agripapa in Germany 2009 Start MyPartsPartner Principles Closed webshop environment Focus on following target groups: Contractors Professional farmers Supports dealer in business addiotional to wholegoods

23 Etail - Dealer Criteria Dealers (A,B classification) Warehouse with stock to serve 24/7 Skilled staff for spare parts service and sales Workshop and service facility Delivery / pick up service Right attitude

24 Etail - Pricing Prices only available after login Gross prices given by the dealer to registered End Users are non-binding recommended prices The dealer can apply different discount profiles based upon customer classification End User will see gross prices and his individual nett prices

25 Etail - Delivery Options Delivery to Dealer (overnight) Collection by End User Dealer delivers to end user OR Direct to End User

26 Etail - Marketing Support Marketing package Promotions direct to End User (monthly online) Highlight promotion (theme) Give aways Training Support in web analytics Social media Data at Kramp!

27 Etail - End User Registration Dealer provides Kramp with details to register selected End User 1:1 connection with dealer Webshop User account Support the dealer in selecting End Users when required

28 Etail - Dealer T&C for End Users Dealer retains control of the prices and terms and conditions When a new End User is added the dealer selects the desired discount from six discount profiles Kramp is responsible for supporting the processes Maintenance prices Maintenance discounts End User has no contact with Kramp for pricing, discounts or other clauses concerning T&C

29 Etail - Invoicing End Users The dealer receives Weekly overview (proforma invoice) of all deliveries Monthly turnover report The dealer is responsible for invoicing and collecting money from his End Users.

30 Etail - Fee s Fee per quarter Fee per registered End User 0, 50% or 100% kick back To be decided locally

31 2 nd Generation E-tail MPP concept has had mixed success The MPP brand is unrecognised by end users Dealers search for support own business brand E-tail increasingly important in Kramp business strategy Better visibility Kramp brand at End-User

32 Etail Design Entrance

33 Etail Design - After Login

34 Etail Design AGCO After Login Always predefined AGCO colours Dealer cannot choose the colours

35 Options Content Standard content by default Marketing content by dealers Colours Logo s Services opening hours

36 The world around us keeps changing Bringing us new threats and opportunities

37 Let s make this change more specific! 1. Consumer 2. Technology 3. Competition

38 Consumers are educated in a common anatomy

39 And expect the same from each shop also from B2B shops

40 The speed of change will only increase Generation Y are the digital natives they expect more, faster and better From everyone! No time to waste!

41 2. Impact of technology on our world

42 Big data to better understand our customers

43 The Internet of Things will change the world

44 Things will start making decisions

45 also in our world

46 Technologies with impact on (r)etail

47 3. Impact of changing competitive environment

48 Amazon is setting the pace for e- commerce growth 2014 Revenue Growth Profit Market cap B 19,5% -241M 201.4B How about profit?

49 Pure players have a track record of unprecedented growth Zoo Plus versus Fressnapf 550 million with 231 employers Double the revenue till 2019 growth by 25% p.a. Focus on process optimization Pure online strategy Fressnapf uses the same web-technology focus is not 100% online!

50 Shift in how an industry is organized From value chain to ecosystem The classical linear way has disappeard sustainability of the single firm Manufacturer Wholesaler Dealers Online players End-user Value creating process of the organization Dynamic supplier/customer relationships Accumulated value generated by monetary relationships Ecosystems are multi-dimensional long term sustainability of the whole community M M M W D D D C Complex inter-firm relationships against the background of the value creating process Network of multi-directional relationship between organizations with shared values and interests Also non-monetary advantages social capital

51 The global pie continous to grow Demand for higher quality food Professionalization of agriculture Population from 7 to 9 billion Spareparts market grows accordingly (EU 8.5 billion) Homegrown food and gardening are gaining popularity Demand for eco-food is rising

52 The race in e-commerce of B2B has begun Wer zu spät kommt, den bestraft das Leben! Michael Gorbatschow

53 Next steps Etail - Webshop

54 Are we satisfied sofar? Further planned improvements Dealer shop visible before login Online payment en online registration Powered by Kramp is unique tool, but not creating enough brand awareness Private brands Corporate brand

55 Role of the dealer Our valuable partners Want to be involved Exclusivity Demanding a realistic role Are they aware of the possibilities needed effort huge investments by Kramp Can they fulfill their role Keep up with developments needed Is it limiting our or execution power and / or growth Should have added value

56 Challenge What is needed? Who is our customer? Kramp Way is mentioning End-Users for the first time End user linked to one dealer We are telling the End- User where to buy! How to serve End-Users through dealers Direct communication to End-Users We have the data We have the competences Anxiety among dealers