Pole Position Strategy New Bang & Olufsen strategy
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1 New Bang & Olufsen strategy Tuesday 21 October 2008
2 We begin a race Towards a healthier, more focused and more profitable Bang & Olufsen, with a strong product line and a simplified sales organisation.
3 Imagine A Bang & Olufsen organisation with earnings on par with its brand value. That is not where we are now. The magic of Bang & Olufsen has not left the building. But we are left with a bottom line suffering.
4 Unexploited market potential
5 Todays company announcement
6 High priority steps 1. Profitability Action now - to secure profits immediately in a down market by cutting our costs. 2. Sales Reorganise and boost - through one new global organisational setup with strong backup.
7 High priority steps 3. Products One technology platform - Introducing the digital platform for more new products launched in the right quality, at the right time: TV and video systems Audio Systems Home Integration
8 Escalating capacity cost
9 Cost cutting short term Numbers call for immediate action. Approx. 165 people released from their duties. NOW. Cut down approx. 300 jobs in total. NOW. Cut down on external services. NOW. Cut down costs by DKK 160 million. NOW.
10 We invest in the future Our network of top quality shops and our product portfolio is critical to get to pole position. We will increase the support of our more than 800 B1 concept shops and 400 shop in shops. We will invest more in product development than ever before.
11 Market cost outpacing sales
12 One global sales organisation From 7 regional organisations to one globally managed sales operation. From 7 regional back office set-ups to one globally managed support system. From 7 regional service set-ups to one globally managed 24-7 after sales service organisation.
13 ONE way ONE global approach to sales based on best practice. ONE new internal business school for our retail developers. ONE global expression of our brand. ONE clear backup promise to shops. ONE focus: Sales.
14 Touching souls IMAGINE Louis Vuitton stores not greeting their customers in the shops. We must touch souls. CLARITY in sales is not new to us. In Australia we have a higher sale per employee. The reason: We have relieved them from anything but sales. TARGET: China and Russia DOUBLE UP in stores within 2 years.
15 Best-sellers required
16 Second to none Bang & Olufsen must be best wherever we are, whatever we make If we re not, we won t be there. NO MORE new co-branding products NO MORE new mobile phones NO MORE new mp3-players NO MORE stand alone DVD-players Higher profitability Fewer product categories
17 ONE technology platform Introducing a new unique digital technology platform. Faster to market, increased efficiency, even higher quality, more product launches. TV and video systems Audio systems Home Integration ti
18 Switch your home from dining i to party mode Start playing your favourite play list Close the curtains Dim the light in your living room Turn on the light in the garden
19 Foundation for future growth Profitable organisation. Focused product development based on ONE technology platform. ONE efficient global sales organisation with customer in center. More shops in growth markets. New leadership new team.
20 John Bennett-Therkildsen Sr. Vice President, Operations Strong track record in Bang & Olufsen. Very strong leadership. Strong planner with a structured approach. Always ready to challenge the existing.
21 Randi Toftlund Sr. Vice President, Finance & Accounting Excellent control of financials. Will always challenge the team on financials. Strong focus on efficiency and cost consciousness.
22 Michael Aagaard Andersen Sr. Vice President, Sales Long experience in managing retail organisations. Very strong executer and change agent. Always customer in focus.
23 Cool brand not a given fact Top 20 worldwide coolest brands Proud of recognition! However not yet a particulary cool However, not yet a particulary cool organisation
24 Cool brand Hard work and excellent output t Bang & Olufsen Automotive No. 1 brand in only two years* A small step for the current bottom line, but a giant leap for the value of the Bang & Olufsen brand. * auto motor und sport reader survey 2008
25 Imagine a Bang & Olufsen organisation with earnings on par with its brand value
26 Questions
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