Q1.

) Why does Siemens wants to provide KAM programs to its customers what are the key
benefits & risks of KAM approach.?

A1.) Siemens want wants to provide key account management programs to its potential
customers to:

 To improve loyalty and customer relationship to understand the needs of its customers
more closely.
 To increase satisfaction of their customer by say 20% as mentioned in the case.
 For more revenues like increase of 15%
 Siemens wants to offer made to measure products, services portfolio and different
solutions to its customers.
 To construct a solid capital structure and to increase profits.

Benefits of the KAM approach are:

 The information can be shared very easily to its potential customers.

 By using key account management approach it was much convenient to make plans and
strategies.
 One of the key benefit can be elimination of the competitors it is difficult for other
competitors to enter in the business.
 It increased the profits and revenues of the company.
 Through KAM approach it was much easier to understand the customer need and want
so it results in gain of more market share in the market .
 It gives a better understanding of the management.

Risks of KAM approach:

 It takes a long time to grow and gives results very slowly Siemens also took 15 years
took reach at optimal result of Siemens one.
 As it is full IT enabled system so support of IT is very necessary in this a small mistake
can be too dangerous.
 Sales people and key account management need to have better understanding conflict
between can turn into a huge loss for company.
 Everyone in the company need to gain some technical knowledge about KAM for better
understanding.
Q2.)  Why does Siemens choose EUROBRIC to be a key account ? Is Eurobric a qualified key
account ?

A2.) Siemens choose EUROBRIC to be a key account as:

 Eurobric was one of the largest producer of Stanment, with almost 8% contribution
output among the whole world.
 Siemens 75% sales of bi metal technology came from EUROBRIC.
 Eurobric was a major player of stanment its production was in 60 countries across the
globe so it was a reliable client.
 It employed about 300,000 people so they have a huge men power.
 Any investment above 2 million dollar had to gain approval from a central investment
committee that helped to keep the track with the projects and keep in close with
contacts with counterparts.

Yes Eurobric is a qualified key account as:

 EUROBRIC has a strong historical performance in terms of expected sales growth,

sales, relationship with clients, market share etc.
 They have a very strong customer profile and huge customer base.
 They have a strong contacts in local markets.
 They have part time sales people from other region as well.