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Siemens CerberusEco In China

Group 3
Deepak Manchanda-Roll No-09
Md Harun Rasheed-Roll No-24
Nishant Kaul-Roll No-68
Pragati Baronia-Roll No-72

Case Background
Siemens AG,founded in 1856 has long history &pride

itself with quality and durability


Siemens Expanded its market primarily on basis of
Technological competence and close relations with Large
customer.
Siemens Building Technologies(BT) is an SBU of Siemens
AG dealing in Building Automation and Fire Safety
BT is further divided into five BU,Fire detection product
and services is part of one BU.
About 50 % of BTs Business are life cycle and other half
is through pure product basis.
Siemens fire detection has mix of pure product and life
cycle business among its different product categories.

Fire Detection Market in


China

China has huge potential under this segment due to its

high growth rate and upcoming Olympic games.


Chinese fire detection and solution market are
segmented into three categories.
M1
Premium segment having Euro 28 M estimated
value
High tech and complex products with many features.
End users(contractors) are decision makers
Being sold directly by Siemens or thru VAP &
Distributors
Siemens is major player in this segment.
Comply International Certification

Other Segments
M2
Fewer features than M1 segment Euro 48 M estimated value
Price is 30-40% lower than premium M1 Segment.
Comply International certification
End user and Installer both are decision makers with more influence of Installer
MNCs with production unit in China.
M3
Largest Segment(Euro 130 M) with high growth rate.
Dominated by Local supplier with local products
Only comply to national Chinese standards
After sales service & AMC is not applicable in this segment
Installers are decision makers driven by price.

Opportunity for Siemens in


Chinese Market
Untapped M3 Segment by Siemens.
High growth rate of M3 Segment in BRIC

countries and other emerging Markets.


To develop reliable product within cost and
given time.
Issue of Intellectual property and High
turnaround of Staff.
Developing VAP for M3 segment would be
costly and time consuming.
Teams were formed to analyze the situation

Go to Market Strategy in
Chinese Market
Development of new product under Siemens

Cerebus Brand, Production is planned in China.


Development of new VAP for M3 in Tier 2 & Tier 3
Cities.
By that time use of Existing VAP of M2 segment for
M3 market
Provide training for M3 VAP and will also receive
technical and marketing support by Siemens.
Clear segmentation for M2 and M3 market through
CerebusPro & CerebusEco.
After Sales service will be through Certified
service partners.

Recommendations
Mathias should give Carsten a go ahead immediately

because of pressure from competitors and huge


opportunity in Chinese market.
Siemens should enter Chinese M3 market by organizing
trial camps for installers.
Also take existing VAP network route for entry by price
differentiation and trade discounts.
At the same time Siemens should invest in developing
VAPs in Tier 2 and Tier 3 Cities.
Simultaneously, Siemens should also develop
production capacity in order to meet demand for coming
years as projected 2.5 Lacs in IInd year.
Product differentiation through added features also.
After sales service through certified service will be other
differentiation.

Thank You