Siemens CerberusEco

In China
Group 10
Aman Jain 024006
Parichita Raghav 024033
Pulkit Dhanava 024036
Ronit Guha Roy 024042
 About Siemens
• Established on October 12 1847 by Werner Von Siemens & Johann Georg
Halske to produce pointer telegraphs
• Dominated in mainly telecommunications , heavy electrical equipment &
data processing systems
• Expanded mainly through technological competence and expansion to
large customers
• By 2007 , revenues increased by £77 billion and FCF £6.8 billion
 Siemens Fire Safety & Security products
• Main parts of this business were fire detection systems, voice evacuation
systems, danger management & mass notification systems
• Mainly used to detect unwanted presence of fire and alarm the mass, help
them evacuate the affected area and taking control measures to control fire
and smoke
• Siemens portfolio consists of three distinct solution categories – Sinteso
for life cycle business, Synova for product business and Management
Stations.
 Fire Detection System In China
M1
Definition Complex-high tech , multiple
features – immunity to high
humidity , short cut
protection , compensation for
tough environment
Standard International certification
standards (EN , UL
M2
Less features as compared to
M1 but are fast and have
adjustable and anti disturbance
mechanism and were humid
proof
International certification
standards (EN , UL
M3
Simple product but reliable
with stub line technology, no
polarity and a simple labyrinth
National Chinese standard
(CCCF

Origin or making Home country of respective
MNC
Market size 1.1 mn units
£28 million value
Customer type End users heavily involved in
decision making
Influencers Design institutes, installers
Major competitors Siemens , GE and Honeywell
Locally produced by MNC Local suppliers with local
products
Price 30-40% lower than M1 17 mn units
3.2 million units , £48 mn in £103 mn in value
value
End users have specific budget Price driven
levels and preferred well Brand not likely the criteria
known brands
Installers Installers
- GST
 Go To Strategy
• Creation of new product category Siemens Cerberus – CerberusRO for M2 and CerberusECO for M3
• Establish local footprint in Chinese M3 market and benefit from strong growth rates
• Build local market expertise and low-cost capabilities that could be used by Siemens around the
world
• Mitigate risks by gradually entering M2 and M1 market
• Attack tier 2 & tier 3 cities and upper residential buildings & commercial buildings
• Use existing sales force and at the same time attract new VAP to increase market cover
• Main focus was to create a clear cut difference btw M2 and M3 products through product, price and
feature and sales channel
 Contd….

• Discounts were planned according to the volume, order size and level of
hierarchy
• Service was indirect and directed only through hotline or certified service
partners
• VAP would be provided with technical support & training programme
• Production & its R&D would both take place in China with the help from
headquarters located in Switzerland
 Key Issues
• Dilemma whether to go with the above mentioned Go To strategy or not
• Not sure whether the R&D team would be able to develop product within cost and time
frame
• Ip issues and high staffing cost in China
• Identifying and training of VAP would be costly and time cumbersome
• Not easily to compete with the local manufactures in M2 and M3 segment
• Fear of losing grip in the M1 segment
• Whether a clear cut differentiation would be possible btw RO and ECO product range
 Recommendations

• Use of the existing channels by Siemens as they have a strong hold in the M1
segment and already have a market reputation
• Try and work closely with the installers as they are a main source of distribution for
M2 and M3 segment products and direct selling to them may also help to save cost
• As the sales increase more focus should be done on increasing the number of VAP
to increase market coverage
• Local brands having a good local footprint should be identified and piggybacking
could be thought of as an idea
THANK YOU !!