marketing lessons from one of the major m&as in the energy and technology sectors
TRANSCRIPT
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Better Together Marketing lessons from one of the major M&As
in the Energy and Technology sectors
Giuseppe Caltabiano
VP Business Partner ITB, Global Marketing
24 April 2015
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Few lines about the speaker
> Joined Schneider Electric in Jan 2014
> +15 years experience in B2B Marketing
> Edu: Master in M&A @LBS London / MBA @Bocconi Business School
> Lives in London
> Two girls, 10 & 7
Today’s topics and keywords Better Together: Marketing lessons from one of the major M&As in the Energy
and Technology sectors
M&As (with focus on
post-acquisitions)
Integrated
Campaigns Branding
Strategies
Schneider Electric in Brief
Better Together - marketing lessons from one of the major M&As
in the Energy and Technology sectors
Schneider Electric: a global specialist in Energy
Management and Efficiency technology
€
€
€
€
€
€
€
€
25 billion € revenue (FY 2013)
43% of revenue in new economies (FY 2013)
160 000+ employees in 100+ countries
4-5% of sales dedicated to R&D
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A long history of acquisitions
1999 Groupe Schneider becomes
Schneider Electric,
focused on Power & Control
1975 Merlin Gerin joins Groupe Schneider
1988 Telemecanique joins Groupe
Schneider
1991 Square D joins Groupe Schneider
1996 Modicon, historic leader in Automation,
becomes a Schneider brand
2007 Acquisition of APC corp. and Pelco
1836 Creation of Schneider
at Le Creusot, France
19th century 20th century 21st century
2000 Acquisition of MGE UPS Systems
2003 Acquisition of T.A.C
2005 Acquisition of Uniflair
Acquisition of Power Measurement Inc.
2003-2008 Targeted acquisitions in wiring devices
and home automation
(Lexel, Clipsal, Merten, Ova, GET, etc.)
2008 Acquisition of Xantrex
2011 Acquisition of Telvent
2010 Acquisition of Areva’s distribution activity
2014 Acquisition of Invensys
2012 Acquisition of Samara Electroshield
£3.4 billions ($5.6b) for the entire issued and to be issued ordinary share capital of ISYS
€ 140m of total cost savings by 2016
€ 65m of revenue synergies by 2018
As a reference: WhatsApp $19b (Facebook), YouTube $1.65b (Google), Compaq
$25b (HP), Skype $8.5b (Microsoft), Sun $8.4b (Oracle), Chrysler $3.45b (FIAT)
M&As & Integrations
Better Together - marketing lessons from one of the major M&As
in the Energy and Technology sectors
9 Confidential Property of Schneider Electric
80% of the Mergers fail
10 Confidential Property of Schneider Electric
Integration and Reasons for Success
Day 1, Day 100, Year 1
2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015
* DAY 1 *
Jan 17
* DAY 100 *
Apr 26
* YEAR 1*
Jan 1
Signing
Jul 12 Regulatory
Approval
Nov 29
End of FY Q4
Mar 31
Jun 1 - Jul 12 Due Diligence
Sep 15 - Nov 1 Ph1: "Mobilize"
Nov 1 - Jan 17 Ph2: “Pre-closing planning”
Jan 17 - Mar 31 Ph3: "Stabilize"
Apr 1 - Dec 31 Ph4: "Realize Value"
Branding Strategy
ASSOCIATION MIGRATION INDEPENDENT BRANDS
All brands have to migrate to Schneider Electric, most of them moving directly. The objective is to deliver a consistent
customer experience under Schneider Electric brand while transferring the whole brand equity to Schneider Electric
> 3 years 18/24 months
Schneider Electric 13 - Brand management – S. Dothee – G Caltabiano – M Nolan – dec 2013
Invensys brand hierarchy explained
Corporate Brand
Go-to-market Brands
Business Segments (not Brands) Software Industrial Automation
Energy Controls
Schneider Electric 14
Invensys brand migration plans
Associated brands
Migrating brands
Independent brands
Associated brands
Will remain independent
Will become a range name under
Schneider Electric
Schneider Electric 15 Confidential
Hannover Messe (4 months after the acquisition)
Schneider Electric 16 Confidential
Gastech Korea (6 months after acquisition)
Better Together
Better Together - marketing lessons from one of the major M&As
in the Energy and Technology sectors
Better Together
Better Together
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Why Communication is so important?
Global External Landing Page +50K unique visitors
Global Internal Landing Page +1K unique visitor
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Key Message
The best way to solve tomorrow’s challenges is to
work together today. We see the promise of a bright
future. You will too.
Schneider Electric and Invensys are better together. The
combination of our people, capabilities and technologies delivers
more for our customers…
22 Confidential Property of Schneider Electric
Target Countries
Primary
Brazil
USA
Canada
Australia
France
Middle East +
Central Asia
Russia
India
Campaign assets
MARCOM ASSETS SALES ASSETS
Better Together: Campagna di Marketing Integrata e Strategie di Branding
LANGUAGES CUSTOMER TYPES
Web banners 60 secs movie Articles for local placement Whitepapers infographics
Sales Guide FAQ White papers commissioned with
market analysts Tech white papers
MESSAGE PLATFORM
All assets localised into 11 languages
All assets targeting different customer types
24 Confidential Property of Schneider Electric
One Message Platform
Suppliers
Legal
JVs
Partners
Distribution Channel
System Integrators
OEMs, VARs
End Users
Other Stakeholde
rs
Different stakeholders, different media
Social Media and Employee engagement Employee social media competition to engage our people and help spread the word;
“Use your personal twitter account to show us what Better Together means to you”
#BetterTogetherSE
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#BetterTogetherSE
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#BetterTogetherSE
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#BetterTogetherSE
#BetterTogetherSE metrics
+ € 20,000 donation for Habitat for Humanity
Participation from 24 countries
500,000 opportunities to be seen
Significant increase of brand association after 90 days
“Share of voice” increased +2%
Conclusions & Lesson Learned
Better Together - marketing lessons from one of the major M&As
in the Energy and Technology sectors
Lesson Learned (and my personal take aways)
PLAN & ANTICIPATE
EARLY IDENTIFICATION OF SYNERGIES
INTEGRATION TEAMS
Better Together: Campagna di Marketing Integrata e Strategie di Branding
EXPERIENCE
COMMUNICATE, COMMUNICATE, COMMUNICATE!
EMPLOYEE INVOLVEMENT
