| Hi all, I am attaching a presentation on OEM customer development. OEM is - original equipment manufacturer. An example of an OEM is - let us say a car manufacturer. And You want to be a supplier for XYZ product (let us say, Compressor systems) to the car manufacturer So for You the car manufacturer is an OEM customer. Now this is true for industrial selling market. i am not sure about consumer market. An OEM thus is a key to all your sales strategies. Identifying and winning the OEM is itself a daunting task and usually in an industrial selling market this could be time consuming also - typically 12 to 18 months or so. Once having won the OEM, much more difficult is retaining Him. You need to have some 'lock in strategy' for any OEM customer. The OEM needs to get 'locked' into your product so that you can retain him easier. All your feedback welcome on the ppt. Thanks Bala Huh, no attachment. Will try and do it again. Still not happening, sick of trying... Let me try and put it here only. Hope it is okay. Slide1: OEM As Business Partner Identifying an OEM Development of OEM Relationship Management MARCOM Plans Winning Business Account Handling Slide 2: Who is an OEM ? OEM is ‘Original Equipment Manufacturer” For example – Maruti Udyog is the OEM of passenger cars. MUL buys several components from other vendors of his. So to the vendor MUL is an OEM customer. Slide 3 OEM Business: A Business Partner : Keeps your business Growing Is one of your most important customers! t is crucial to develop and maintain the relationship for ongoing business relationship. Benefits of having a committed OEM Obviously the first benefit is Increased sales The OEM if he is a market opinion leader in his particular vertical industry he is in could become a good sales tool for you. Since you know the business volume you can expect from him, you can budget for any expenses required towards that. OEM is repeat business at “reduced sales cost” Your knowledge of the market which the OEN is in increases by constant interaction with him / his customers Slide 4: OEM Business: A Business Partner : Keeps your business Growing Provides a constant and reliable revenue stream The various levels in OEM customer development: The various levels mentioned here are the perceptions of the OEM customer about You when you approach him Level -1 : Commodity Broker (Oh no!) Price Sensitivity is sky high OEM loyalty is Zero Level -2 : Product / Service Provider (Help!) Price sensitivity is high OEM loyalty is low Level -3 : Value Adder : Getting better (Don’t rest yet!) Price Sensitivity decreases Customer loyalty increases Level -4 : Business Partner : (You have hit the big time!) Price Sensitivity is low Customer loyalty is High Customer perception is what counts Slide 5: Identifying the OEM Opportunities Galore Locating Them At trade fairs and in the trade press By talking to end user and the suppliers of other equipment in the sama market In market research reports Probing : Ask and find out What are the organization’s objectives for the next year/ 3 years? Via the Competitors of the OEM customer Ask the OEM - How do you view your competitors? How are you going to stay ahead of them? What can I do to help you to increase the value of your product? Probe/Identify/understand the Weaknesses of Competitor’s to create opportunity Slide 6: Once identified, how do you develop the OEM? Development Plan Set Objectives – what are they? Increase existing sales Win new business Improve service levels Build strong relationships Develop Strategies & Methods to achieve objectives Set out the means to achieve objectives Consider the Resources – Human & Financial – needed to implement each strategy Must be performed over a defined time period Promote/bundle your offer in a different way While Developing Strategies, Ask your self: How am I going to Block my Competitors? Slide 7: Relationship Management : The People Based on the size of the organization, identify ……. Influencer Influences the decision maker Make sure he is on your side Gives inputs to the decision maker to enable him to make decision Has expertise in a particular area – technology, operations, etc… Decision Maker Develop rapport with the person Identify the needs from his perception Sponsor Feeds you information regularly – a friend and well wisher of yours inside the organisation May suggest business development ideas You should support the “sponsor” fully Anti-sponsor Watch out ……….there is one in every company Promotes your competitor’s products/services Is typically negative to all your ideas and even tries to block your entry You should try and develop a neutral relationship with this person Understand the internal politics in Customer’s organization. Networking Strong Customer Rapport – Half the battle Won Slide 8: Marketing Communication Programmes : Marcoms Update on technological advancement and new product launched if any News letter / magazine / Customer Bulletin Seminars Train Technical team for self sufficiency Invite in a trade fair Send trade press articles to gain recognition Slide 9: Winning Business : Demonstrate : Value factor Products to meet the needs of the OEM Leaving an impression with customer is “ Customer won”. Making them realise that they got the maximum benefits Always try to WIN - TRUST Slide 10: Maintaining: On time delivery Quick response with efficient after sales support Always act with integrity and in a professional manner Focus on where the OEM is selling and keep the end customer also satisfied with your product / services Provide some unique value add service to the OEM which helps him in selling his equipment to his customer. Our efforts should make them rely exclusively on our products/services. Remember – the OEM can make or mar your business in a particular industry segment END Hope this is okay Bala BALA, I agree with most of your comments on OEMs. This market includes wide range of goods like -white goods [ fridge/washing machines etc] -brown goods [ HIFI, vcr, DVD etc] -COMPUTERS [ HP, DELL etc ] IT is a unique market and needs unique marketing approach. TWO key elements which can help to develop / nourish/ cherish the results are -RELATIONSHIP MARKETING -BUSINESS PARTNERING. YOUR GROWTH , AS A SUPPLIER, DEPENDS ON THE GROWTH OF THE OEMs. YOU SHOULD BE IN A POSITION TO HELP THE OEM TO DEVELOP THEIR BUSINESS. regards LEO LINGHAM
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