WELDING AUTOMATION
PRODUCTS MARKETING AND SALES IN BRAZIL
Jarmo Pehkonen
AGENDA Introduction - Problem to be solved Company Macro situation of Brazilian market Theoretical references Market analyse of Pema Conclusions
INTRODUCTION
PROBLEM TO BE SOLVED
How to conquer new emergent market?
Which are the segments to be focused?
What is the Positioning of the Company in the market?
COMPANY – PEMAMEK Established: 1970
Number of personnel: 140
R&D/engineering staff: 60
Net sales 2011: EUR 40 million
Exports: 90% of production world-wide, and 60% of that outside of Europe.
SALES REGIONS
GLOBAL STRATEGIC PARTNERS
WIDE PRODUCT PORTFOLIO
PEMA`S MARKET SEGMENTS1. Engineered Heavy Fabrication2. Mobile Machinery3. Civil Construction4. Ship Building and Offshore5. Industrial Boilers6. Wind Energy7. Process and Nuclear
BRAZILIAN MARKET ANALYSE Pre-sal Oil discoveries are the DRIVER
Sudden increase of steel structure capacity > Brazil became small for the demand.
Local content requirement. Steel structures must be made in BRAZIL.
High labour cost and low productivity
PEMA offers solution to improve fabrication productivity and quality.
INTERNATIONALIZATIONUPPSALA STUDY1. Export sales manager
2. Expatriate sales manager in the target region
3. Local partner company/joint venture
4. Own subsidiary
5. Acquisition of the competitor
SEGMENTATION, TARGETING POSITIONG
DIVIDE MARKET TO SEGMENT
CHOOSE TARGET SEGMENTS
DEFINE POSITIONING OF THE COMPANY
BRAZILIAN MARKET Rough range estimate 100-200 Mreals / year
No exact statistic available
Competitors Esab with partners Koreans Japanese German American
Potential clients Shipyards, various Mobile machinery fabricators, Volvo, Caterpillar, Case
New Holland etc Industrial boilersSimisa, Confab
PEMA BUSINESS MODELS1. PRODUCT SALES through local partner
company. BRL
2. SOLUTIONS SALES. Directly from PEMA´s Finnish legal entity to end user. EURO
AFTER SALES. Contract local service partner. Royalties from service partner to PEMA. End client buys directly from Service partner.
PRODUCT VS SEGMENTS MATRIX – CURRENT SITUATION
PRODUCT VS SOLUTION MATRIX – PROPOSAL – INTERNAL PRODUCT TO SOLUTION RECEIPT
Products 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Solution
Roller bed tower manufacturing line x x xHead and tailstock production lines x x x x
Robotized welding station for towerdoor frames xMicro Panel line x x x x x x x
Flat panel production line x x xT-Bar fabrication line x x x x x xH-Bar fabrication line x x x x x x
Block production solution x x x x x xProfile processing line x x x x x x
Membrane wallpanel production automation x x x x x x x x x x xWheel loader front frame fabrication cell x x x x x x
Trailer body frame welding cell x x x x x xFully automated welding of crane booms x x x x x x x
SOLUTIONS VS SEGMENTS MATRIX – SOLUTION ”CARDAPIO” FOR THE CLIENTS
Strateric Market Areas, SMA's, industry segments
Engineered Heavy
FabricationMobile
MachineryCivil
ConstructionShipbuilding and offshore
Industrial Boilers Wind Energy
Process and Nuclear
SolutionsRoller bed tower manufacturing line x
Head and tailstock production lines xRobotized welding station for towerdoor frames x
Micro Panel line xFlat panel production line x
T-Bar fabrication line xH-Bar fabrication line x
Block production solution xProfile processing line x
Membrane wallpanel production automation xWheel loader front frame fabrication cell x
Trailer body frame welding cell xFully automated welding of crane booms x
SEGMENT ATTRACVINESS
Strateric Market Areas, SMA's, industry segments
Engineered Heavy
FabricationMobile
MachineryCivil
ConstructionShipbuilding and offshore
Industrial Boilers Wind Energy
Process and Nuclear
Atractiviness, 1 Min, 5 MaxMarket size 4,0 4,0 3,0 5,0 2,0 3,0 1,0Profitability 4,0 3,0 3,0 4,0 5,0 3,0 3,0
Product offering 1, Solution offering 5 3,0 4,0 2,0 5,0 5,0 3,0 3,0Competitors, 5 low, 1 high 2,0 3,0 3,0 3,0 3,0 4,0 3,0
Average 3,3 3,5 2,8 4,3 3,8 3,3 2,5
PEMA POSITIONING
CONCLUSIONS Brazil is promising and potential market PEMA goes to regions –
Internationalization Focus on selected market segments Business models After sales plan
Keep on eye to find correct moment to open own Subsidiary!
THANK YOU!