Lately we’ve been having conversations with a number of manufacturers, and some distributors, about reconnecting with customers and better understanding their markets. Why? In an effort to either affect demand creation; to promote their brand; and to support new product development.
One manufacturer who is attempting to create demand is Schneider Electric.
Schneider Electric is aggressively pursuing end-user business and is reaching out to decision-makers at end-users through an advertising campaign. To date we’ve seen ads in Fortune, Forbes, Time and Building magazine. While copy heavy, they stress the financial benefit of energy efficiency and attempt to position Schneider as “the energy management specialist.” We’ve also heard from a distributor that Schneider is advertising on radio (ESPN Radio. Sylvania has also be advertising on ESPN Radio and directing end-users to their website, www.sylvania.com)
Here’s what Schneider has advertised in Fortune, Forbes and Time:
and in Building magazine
It’s good to see a manufacturer seeking to create demand (and some others like Lutron, Leviton and some of the lighting companies also are doing this – to name some.) A question becomes, however, whom are they generating demand for? For distribution, for other entities, to take direct?
With energy efficiency being a growth market, reaching out to end-users to differentiate yourself is critical to capturing more than your far share of the market. This is true for distributors and manufacturers.
What do you think of Schneider Electric’s strategy?
6 Comments
Marketing materials are only good when backed up by knowledgable and well trained sales people.
Most distributor and Schneider Electric sales people don’t know how to have a conversation with a business owner or high level executive. Their conversations quickly turn to product features and electrical techno-jargon. The executive’s eyes glaze over and the opportunity is lost.
Frank’s comment is spot on – and the same issue exists with many other manufacturers – too much product pitch and not enough empathy. As far as creating demand, betcha some consultant told the Schneider marketing folks that this is the latest and greatest thing they should be doing. And that consultant has no idea about path to market. Most marketing consultants (except, of course, David Gordon) do not understand how the electrical distributor fits into the equation.
Unless distributors strategy includes retail, Tier1 Manufacturers can or have added an E to their offerings that will shink sale volumes.
here on the west coast square d just took 2 pieces of business direct
Considering how difficult Square D has become to work with over the past couple of years, I have no doubt they will go more direct and leave distributors out of the picture.
Schneider will never leave distribution. Their plan is to have the decision makers in their pocket. Distributors have stock, not Schneider. This is a high margin market, when compared with plain simple condominiums. Distributors may never turn the back at them, but get as much from them as possible. Schneider will always take direct business. With this crisis, they took a strong hit on sales and margin. Their products are just the same like GE, Siemens and others have in this field.
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