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Marketing lessons from one of the major M&As in the energy and technology sectors.

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Marketing for M&A post-acquisitions.

Presented at "8th Strategic Marketing & Branding Forum", London, April 23-24th.

In January 2014 the energy management giant Schneider Electric acquired Invensys thus expanding its product offering in the field of Controls, Software and Services. From a branding perspective Invensys brought several independent brands which had to be integrated within Schneider Electric’s portfolio. Comms plan included an integrated marketing campaign (“Better Together”) that was launched in Sept 2014 and which used Social Media channels to ramp up and reach the right audience.

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Marketing lessons from one of the major M&As in the energy and technology sectors.

  1. 1. 1 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
  2. 2. 2 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
  3. 3. 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
  4. 4. Schneider Electric in Brief Better Together - marketing lessons from one of the major M&As in the Energy and Technology sectors
  5. 5. 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
  6. 6. 6 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
  7. 7. £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)
  8. 8. M&As & Integrations Better Together - marketing lessons from one of the major M&As in the Energy and Technology sectors
  9. 9. 9Confidential Property of Schneider Electric 80% of the Mergers fail
  10. 10. 10Confidential Property of Schneider Electric Integration and Reasons for Success
  11. 11. Day 1, Day 100, Year 1 2015Q2 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"
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. Schneider Electric 15Confidential Hannover Messe (4 months after the acquisition)
  16. 16. Schneider Electric 16Confidential Gastech Korea (6 months after acquisition)
  17. 17. Better Together Better Together - marketing lessons from one of the major M&As in the Energy and Technology sectors
  18. 18. Better Together
  19. 19. Better Together
  20. 20. 20 Why Communication is so important? Global External Landing Page +50K unique visitors Global Internal Landing Page +1K unique visitor
  21. 21. 21 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. 22. 22Confidential Property of Schneider Electric Target Countries Primary Brazil USA Canada Australia France Middle East + Central Asia Russia India
  23. 23. 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. 24. 24Confidential Property of Schneider Electric One Message Platform Suppliers Legal JVs Partners Distributio n Channel System Integrators OEMs, VARs End Users Other Stakeholde rs Different stakeholders, different media
  25. 25. 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
  26. 26. 26 #BetterTogetherSE
  27. 27. 27 #BetterTogetherSE
  28. 28. 28 #BetterTogetherSE
  29. 29. #BetterTogetherSE metrics + € 20,000donation 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%
  30. 30. Conclusions & Lesson Learned Better Together - marketing lessons from one of the major M&As in the Energy and Technology sectors
  31. 31. 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
  32. 32. Thank you giuseppe.caltabiano@schneider-electric.com @giusec

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