Marketing after a DisasterISA Sales and Marketing SummitAugust 16th , 2012Kyoko Fokuda & Marcus TennantYokogawa Electric C...
OutlineCompany overviewAutomation & control focused aspects toa disasterMarketing and Sales considerationsSuggestions & co...
Company overview     <Document Number>     Copyright © Yokogawa Electric Corporation   -4-     <date/time>
Our Organization   Founded in 1915                                           Global Leadership   96 years of dedication   ...
Sales by business segment                                      FY10 sales by segment                                      ...
Global leadership / Local partnership                                                  Regional SO                        ...
Automation focused aspects to theEarthquake/Tsunami     <Document Number>     Copyright © Yokogawa Electric Corporation   ...
Epicenters                                                             200 km                                             ...
Comparison of Damages (1)    Damages                                  Great Hanshin                  Great East JapanDate/...
What was learned by The Great Hanshin-Awaji EarthquakePlant Management point of view  Operator will be in panic immediatel...
Research results :The Great Hanshin-Awaji Earthquake                                                                      ...
What was learned by The Great Hanshin-Awaji EarthquakeYokogawa research about Plant Automation1. Plant were not shut down ...
Damages of The Great East Japan EarthquakeDamages– Earthquake   •   Short-period earthquake ground motion   •   Long-perio...
Lessons learned about automation system<Preparations are important>• Need to install important system to the higher level ...
How we face with the disasterPreparation to avoid Un-Acceptable Risk– Analyze disaster and make countermeasure for risk   ...
Customers in the impact zone• A saleswoman’s story• Many plants lost equipment as well  automation  – Automated plants did...
Company response• Prioritized manufacturing and logistics to  meet impacted customers needs  – Canceled/delayed orders to ...
Road Recovery• On March 11, total length of 870 km (=  540 miles) of roads were damaged.• By March 22, 93% or 809 Km (= 50...
<Document Number>Copyright © Yokogawa Electric Corporation   - 20 -<date/time>
<Document Number>Copyright © Yokogawa Electric Corporation   - 21 -<date/time>
Marketing and Salesconsiderations      <Document Number>      Copyright © Yokogawa Electric Corporation   - 22 -      <dat...
Home Depot: Leadership in Crisis Management Wal-Mart before Home Depot after. The need for speed – Opening stores for busi...
Crisis Response organizationNever a fireman but got to play one on TVWise to understand incident response organizationhttp...
Marketing’s role in a Crisis     Product Management                                       Marketing Communication         ...
Information officerMarComm Should lend support to personassigned to this role or take the position        <Document Number...
Marketing Communication- Expertise What is the best communication method?  – To Customers  – Employees  – Public & other s...
Product ManagementICS command structure contact logistics commanderHardware–   Inventory–   Demos and other spare capacity...
Other suggestions taken from case studies       <Document Number>       Copyright © Yokogawa Electric Corporation   - 29 -...
Preparing for Evil HBR-Mitroff & Alpaslan-2003Crisis-prepared companies are proactive.– They force themselves to confront ...
Conclusion     <Document Number>     Copyright © Yokogawa Electric Corporation   - 31 -     <date/time>
Plan for the unexpected ―One of the extraordinary things about humanevents is that the unthinkable becomesthinkable.‖     ...
Thank you for your attention    <Document Number>    Copyright © Yokogawa Electric Corporation   - 33 -    <date/time>
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Marketing After a Disaster

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Presented by Marcus Tennant and Kyoko Fukuda of Yokogawa at the 7th Annual Marketing & Sales Summit.


Over the past 10 years there have been several tragic natural disasters that have occurred throughout the world. As the global economy becomes more connected through supply chains and information, what role does marketing have in helping customers and other stakeholders affected by the disaster? This presentation will discuss how Yokogawa responded to customers impacted by the Tohoku earthquake & tsunami. They will give examples of how marketing groups in companies like Home Depot and Wal-Mart take action before and after a disaster and suggest ways marketing, communication and even sales can help an organization respond to a crisis and help customers and employees.

More on this session: http://marketingsalessummit.com/global-marketing-session-at-the-summit/

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Marketing After a Disaster

  1. 1. Marketing after a DisasterISA Sales and Marketing SummitAugust 16th , 2012Kyoko Fokuda & Marcus TennantYokogawa Electric Corporation <Document Number> Copyright © Yokogawa Electric Corporation -1- <date/time>
  2. 2. OutlineCompany overviewAutomation & control focused aspects toa disasterMarketing and Sales considerationsSuggestions & conclusion <Document Number> Copyright © Yokogawa Electric Corporation -3- <date/time>
  3. 3. Company overview <Document Number> Copyright © Yokogawa Electric Corporation -4- <date/time>
  4. 4. Our Organization Founded in 1915 Global Leadership 96 years of dedication One of the founding members of to the industry the Fieldbus Foundation Commitment Tokyo, Japan Our ―Vigilance‖ mindset is committed World Headquarters to building the future to last for customers. sales Global Network Global consolidated sales over 70 companies outside Japan US$ 3,916 million @ 2010 including 12 manufacturing centers <Document Number> Copyright © Yokogawa Electric Corporation -5- <date/time>
  5. 5. Sales by business segment FY10 sales by segment (Million US $)Industrial Automation & Control Test & Measurement 3,135 80.0% 446 11.4% New & Others 335 8.6% <Document Number> Copyright © Yokogawa Electric Corporation -6- <date/time>
  6. 6. Global leadership / Local partnership Regional SO As of July, 2011Regional SO Europe,Netherlands China, Shanghai Regional SO USA, Corporate HQ, Tokyo HoustonYokogawa Europe B.V. Yokogawa China Yokogawa Corporation Europe Of America Yokogawa Electric Corporation Japan Americas Middle East Regional SO Middle East, Bahrain Asia Yokogawa Electric Regional SO Asia, Singapore Corporation 4,723 Group companies Worldwide Yokogawa Middle East outside Japan 10,009 19,334 Group companies : existing Yokogawa offices in Japan and production facility 4,602 Yokogawa Engineering AsiaRussia Saudi-Arabia India China, Suzhou Korea Australia Brazil America,Georgia Canada Calgary <Document Number> Copyright © Yokogawa Electric Corporation -7- <date/time>
  7. 7. Automation focused aspects to theEarthquake/Tsunami <Document Number> Copyright © Yokogawa Electric Corporation -8- <date/time>
  8. 8. Epicenters 200 km (125 miles) Fukushima Daiichi Sendai 450 km (280 miles) Nuclear Power Plant Kobe Tokyo No tsunami waves were observed. Tsunami waves of 40.5 meters (> 133 ft) <Document Number> Copyright © Yokogawa Electric Corporation -9- <date/time>
  9. 9. Comparison of Damages (1) Damages Great Hanshin Great East JapanDate/Time 5:46 a.m., January 17, 1995 2:46 pm, March 11, 2011 North of Awaji-shima Island 130 Km off Sanriku CoastEpicenter N34’ 36‖ E135’02‖ N38’ 6‖ E142’ 52‖Focus 16 km (10 miles) 24 km (15 miles)Seismic Intensity Level 7 Level 7Magnitude 7.3 9.0Death Toll 6,434 15,859 (90%< drowned)Missing 3 3,021 Serious 10,683 1,478Injured Light 33,109 4,629 Total 104,906 130,171 (incl. total burn 275)Housing Half 144,274 258,352 (incl. partial burn 4)Damages Partial 390,506 747,058 (incl. inundated houses 747,058) <Document Number> Copyright © Yokogawa Electric Corporation - 10 - <date/time>
  10. 10. What was learned by The Great Hanshin-Awaji EarthquakePlant Management point of view Operator will be in panic immediately after earthquake, do not expect complex decision -->Preparations are important Automatic sequence, Train people, Easy understanding Manual/Procedure and cyclic training were effective but not for all cases -->Effectiveness of manual/Procedure and training are depend on the contents and quality -->Foresight about disaster is important Need to know there are so many operation after plant shutdown -->Need to prepare procedure manual after shutdown <Document Number> Copyright © Yokogawa Electric Corporation - 11 - <date/time>
  11. 11. Research results :The Great Hanshin-Awaji Earthquake Do not expect complex decision* Operator’s mental condition free format immediately after earthquake S ei i sm c 5 m i tues after earthquake ni 1 hour after earthquake Intensity *I P ani n c * A lttl bi cal dow n i e t m -H ow to defend one body s -S af check,i ety nstant 6-7 -Fear & U neasiness under counterm easure,prevent l eak, darkness confrm saf etc i ety -C annot hear al by noi arm se -P l m angem et arri to pl ant ved ant *P ani & cal depend on i vi c m ndi dual *S lghtl cal dow n i y m -S af check etc ety -C heck dam eges & pl an 5 -U neasi ness & C al operator m counterm easure -P l shutdow n & C onti ant nue to -A ct accordi to the m anual ng operate - P l m angem ent arri to of i ant ved fce *K eep cal near narm alsi m tuation *A l ost cal m m -S om e part of pl stopped ant -A l ost conti m nue to operate 3-4 -C ontinue to check &cope w i th -C heck abnorm alty i abnorm alsi tuati ons -O perate accordi to the m anual ng -N orm aloperati ons Source: The Society of Chemical Engineers Plant Operation Engineering Special Research Jan 17, 1996 <Document Number> Copyright © Yokogawa Electric Corporation - 12 - <date/time>
  12. 12. What was learned by The Great Hanshin-Awaji EarthquakeYokogawa research about Plant Automation1. Plant were not shut down under strong earthquake – Many customers checked their operations whether they should shutdown plant or not.2. Damages of Automation Devices – To fix Devices to the floor mitigate the damages compare to the not fixed devices -->Every important devices and other asset need to fix to floor or fixed table ( EX: PC fall down from desk and break, Bookshelf hit the control system) -->Earthquake tolerance design is important <Document Number> Copyright © Yokogawa Electric Corporation - 13 - <date/time>
  13. 13. Damages of The Great East Japan EarthquakeDamages– Earthquake • Short-period earthquake ground motion • Long-period earthquake ground motion(Sloshing) • Liquefaction– TsunamiWhat we learned by The Great East Japan Earthquake– Preparations and training are important • Prepare and train to act immediately after disaster • Training to support immediate decision is important • Need to prepare any thinkable case, not to limit by the past experiences Change risk Un-Acceptable -->Acceptable <Document Number> Copyright © Yokogawa Electric Corporation - 14 - <date/time>
  14. 14. Lessons learned about automation system<Preparations are important>• Need to install important system to the higher level than Tsunami• Need to store the Back-up media and software to the safety area • We can provide hardware but it takes long time to prepare software• Need to store latest documents documents to safety area • Need to brush up documents • Latest documents are effective to prepare hardware <Document Number> Copyright © Yokogawa Electric Corporation - 15 - <date/time>
  15. 15. How we face with the disasterPreparation to avoid Un-Acceptable Risk– Analyze disaster and make countermeasure for risk • Un-Acceptable Risk --> Acceptable Risk– Countermeasures: • Minimize decision speed and support quick action: Prepare manual, Train people, Share information of case study • Reinforce asset, system and software to avoid risk: Simulate and reinforce • Prepare for recovery: Prepare latest documents and software to the safe area <Document Number> Copyright © Yokogawa Electric Corporation - 16 - <date/time>
  16. 16. Customers in the impact zone• A saleswoman’s story• Many plants lost equipment as well automation – Automated plants did not have the workforce to remove the debris• Customers shifting emphasis – SIS systems – Remote backup – Energy savings <Document Number> Copyright © Yokogawa Electric Corporation - 17 - <date/time>
  17. 17. Company response• Prioritized manufacturing and logistics to meet impacted customers needs – Canceled/delayed orders to non-critical and completely destroyed facilities• Shifted Manufacturing days and work hours to reduce electricity demand• Cool Biz clothing• Flexibility in commuting and working at home <Document Number> Copyright © Yokogawa Electric Corporation - 18 - <date/time>
  18. 18. Road Recovery• On March 11, total length of 870 km (= 540 miles) of roads were damaged.• By March 22, 93% or 809 Km (= 505 miles) of them were recovered for through traffic.• The picture on page 1 shows the road damage (photo taken on March 12).• The second picture shows how it was recovered just in 6 days. <Document Number> Copyright © Yokogawa Electric Corporation - 19 - <date/time>
  19. 19. <Document Number>Copyright © Yokogawa Electric Corporation - 20 -<date/time>
  20. 20. <Document Number>Copyright © Yokogawa Electric Corporation - 21 -<date/time>
  21. 21. Marketing and Salesconsiderations <Document Number> Copyright © Yokogawa Electric Corporation - 22 - <date/time>
  22. 22. Home Depot: Leadership in Crisis Management Wal-Mart before Home Depot after. The need for speed – Opening stores for business after a natural disaster is the top priority Value of Preparation and Prepositioning A Clear Command structure uses ICS system – CEO – Regional VP – Store Manager Katrina – Started Mobilizing 4 days before hurricane hit landfall <Document Number> Copyright © Yokogawa Electric Corporation - 23 - <date/time>
  23. 23. Crisis Response organizationNever a fireman but got to play one on TVWise to understand incident response organizationhttp://www.training.fema.gov/EMIWeb/IS/ICSResource/assets/reviewMaterials.pdf <Document Number> Copyright © Yokogawa Electric Corporation - 24 - <date/time>
  24. 24. Marketing’s role in a Crisis Product Management Marketing Communication <Document Number> Copyright © Yokogawa Electric Corporation - 25 - <date/time>
  25. 25. Information officerMarComm Should lend support to personassigned to this role or take the position <Document Number> Copyright © Yokogawa Electric Corporation - 26 - <date/time>
  26. 26. Marketing Communication- Expertise What is the best communication method? – To Customers – Employees – Public & other stakeholders You are the company expert on the latest communication methods– not corporate communications or HR. Make recommendations to Incident Commander or Information officer – Email, sales network, facebook, twitter – Rapidly changing - more and more options <Document Number> Copyright © Yokogawa Electric Corporation - 27 - <date/time>
  27. 27. Product ManagementICS command structure contact logistics commanderHardware– Inventory– Demos and other spare capacity– Beware of large orders of critical products– Understand what critical compensates of your product areSoftware– Media– Licenses– Installation– Backup configuration– Supplement technical support <Document Number> Copyright © Yokogawa Electric Corporation - 28 - <date/time>
  28. 28. Other suggestions taken from case studies <Document Number> Copyright © Yokogawa Electric Corporation - 29 - <date/time>
  29. 29. Preparing for Evil HBR-Mitroff & Alpaslan-2003Crisis-prepared companies are proactive.– They force themselves to confront crises they’ve never experienced—or can’t even imagine. These organizations encounter fewer calamities and recover faster. They also stay in business longer and fare better financiallyInternal Assassins- Ask cross functionalteam with their insider knowledgehow they would destroy the companyHire outside outsiders to test systemsWheel of crisis exercise <Document Number> Copyright © Yokogawa Electric Corporation - 30 - <date/time>
  30. 30. Conclusion <Document Number> Copyright © Yokogawa Electric Corporation - 31 - <date/time>
  31. 31. Plan for the unexpected ―One of the extraordinary things about humanevents is that the unthinkable becomesthinkable.‖ Salman Rushdie <Document Number> Copyright © Yokogawa Electric Corporation - 32 - <date/time>
  32. 32. Thank you for your attention <Document Number> Copyright © Yokogawa Electric Corporation - 33 - <date/time>

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