The document discusses the need for Distrelec, an industrial supplier, to transform its marketing approach from traditional to digital. It outlines: - The starting position of Distrelec's marketing and the changing demands of customers that require a new approach. - Steps taken to transform the marketing model including changing the organization structure, building new skills, and driving digital orientation. - The new marketing agenda focuses on increasing demand generation, improving the e-commerce platform, and driving a multi-channel customer experience. - Key aspects of the new approach include organizing marketing functions around demand generation, operations of the e-platform, and communications/branding. New roles, workflows, and KPIs will also

1. Doing what you‘ve always done
is no longer an option.
Digital Marketing at Distrelec.
Markus Dobbelfeld
CMO, Datwyler Technical Components & Distrelec Group
June 3, 2014

2. – Head of E-Commerce, Hilti North America
– Head of Global E-Business, Hilti Lichtenstein
– Senior Manager, Online Banking, Credit Suisse
– Senior Marketing Group Director, Central Europe, Adobe Systems
– Chief Marketing Officer, Dätwyler TeCo & Distrelec Group
2
About me
Markus Dobbelfeld

3. – Focused industrial supplier with global presence
– Leading positions in global and regional market
segments
– Revenue of more than CHF 1,400 million
– 7,000 employees
– Established in 1915
– Listed on the SIX Swiss Exchange, Zurich
– Two divisions:
– Technical Components,
2’000 Employees, CHF 720 million
– Sealing Solutions,
5’000 Employees, CHF 680 million
3
About Dätwyler
Group Overview

4. 4
Datwyler
Technical Components

5. 5
Technical Components
Distribution and Sales Locations

6. 6
Distrelec Online Distribution
Our Market
– B2B, Continental European market volume USD 3‘000 mio.
– Competitors: Electrocomponents (GB), Premier Farnell (GB), Digikey (US),
Mouser (US), Conrad (DE)

7. Distrelec Group
Our Services
– Online distributor with optimised logistics
– We specialise in small and medium-sized quantities
– B2B trading of MRO products
– Comprehensive product ranges
– 250,000 products in portfolio
– Outstanding availability of 98%
– Delivery within 24 hours
7

8. World is changing
We are always on
Differentiators have
become commodities
Channel shift in sales &
communications
Internet enabled price
visibility
Customer journey more
complex
Shift from traditional to
digital media
Distrelec Starting Position
For today’s marketer, the sweet spot is a moving target
8

9. Distrelec New E-Platform & Digital Marketing
Video
9
DE: http://youtu.be/I0A0LsVDVG0

10. Relentless Demands
– Profitable growth & operational efficiency
– Need for organic and inorganic growth
– Agility to capture opportunities quickly
Higher Stakes
– Requirements to acquire and retain customers most important
– Synchronize end-to-end customer experience
– Use data and technology for real-time marketing impact
Smaller SOW
– Flat or declining market share
– Harder to obtain and keep new customers and sell more to existing ones
Higher Customer Expectations
– Relevance is here to stay
– Consumers’ expectations for relevant experiences
– Consumers still expect value, trust, quality and better customer service
More complex environment
Competing priorities & changing consumer behaviors

11. To achieve substantial change, need to do 3 things to transform marketing;
Fundamentally change the marketing operating model (done)
– Improve innovation and internal capabilities
– Drive significant shift in organizational culture so that consumer relevance
at scale becomes a key operating principle shared by all departments
Build new skills internally (done)
– Hire, upskill and redeploy people to improve efficiency and agility
– Need talent that can create consistent, multichannel experiences
Drive digital orientation throughout the enterprise (ongoing)
– Improve marketing performance & reduce complexity
– Digital orientation cannot remain only a province of marketing
– Entire organization needs to understand how digital is transforming the
customer experience
– C-suite needs to give digital orientation greater importance by embracing
horizontal collaboration
11
The new Marketing Agenda – Increase in customer
expectations and channel preferences

12. Hack the Org Chart
– The driving force are the people. Nurture and empower your talent
Redefine processes and foster collaboration
– Developing collaborative processes among cross-functional teams
Identify and eliminate bad habits
– Refuse to languish in legacy
Become a master of modelling
– Take ownership of consumer insights and business intelligence
Be a leader
– Challenge the status quo and embrace change, champion collaboration
Keep your eyes on the trends, but your feet on the ground
– Allow innovation to emerge from a structured marketing machine
Digital Marketing
Steps To Digitally Align Your Organization

13. Marketing Excellence
To remain competitive we must adapt to changing
customer behaviours and deliver a personalized
experience across all channels and touch points.
Demand
Generation
Engine
Multi-Channel Commerce
To stay relevant we must offer value added
services and state-of-the-art e-commerce.
E-Platform
Up-skill & Focus-shift
To drive demand and conversion we want to build
a highly skilled marketing organization, capable to
adapt to changing customer demands.
Organization
Conclusion - Provide for Marketing Excellence
13

14. New Marketing Setup
Summary
14
What we want to
achieve
– We want marketing to become a demand generating unit
– We want to support sales in their campaigns
– We want to develop and maintain the best e-platform
How we organize
ourselves
– We will organize ourselves around 3 main tasks:
– E-Platform (Technology)
– E-Business (Demand Generation)
– Marcom (Branding & Public Image)
What are our
measures of
success (KPIs)
– Sales and sales growth per channel
– Conversion rates
– Costs per acquisition/sale
– Return on marketing investment
What will change /
What will be better
than before
– We will have a functional marketing department
– We will build up competency in e-marketing
– We will generate demand and drive sales
– We will ensure consistent master data
– We will provide a globally scalable E-Platform

15. – Sept 2011, Acknowledgment of changed market conditions (starting point)
– Nov 2011, Change Vision & Strategic Planning
– May 2012, Investment approvals (resources, technology, etc.)
– July 2012, Implementation planning
– Sept 2012, Functional reorganization
– Since, Change management (communicate, empower, culture, etc.)
15
Timeline
Change Management

16. Yesterday
Solid marcom practice with efficient
catalogue and media production.
Sales pitch: ‘one-size-fits-all’.
Future
Demand generation and sales development
through digital marketing automation.
Sales Pitch: ‘personalized’ through insights.
Aspired Marketing Condition
Up-skill and shift focus
16
0
1
2
3
4
5
Demand Generation
Publications
Online Marketing
Sales Promotions
Relationship MarketingPublic Relations
Search Marketing
Business Intelligence
Customer Intimacy
Distrelec Future
Distrelec Yesterday

17. Distrelec Marketing
Roles & Objectives
17
Brand
Develop the brand and public image
Intelligence
Provide real-time business intelligence
Channels
Operate a multichannel
commerce platform
Demand
Customer acquisition
and conversion
Data
Provide for master data systems

18. Demand Generation Engine - Deployment of integrated
marketing tools to drive demand and conversion
18

19. Demand Generation Engine
Shift to Digital Media
19
Digital
(Online)
Traditional
(Offline)

20. Distrelec Marketing: Tasks
High Level Target State
Marketing
E-Platform
Operations
Product
Data (4)
Customer
Integration (2)
E-Platform
Support (3)
Development
Project Mgmt
(2)
Web
Development
(7)
Web
Design (1)
E-Business
Demand
Generation
Campaign
Mgmt (3)
SEM /
Bid Mgmt (4)
SEO (2)
Pilots/Mirrors
E-Mail
Marketing (4)
Re-Targeting
Affiliates &
Price Portals
(2)
Shop
Management
Merchandizing
&
Recommend.
(2)
Search/Usabili
ty
Test & Target
(2)
Retention
Loyalty Mgmt
(1)
Mobile
Commerce (1)
Marcom
Publications
Channel
Marketing (2)
(E-)Seminars
TS/Events (2)
Public
Relations (2)
Social Media
& Community
(2)
Business
Intelligence
• Generate demand,
attract, engage &
retain customers.
Drive ROI from
online marketing
programs and
increase sales
funnel conversion.
• Ensure operations and
further development of
global, multichannel E-
Platform: Webshop and
application ecosystem,
PIM, marketing
applications, customer
and supplier integration.
• Conduct marketing
communications,
improve & maintain
public image. Create
catalogues and print
collateral. Drive channel
marketing and engage
community.
20

21. 21
Marketing
E-Platform
Operations
Product
Data (4)
Customer
Integration (2)
E-Platform
Support (3)
Development
Project Mgmt
(2)
Web
Development
(7)
Web
Design (1)
E-Business
Demand
Generation
Campaign
Mgmt (3)
SEM /
Bid Mgmt (4)
SEO (2)
Pilots/Mirrors
E-Mail
Marketing (4)
Re-Targeting
Affiliates & Price
Portals (2)
Shop
Management
Merchandizing &
Recommend. (2)
Search/Usability
Test & Target (2)
Retention
Loyalty Mgmt (1)
Mobile
Commerce (1)
Marcom
Catalogues
Publications (6)
Channel
Marketing (2)
(E-)Seminars
TS/Events (2)
Public
Relations (2)
Social Media &
Community
(2)
Business
Intelligence
E-Business
• Revenue & growth
• ROMI (attributable
revenue minus
campaign invest)
• AOV/AOI (Average
order Value / Items),
BCR (Basket Category
Ratio), DSR
(Displayed/sold Ratio)
• CPL/CPO (Cost
Revenue Ratio)
• Conversion, growth &
customer retention
E-Platform
• Availability and performance of
systems and services
• Performance with typical queries
• Throughput time and data quality
(new product go-live, etc. –
shared KPIs > PM)
• Ratio of fully automated scripts
and order passages
• Data Integration KPIs
(new/updated product data,
performance of interfaces)
• Service Quality, Data
Governance & Support KPIs
Marketing Communications
• Public Image and Brand
awareness
• Publications: revenue and
contribution margin per
catalogue page (shared
KPI with CM)
• Customer satisfaction e.g.
NPS (Net Promoters
Score) or «Fans», CLV
(Customer Lifecycle
• Value), Customer
Satisfaction Index (CSI)
• Community engagement
index
Top 5 Marketing KPIs - Drive sales, build revenue,
improve retention, optimize spent and ROMI

22. Functional Marketing Organization
Digital Marketing & E-Platform Operations
22

23. Marketing Organization
Functional setup with specialist functions
23
E-Platform
(Technology)
Business Intelligence
E-Business
(Digital Marketing)
Marcom
(Image/Brand)

24. 24
Job Descriptions with clear accountability, lines of
interaction and KPIs

25. Marketing Process Workflows - Cross-functional
alignment between Sales, CM and Marketing (incl. ISO)
25

26. Marketing Technology (E-Platform & Ecosystem)
Operations & Development
26

27. We are creating one core E-Platform. We invest into
People, Technology, Processes and Channels
Suppliers
Procurement Supplier Product
Managers
Marketing-
Managers
Product
Catalogue
Brochures
Flyers
Direct
Mailings
Digital
Catalogues
Vendors
Content
Managers
Sales
PIM
CRM
CMS
Various
ERPs
Other internal
Systems
Online Shop
(Brand n)
Mobile Shop
Third Parties
(e.g. Google Search,
Market Places, etc.)
Online Shop
(Brand 1)
Call Center
E-Mail
Communication
Distrelec Core
E-Platform
(for Commerce & Services)

28. New E-Platform
Global Rollout in 2014
28

29. DAM
ETL
Font Server
Live Chat
ERP
Video
E-Platform Architecture
Abstract System View
29
Multivariate Testing
E-Procurement
Bid Mgmt. / SEM
Mail
E-Mail Marketing
Recommendation
Faceted Search
Web Analytics
PIM Payment
E-Commerce Platform
Online ShopMobile
Market Monitoring
Market Places
Fit Server
Mobile Native App
Co-Browsing
Search Engines
Shop
OCI
Data Quality
Tag Management
Mobile Site
Mobile
Report
MRMCRM
Transaction
Middleware
Service
LayerRouting Layer
ERPERP
Publication
CMS
BI-Warehouse

30. E-Business – Demand Generation
Field & Category Marketing
30

31. Cross-Functional Collaboration - The three sales
relevant functions heavily rely on each other
31
• GTM plans
• Resource allocation
• Innovation
• Market opportunities
• Value proposition
• Aligned go-to-market
• Customer campaigns
• Leads nurturing
• Merchandizing
• Product Campaigns
• Channel Marketing
• Product opportunities
• Global/local Pricing
• Product promotions
• Product strategy
• Acquire new customers
• Develop existing customers
and increase share of wallet
• Segment customer types and
define value propositions
• Attract, engage & retain
customers across channels
• Online marketing and
E-Business operations
• Marketing Communications
• Maintain and develop attractive
product portfolio
• Sourcing/Procurement
• Secure high margins
• Ensure high availability
Marketing
Sales
Category Management

32. Adapting the Marketing Organization to support cross-
functional interests and collaboration
32
• GTM plans
• Resource allocation
• Innovation
• Market opportunities
• Value proposition
• Aligned go-to-market
• Customer campaigns
• Leads nurturing
• Merchandizing
• Product Campaigns
• Channel Marketing
• MDF
• Price crawler
• Extended assortment
• Product opportunities
• Global/local Pricing
• Product promotions
• Product strategy
• Acquire new customers
• Develop existing customers
and increase share of wallet
• Segment customer types and
define value propositions
• Attract, engage & retain
customers across channels
• Online marketing and
E-Business operations
• Marketing Communications
• Maintain and develop attractive
product portfolio
• Sourcing/Procurement
• Secure high margins
• Ensure high availability
Marketing
Sales
Category Management
Category Marketing
4 FTE acting as attorneys
representing interests of product
Field Marketing
4 FTE acting as attorneys
representing interests of
country

33. E-Business – Demand Generation
Search Engine Marketing (SEM)
33

34. Search Engine Marketing
Focus & Setup
– Drive Sales (Direct Response)
– Customer Retention (Remarketing)
– Brand Awareness (Specific markets)
– International team of SEM Specialists with several years of experience
– Whole assortment accessible, 250’000 products
– 17 markets
– 15 languages
– Google (AdWords), Microsoft Bing (Ads)
– 7 Mio. keywords over all accounts
– Bid Management (intelliAd)
– Strong performance orientation: focus on ROI (CRR)
– Cost-revenue-ratio: 9.5
34

35. Importance of Videos for SEO
Rich & Relevant Content
35
– Established a 360° Spin-Photography
and high-end Video Studio
– Video has become a must-have
feature for competitive SEO
Distrelec (paid)
Distrelec (paid)
Distrelec (organic)
Video (organic)

36. E-Business – Demand Generation
E-Mail Marketing
36

37. E-Business – Demand Generation
E-Mail Marketing
– Serving 20 markets in 17 languages
– Introduced new E-Mail practice, complete
redevelopment, new & responsive design
utilizing latest technology (personalization,
whitelisting, analytics).
– Deployed additional E-Mail Types &
triggered and automated e-mails.
– Introduced a category based
segmentation of all recipients and an
industry selection for new users.
– Implemented an analytics based workflow
and scheduling to achieve maximum
deliverability.
37

38. E-Business – Demand Generation
Customer Experience (Onsite Search)
38

39. E-Business – Demand Generation
Customer Experience - Search Intelligence
39
Conversion optimization efforts in regard to on-site search, overall usability and
improved customer experience on Distrelec’s online touchpoints.
– Analysing user behaviour
– Visits with Keyword Search: 64%
– Conversion Rate with Search: 8,69%

40. E-Business – Demand Generation
Online Marketing (Web Merchandizing)
40

41. E-Business – Demand Generation
Online Marketing (Web Merchandizing)
41
– Countries (DE, CH, AT, IT LT, LV, EE, PL, FI, CZ, SK, HU, DK, NL)
– Sales/Brand Campaigns
– Promoboxes, Rotation Banner, Landing pages, etc.
– Recommendations, Cross- & Upselling

42. E-Business – Demand Generation
Business Intelligence
42

43. Marketing Communications
Branding & Public Relations
44

44. The bigger, better digital budget
Shift from Sales to (digital) Marketing
45
– Heaviest investments are in SEA, customer experience and analytics.
– Investments align with priorities to acquire and retain customers.

45. – Raising awareness of changed market conditions
– Creating the right sense of urgency (opportunity going down)
– Investment approvals on FTEs, E-Platform, Budgets
– Functional reorganization (handling bleeding ego’s)
– Establish performance orientation (KPI measuring)
– Breaking old habits, move away from traditional approach
– Cross-functional collaboration (sales, category management, marketing)
– Digital orientation and education (developing expertise)
46
Digital Marketing Transformation
Greatest Challenges

46. Thank you
Q&A
47