- Anasayfa
- Haberler
- Tüm Haberler
- “Target top 10 worldwide”
“Target top 10 worldwide”
We spoke with Beko Elektronik General Manager Ali Sümerval and his team in the German city of Nuremberg. We discussed their targets for the Grundig brand, from post-acquisition structuring to the l...
We spoke with Beko Elektronik General Manager Ali Sümerval and his team in the German city of Nuremberg. We discussed their targets for the Grundig brand, from post-acquisition structuring to the latest trends in TV and consumer electronics. The answers that Beko Elektronik General Manager Ali Sümerval, and the team who set out with him to acquire Grundig, gave to our questions were as follows:
l What was the strategic purpose in Beko buying Grundig?
At the beginning of 2002 we held a strategic planning meeting. The participants in this meeting formed a team of around 70 people from the upper and middle levels of management and those members of the company whom we believed had the potential to look to the future. This meeting was held outside the company and lasted approximately two and a half days. As a result, we determined how the company would move forward over the next five years, and in the long term the direction it would take in the next ten years.
One of the most important conclusions was that it should expand by creating resources. This meant a turnover of €1 billion in 2005. Another important conclusion was to adopt a strategy of converting the OEM business we conducted Grundig and Beko. Grundig is an A class brand. It is at the apex of the brand pyramid. Beko is not a brand of this level; it belongs in a lower brand category. As a result, it has different rivals and target markets. If we leave Beko on one side, the markets that we are targeting with Grundig are major markets in themselves. For le, the South American market is a very large market in itself an increasingly becoming an important producer for the North American market. We believe that in the next 10 years Argentina, and particularly Brazil, will replace Mexico as important production centers for this market.
In the past, distribution agreements meant that Grundig was very active in Argentina
in particular. We are thinking of using this with major brands and our own industrial and
electronic designs into ODM and then merging this with a global brand. Grundig emerged as part of this strategy. At that time it was not certain that we were going to buy Grundig. We had been working with Grundig since 2001. As we were looking around with a view to acquiring a global brand we saw that Grundig was suitable and we bought it. l What new markets will you try to enter with the Grundig brand? Which of them are your largest target markets? How do you plan to position the Beko and Grundig brands in the market?
There is an important difference between advantage in Brazil. But these markets have their own special characteristics. It is essential to manufacture here. I mean, it is not possible to produce such a large volume in Turkey or Europe and ship it to these places. India also represents a large market in itself. China too is a big market. These markets are also characterized by intense competition. But, unlike before, we now have a very important vehicle: our own brand. Regardless of how developed your technology or R & D is, it is very difficult and very expensive to do anything in these markets unless you have a brand name.
Today Grundig has opened this door for us. In this regard this point, the Beko and Grundig brands will never get in the way of each other, they will not be included in the same strategy and they will continue to be positioned differently. Our most important target is to strengthen this asset that we have acquired, to establish it wherever we can in the world and to be successful. We shall continue with our current strategy for Beko. l What are your ultimate goals for the years ahead? For example, where do you plan to be in five years’ time?
Our target for 2005 was €1 billion. We shall realize this in 2004. Before everything became clear, our original plan had included a target of 200,000 Grundig televisions. Today we expect to raise this to 600-700,000. This will increase our turnover significantly. It will also have a very positive impact on our profitability. One of the most important elements in managing a brand is high added value. Today Grundig is a class A brand. As a result it will be very beneficial to Beko. Our target for the next five years is to be one of the ten biggest in the world. This means a turnover of nearly €3 billion.
l What was the strategic purpose in Beko buying Grundig?
At the beginning of 2002 we held a strategic planning meeting. The participants in this meeting formed a team of around 70 people from the upper and middle levels of management and those members of the company whom we believed had the potential to look to the future. This meeting was held outside the company and lasted approximately two and a half days. As a result, we determined how the company would move forward over the next five years, and in the long term the direction it would take in the next ten years.
One of the most important conclusions was that it should expand by creating resources. This meant a turnover of €1 billion in 2005. Another important conclusion was to adopt a strategy of converting the OEM business we conducted Grundig and Beko. Grundig is an A class brand. It is at the apex of the brand pyramid. Beko is not a brand of this level; it belongs in a lower brand category. As a result, it has different rivals and target markets. If we leave Beko on one side, the markets that we are targeting with Grundig are major markets in themselves. For le, the South American market is a very large market in itself an increasingly becoming an important producer for the North American market. We believe that in the next 10 years Argentina, and particularly Brazil, will replace Mexico as important production centers for this market.
In the past, distribution agreements meant that Grundig was very active in Argentina
in particular. We are thinking of using this with major brands and our own industrial and
electronic designs into ODM and then merging this with a global brand. Grundig emerged as part of this strategy. At that time it was not certain that we were going to buy Grundig. We had been working with Grundig since 2001. As we were looking around with a view to acquiring a global brand we saw that Grundig was suitable and we bought it. l What new markets will you try to enter with the Grundig brand? Which of them are your largest target markets? How do you plan to position the Beko and Grundig brands in the market?
There is an important difference between advantage in Brazil. But these markets have their own special characteristics. It is essential to manufacture here. I mean, it is not possible to produce such a large volume in Turkey or Europe and ship it to these places. India also represents a large market in itself. China too is a big market. These markets are also characterized by intense competition. But, unlike before, we now have a very important vehicle: our own brand. Regardless of how developed your technology or R & D is, it is very difficult and very expensive to do anything in these markets unless you have a brand name.
Today Grundig has opened this door for us. In this regard this point, the Beko and Grundig brands will never get in the way of each other, they will not be included in the same strategy and they will continue to be positioned differently. Our most important target is to strengthen this asset that we have acquired, to establish it wherever we can in the world and to be successful. We shall continue with our current strategy for Beko. l What are your ultimate goals for the years ahead? For example, where do you plan to be in five years’ time?
Our target for 2005 was €1 billion. We shall realize this in 2004. Before everything became clear, our original plan had included a target of 200,000 Grundig televisions. Today we expect to raise this to 600-700,000. This will increase our turnover significantly. It will also have a very positive impact on our profitability. One of the most important elements in managing a brand is high added value. Today Grundig is a class A brand. As a result it will be very beneficial to Beko. Our target for the next five years is to be one of the ten biggest in the world. This means a turnover of nearly €3 billion.
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