Presentation on theme: "For Internal Use Only 1 OEMax Products for Allen-Bradley in China Sept 20, 2006 OEMax Brand Business."— Presentation transcript:
For Internal Use Only 1 OEMax Products for Allen-Bradley in China Sept 20, 2006 OEMax Brand Business
For Internal Use Only 2 Goal of OEMax by Allen-Bradley in China Common Goal for RA-Korea and RA-China –Increase/Double sales by 2010 Balancing Act of OEMax by AB –Must serve the needs of RA-China Allen-Bradley to be successful –Must not negatively impact current Korea and Global Sales True for both AB and OEMax globally 2006 Double Sales in 2010! Brand confusion Poor Execution Pricing Issues Global Conflict
For Internal Use Only 3 Many Decisions Remain First Decision has been to go with Option 2 which is: “OEMax NX7 PLC by Allen-Bradley” But Many Decisions still Remain Product –Appearance, Availability Value Proposition and Commercial Brand Message –Degree of association between RA/AB and OEMax Pricing –Always difficult subject in China Publications and Catalogs –What changes are required?
For Internal Use Only 5 Current ML1100 MicroLogix is a Product Brand of Allen-Bradley. No relationship with RA Shown
For Internal Use Only 6 Current OEMax NX7 OEMax Labeling is similar to AB (but no Product Brand). Label will change from OEMax to RAK
For Internal Use Only 7 Option #2A OEMax endorsed by AB Label Change only, Certifications? Impact –Schedule TBD –Cost TBD
For Internal Use Only 8 Option #2B OEMax as Product Brand of AB Plastics+Label Change, Certifications? Impact –Schedule TBD –Cost TBD
For Internal Use Only 9 Option #2C OEMax as Product Brand of AB and RA Plastics+Label Change, Certifications? Impact –Schedule TBD –Cost TBD
For Internal Use Only 10 Product Appearance Proposal Tradeoff between Time-to-Market, Cost, and Brand-Effect Requires more Investigation Option 2C may be the best compromise between reducing cost/schedule issues and showing AB logo
For Internal Use Only 12 Product Availability OEMax has these products currently in China – NX7, NX70 PLC – CSDJ, CSDP Servo (and Motors) –NXIO Distributed I/O –E7 AC Drive Proposal is to start with only current products –Technical Publications and Commercial Material available in Chinese –Focus Distributors on PLC and Servo Add additional products after investigation
For Internal Use Only 13 Brand Message and Value Proposition
For Internal Use Only 14 Brand Message Current Status Evolving OEMax Brand Message in China –2005 Deny any relationship between OEMax and RA or AB –2006 Verbally admit relationship between OEMax and RA No Change to Product and Publications Small mention of RA-Korea in Commercial Catalogs Seemed to solve most customer concerns about Brand Reliability –2007 OEMax endorsed by AB Change to Product Change to Commercial Message OEMax+AB improves Brand Reliability but more work is required –According to OEMax surveys, Rockwell Automation trails Siemens, Mitsubishi, Schneider, Omron in terms of overall Brand Excellence –According to OEMax surveys, <40% of Customers recognize OEMax name
For Internal Use Only 15 Overall Brand Excellence Survey Results Beijing FAPA Exhibition and Shanghai Seminar Results – RA #4 Actually Survey need some improvements –Need larger sample size –Maybe need to explicitly say Rockwell Automation (including AB, RSI, etc.)
For Internal Use Only 16 Value Proposition Proposal Continue to use OEMax Brand Message –“for OEMs”, “great value”, etc. –OEMAX Value Proposition Summary Cost – best Price/Performance Ratio Interoperability – works as a component with any Brand, even competitors Simplicity Speed –Keeps OEMax Globally Consistent Tell Customers 1+1=3 –OEM Products from OEMax + –Service and Support of Rockwell Automation Allen-Bradley Increased Channel Support and Coverage Better Technical Support
For Internal Use Only 17 Value Proposition Proposal Avoid mixing OEMax with other AB Products –Product AB Highest Price, High Performance and High Features, Complex for Simple Tasks OEMax Low Price, Average Performance and Limited Features, Easy to use –Customer AB Large End Users and OEMs OEMax Small to Medium OEMs –Compatibility AB Only supports RA products but completely integrated (i.e. Integrated Achitecture), PLC-only Strategy OEMax Openly supports Competitors, PLC and PC-Based Strategy What about AB Component Products such as CHMI? –Some overlap may occur in the future but anything with an AB logo is typically higher priced and always will be (and should be) –AB market pricing is typically 10% above the highest competitor even for Component Products –OEMax “street pricing” will typically match the price of major brand competitors
For Internal Use Only 18 Commercial Message Proposal Use the message that OEMax is endorsed by AB but the Products are Different –Associates OEMax Name with AB and RA –Improves OEMax Brand Reliability and Name Recognition –Explains why OEMax products are not part of Integrated Architecture Generally keep OEMax physically separate, but side-by-side at exhibitions, seminars, advertisements –Separate Exhibition Booths but keep Side-by-Side to share traffic –Have OEMax products at CAOTM, HOT, RA University but use separate schedules and sessions
For Internal Use Only 19 Commercial Message INSERT EXAMPLE PICTURE HERE
For Internal Use Only 20 Publications and Catalogs
For Internal Use Only 21 Publications and Catalogs Proposal What Changes are required? –TBD
For Internal Use Only 25 Customer FAQ Q: Why is OEMax now a Product Brand of Allen-Bradley? A: Decision was made to give the Customer the OEM-focused products of OEMax together with the Outstanding Service and Support of Allen- Bradley. Customer is the ultimate winner. Q: What changes will occur to the OEMax Products and Pricing? A: No major changes will occur. OEMax will be a Product Brand of AB, separate from other AB products, but with AB Service and Support. Q: Will OEMax be a part of RA Integrated Architecture? A: No. OEMax’s targets the component market only.
For Internal Use Only 26 Customer FAQ Q: Will this change also occur in Korea and Globally? A: No. China is a special situation where the Customers of OEMax could be better served by using the AB service and support, AB Distribution channels, etc. Q: Are the OEMax products in China different from Korea and Globally? A: No. Only the product labeling is different.