Better Together: Campagna di Marketing Integrata e Strategie di Branding Lezioni da una delle maggiori acquisizioni nel campo dell’energia e della tecnologia Giuseppe Caltabiano VP Portfolio, Global Marketing Lazise, 25-26 Febbraio 2015 1 Today’s topics and keywords Better Together: Campagna di Marketing Integrata e Strategie di Branding M&A (MERGERS & ACQUISITIONS) BRANDING STRATEGIES INTEGRATED CAMPAIGNS SCHNEIDER ELECTRIC IN BRIEF Better Together: marketing lessons from a major acquisition 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+ 4-5% employees in 100+ countries € € of sales dedicated to R&D € € A long history of acquisitions 2014 Acquisition of Invensys 2012 Acquisition of Samara Electroshield 2011 Acquisition of Telvent 2010 Acquisition of Areva’s distribution activity 1999 Groupe Schneider becomes Schneider Electric, focused on Power & Control 2008 Acquisition of Xantrex 2007 Acquisition of APC corp. and Pelco 1996 Modicon, historic leader in Automation, becomes a Schneider brand 1991 2005 Acquisition of Uniflair Acquisition of Power Measurement Inc. Square D joins Groupe Schneider 2003-2008 1988 Targeted acquisitions in wiring devices and home automation (Lexel, Clipsal, Merten, Ova, GET, etc.) Telemecanique joins Groupe Schneider 2003 1836 1975 Acquisition of T.A.C Creation of Schneider at Le Creusot, France Merlin Gerin joins Groupe Schneider 2000 19th century Acquisition of MGE UPS Systems 20th century 21st century 5 INVENSYS ACQUISITION: STRATEGY, RATIONALE Better Together: marketing lessons from a major acquisition Over 4 16,500 Business segments employees, of many nationalities Working from facilities in over Helping customers across 180 A locally based international partner, culturally at home in every location 50 countries countries 77 £3.4 billions ($5.6b) for the entire issued and to be issued ordinary share capital of Invensys € 140m of total cost savings by 2016 € 65m of revenue synergies by 2018 € 500m of tax shield 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) A high momentum since the Due Diligence End of FY Q4 Mar 31 Regulatory Approval Nov 29 Signing Jul 12 Q2 Q3 Q4 Q1 2014 End of Integration Phases Jan 1 Day 100 Apr 26 Q2 Q3 Q4 Q1 2015 Today Jun 1 - Jul 12 Due Diligence Sep 15 - Nov 1 Phase 1: "Mobilize" Phase 2: “PreNov 1 - Jan 17 closing planning” Phase 3: "Stabilize" Jan 17 - Mar 31 Phase 4: "Realize Value" Apr 1 - Dec 31 2015 Initial feedback was very positive and strong Houston “You are all doing a great job at integrating Invensys with Schneider and as a customer I feel very motivated and excited for the future with this new company.” 10 BRANDING STRATEGY Better Together: marketing lessons from a major acquisition Invensys brand hierarchy explained Corporate Brand Business Segments (not Brands) Software Industrial Automation Energy Controls Go-to-market Brands Schneider Electric - Brand management – S. Dothee – G Caltabiano – M Nolan – dec 2013 12 Branding Strategy 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 ASSOCIATION MIGRATION > 3 years 18/24 months INDEPENDENT BRANDS Events SE not attending SE attending All events have been evaluated, and 4 main scenarios were defined ISYS not attending ISYS attending ONE company Best scenario evaluation No Go ONE company Hannover Messe (4 months after the acquisition) Schneider Electric Confidential 15 Gastech Korea (6 months after acquisition) Schneider Electric Confidential 16 BETTER TOGETHER INTEGRATED CAMPAIGN Better Together: marketing lessons from a major acquisition Existing customers started to be concerned about our future investment in the products and systems they use and so were holding back on project commencement New customers did not understand the value of the combined Schneider Electric and Invensys portfolio and so were not moving to us Show the strength of the combined Schneider Electric and Invensys offers and reassure customers that their investment in our existing offers is safe Not just external comms Global External Landing Page Global Internal Landing Page +50K unique visitors +1K unique visitor 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 Target Countries Russia France USA Canada Middle East + India Centra l Asia Primary Confidential Property of Schneider Electric Brazil Australia 23 Campaign assets Better Together: Campagna di Marketing Integrata e Strategie di Branding MESSAGE PLATFORM MARCOM ASSETS Web banners 60 secs movie Articles for local placement Whitepapers infographics LANGUAGES All assets localised into 11 languages SALES ASSETS Sales Guide FAQ White papers commissioned with market analysts Tech white papers CUSTOMER TYPES All assets targeting 5 different customer types Social Media – 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 #BetterTogetherSE 26 #BetterTogetherSE 27 #BetterTogetherSE 28 Employee Social Media Advocacy SM ADVOCACY Schneider has a presence in over 150 countries, in over 30 languages with engagement at a local scale Has experts writing blogs based on their domain expertise on topics such as how to use less energy Places importance on employee training in “new media” to gain adoption Has created Centers of Excellence in country with local expertise Has a “Follow Me” program that teaches employees how to be social Conducts monthly training for local social media experts with focus on engagement How HR participates with employee branding Some #BetterTogetherSE metrics + 20,000 € donation for Habitat for Humanity Participation from 24 countries, with the largest participation from the US 500,000 opportunities to be seen Significant increase of brand association after 90 days from campaign launch “Share of voice” increased +2% Lesson Learned (and my personal take aways) Better Together: Campagna di Marketing Integrata e Strategie di Branding PLAN & ANTICIPATE COMMUNICATE, COMMUNICATE, COMMUNICATE! EARLY IDENTIFICATION OF SYNERGIES INTEGRATION TEAMS EMPLOYEE INVOLVEMENT USE SOCIAL MEDIA FOR CONVERSATIONS Thank you giuseppe.caltabiano@schneider-electric.com @giusec Make the most of your energy™ www.schneider-electric.com 33