Industry Strategy 2023. Chemical E+H RU

1.

Products
Solutions
Industry Strategy 2023
Chemical E+H RU
Version 8.1
Slides explanation in the Note page
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Slide 1
04/26/2022
E+H RU
Services

2.

Industry Strategy 2022 - Chemical
PESTEL
Political
Political
Economical
Social
Economical
Technical
Environmental
Social
Legal
Technical
Environmental
Legal
Impact on SWOT
Opportunities
• …
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Threats
• …
Slide 2
04/26/2022
E+H RU

3.

Industry Strategy 2022 - Chemical
SWOT – Strengths & Weaknesses of Endress+Hauser
Markets / Regions
Products
Strengths
Strengths
Weaknesses
• Product/ market compliance
• MIV
• New Micropilot FMR6xB dedicated for Chemical
industry
Long delivery times
Weaknesses
• Industry competence and added value proposition
• Competence in Utilities
• KAM’s approach to Sibur
Endress+Hauser
Sustainable strengths
Major weaknesses
• Product/market compliance
• MIV
• Industry competence (incl. Utilities) and added value proposition
• KAM’s approach to Sibur
• Possibility to replace displacers and magnetic level transmitters with LLC
Endress+Hauser solutions
• New Micropilot FMR6xB dedicated for Chemical industry
• Part of the spare parts became not available for delivery
• Long delivery times
Services / Solutions / Projects
Strengths
Weaknesses
• Strong Service department
• VAS portfolio
• Possibility to replace displacers and magnetic level
transmitters with LLC Endress+Hauser solutions
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Slide 3
Competition
• TankGauging is not available (temporary) for
delivery
• Part of the spare parts became not available for
delivery
04/26/2022
E+H RU
Strengths
• Strong Brand recognition
Weaknesses

4.

Industry Strategy 2022 - Chemical
SWOT – Opportunities & Threats for Endress+Hauser
Products
Opportunities
Markets / Regions
Threats
New Microрilot FMR6xB
Opportunities
Threats
• Agrochemical segment supported by high prices and high
demand for fertilizers
• Potential grow of small local chemical productions (instead of
imported before)
• Petro&Plastics accessible market concentrated under Sibur's
purchasing channel
• Lack of international projects and international EPC
• Strong preferences to local vendors
• Absence of trust to long term cooperation with foreign vendors
Endress+Hauser
Major Opportunities
Major Threats
• Agrochemical segment supported by high prices and high demand for fertilizers
• Withdrawn of some global instrumentation vendors from the market (temporary)
• Potential grow of small local chemical productions (instead of imported before)
• E+H is essentially the only vendor on the market of standard Radiometric
• VAS portfolio
• New Microрilot FMR6xB
• Petro&Plastics accessible market concentrated under Sibur's purchasing channel
• Lack of international projects and international EPC and process equipment
suppliers
• Strong preferences to local vendors that expanding fast
• Absence of trust to long term cooperation with foreign vendors
Services / Solutions / Projects
Opportunities
Competition
Threats
• Strong Service department
• VAS portfolio
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Slide 4
Opportunities
• Withdrawn of some global instrumentation vendors
from the market (temporary)
• E+H is essentially the only vendor on the market of
standard Radiometric
04/26/2022
E+H RU
Threats
• Local manufacturers are rapidly ramping up
production and expanding their portfolio and
technical improvement for basic instruments
• Numerous newcomer vendors

5.

Industry Strategy 2022 - Chemical
Definition of the key strategic directions
Opportunities
Threats
• Agrochemical segment supported by high prices and high
demand for fertilizers MRO
• Withdrawn of some global instrumentation vendors from the
market (temporary)
• Potential grow of small local chemical productions (instead of
imported before) – OEM and skid grow
• E+H is essentially the only vendor on the market of standard
Radiometric New Microрilot FMR6xB VAS
• Petro&Plastics accessible market concentrated under
Sibur's purchasing channel
• Lack of international projects and international EPC
and process equipment suppliers
• Strong preferences to local vendors that expanding
fast
• Absence of trust to long term cooperation with
foreign vendors
Strengths
• Product/market compliance
• MIV (incl. Radiometric and Analysis)
• Industry competence (incl. Utilities) and added value
proposition
• KAM’s approach to Sibur
• VAS portfolio
• New Micropilot FMR6xB dedicated for Chemical industry
Weaknesses
• Part of the spare parts became not available for
delivery
• Long delivery times
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Slide 5
04/26/2022
(O1-S1,S3) MRO campaign
T1-S4 Sibur’s development program
LD1 Capture market share from withdrawn global
vendors (O2+S1,S2)
LD4 Protect and Expand market coverage
(T2,T3,T4+S1,S3)
O3-S2,S1 OEM and Skid builders' development
LD3 Gain market share with new
Microрilot(O3+S2,S5)
LD5 Availability of spare parts for supplied instruments
(O3+W2)
O3, O4 + W2 Added value proposition (the quality is
more important than the delivery times)
O3, O4 + W2 Create a strategy to reduce delivery times
(shortening production time for SC Russia + shortening
delivery and verification times)
E+H RU

6.

Industry Strategy 2022 - Chemical
Selected GLOBAL strategic directions
Strategy option
SD 1.0…
Description
• …
• …
SD 3.1…
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Slide 6
04/26/2022
KPIs
E+H RU
Year of
implementation
Who

7.

Industry Strategy 2022 - Chemical
Selected LOCAL strategic directions
Strategy option
LD 1 To win market share
of withdrawn global
vendors
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Slide 7
Description
• …
04/26/2022
E+H RU
Objective
Year of
implementation
Who

8.

Industry Strategy 2022 - Chemical
Chemical – From Industry Strategy to Go-To Market tactics (1)
Strategic Direction
SD1.1: Utilize our
strategy to attack
Vega
SD1.2: Focus on
opportunities that
link our customer´s
business goals with
our added value
offering
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Slide 8
Implementation Plan
Go-to Market Tactics 2023
• To get VEGA’s traditional customers
• Develop customer relations
• Active promotion of Levelflex FMP54, Gammapilot,
80GHz radars
• To keep import instrumentation in project specifications of major customers
• Offering for MRO of withdrawn global vendors
• Promotion full offering meet for demanding applications
• Promotion of open integration with MAV’s PLC/DCS
• Promotion of modern Wi-Fi / SmartBlue operations &
commissioning
• Counter-actions to local competitors and their improved
“on paper” device characteristics
• Added Values for OPEX reduction promotion
04/26/2022
E+H RU

9.

Industry Strategy 2022 - Chemical
Chemical – From Industry Strategy to Go-To Market tactics (2)
Strategic Direction
Implementation Plan
Go-to Market Tactics 2023
LD 1 Take market
share of withdrawn
global vendors
• …
• …
LD 2 …
• …
• …
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Slide 9
04/26/2022
E+H RU

10.

Industry Strategy 2022 - Chemical
Chemical – From Industry Strategy to Go-To Market tactics (2)
Strategic Direction
Implementation Plan
(O1-S1,S3) MRO campaign
• Competitor’s exchange campaign and MRO tactics for level
LD1 Capture market share from withdrawn global
vendors (O2+S1,S2)
• Competitor’s exchange campaign for level (against Emerson, Vega,
Krohne)
Кампания замещения Mettler Toledo
O3-S2,S1 OEM and Skid builders' development
• To be a standard solution for OEM and Skid builders in their projects
T1-S4 Sibur’s development program
LD4 Protect and Expand market coverage
(T2,T3,T4+S1,S3)
O3, O4 + W2 Added value proposition (the quality is
more important than the delivery times)
O3, O4 + W2 Create a strategy to reduce delivery
times (shortening production time for SC Russia +
shortening delivery and verification times)
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Slide 10
Go-to Market Tactics 2023
Put a list of customers with a big market share of competitors
Customer visits to create awareness about E+H devices and their features,
explain the differences with competitors, make it easy for the customers to
migrate to E+H devices
Customer visits to promote E+H advantages: main products Levelflex,
Liquiphant, Micropilot to support MRO
We have all that you need. And ever more.
Put a list of customers with a big market share of competitors
Customer visits to create awareness about E+H devices and their features,
explain the differences with competitors, make it easy for the customers to
migrate to E+H devices
Industry presentation for OEM and Skid builders for typical applications and
chemicals
Update marketing materials
Online presentations / local seminars? (chemical OEM and skid builders are
mostly located in couple of regions?)
• To expand sales by taking the place of gone competitors
• Defend against local competitors and gain the market of temporary
left global suppliers
Customer visits to create awareness about E+H devices and their features,
explain the differences with competitors, make it easy for the customers to
migrate to E+H devices
• Added value proposition against local competitors
• To reduce the influence of delivery times on the sales
04/26/2022
E+H RU
Customer visits to create awareness about E+H devices and their features
Technical presentation for customers: Endress+Hauser instead of Vega?
If competitor do it fast, they do it wrong. You have additional risks
Prioritize the orders from SC Russia
Make arrangements with local verification bodies to decrease verification time.
Work out different verification suppliers