Siemens is taking technology to the doorsteps of Indian SMEs through a mobile roadshow named Siemens Productivity Tour. The first leg of the year-long tour was launched late April in New Delhi. A trailer displaying Siemens products?drives, motors, motion controllers, CNCs and the like?has begun its journey to small towns and industrial pockets across the country to raise awareness about Siemens products and the advantages of using superior technology. Uwe Frank, CEO, Motion Control Systems (MC), Siemens AG, who opened the roadshow, had an interaction with FE?s Verghis Chandy. Excerpts:
It is unusual for a big company to hit the road with its products. What were the thoughts that went behind this customer outreach programme?
I understand, small and medium sized enterprises in India account for almost 50% of industrial production and the SME sector has been growing in double-digits in the last few years. Despite this growth, the (MSME) sector contributes only 8.7% to the GDP. This is pretty low compared to, say, China, where the contribution is almost 60% of the GDP. One reason for this, we think, is the poor technology penetration beyond industrial hubs in and around large cities. Through this productivity tour we aim to take technology to the industrial pockets of the country.
We see a lot of room for improving the productivity of SMEs. We, at Siemens, have the right right technology to help these SMEs improve their productivity significantly. We?ve the widest portfolio of products. We?re the only one in the market to provide the entire drive system…
What was the outcome of similar road shows in other countries? What were the lessons?
We have launched similar road trips across the world, notably in Europe, China, Brazil and recently in Portugal, and were well-received by our customers at different levels of the purchase cycle. These road trips taught us that a hands-on experience helps customers better understand the features, advantages and benefits of our products and solutions.
How does the response to road shows differ in developed and developing countries? What are the concerns?
Actually, industrial products are sold on technical features. No matter which country you are, the understanding, usability and liking of a product increases only when you experiment with it. Road shows are a great medium to enable this.
How do you rate road shows as a marketing medium?
Traditionally, B2B marketing is done through events and exhibitions. We are experimenting with this medium to bring in novelty in the way our customers experience our products. Moreover, we are going to the customer with our products and specialists right at their door step. This saves costs and time for customers in getting the information they want. There is direct contact between the company and customers. Also, customers have the opportunity see, feel, touch and play a little around with the products.
Roadshows help us reach every nook and corner of India?s industrial pockets that are otherwise inaccessible through print or broadcast marketing media. Live demos and presentations help customers understand our products and solutions first-hand. It also helps in overcoming price sensitivities.
What are the sectors targeted by the roadshow?
We will be taking the roadshow to 204 locations in 86 cities. We?re mainly looking at automotive, medical, aerospace, power, F&B (food & beverages), packaging, textiles, printing and pharmaceutical industries.
What is the time line for the roadshow? How many SMEs do you aim to contact?
The initial time-frame is to cover the entire country in one year. We would keep this format for subsequent years too, based on the feedback, and may be, with a more focused range of products and displays.
What are the expectations in terms of sales?
The road show is an awareness drive and we hope this will help us get TOM (top of mind) recall with this unique concept.
Do you have any financing plan for the SMEs?
There is a group firm, Siemens Financial Services Pvt Ltd (SFSPL), in India which focuses on the asset financing business, offering products such as loans, leasing solutions and hire purchase. Through SFSPL, we aim to provide financing offerings to Siemens customers in India, particularly in the health care, industry and energy sectors. SMEs can avail of this service to finance their infrastructure, equipment and working capital.
How competitive are Siemens products cost-wise?
Our products are cost-effective. But you cannot make a decision based on the initial acquisition cost alone. Our approach has been to convince the customer about the ?total cost of ownership? over the entire plant life cycle.
Our products will help customers reduce their time-to-market, energy and resources. It enhances their productivity by improving accuracy and machine availability by reducing maintenance and wastage.
Siemens is the only supplier able to cut go-to-market time in half for its customers. Use of efficient motors, gears and converters can bring energy savings of up to 70%. I learnt that in India, the first question one asks about a car is its fuel efficiency. The same concern comes about energy consumption of motors as well.
You said about life-cycle cost. But technology is changing very fast and making machines redundant…
You see, Siemens commits ten years of support after the product discontinuation is announced. That takes care of technology concerns.
Are these products taken from a global template or are they specific to the Indian market?
All the technology we?re giving in India is the same state-of-the-art technology that you can buy in the US or Europe. There is no difference. Only that we make sure that it is compatible with local conditions.