Recession and large market shares are no hindrance to the Danish sales company’s continuous growth.
A sales increase of 12.5 percent is remarkable for a company which already has large market shares. Nevertheless, this is exactly what the Danish sales company performed in 2011. What is the recipe for creating such growth figures in a mature market?
Managing Director, Claus Witt was asked this question by Group Management and his answer was:
- We focused our efforts on the opportunities that make sense, also in times of recession.
Targeted sales efforts
Although the Grundfos name is already on 95 percent of the small circulator pumps being sold in Denmark, also in 2011 the company succeeded in increasing the sales of this type of pump, used in heating installations.
- At least we did not lose market shares, Claus Witt stated.
The main part of the sales increase in pumps for heating installations was obtained by explaining customers how to save money by investing in pumps with lower energy consumption. Also, a newly developed sales tool turned out to be successful.
- This tool makes it easier for us to offer a review of the pump installations in, for instance, hospitals, schools and shopping centres. When we offer customers a survey of optimum schedules for exchanging pumps as well as pay-back times, we experience positive sales results nine out of ten times.
With sales for the industry, the company increased sales in 2011 despite a very high market share. The primary reason for this is that the company strove to offer custom-made solutions.
- We exploit the many opportunities to meet individual requests, made possible by the versatility of production. If this is not possible, we find alternative possibilities with external partners, Mr Witt explained.
Within water supply and waste water treatment, sales increased more but then our market share was lower in this field. The increase was primarily obtained by focusing on municipalities’ problems with more and more frequent floods, delayed waste water plans and deferred investments.
- We were very successful in analysing each municipality’s challenges and plans and subsequently adjust our sales efforts according to this. In addition we dedicated more resources with competence in controls and monitoring as well as project competence, which strengthened our competitiveness, sad Mr Witt.
Other methods of strengthening sales included sharpening the understanding of the various phases of sales, as well as adjusting the sales organisation to the market situation through a further specialisation of sales staff according to customer groups.