Annual Report 2009 - Husqvarna Group

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8 Husqvarna Annual Report 2009 Strategy Strong brands Husqvarna has a portfolio of strong brands for specific customer segments and sales channels. Husqvarna and Gardena are the Group’s two global premium brands. The Group also has several brands with strong positions in regional and local markets, or in specific product categories. Husqvarna has been a strong global brand for many years, primarily within chainsaws and other handheld products for professional users, as well as high-end consumer products. The Husqvarna brand stands for technological leadership, professional performance and high quality. Husqvarna-branded products are sold in the premium price segments, mainly through servicing dealers. In 2009 the Husqvarna brand accounted for approximately 40% of Group sales. Gardena has for many years been the leading brand in the European consumer market for irrigation products and garden tools. The Gardena brand has a very high brand awareness among consumers. In 2009 the Gardena brand accounted for more than 10% of Group sales. Group brands Husqvarna Global Premium Professional products, high-end consumer products Gardena Global Premium Consumer products in mass-market channels Jonsered, Klippo, Redmax Regional Premium Professional products, sold through servicing dealers Zenoah Regional Premium Professional products, sold through servicing dealers, primarily in Japan Diamant Boart Global Premium Professional products (diamond tools for the stone industry) Flymo Regional Mid premium Partner, McCulloch Poulan, WeedEater Regional Regional Nonpremium Nonpremium Consumer products in mass-market channels, primarily in the UK Consumer products in mass-market channels, Europe Consumer products in mass-market channels, North America Actions to strengthen operations • Focus on strengthening the Husqvarna and Gardena brands. • Reduce the number of regional and local brands. • Strengthen Husqvarna’s position as a professional brand in the dealer channel. • Keep Gardena’s positioning and achieve growth through extension of product offering and geographical presence. Higher sales under premium brands Brand awareness, Gardena 44% 2003 2009 Premium 57% Production for private labels Tactical brands Other premium brands* Sales under premium brands increased from 44% of the total in 2003 to 57% in 2009. During the same period the share referring to sales for privat-label declined from 25% to 20%. Gardena Husqvarna * Other premium brands brands include include Jonsered, Jonsered, Zenoah, Klippo Zenoah, and Klippo Diamant and Boart. Diamant Boart. Germany Austria France Sweden Total 50 60 70 80 90 100% Source: Icon Added Value 2008. Promted awarness. The Group’s brand portfolio was strengthened through the acquisition of Gardena in 2007. The Gardena brand has the highest awareness of all the Group’s brands. The position is particularly strong in Germany and neighboring German speaking countries. Source: Icon Added Value 2008. (Prompted awareness)
Strategy Husqvarna Annual Report 2009 9 Efficient global distribution network Husqvarna’s forestry and garden products are sold primarily through two distribution channels – major retail chains and servicing dealers. The retail chains focus mainly on products in the midand low-price segments, and on accessories. Servicing dealers sell a greater share of high-end products for professional users, and also offer service. The Group has strong positions in both channels. Husqvarnabranded forestry and garden Point-of-sale product display. products are sold through approximately 25,000 servicing dealers worldwide. Products for the construction industry are sold mainly through rental companies and specialized dealers, as well as directly to large contractors. Husqvarna’s comprehensive distribution network has been developed over many years, and represents a substantial competitive advantage. Enhancing efficiency of the sales organization There is good potential for growth in both distribution channels, on condition that the Group can offer appropriate product ranges and efficient service for the respective channels. Husqvarna has own sales companies in more than 40 countries. In the fall of 2009 a program was initiated for rationalization of the sales organization in Europe and Asia/Pacific. The changes involve consolidating administration for mass-market channels and servicing dealers, while maintaining separate local sales forces. The aim is to improve customer service, eliminate overlapping and reduce costs. The Group’s goal is to have a single sales company and a single customer interface for each specific country. Improved customer service Improving customer service involves more reliable deliveries, better access to spare parts and improved training programs. In addition, the Group is increasing investment in brandbuilding at points-of-sale in terms of product displays and packaging. Actions to strengthen operations • Consolidate sales organizations for mass-market channels and servicing dealers, with joint administration but separate sales forces. • Improve customer service, including more accurate deliveries and better access to spare parts. • Increase focus on brand-building at points-of-sale. Distribution channels, share of sales Sales by distribution channel Consumer Products North America Rest of the World 86% 73% Major retailers Servicing dealers Construction contractors * Sears, Lowe’s, Walmart etc. 14% — B&Q, Leroy Merlin, OBI, Bauhaus etc. 27% — Professional Products 3% 89% 8% Servicing dealers, 43% Major retailers, 54% Construction contractors, 3% * Refers to the Construction Product area.
Page 1 and 2: Annual Report 2009
Page 3 and 4: Net sales Operating income and marg
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Page 7 and 8: History Husqvarna Annual Report 200
Page 9 and 10: Report by the President Husqvarna A
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Page 17 and 18: Financial goals Husqvarna Annual Re
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Husqvarna Annual Report 2009 91 Def
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Five-year review Husqvarna Annual R
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Quarterly data Husqvarna Annual Rep
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New reporting structure Husqvarna A
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Corporate Governance Husqvarna Annu
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Board of Directors and Auditors Hus
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Husqvarna Annual Report 2009 113 Gr
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Sustainable development Husqvarna A
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Factors affecting forward-looking s
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