Annual Report 2009 - Husqvarna Group
Annual Report 2009 - Husqvarna Group
Annual Report 2009 - Husqvarna Group
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Strategy <strong>Husqvarna</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2009</strong> 9<br />
Efficient global distribution network<br />
<strong>Husqvarna</strong>’s forestry and garden<br />
products are sold primarily<br />
through two distribution channels<br />
– major retail chains and servicing<br />
dealers. The retail chains focus<br />
mainly on products in the midand<br />
low-price segments, and on<br />
accessories. Servicing dealers sell<br />
a greater share of high-end products<br />
for professional users, and<br />
also offer service.<br />
The <strong>Group</strong> has strong positions<br />
in both channels. <strong>Husqvarna</strong>branded<br />
forestry and garden Point-of-sale product display.<br />
products are sold through approximately<br />
25,000 servicing dealers worldwide.<br />
Products for the construction industry are sold mainly<br />
through rental companies and specialized dealers, as well as<br />
directly to large contractors.<br />
<strong>Husqvarna</strong>’s comprehensive distribution network has been<br />
developed over many years, and represents a substantial<br />
competitive advantage.<br />
Enhancing efficiency of the sales organization<br />
There is good potential for growth in both distribution<br />
channels, on condition that the <strong>Group</strong> can offer appropriate<br />
product ranges and efficient service for the respective<br />
channels.<br />
<strong>Husqvarna</strong> has own sales companies in more than 40<br />
countries. In the fall of <strong>2009</strong> a program was initiated for<br />
rationalization of the sales organization<br />
in Europe and Asia/Pacific.<br />
The changes involve consolidating<br />
administration for mass-market<br />
channels and servicing dealers,<br />
while maintaining separate local<br />
sales forces. The aim is to improve<br />
customer service, eliminate overlapping<br />
and reduce costs. The<br />
<strong>Group</strong>’s goal is to have a single<br />
sales company and a single<br />
customer interface for each<br />
specific country.<br />
Improved customer service<br />
Improving customer service involves more reliable deliveries,<br />
better access to spare parts and improved training programs.<br />
In addition, the <strong>Group</strong> is increasing investment in brandbuilding<br />
at points-of-sale in terms of product displays and<br />
packaging.<br />
Actions to strengthen operations<br />
• Consolidate sales organizations for mass-market<br />
channels and servicing dealers, with joint administration<br />
but separate sales forces.<br />
• Improve customer service, including more accurate<br />
deliveries and better access to spare parts.<br />
• Increase focus on brand-building at points-of-sale.<br />
Distribution channels, share of sales<br />
Sales by distribution channel<br />
Consumer Products<br />
North America<br />
Rest of the World<br />
86%<br />
73%<br />
Major retailers<br />
Servicing<br />
dealers<br />
Construction<br />
contractors *<br />
Sears, Lowe’s,<br />
Walmart etc. 14% —<br />
B&Q, Leroy Merlin,<br />
OBI, Bauhaus etc. 27% —<br />
Professional Products 3% 89% 8%<br />
Servicing dealers, 43%<br />
Major retailers, 54%<br />
Construction<br />
contractors, 3%<br />
* Refers to the Construction Product area.
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