2011 annual report - ALNO

34SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Economic reportThe corporate concept of "ALNO – One Company" is morethan just an organizational idea: it also requires contentand a goal. A number of the strategic measures alreadylaunched were successfully continued in the year underreview.The basic parameters remain unchanged:• Adding value – as expressed through profitability, cashflow and return on capitaland• Optimum adaptation of decentralized structures toGroup conceptsThe motto underlying all the ALNO Group's activities is tooffer the best possible quality and the best possible servicefor the customer over the full bandwidth of our productand brand portfolio.Market objectivesOur efforts to reorganize sales are consistently being pursued.The aim is to ensure sales' conformity with the tradingstructures of the kitchen furniture industry. The Groupsupplies retailers of every kind, from kitchen specialiststhrough furniture mass merchandisers to RTA and selfservicefurniture markets. Attention will concentrate morestrongly on the sound value of sales and a clear focus inbrand positioning.These efforts are beginning to bear fruit, especially forthe ALNO brand, as ALNO's share of sales is increasingamong kitchen specialists. This increases the value of theproducts sold and hence the quality of earnings. Othersteps are also being taken to heighten the ALNO brand'spositioning. Among other things, this includes the ideaof defining certain marketing rules for the ALNO brandin future so that it is easier for our customers to give theALNO brand product a clear, uniform profile unrelated tothe marketing partner. Following on from the ALNO brandname, we also intend to become more active in consumermarketing. This will give rise to a new "win-win" situationfor the Group and our customers. ALNO will benefit fromuniform positioning of the product in the market, our customerswill benefit from the brand's recognition which, inturn, will lead to greater interest among consumers.The market positioning of Wellmann, Impuls and Pinoproducts is to be improved in the same way, in accordancewith the respective customer and sales segments.The basic strategic positioning will not be changed. Theremaining overlaps between product families will continueto be reduced further in future.Another objective is to make sales more profitable as awhole. This also includes a more differentiated price structurefor individual product groups. The same also applieswith regard to pricing in so-called "block kitchen business".The quality of earnings in this sector is in some cases inadequateand must be improved accordingly.Clear growth targets also apply for our export markets. Theefforts to restructure our export organization are essentiallycomplete and the first positive effects of these efforts arealready becoming apparent. ALNO consolidated revenuesin the French market, for instance, have risen by more than13%. Particularly in France, a significant further increasein sales and income is expected for 2012 due to our strategicpartnership with sound retail chains and chain storeoperators.Concepts giving the ALNO Group a sustainable share ofgrowth and price levels in the respective markets are currentlybeing developed for the central growth markets, asalready defined in Asia, especially China, but also in NorthAmerica where distribution of the ALNO Group's productsis still inadequate. After the end of the period under review,a subsidiary was set up in the United States in early 2012and negotiations started in China to set up a joint venturewith a local partner.We also intend to step up our presence in the Russian market.Above all, the ALNO brand is to be marketed throughexclusive ALNO stores and a dealer network will be set upfor Impuls to meet the furnishing needs of the Russianmiddle class.The existing subsidiaries will continue to operate in Switzerlandand the United Kingdom. So that they can respondmore effectively to market requirements, however, the subsidiarieswill be given greater organizational independencewith regard to sales activities in their respective markets.The main objective in other countries, especially otherEuropean countries, is to improve customer service andhence permit further growth. It will be developed in accordancewith the growth rates of the respective brands. Theidea is to lay a sound basis for winning further customers.