Nobia Ab · OMXSTO:NOBI
Nobia Ab — Investor Day (September 2004)
58 slides from Nobia Ab's investor day presentation, Sep 2, 2004
Slide 1: Effective interaction through franchising
“Effective interaction through franchising” Preben Bager Vice President Operations, Business Unit Manager HTH 2 September 2004
Slide 2: Welcome to HTH
Welcome to HTH
Slide 3: The story of HTH
The story of HTH 1966: Hans Henning and Tonny Haahr borrow DKK 10,000. Establish the business 1973: New production concept –Twice as good at half the price 1974: Franchise showrooms 1975: Export and Norway are established 1983: HTH is acquired by Swedish Match
Slide 4: HTH in short
HTH in short • Sales DKK m: 1,250 • Employees: 924 • Kitchen studios: 127 • Sales area m2: 55,000 • Sales staff in studios: ca. 800
Slide 5: Production units
Production units uno form, FARSØ Employees: 44 Implast, BJERRINGBRO Employees: 130 HTH, ØLGOD Employees: 750 Total number of employees HTH Køkkener A/S: 924
Slide 6: Business foundation
Business foundation With the controlled showroom system in the Nordic region as its base, HTH Køkkener A/S will develop the idea of selling and delivering complete kitchen solutions as well as storage furnishings for other rooms in the house, including bathrooms
Slide 7: Our mission for the future
Our mission for the future “…You get a little extra from HTH”
Slide 8: Vision
Vision “We will be known as the best kitchen specialist on the market with the most satisfied customers. We will constantly make progress with the object of running a profitable operation and chain of showrooms for the benefit of our customers, employees and owners.”
Slide 9: Customer satisfaction index
Customer satisfaction index • Customer service in showroom • Customer service with offer • Showroom appearance • Delivery/packing • Assembling • Product quality • Service level on complaints are made • Recommending HTH – Product/showroom
Slide 10: Franchising
Franchising
Slide 11: Franchising
Franchising Own showrooms Franchising Independent dealers Must combine the power of running own showrooms with the motivation of independent dealers
Slide 12: Franchisees keep us awake!
Franchisees keep us awake! • HTH performs better due to pressure from franchisees • Franchisees perform better due to pressure from HTH
Slide 13: Distribution of tasks
Distribution of tasks HTH Partners • Purchasing • SALES • Production • Sales to private customers • Distribution • Sales to professionals • Marketing • Installation • Development • Ordering procedure • Strategy • Benchmarking
Slide 14: Franchisor's core skills
Franchisor’s core skills Investment advisor Operational control Administration Technology Purchasing/ Recruiting Sales Corperate sourcing Training religion Product training Marketing Concept Attitude Values
Slide 15: Success steps
Success steps • Clear distribution of tasks • Franchisor sets up goals and puts pressure on franchisee • Franchisor provides leadership • Disposal of consensus thinking and options • Disposal of democratic contractual relationships • Franchisor wants elite players and removes the B team
Slide 16: How do we pick up signals from the studios?
How do we “pick up” signals from the studios?
Slide 17: Organisation
Organisation HTH Franchisor Dealer association Dealer association Dealer association DK N S Board Prod.Devel. Board Prod.Devel. Board Prod.Devel. Marketing Marketing Marketing
Slide 18: Franchising is like a vaccination against bankruptcy!
Franchising is like a vaccination against bankruptcy!
Slide 19: The biggest challenge is to find the right franchisees
The biggest challenge is to find the right franchisees
Slide 20: Finding franchisees
Finding franchisees Why is it so difficult to find franchisees, who want a business of their own and are prepared to meet the chain’s requirements? • They lose independence • It goes against the idea of individualism etc.
Slide 21: Birds of a feather flock together!
But… Birds of a feather flock together!
Slide 22: The Franchise agreement
The Franchise agreement • All showroom leases belong to HTH • Rent is shared 50/50 • Marketing costs are shared 50/50
Slide 23: The Franchise agreement
The Franchise agreement • HTH can terminate all agreements immediately • HTH develops and supplies the franchisees with all computer systems for order taking – free of charge • Franchisees pay for the hardware (HTH decides specifications) • The agreement runs until either party wants to stop
Slide 24: The Franchise agreement
The Franchise agreement • Franchisees are only allowed to sell the products – cabinets, accessories, appliances, etc. – stated in the franchise agreement • On the other hand HTH is not allowed to sell its own manufactured products to anybody else than to the franchisees
Slide 25: Goodwill belongs to HTH
GOODWILL BELONGS TO HTH
Slide 26: HTH Franchise Company of the year 2003
HTH Franchise Company of the year 2003
Slide 27: Balanced system where franchisor and franchisee earn money
Balanced system, where both the franchisor and the franchisee earns money
Slide 28: Marketing values and competitive strategy since 1996
Marketing values and competitive strategy since 1996 The only way to create a lasting competitive advantage Customer relations Price Product
Slide 29: Developing a Corporate Religion for HTH
Developing a Corporate Religion for HTH – Which is our most important asset? A customer can’t tell The physical product What makes us the difference can be manufactured special for certain between a kitchen wherever consumers? from different manufacturers
Slide 30: Experience: Rebel Lifestyle!
Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley Davidson executive, quoted in Results-Based Leadership
Slide 31: Developing a modus operandi
Developing a “modus operandi” Most businesses train their sales organisations in product awareness, but it is equally important that they are trained in a homogenous and systemised sales method, which the business is an expert in
Slide 32: Developing a modus operandi
Developing a “modus operandi” If frontline employees discover how to do things best themselves, results will be different, just as people are
Slide 33: HTH's Blue Book
HTH’s Blue Book – An unique guide to the process of buying a kitchen • A Strategic tool for standardising the sales process at all the chain’s stores • A Marketing tool for telling customers about our sales process and creating the right expectations
Slide 34: HTH's Blue Book
HTH’s Blue Book – An unique guide to the process of buying a kitchen • Opens customer’s eyes for other values than price • Illustrates and underpins why HTH differs from its competitors • Describes a working method that everyone in the HTH system follows - we promise the customers this • Makes you a
Slide 35: Developing a modus operandi
Developing a “modus operandi” Success is often created by a mixture of education, training, very strict leadership and clear rules and regulations Strict rules based on a religion that itself is based on a “mission” is what gives consumers more value
Slide 36: Internationalisation
Internationalisation You should stick to your own culture regardless of the country you choose to start a business in – even if it starts a cultural clash
Slide 37: No market adaption
No market adaption
Slide 38: HTH in Scandinavia
HTH in Scandinavia Denmark Norway and Sweden
Slide 39: Product pyramid
Product pyramid The individual kitchen for the UNO individual customer! FORM The modern, top quality kitchen! The Do-it-Yourself kitchen! HTH GØR DET SELV
Slide 40: Concepts
Concepts • The same partner runs Kitchenforum, Do It Yourself and uno form
Slide 41: Concept uno form
Concept uno form
Slide 42: Slide 42
Slide 43: Ti,
Ti,
Slide 44: Slide 44
Slide 45: Adventure
Adventure
Slide 46: HTH wants to have the number 1 showroom in town
HTH wants to have the number 1 showroom in town
Slide 47: Concept Kitchen forum
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Slide 51: HTH system diagram
HTH system diagram HTH Køkkenforum HTH Køkkenforum HTH Køkkenforum SAS • Drawing • Offer • Order Customer Assembly Production Order Database Ølgod Distribution Production unit • Ordering Sub-supplier Internal/External
Slide 52: Concept DIY
Concept DIY
Slide 53: Gør det selv
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Slide 54: inane ea
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Slide 55: Could franchising work in the UK? And/or on the Continent?
Could franchising work in the UK? And/or on the Continent?
Slide 56: I don't believe that only franchising can work!
I don’t believe that only franchising can work!
Slide 57: Execution
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