Vaillant convinces Germany with ‘savings plan’
Due to the contraction in construction, companies in many sectors are taking measures to minimize the effects of the downsizing. Vaillant Turkey is one of them. The company has decided to cut back after reviewing business models in order to maintain the 35 percent market share it achieved with its 3 brands in the market. Speaking about this process, Vaillant Turkey Sales and Marketing Director Erol Kayaoglu said that they did not want a pessimistic picture in their budget plan they sent to Germany in the beginning of the year. They promised the headquarters that they will “find a way to get through this year uninjured and laying no one off.” “We have surprised the headquarters in Germany with this move,” said Kayaoglu. So, what was behind this optimism?
The headquarters also asked the same question and Kayaoglu’s reply was “a savings plan.” “The crisis will not be long-term in Turkey. If we postpone plans this year, it will cost us more next year. However, we reviewed our business plans. We have saved on many issues from dealer meetings to working habits in the office. Our business partners and suppliers also had to take on responsibility. We got their support as well. As a result, we set a minimum target turnover for 2019. Even this figure was above the expectations of
Germany. They guaranteed that their confidence in Turkey will continue even if we remain below this figure,” Kayaoglu explained. The income supplied by these savings will be used for marketing in the last quarter and an unprecedented campaign in the company’s history will be launched, he added.
Turkey is a long-term plan
Kayaoglu noted that Vaillant has long been in Turkey and became a direct investor with the Demirdokum purchase in 2008. According to him, the most important credibility for global companies that enables them not to give up on Turkey is that the market is a “hunter” market. Kayaoglu gave the following information about the market: “The market contracted almost 50 percent in the first quarter. According to DOSIDER (Natural Gas Equipment Industrialists and Businessmen Association) data, contraction in the first six months was 34 percent. A contraction was expected but not at this rate. Contraction slowed down in the third quarter. Now we’re entering the season. We expect to close this year with a decline, albeit small, with a figure close to 2018. The combi market will also shrink at 15 percent.”
Kayaoglu underlined that Vaillant made a TRY 40 million investment in various areas in 2019 and it stems from Germany’s confidence in the market. “Turkey is the second largest boiler market in Europe and the market with lowest prices on the other hand. We are the third region in the Vaillant world in terms of turnover. Turkey also exports serious amounts of managers to the Vaillant world. We have exported the most in our history in the last year. This shows the success of the Turkey office,” he noted.