Vail­lant con­vinces Ger­many with ‘sav­ings plan’

Dünya Executive - - BUSINESS - YASEMIN SALIH

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.

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