OSRAM Sylvania Case Study Analysis Owen Hendershot UMFK 2008

Overview Introduction Company Overview History Strategy Issues Selling Function Where to go Next End Result Owen Hendershot UMFK 2008

Introduction 2001, Greg Schmidt, vice president of OSRAM Sylvania Inc., looks at the newly launched mySYLVANIA.com and realizes the company is on its way toward developing a full CRM system for the company How do lock in customers with the company? What do we do with the “ocean” of data that flows through the site? Owen Hendershot UMFK 2008

OSRAM Sylvania Overview “…A global leader in innovative lighting products and services” – OSRAM Sylvania ▫Lighting product line consists of incandescent, fluorescent, high-intensity discharge light bulbs, and ballasts. One of the three major suppliers in the lighting market Headquartered in Danvers, Massachusetts Owen Hendershot UMFK 2008

History In 1906 the OSRAM light bulb was developed, and by 1919 the company known as OSRAM GmbH was formed In Pennsylvania, 1922 the Novelty Incandescent Lamp Company was purchased by __ who two years later formed the Sylvania Products Company Sylvania was purchased by OSRAM GmbH and became known as OSRAM Sylvania Later established mySYLVANIA.com to improve sales process and reduce costs. Owen Hendershot UMFK 2008

Strategy Improve B2B sales process Create different channels that different types of customers can use to get a more personalized experience mySAP.com ▫Improves CRM ▫Most cost efficient Owen Hendershot UMFK 2008

Issues What should be done with the data generated through the website? How can OSRAM Sylvania use their CRM system to create relationship customers? How can the Internet add value to the customer relationship? How can OSRAM Sylvania target end-customer segments without disturbing relationships with distribution channels. Owen Hendershot UMFK 2008

The Selling Function Awareness Interest Knowledge Attitude Preference Confidence Purchase Loyalty Owen Hendershot UMFK 2008

Where are they currently? Awareness ▫OSRAM Sylvania is one of the leading competitors in the lighting market Interest ▫Companies visit the site, Personalized for each business. Knowledge ▫Information available on site, fair prices. Attitude & Preference ▫Customers uneasy about security, still not sure if the internet is a safe channel. Some still prefer to play it safe offline. Owen Hendershot UMFK 2008

Where are they currently? (Continued) Confidence ▫Improved CRM allows for customer help via numerous methods. ▫Addition of varied access and security for different employee roles increases confidence among speculative businesses. Purchase ▫SAP’s CRM solution allows customers of mySYLVANIA.com to place, pay for, and track their orders. Loyalty ▫Not much is done to see if customers are satisfied with their experience at mySYLVANIA.com Owen Hendershot UMFK 2008

Where to go next Customer Data ▫Analyze and Implement the data to make visiting the website an easier and more satisfactory experience for the visitor. CRM ▫To create relationship customers, OSRAM Sylvania needs to make sure the customer is satisfied. Encourage businesses to write of their experience with mySYLVANIA.com on the Sylvania website to increase word of mouth, as well as to let the company know what they could improve upon and what they need to do to satisfy the customer. Owen Hendershot UMFK 2008

Where to go next (continued) Added value from the Internet ▫The Internet allows for easy storage of customer information. Storing information from past visits and other essential purchasing information makes for a much simpler and convenient visit for the customer, increasing interest in the site, as well as attitude, preference, and loyalty. Targeting end-customer segments ▫OSRAM Sylvania should create another channel for the end-user customers, and advertise the potential change on Sylvania.com Owen Hendershot UMFK 2008

End Result OSRAM Sylvania remains as one of the top competitors in the Lighting Market mySYLVANIA.com succeeded in increasing sales by reducing costs for all parties involved and increasing the amount of business done with smaller companies. Owen Hendershot UMFK 2008

Questions? Owen Hendershot UMFK 2008