Micro-segmentation is the key to Schneider Electric success

Voltimum Founder Member company Schneider Electric is today a major player in the global electrotechnical marketplace. With operations in 130 countries, the company aims to ensure the same quality of service worldwide, providing customers with contacts who understands their needs. The company also manufactures or distributes locally. To support this broad presence, Schneider Electric's organisation is based upon Strategic Business Segments which develop the products, and Country Organisations which market them and provide front line service.

Gaël de la Rochère heads one of these Country Organisations - Schneider Electric UK. With its international brands Merlin Gerin, Square D and Telemecanique, Schneider Electric is today one of the world's leading manufacturers of equipment for electrical distribution, industrial control and automation and these brands are also extremely well-known in the UK too. But what did de la Rochère do before he joined the company in the UK as Managing Director a couple of years ago?

James Hunt: "Gaël de la Rochère, what is your background?"

Gael de la Rochere: "I come from a St Malo family and was born in Paris. After University I became an investment banker, initially working in Merger and Acquisitions type of financial services. This is my background."

JH: "How did you make the connection to Schneider Electric?"

G R: "Schneider Electric was a client of the investment bank I worked for. As a junior associate, I was involved in work on acquisitions and mergers for the company - specifically with Telemecanique fifteen years ago. At that time, Schneider Electric was nothing in the USA and the company needed to get a greater presence there. It wanted someone with expertise in acquisitions to help it gain extra presence and market share. With my experience, Schneider Electric spotted me and so I joined the company and started my Schneider career in the U.S. We acquired Square D and Federal Electric thirteen years ago, and later on, I also led on the AEG/Modicon joint venture project team. It was quite a great journey to participate in the creation of Schneider Electric as it is today. Later, I became Group Controller and, later still, Managing Director of Schneider Electric's high voltage (transmission) business globally."

JH: "How is Schneider Electric doing globally?"

GR: "Relatively well in a difficult market environment. We retain an impressive stability with double digit EBIT margins and the company is performing very satisfactorily compared with the opposition. As a result, we will continue to be able to invest in new talents and competences, new solutions and new applications, and also further acquisitions. We are very strong in investments in our market segments but we do need to maintain our profitability."

JH: "And how is the company doing in the UK?"

GR: "Broadly similar to what I've said just now. We are doing well but there was less development in the business in 2002 because of macro-economic statistics - the downturn in the market.

"However, with our new asset optimisation and efficiency procedures, we still improved our results by 15% in 2002 despite the difficult trading conditions.

"I see 2003 as being extremely unpredictable because of the geopolitical situation, and the fact that the three main economies in the world (USA, Japan, Germany) have not yet recovered. This has been born out to some extent yet there are still no signs of a slump. It will be another difficult year for manufacturing investment but big infrastructure projects are looking good so 2003 is likely to be mixed."

JH: "How did the Legrand debacle affect Schneider Electric?"

GR: "The merger project is now over and has been completely resolved, despite the original EC verdict being overturned, but the answer is that it affected the company little in the long run."

JH: "How would you describe your marketing approach in the UK?"

GR: "That's along story! Micro-segmentation is the short answer! This is the key to success for us; that we understand our end-customers' needs - and not just to sell products. Customers want solutions and want Schneider Electric to satisfy those needs.

"Micro-segmentation means understanding the needs of any given market segment - for example, rail or packaging - and organising our business around these customer segments to provide specific technical support and marketing strategies. These should always evolve so as to allow us to gain a better understanding of our customers' needs and satisfy them.

"It is part of my job to deploy these principles which are not just concepts - they are real and have resulted in, for example, specialised application centres in the UK. I view this marketing angle as strengthening our specification approach to our customers, and also to our distribution partners so that they locally serve our end-customers. This is important, not least because our offer, that is distribution, electrical power and automation, is by far the largest in the industry."

JH: "Do you see Voltimum as adding to or otherwise complementing your approach in the UK?"

GR: "Yes, Voltimum will be very helpful in giving all our customers and partners direct on-line access to our offer. They will also benefit for our being able to answer their technical questions on-line. All this will help us with our marketing strategy through increased awareness."

JH: "Do you expect Voltimum to have any role viz-a-viz Schneider Electric in the UK other than marketing?"

GR: "The main purpose of Voltimum is to become a technical repository for the broadest section of partners. That's the goal, but Voltimum could also be used as a data exchange system."

JH: "What would you like to see Voltimum achieve in the future?"

GR: "The key thing is to get as much traffic as possible from electrical contractors as a primary goal.

"As far as Schneider Electric is concerned, part of the Telemecanique offer is of interest to electrical contractors, especially in terms of building solutions. I can therefore see this part of the Telemecanique offer eventually being loaded on to Voltimum UK and this would appeal also to OEM users. We certainly do have plans to include relevant Telemecanique products in the Voltimum UK catalogue."

JH: "Do you have plans to add any other brand's products?"

GR: "Yes, we aim to include more of MITA's products and, longer term, Square D residential products."

JH: "Gael de La Rochere, thank you very much!"

Gaël de la Rochère is 38, married and has three children. His interests away from work are skiing, travel to exotic destinations (when he has time) and playing tennis. Probably his main interest though, is collecting contemporary art - principally paintings, sculptures, some photographs and also conceptual art.

Schneider Electric
Braywick House East, Windsor Road,
Maidenhead, Berkshire SL6 1DN
Tel: 01628 508500
Web: www.schneiderelectric.com