Strategy that seeks success

By: SECURITY SALES

For more than six months it became official the unification in which the division of security systems of Samsung Electronics was incorporated under Samsung Techwin in order to create a single line of products under the same name of Samsung.

At first this union created confusion in the industry and the customers involved were not clear how the operation of both companies would continue. Therefore, the representative of Samsung Techwin, Pedro Duarte, vice president of sales for Latin America; and Samsung Security, Fernando Tomasiello, vice president of operations and international sales, are making a management plan with which they seek to clarify to customers all the doubts that may be generated by this fact and let them know what were the reasons why this unification took place.

Then the two guests will answer the questions asked by the magazine VENTAS DE SEGURIDAD in which they take a tour of the beginnings of both companies, talk about the moment in which the union took place and explain what are the current pretensions after the agreement:

1.What is the agreement reached by Samsung Techwin and Samsung Security for Latin America?

Pedro Duarte: The Samsung group had two companies and by chance they have created their own CCTV lines. In the 70s, Samsung Electronics began to develop the tape recorder with reduced speed and from that moment began to create a line of CCTV for the market, although this is a company specialized in the consumer area. At the same time there was another company of the group called Samsung Techwin that developed products for the aerospace defense area, since naturally the defense market had the need for the CCTV line that Samsung Techwin had developed in the 70's and 80's.

Over the years the Samsung group ended up with two companies from the same group making similar products for the CCTV line. At the same time Samsung Techwin had developed digital cameras, so in 2008 began a reorganization of Samsung in which digital cameras went from Samsung Techwin to Samsung Electronics because this was a consumer product. At the end of 2009, the board of directors of the two companies agreed to transfer the CCTV area that was in Samsung Electronics to Samsung Techwin, going on to have the entire CCTV operation of the Samsung group.

When we did the consolidation we moved the employees who worked in the CCTV division of Samsung Electronics to Samsung Techwin and this resulted in doubling the number of employees working on the development of new products in Samsung's CCTV segment.

From a marketing standpoint, Samsung Security was Samsung Electronics' master distributor in the Americas, while Samsung Techwin Americas was a subsidiary of Samsung Techwin for the Americas working in the commercial area of CCTV products. The second phase consisted of looking for how to consolidate an alliance with the commercial structures, so we made a strategic agreement between both companies for Latin America so that Samsung Security, as a partner of Samsung Techwin, could continue with the growth and penetration of Samsung products in the CCTV market.

What happens is that with the consolidation of the two CCTV lines, an alignment of the products was made to create new ones with an effective technological advance. At the same time, due to the strategic alliance, GVI now uses the name Samsung Security, to highlight the union in the Market of the Americas, although we also work together in some areas of Latin America.

Pedro Duarte: When the engineers and employees in general of the CCTV area of Samsung Electronics switched to Samsung Techwin the idea was to be recognized as Samsung, so that the customer identifies more easily with the brand. Now we print a greater speed in the development of equipment; for example, this year we have more than 100 new products on the market, which has forced us to change catalogs, manuals and some procedures in the marketing area, then the speed of technological development has happened in a very fast way, adding new technologies to existing products, this is how the end user has access to a much more advanced technology with analog or IP products and with a very significant investment in the CCTV area.

Fernando Tomasiello: The message we have to give as a company and as partners is that now we are much stronger and more united, there is no longer confusion in the market, we are a unified brand and there is no longer competition, today the intention is to be more competitive for the end customer with a better price, which gives them a very great confidence.

Previously, one of my biggest competitions, above other brands, was Samsung Techwin, but now that is not going to happen anymore, today we are a single brand with an improved product, I think the benefit is that we are a team, we as partners and they as manufacturers. At fairs we are making a much stronger presence and we have our workforce thinking together.

3.What are the strategies they have carried out so that the client does not suffer confusion because of this union?

Pedro Duarte: With the marketing areas we are doing a great job of marketing, sending e-mail and doing advertising; in the fairs we are together with the idea of eliminating any concern that the client may have, with which the experience is the same: we keep them communicated with this operational agreement that we have.

4.Have you noticed the benefit of unified ads? Do they still receive the same contacts from the market as a result of the union?

Pedro Duarte: This is a process that takes a little time, until users fully understand this strategic union and it is normal to receive concerns or confusion in the present, that is why we are repeating and communicating the message constantly.

The leads that come from SECURITY SALES are shared for the two companies, I believe that there is a very strong interaction to keep the client, current or potential, informed to show the meaning of this strategic alliance, so that they feel calm because we are entering the Latin American market with force.

5.How will operational management be administered from this alliance between both companies?

Pedro Duarte: We have territories where Samsung Security, through Fernando, has authorization to individually manage markets such as Mexico, the Andean Region (minus Chile), Central America and the Caribbean, and the customers that Samsung Techwin had in that region we moved them. There are territories that we share as is the case of Brazil where we have an established office, in which the client has the option to buy from Samsung Security or directly from Samsung. Every time there is a new customer we have an open communication channel that we both manage because we are together, and the way we manage the distribution channels is designed with the aim of deepening the penetration of Samsung, which is going to be the number one CCTV brand in the market because every business we do is together.

6.Do you want to add anything to this interview?

Pedro Duarte: We are in a very aggressive strategic position and I think we have everything we need to be the first in a short space of time. We are working very hard, united and with channels of constant communication; recently we were in Colombia explaining the alliance, I think the acceptance was very positive on the part of the clients and that helps a lot to solve any concerns.

Fernando Tomasiello: Without a doubt I want to thank the distributors and integrators, because we are what we are for the loyalty and support that the countries of Latin America have given us.