B2B Marketing Management

Term Paper
On
Study of Business and Marketing strategies of Emerson
A report submitted to

Prof. DVR Sheshadri

On

August 14, 2015

By

Shivanand Pawar (144070)

Rahul Pateliya (144069)
Section B
Group No B20
PGP 2

Executive Summary
Emerson Electric Company is US based multinational organization which
manufactures engineering products and offers wide range of services to
industrial, commercial and consumer market. It has 115,000 employees and
220 manufacturing units spread across the globe. The company registered
US $ 24.5 billion for fiscal 2014. Emerson initiated its operations in India in
1980s through a major joint venture with Fisher-Rosemount India to offer
process automation products and services. Since then it has done number of
important acquisitions to expand business in India. Recently they acquired
Virgo Valves which is a leading manufacturer of ball valves and automation
systems.
Business in India brings strategic importance in Emersons offering to its
customers across globe. As a result Emerson widely expanded their
operation in India and developed five engineering research and development
center.

For fiscal 2014 they achieved US $ 700 million revenue in India.

Emerson works across five verticals namely Process Management, Industrial

Automation, Network Power, Climate Technology and Commercial and
Residential Solutions in India. They face competition from global players like
GE, ABB, Honeywell India, Siemens etc. also local player like Forbes Marshall,
Rotech, and Crompton Greaves etc.
We studied Emersons innovative business model which gives them edge in
highly competitive environment. Companys most businesses are customer
driven which strives to offer standard products as well as tailors customer
demands effectively. Technology expertise and market leading innovation
brings core competencies to their business and hence offers the best
engineering solutions and products to the customers.
Value based business strategy outlined for the company focuses on
producing best quality products through continuous innovation. Emerson
India also defines target segments that it focuses on for optimum reach and
to better serve its customers. Better quality solutions offered at comparable

prices has been the hallmark of Emersons business. Emerson Indias

strategy to be a force in the international market can be attributed to
increased footprint established majorly through acquisitions and product
innovation.

Introduction
Emerson Electric Company is US based multinational organization which
manufactures engineering products and offers wide range of services to
industrial, commercial and consumer market. Emerson is one of the giants in
this segment which employees more than 115,000 employees and has 220
manufacturing units spread across the globe. Emerson was established in
1890 as the electric manufacturing company, they were the first to sell
electric fans in US. Soon they expanded their offerings to several other
machines such as sewing machine, electric dental drill, power tools etc.
Emerson has headquartered in Ferguson, Missouri, US under the leadership
of Mr. David N. Farr who is the Chairman and the Chief Executive of the company.
Over the 125 years journey Emerson emerged as a powerhouse in
technology and engineering industry which provides highly innovative and
technologically advanced solutions to its customers. Emerson offers its
services

and

products

majorly

in

Process

Management,

Industrial

Automation, Network Power, Climate Technologies and commercial and

Residential solutions. Emerson is offering is expertise in these five verticals
across 150 countries in the world. In 2014, they achieved $ 24.5 billion mark
in international destination sales including US exports.
Emerson started its business in India in 1950s with the offerings of motors,
drives

and

fans,

to

become

part

of

Indias

first

step

towards

industrialization and economic growth after independence. Emerson initiated

its operations in India in 1980s through a major joint venture with Fisher-

Rosemount India to offer process automation products and services. After

that by 1990s they spread across wide range of business solutions and
products, mostly joint ventures with respected business in India. In the
recent years, to improve the efficiency and to integrate jointly ventured
companies into their business specific platform, Emerson has acquired those
joint ventures 100%.
As of 2014, Emerson has very strong foot hold in India. India adds lot of
strategic importance to their portfolio such as in India they got access to
large pool of engineering skilled human resource which enabled them to
produce products better and faster which is giving them competitive
advantage. Emersons income statement aptly shows why India is a key
location for them for fiscal 2014 they posted around US $ 700 million in
India. Emerson has 17 manufacturing units and more than 100 offices across
in India having more than 10,000 employees working for them. They have
established five global engineering and development centers in Chennai,
Mohali, Noida and Pune. Hence India has become an important hub of global
engineering and development initiative for Emerson. Emerson has many
well-known multinational competitors such as General Electric, Siemens,
Honeywell India, 3M, B&R etc. across different verticals. Also, they face lot of
local competitors Crompton greaves, Rotech, Voltage, Forbes Marshall.

Positioning in Business Market

Emerson India position themselves as a highly technologically driven and
research oriented with domain expertise in offering engineering solutions
and products to their customers across five verticals which are mainly
Process

Management,

Industrial

Automation,

Network

Power,

Climate

Technology and Commercial and Residential Solutions.

In Emerson Process Management, the company promises to manage process
operations under constant pressure to increase output, reduce energy

consumption and reduce cost, improve safety and reduce emission all this
while performing complex operations.
In Industrial Automation, Emerson is known for offering business specific
specialized expertise and solutions to every facet of the customer firms
business operations. In this vertical Emerson mostly works with electrical
companies that produce power and mechanical companies that deliver high
quality finished products. They promises to deliver higher quality, greater
energy efficiency and lower design cost at any location in the world.
Network

Power

vertical

ensures

implement

highly

efficient

network

infrastructure which plays an important role in IT industry, communication

networks and healthcare and industrial facilities. With the help of industry
expertise and cutting edge technology Emerson can offer to protect and
optimize network infrastructure to store and secure customer firms
important applications, data, multimedia files etc.
Emersons climate technology have proven products and industry leading
innovations which delivers effective temperature control with high reliability,
minimum energy consumption and quieter operations without harming
environment. Emerson promises to offer reliable and energy efficient
technology to costumer firm who are looking for refrigeration, heating and air
conditioning.
Emersion commercial and residential solutions offers, highly innovative and
user friendly appliances, tools and storage products. These products are
intelligently

design

to

consume

minimum

space

in

residential

and

commercial settings. Emerson makes worlds best food wastage disposer and
complete line up of wet and dry vacuums.

Business Strategy The Vision

Emerson has clearly outlined mission statement. It also has well laid out
values that it adheres to all times, which also reflect their deeply ingrained
character.

The

companys

promise

to

shareholders,

customers,

and

employees alike is expressed through its mission and values. This promise is,
Emerson is where technology and engineering come together to create
solutions for the benefit of our customers, driven without compromise for a
world in action.

Core Ideology
Core Values

Emerson is committed to being a well-managed, results-oriented,

engineering-driven organization
It wants to build an organization with people who have a passion for

progress and a commitment to excellence

More connected, forward-looking, and more focused to its customers
Everything that is accomplished rests on integrity, dedication,

commitment, and skills of the employees

Commitment to the highest standards of personal and corporate ethics

Purpose
To create long-term value for our shareholders, customers, and employees
through

passionate

commitment

to

excellence

and

disciplined

management process, which together drive sustained competitive advantage

in a dynamic global market. We achieve success by developing industryleading technology, investing globally, and delivering results for customers

Envisioned Future
BHAG (Big, Hairy, Audacious Goals)

To be the engineering and technology partner of choice and help their

customers improve their business.
Vivid Description
Make strategic investments in innovation of the companys core businesses
and create solutions for the benefit of our customers, driven without
compromise for a world in action... Increase exports to parts of Asia and
Europe

Business Model

Customer Value Proposition

Emerson have clearly identified target market segments such as gas and oil, energy and power,
healthcare etc. and they cater to these segments across five verticals. They are highly focused
towards delivering customer tailored solutions and products which help to gain the dependency
of the customer firm and hence retain customer for long term. Emerson offers market-leading
innovative solutions like process management to reduce cost and time in operation which gives
customer firm competitive advantage in price and time to market. Their key to success and high
revenue is high involvement with customer firms and solving their problems intensively by being
disciplined and persistent in their offerings. Once they understand customer requirements and
know competitors offerings to the same customer, Emerson strives to develop much focused
manufacturing strategy to produce competitive solution and provide much better services. Also,
they plan strategically to stay close to customer firm to achieve their goals and hence their own.
To offer the best in class solutions to customer firms Emerson have been consistently partnering
with technology leaders and distribution channel partner that helps them to produce products and

services which can be consistent in business critical and high pressure situations. Highly
proficient partners help Emerson to give innovative solutions to their customer and thereby to
increase their own profits.
Key Resources
From the time when Emerson entered into India it has been continuously acquiring and merging
with local player to leverage upon the advantage of being local. These acquisitions have helped
Emerson to expand its reach and target many customers which were not falling in their range
earlier. It also eventually helped them to achieve long term growth strategy. As a result of this
Emerson could establish more than 100 brands in India which is catering to various segments
and regions. Emersons success lies in effectively integrating those acquired firm into its
business specific platforms.
Key Processes
Emerson effectively manages key process such as portfolio management wherein they cater to
high net worth customers need and demands as and when needed. It also has integration process
which automates technology and services to their full product line.
Profit Formula
Emerson strives to offer the best price and highest value to their customer. We came to know that
from our secondary survey sometimes they tend to compromise upon price just to acquire the
customer and beat the competition. Operation in India adds strategic importance such as skilled
labors, low cost infrastructure and prolific engineering and development center hence Emerson is
continuously investigating investment opportunities in India.

Fundamental Value-Based Strategies

Product Leadership
Emerson India offers its clients leading-edge products. The companys focus
lies on producing best-in-class engineering products. Emerson has also built
major engineering capabilities of global quality in India. It also constantly
strives to improve customers use of the product. The company has started
manufacturing large process and industrial valves for use in major oil
industries in the middle-east, where quality is of prime importance.

Customer Intimacy
The company has well defined target segments and it provides offerings
tailored to the demands of its clients. Its businesses are divided across five
major verticals which also form the base of the broad category of target
customers that Emerson caters to. It has segments defined based on
progressive bases including application and customer capability. Some of
these include clients requiring network power and power systems, intelligent
control systems, etc. Notable industries that Emerson has established itself
in are oil and gas, power and energy, healthcare among others.
With India in the process of an infrastructure boom and better economic
growth, the company recognizes its potential targets for its future strategy
and is working in that regard.

Operational Excellence
Emerson India is a market leader in providing technology and engineering
solutions to its clients. Although priced at a premium over its local
competitors, Emerson provides products and services priced at par with its
international competitors like GE, Honeywell, Siemens, etc. However, the
company has earned a reputation for higher quality and value delivered as
compared to these competitors. They constantly innovate and strive for
reliable products to customers at competitive prices. The company is focused
on developing solutions that address their Indian customers needs. This also
explains why over 4,000 employees in Emerson India are working towards
innovating and engineering solutions.

Globalization Strategy The AAA Triangle

Local relevance through national

focus
Decentralization for better
management
Focus on increasing global
capabilities in India

Increase economies of scale and

scope by increasing geographic
footprint
Focus on research and innovation

Absolute economies of scale

through number of smaller
companies acquired
View India as best-cost market