RTM: How easy has it been to formulate pan-European channel strategies, given the cultural differences between different European countries?

RF: We have basically developed a strategy for each of three main channels – specialist retailers (camera shops), wholesalers and mass retail.  We believe that each of these groups has its own business logic, which we need to understand if we are to maximise sales.

We found that the needs of players within a particular channel are rather similar, especially for cross-border customers.  But we also found out that the terms and conditions retailers received from Canon varied widely, without there being a particularly clear reason for those discrepancies.

“We also found that marketing messages were inconsistent across Europe.“

RTM: What are the benefits of the reorganisation?

RF: Previously, at a European level, it was very hard to know what was really going on. For instance, by the time Canon Europe had got the sales figures from the national subsidiaries, the data was old.  Now, with a single ERP system, we can see what is going on in real time.

Another allied advantage is that we can respond positively when customers decide to start building their own regional warehouses.  For instance, a major distributor is consolidating its Nordic logistics into a single warehouse in Stockholm.  Today we can welcome the move and even help the distributor to make the change smoothly.  Before, our general managers in Denmark, Norway and Finland would have felt threatened by the move. They would have been worrying about the impact of the change on their national sales levels. 

Also, we have a consistent marketing and brand strategy with fully aligned marketing communications.  We have also been able to develop pan-European promotions.  Before, we would have had to deal with different buyers and agencies in each country.  So this is a big saving.

RTM: What problems have you encountered?  I mean, there must have been some resistance at national level.  You were taking power away from some important people. And people always say that things are different in their country.

“You can engineer European logistics but you can’t engineer a European mindset.”

RF: Yes, there was resistance.  Two and half years on, there is still some resistance.  You can engineer European logistics but you can’t engineer a European mindset.  That has to follow!  But we have managed to build some strong teams and people are seeing the benefits now.

RTM:  What are the secrets?

RF: I think you have to involve people very early on and get them to buy into the new strategy.  This whole new approach came out of discussions we had three years ago, discussions that included a lot of national managers.

You also need to build strong teams and these should comprise a mixture of people from national subsidiaries, the European head office and new "blood" from outside who can take a fresh approach.

This is the approach we adopted with the country coordinators.  We also found that it was best to get them to spend roughly half their time at national level working with national management and half the time centrally here in Amsterdam, where they could talk to their equivalents from other countries.