Kohler

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(No Transcript)
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Outlinewww.us.kohler.com

• History
• Communication
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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Outline

• History
• Communication
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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Kohler history in detail industry product
development
Toilets wash- basins of vitreous china
Enters electric generator market
Brass faucets
Electric kitchen sink
Complete bathroom sets with matching colours
First enamel bath tub
One-piece built-in bath-tub
Kohler foundet
Starts manufact.faucets brass accessories
1883
1926
1927
1873
1911
1920
1925
1870
1880
1920
1930
1900
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Kohler history in detail industry product
development
Sales by 1 m
Sales by 2 m
100 anni- versary
rapid expansion
Acqui. of 1st Furnit. Comp.
Vitreous china plant opens in MEX
Acqui. of Sterling Faucets
Joint Venture in China
New colours for plumbing fixtures
Bold look of Kohler ad theme
Investm. in cast iron product. facilities

• The 1990ties
• Master suite concept
• Product design
• Innov. toilet and showers
• Luxury whirlpool bath

1965
1965
1971
1973
1984
1986
1987
1991
1995
1996
60
70
80
90
00
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Communication
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The four seasons of Kohlers brand awakening

Introduction of functional and technical
innovations (bath, kitchen)
Establishing Kohler as a full-line manufacturer
of bath products
Concern for aesthetics and manufacturing
improvement
The Bold Look of Kohler
Art, Inno- vation, Life
Internal and external growth
Form and Function
1900 - 1920
1960s
1990s
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The four seasons of Kohlers brand awakening
Launch of exciting, new plumbing products in
vivid accent colors with significant advertising
campaign titled THE BOLD LOOK OF KOHLER
Campaign also solidifies Kohlers culture and
attitude (inside company)
Further lines followed - Whirlpool baths in an
array of shapes and sizes - Big kitchen sinks for
big homes, and compact models for small
apartments - Lightweight, easy to clean
fiberglass shower modules - Faucets with
interchangeable handle inserts
The Bold Look of Kohler
Art, Inno- vation, Life
Internal and external growth
Form and Function
1900 - 1920
1960s
1990s
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The Bold Look of Kohler adv campaign
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The four seasons of Kohlers brand awakening
As consumers spend more quality time at home,
Kohler continues to meet these needs with a
fresh design approach
Kohler answers the trend towards increased luxury
with its Master Suite Concept answers trend
towards increased luxury (console tables bath
vanities bedroom furnishings)
Electronics and other technological improvement
as for example - stylish toilets - faucets -
water saving shower heads - innovative showering
products and luxury whirlpools
Decorative fixtures, textured surfaces and
expressive colors
The Bold Look of Kohler
Art, Inno- vation, Life
Internal and external growth
Form and Function
1900 - 1920
1960s
1990s
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The four seasons of Kohlers brand awakening
In 1984, Kohler starts an expansion program based
on - internal growth with new materials,
products and markets - synergistic manufacturing
facilities - direct access to new markets.
Currently Kohler encompasses an extensive
business worldwide in the field of - plumbing
products, cabinetry and tile - under a variety
of brands
The Bold Look of Kohler
Art, Inno- vation, Life
Internal and external growth
Form and Function
1900 - 1920
1960s
1990s
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Mission
Kohler
Improving the level of gracious living for each
person who is touched by our products and
services.
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Communication Conclusions

• Kohler focus on design
• improving the level of gracious living
• Stylish, lifestyle-oriented

Kohler point out a high standard of quality and
manufacturing know-how that promotes to be
innovative in terms of product design (colours,
materials) and aspects of comfort in the bathroom.

• Kohler looks back at great advertising campaings
• The Bold Look of Kohler

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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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Turnover Income statement
Estimated turnover 2005 3.1 Billion Estimated
number of employees 32.000
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Turnover 1997 by Group
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Structure of Business Families
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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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Acquisitions 1985-2006
France
UK
Marocco
US
Mexiko
New Zealand
Thailand
China

India
1985
1993
1994
1995
1996
1998
1999
2000
2001
2002
2004
2005
2006
furniture tiles
csw baths
taps
enclosure showers
plumbing fixtures kitchen
factory
tiles

faucets, baths, whirlpools, lavatories,
toilets,showers
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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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CSW production located all around the world.
Weakness in Europe will be remedy with the new
Russian factory
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CSW production located in such a way, that allows
a locally presence in our (future) markets, and
at the same time assure an access to low-cost
sourcing
14 production locations for CSW Total capacities
Europe 1,9 mln pcs World 19,0 mln
pcs (New plants planned MX, RU, INgt gt5 mpc)
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Non CSW production covers all the product
categories that are part of our
strategyIndustrial restructuration of non
profitable operations in Europe already planned
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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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Overview Brands / Product fields
Taps Mixers
Tiles
Info about Karat uncompleted Core business
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Overview Brands / Price positioning
Each brand is available through the regional
Kohler sales manager
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Brand architecture
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• Kohler has long encouraged an ongoing dialogue
  with the art community. Kohler works with
  international designers and architects for
• product development (2006, launch of 3 Artists
  Editions Top Art Collection)
• bathrooms arrangement, to show customers how a
  dream Bath from Kohler could appear
  (www.kohler.com).
• in the Kohler Design Center in east central
  Wisconsin, where they offer educational seminar
  series, design services, showroms with current
  range and a museum

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• Kohler wants to be state-of-the-art.
• Acquisitions of innovative companies (hightec,
  mira, etc.),
• Launch of innovative products, that combine
  state-of-the-art design with innovative
  technologies and take care to save water
  (performance flush technology, urist mirror with
  faucet, C3 Toilet Seats)
• Kohler offers end consumers many ideas and
  services to arrange their bathroom to a dream
  space for a higher level of gracious living.

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- complete bath offer
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- Product Overview

• Offers complete bathrooms -15 bath collections
  with a clear focus on classic lifestyle, with the
  exeption of purist (2003) and the novelties 2006
• Wide range of single lavatories and customizable
  products (51 decorated washbasins, modern
  washbasins, etc.), toilets, bidets, faucets,
  baths, furniture, kitchen sinks (171 models) etc.
  
• Materials vitreous china fireclay, cast iron,
  glass, marble, stainless steel
• Wide range of colours - up to 50 colours
  (depending on the material)
• Price level focus on mainstream and premium

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- complete bath offer
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- Product Overview

• Designer products, 8 collections in 3 Lifestyles
  (city life,
• country life, retro) for different target
  groups.
• Wide but not deep product range
  whirlpools/baths, lavatories, furniture, toilets,
  bidets, accessories, kitchen sinks.
• Materials ceramic, copper, etc.
• Colours 1 to 3 colours for a product, hand
  painted designs
• Price level premium to high ( 450-2.030 USD per
  Lavatory)

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- core business tiles stones
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- Product Overview

• Assortment focus on tiles, offers also stones,
  mosaics, plumbing, lighting and designer
  collections (like Kallista)
• Materials tiles from ceramic, glass, metal,
  leather, wood concrete basins from art glass,
  cast bronze, copper, stone, concrete, spun metal,
  vitreous china
• Very wide colour range (depending on the
  material)
• Price level premium too high

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- complete bath offer
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- Product Overview

• 15 bath collections in 4 lifestyles, mostly as
  complete offer (CSW, tube, shower tray,
  furniture, taps, accessories and front-wall
  elements) as well as a wide range of furniture
  washbasins, many specials for projects, 3 of the
  Kohler high end vessel lavatories and 47 kitchen
  sinks
• Product ranges are made of the key models for
  European needs (product types, sizes) and offer
  in total a wide assortment of standard functions
  and standard shapes.
• Wide range of offered materials pro productfield.
• Wide range of colours (CSW 8 colours, tubes from
  
• 18 to 37 colours, depending on material)
• Price range from high end to professional

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- Showers, enclosures,
trays, brassware
Mixing valves, accessories, pumps
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- Product Overview

• Deep shower systems range (electric, mixer,
  power, contract showers), shower enclosures and
  trays, brassware
• Rada Controls offers the most extensive product
  range available, for hand washing, showering,
  bathing, urinal and industrial/commercial
  applications, including the widest range of UK
  Healthcare approved

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- Bathtubs and Showers
Hydrolux Air jet Systems
Hydrolux Whirlpools
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- Product Overview

• Small assortment only showers, baths, receptors
  tilewalls
• Material acrylic and gelcoat
• 17 Colours
• Options knockdown system, whirlpool, air jets,
  crab bar options, kits, fold-up seat, stainless
  steel curtain rod, removable headrest, extra
  reinforcement

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- Product Overview
Toilet suites / Showers / Plain baths / SPA baths
/ Vanities
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- Product Overview

• Englefield - one of the two brands manufactured
  by Kohler Co. Australasia for both the Australian
  New Zealand markets
• Relative small assortment no collections, single
  toilets (only pan - close - coupled), washbasins
  from vitreous china, plain baths, spa baths and
  vanities
• Price level low

assumption
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- Product Overview
Bath / Shower moduls and doors / wirlpools,
sinks, toilets
lt 100 USD / lavatory
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- Product Overview

• No collections, single brands for the different
  product lines
• 27 bath sinks from stainless steel, vikrell or
  vitreous china, 52 kitchen sinks
• 30 toilets (only pan - close - coupled)
• discontinues faucet brands and recommends Kohler
  faucets
• Focus on bath shower modules / doors /
  receptors / kits innovations for integrated
  storage shelves, quick install technology
• small colour diversity
• Price level low (lavatories for below 100 USD)

lt 100 USD / lavatory
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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy

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As Kohler itself, most of our international
competitors cover almost the entire spectrum of
bathroom products
Legend X minor weight in sales of
company XX medium weight in sales of
company XXX great weight in sales of company
Source Kohler research
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Global presence of the main competitors in CSW
(2004)
Kohler Good presence in America, limited
presence in Europe
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On the world ranking list, we estimate that we
rank 2
Total value as basis 5,2 billion Euro (ASP)
World-wide shares of main suppliers of CSW -
year 2003 coverage ca. 80 of total world market
VB incl. Vitromex, Roca incl. acquisitions 2006
Due to lacking data inclusive ceramic shower
trays and kitchen sinks Source BSRIA - Consult
- Kohler research
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In Europe however we are still relatively weak at
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Total value as basis 2,2 billion Euro (ASP)
Shares of the main supliers of CSW in Europe -
year 2003 -
Inclusive acquisitions of Roca 2006
Ceramic Sanitaryware exclusive ceramic shower
trays and kitchen sinks Source Consult and
Kohler research
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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT (only Kohler team)
• Strategy

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Strengths and Weaknesses

• STRENGTHS
• Internationality
• Industrial and market presence in 3 continents
• Strong presence in the US market in several
  bathroom product categories
• Complete offer for the bathroom (and Interior
  Design competence)
• including material diversification

• WEAKNESSES
• Limited international presence of core brand
• Weak presence in Europe
• Failure to enter the German market
• No success in transferring ranges from one
  country to another (Delafon/F vs Kohler/D)
• Specialist brands have only local presence (Mira,
  Sanijura)

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Strengths and Weaknesses

• STRENGTHS
• Family owned company (long term objectives and
  outlook, less short term pressure)
• Experience with acquisitions and investment
  minded

• WEAKNESSES
• Complexity of organisation
• factories
• brands
• countries

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Opportunities and Threats

• OPPORTUNITIES
• Fast growth of the Asian market will benefit to
  the Kohler local presence
• Ceramic acquisition or alliance in Europe

• THREATS
• Concentration in industry trade

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Outline

• History
• Financials
• Past acquisitions
• Current and planned industrial presence
• The product ranges
• Kohler and its competitors
• SWOT
• Strategy (Current)

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Current strategy

• Expansion of all kinds
• Geographically (Markets and production
  facilities)
• Asia China, India, Thailand
• America Mexico and US
• By product and material categories
• for sourcing reasons

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Current strategy

• Reinforcing of the core Brand and establishing
  sub-brands to cover all market segments
• Enlarge/improve the core brand Kohler
• by taking control of the quality of our
  distribution in the US (Showroom programs . The
  Kohler Store) (US)
• Arts involvement (Product, communication)
• Other brands
• Creation of Kallista and Ann Sacks as a luxury
  brand (US)
• Be present in the lower segment with Sterling
  (US)
• Use specialist brands (Europe/US)