What is Sales and Marketing Strategy of NORMA Group Company?

What is NORMA Group's Sales and Marketing Strategy?

NORMA Group's strategic pivot in late 2024, divesting its Water Management business, signifies a concentrated effort on its core engineered joining technology. This move allows the company to sharpen its focus on profitable growth within its key industrial segments, demonstrating a clear evolution in its business strategy.

With a history rooted in providing advanced connecting technology, NORMA Group now emphasizes its Industry Applications and Mobility & New Energy units. This refined approach aims to maximize synergies and strengthen its market standing in these critical areas, reflecting a deliberate NORMA Group market approach. The company's extensive global footprint, boasting 25 production sites and numerous sales offices across continents, serves over 10,000 customers in more than 100 countries, supplying a vast array of product solutions. In financial year 2024, NORMA Group reported Group sales of EUR 1,155.1 million, a slight decrease from the previous year, while maintaining an adjusted EBIT margin of 8.0%. Looking ahead to 2025, the company projects stable Group sales between EUR 1.1 billion and EUR 1.2 billion, with an adjusted EBIT margin anticipated to be between 6% and 8%.

Understanding NORMA Group's sales strategy involves examining how it reaches its diverse customer base and employs marketing tactics to sustain its leadership. The company's brand positioning within the competitive B2B landscape is crucial, and its recent campaigns highlight its strategic direction for revenue growth. For instance, how NORMA Group approaches sales in the automotive sector is a key aspect of its NORMA Group sales strategy, as is its engagement with emerging markets through its NORMA Group sales and marketing plan. The company's efforts to increase market share in fluid technology and its digital marketing tactics for industrial customers are also vital components of its overall NORMA Group marketing strategy. This includes a focus on customer acquisition and leveraging its extensive product portfolio, such as the solutions detailed in the NORMA Group BCG Matrix, to drive its NORMA Group revenue growth.

NORMA Group's sales strategy is built upon a dual-channel approach designed to effectively serve its predominantly business-to-business (B2B) clientele. This structure allows for tailored engagement with different customer segments and product types, ensuring broad market coverage and specialized solutions. The company's NORMA Group business strategy emphasizes reaching customers through both standardized product offerings and highly customized engineered solutions.

The primary distribution pathways are segmented into Standardized Joining Technology and Engineered Joining Technology. The former leverages wholesalers and sales representatives to distribute a wide array of high-quality, branded standardized products. This channel is crucial for the Industry Applications business unit, catering to industrial original equipment manufacturers (OEMs), project-based businesses, the automotive aftermarket, technical wholesalers, and DIY retailers. This broad reach supports the company's NORMA Group market approach for its extensive product catalog.

Conversely, the Engineered Joining Technology channel focuses on direct engagement with OEMs, providing bespoke joining solutions. This is particularly evident in the Mobility & New Energy strategic business unit, where close, multi-year development partnerships are formed to create specific solutions for OEM challenges. The Industry Applications unit also utilizes this direct sales channel for its engineered offerings. This approach is key to NORMA Group customer acquisition for complex projects.

Standardized Joining Technology

This channel distributes a wide range of standardized, branded products. It relies on wholesalers and sales representatives to reach industrial OEMs, project businesses, automotive aftermarket, and retail channels. This supports NORMA Group's strategy for increasing market share in fluid technology through accessibility.

Engineered Joining Technology

This channel focuses on direct sales to OEMs, offering custom-designed joining solutions. It involves close collaboration and development partnerships for specific industrial needs. This is a core part of the NORMA Group business strategy in the Mobility & New Energy sector.

Digitalization of Sales Channels

A significant aspect of NORMA Group's evolving sales and marketing strategy is its full-scale digitalization. This includes transforming analog B2B processes into a high-performance sales and communication channel. The implementation of an open B2B online store, built on Magento (Adobe Commerce), allows customers to access product information and explore the portfolio without prior registration.

International Digital Expansion

The company's digital sales platform has been expanded internationally, currently serving European and Australian markets, with further global expansion planned. This digital adoption streamlines ordering processes and enhances customer service through features like personalized frequent order lists and tiered pricing for logged-in users, reflecting NORMA Group digital marketing tactics for industrial customers.

The company's strategic direction, as updated in November 2024, involves divesting its Water Management business. This move is intended to concentrate resources and capacities on the core Industry Applications and Mobility & New Energy segments, which exhibit strong synergistic potential. This strategic realignment is expected to bolster NORMA Group revenue growth by focusing on its most promising areas and improving its Competitors Landscape of NORMA Group.

Key Strategic Focus Areas

NORMA Group is actively refining its business strategy to enhance its market position. The focus on core segments and digital transformation underpins its approach to customer acquisition and market penetration.

• Concentration on Industry Applications and Mobility & New Energy segments.
• Divestment of the Water Management business to optimize resource allocation.
• Expansion of digital sales channels, including an open B2B online store.
• Internationalization of e-commerce platforms to reach new markets.

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NORMA Group's marketing tactics are designed to build brand recognition, generate leads, and ultimately drive sales within its business-to-business sectors. The company's overarching marketing strategy is centered on cultivating a robust brand image, prioritizing digital marketing efforts, optimizing its diverse brand portfolio, refining its marketing tools, and gaining a more profound understanding of market demands. In fiscal year 2024, the company allocated EUR 6.2 million to marketing, which consistently represents approximately 0.5% of its revenue. This strategic investment underscores their commitment to a focused NORMA Group sales strategy.

A significant component of their approach involves a strong emphasis on digital initiatives. A key project is the ongoing enhancement of their Digital Commerce Strategy 2025, which aims to establish a unified web ecosystem. This initiative focuses on standardizing their digital presence to serve as a reliable and straightforward information source for both existing and prospective clients. They are actively expanding digital communication channels to deliver tailored and relevant content, complemented by awareness and lead generation campaigns. Furthermore, NORMA Group is continually improving and expanding its Product Information Management (PIM) and Digital Asset Management (DAM) platforms. These platforms are crucial for their digitalization efforts and ensure customers receive accurate product information, supporting their NORMA Group market approach.

Digital Commerce Strategy 2025

This strategy focuses on creating a unified web ecosystem for a simplified customer experience.

Digital Communication Expansion

Expanding digital channels to deliver customized content and run awareness campaigns.

PIM and DAM Enhancement

Continuously improving platforms for reliable product information and digitalization.

Magento B2B Platform

Implementation of a Magento (Adobe Commerce) B2B platform to bolster digital sales.

Industry Event Engagement

Utilizing physical events for direct engagement with industry professionals and distributors.

Data-Driven Marketing

Tailoring marketing activities to local market conditions and consumer habits for effectiveness.

While digital efforts are a primary focus, NORMA Group also incorporates traditional marketing methods, notably through participation in industry events. An example of this is the introduction of their NDS brand for Water Management in the EMEA region at the 2024 EIMA Show in Bologna, Italy. This event served as a platform to connect directly with industry experts, distributors, and contractors, showcasing their NORMA Group business strategy in action. The company's commitment to data-driven marketing is evident in its practice of customizing marketing activities based on local market conditions and consumer behaviors, ensuring that their efforts are relevant and impactful across different geographical areas. This localized strategy, combined with a focus on optimizing their product offerings, contributes to their comprehensive marketing mix and supports their NORMA Group revenue growth objectives. This approach is a key aspect of the NORMA Group sales and marketing plan for emerging markets.

Key Marketing Pillars

NORMA Group's marketing strategy is built on several key pillars designed to enhance its market presence and customer engagement.

• Building a strong brand image globally.
• Prioritizing and expanding digital marketing initiatives.
• Optimizing the product portfolio for market relevance.
• Refining marketing instruments for greater efficiency.
• Deepening the understanding of specific market needs.
• Leveraging industry events for direct customer interaction.
• Employing data-driven approaches for localized campaigns.

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NORMA Group positions itself as a global leader in engineered joining and fluid handling technology. The company differentiates itself through a strong emphasis on innovation, unwavering quality, and proven reliability. Its core brand message centers on delivering 'mission-critical' products and solutions that provide tangible added-value for its customers. This commitment extends to assisting customers and partners in addressing significant global trends like climate change and resource scarcity, with products specifically designed to reduce emissions and improve water efficiency.

The company's brand appeal is built upon unique selling propositions that include innovation, sustainability, efficiency, standardization, robustness, resource conservation, and weight reduction in its product development. These attributes are reflected in products engineered for superior performance, exceptional durability, and straightforward installation, all contributing to high levels of customer satisfaction. The NORMA Group sales strategy is deeply intertwined with these product strengths, aiming to secure its position as a preferred supplier in its target markets.

Innovation and Quality Focus

The brand's positioning highlights continuous innovation and a commitment to superior quality. This ensures that products meet the demanding requirements of industrial and automotive applications, driving customer loyalty and repeat business.

Addressing Global Megatrends

NORMA Group actively aligns its product development with global megatrends. By focusing on emission reduction and water efficiency, the company appeals to environmentally conscious customers and positions itself for long-term growth in sustainable markets.

Value Proposition: Mission-Critical Solutions

The company emphasizes providing 'mission-critical' solutions, underscoring the essential role its products play in customer operations. This focus on reliability and performance is a key differentiator in its sales approach.

Brand Values and Tone

While specific visual identity details are not extensively publicized, the brand conveys values of 'Strength. Passion. Excellence.' through its corporate communications. This suggests a tone of confident expertise and dedicated collaboration in its marketing efforts.

NORMA Group maintains brand consistency across its various channels and customer touchpoints through the continuous refinement of its brand strategy and architecture. This includes the global standardization and optimization of its marketing tools and supplier relationships. The company's robust brand image is a significant contributor to its ongoing success, complementing its offerings of customized system solutions, widespread product availability, and dependable quality. In response to evolving market dynamics and competitive pressures, NORMA Group has demonstrated strategic adaptability. A notable example is the initiation of the divestment of its Water Management business in late 2024. This strategic move is designed to sharpen the company's focus on its core joining technology for industrial and mobility sectors, thereby reinforcing its market standing in these high-potential segments and targeting medium-term double-digit EBIT margins. This strategic repositioning is a key element of the Revenue Streams & Business Model of NORMA Group.

Customer Segmentation

NORMA Group likely segments its customers based on industry (automotive, industrial) and specific application needs within joining and fluid handling technology.

Key Marketing Initiatives

Marketing initiatives likely focus on showcasing product innovation, reliability, and sustainability benefits, particularly for new product launches in core segments.

Sales Channels

The company utilizes a combination of direct sales, distributors, and potentially online platforms to reach its diverse customer base globally.

Digital Marketing

Digital marketing tactics likely target industrial customers through content marketing, SEO, and professional networking platforms to highlight technical expertise and product solutions.

Brand Positioning in Global Market

NORMA Group aims for a strong brand positioning as a technology leader, emphasizing engineered solutions that offer performance and sustainability advantages worldwide.

Strategic Focus

The divestment of the Water Management business signals a strategic sharpening of focus on core joining technologies, aiming for enhanced profitability and market leadership in key industrial and mobility sectors.

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NORMA Group's sales and marketing strategy is characterized by targeted campaigns designed to reinforce its position as an innovator and leader in joining technology. These initiatives often focus on specific market segments and product innovations, aiming to drive both brand awareness and revenue growth.

The company's approach emphasizes its B2B relationships, highlighting technical expertise and the efficiency of its solutions. This is evident in how they communicate product benefits, such as significant water savings or improved operational performance for their industrial clients. Their marketing efforts are closely tied to their overall business strategy, ensuring alignment with long-term goals and market positioning.

NDS Brand Launch for Water Management in EMEA

In November 2024, NORMA Group launched its NDS brand for Water Management in the EMEA region. This campaign aimed to establish NDS as the primary water management brand in EMEA. It showcased NDS's extensive history and a portfolio of over 2,000 products, including advanced drip irrigation and flow management systems.

EIMA Show as a Key Launch Platform

The 2024 EIMA Show in Bologna, Italy, served as the central event for the NDS brand unveiling. This provided a direct engagement opportunity with industry professionals, distributors, and contractors. The campaign highlighted the brand's commitment to sustainable and efficient water management solutions.

The 'Step Up' Program for Operational Efficiency

Launched in 2023, the 'Step Up' program is a significant ongoing initiative focused on enhancing operational efficiency and productivity for profitable growth. It targets improvements across key segments, including Industry Applications and Mobility & New Energy. The program aims to optimize resource allocation, particularly in research and development.

Impact of 'Step Up' on Profitability and Cash Flow

The 'Step Up' program has been instrumental in maintaining a sound level of profitability for NORMA Group in 2024, despite a 5.5% decline in Group sales to EUR 1,155.1 million. It also contributed to a robust net operating cash flow of EUR 105.4 million during the same year.

The company's strategic pivot towards becoming a focused industrial supplier, including the planned divestment of its Water Management business initiated in late 2024, represents a major strategic campaign for the period from 2025 onwards. This shift is designed to concentrate on core joining technology for industrial and mobility customers, with the goal of achieving a double-digit EBIT margin in the medium term. This strategic realignment, communicated through investor relations and financial news, is expected to conclude by the end of 2028. For 2025, the company projects Group sales between EUR 1.1 billion and EUR 1.2 billion, with an adjusted EBIT margin forecast of 6% to 8%.

Focus on Core Business

The strategic shift aims to sharpen focus on joining technology for industrial and mobility sectors. This involves consolidating production and reallocating resources.

Divestment of Water Management

The planned sale of the global Water Management business, announced in November 2024, is a key part of the new strategic direction. This will impact the future of brands like NDS under the company's portfolio.

Medium-Term Financial Goals

The company targets a double-digit EBIT margin in the medium term as a result of its strategic repositioning. This aligns with efforts to enhance overall financial performance.

2025 Financial Outlook

For 2025, the company forecasts Group sales between EUR 1.1 billion and EUR 1.2 billion. An adjusted EBIT margin of 6% to 8% is also projected for the year.

Innovation in Joining Technology

The NORMA Group sales strategy continues to emphasize innovation in its core joining technology products. This is crucial for maintaining market leadership and driving revenue growth.

Market Approach for Industrial Customers

The NORMA Group market approach is tailored to the needs of industrial customers, focusing on efficiency, reliability, and technological advancement in joining solutions.

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