Power Tools

Success in Germany: Bosch Power Tools is growing twice as fast as the market Speech by Bernd Müller,
Sales Director for Western Europe
of the Power Tools Division of Robert Bosch GmbH
on the occasion of the press conference in Leinfelden on March 18, 2015

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  • March 18, 2015
  • Power Tools
  • Presentations

press release

Ladies and Gentlemen,
Last year, Bosch Power Tools was very successful all over the world, and in Germany in particular, where our sales growth increased more than twice as fast as the market – at 16 percent compared to seven percent. This success has a broad basis: in terms of value, Bosch is Germany's leading system provider of power tools, accessories, measuring tools and electric garden tools, and was able to grow faster than the market in all areas in 2014.

In the top-selling market segment of portable electric power tools, we are number one in Germany for our tools for both professional tradespeople and do-it-yourselfers. Last year, we developed significantly faster than the market in both segments and extended our market leadership. In DIY stores, 18 out of the 20 top-selling tools were made by Bosch, including the number one – the PMF 190 E multifunction tool.

Taking power tools for professional tradespeople and do-it-yourselfers as a whole, Bosch Power Tools has continually expanded its leading market position in Germany over a number of years. We outperform the combined market share of our three strongest competitors.

What are the reasons for this success? We rely on our strategic growth areas of innovation and the online world in Germany too, and in doing so, we address the specific needs of our users. Let me first give you a few examples in the professional area.

Successful marketing of innovation for professional tradespeople
In this area, we have successfully brought the innovative "Wireless Charging System" to the market last year. As you have already heard today, "Wireless Charging" means that cordless tools are always ready to use. In a roadshow for retailers and professional tradespeople, we managed to broadcast this message to more than 80,000 professional tradespeople in 90 event days.

The "Wireless Charging System" is an example of how Bosch continues to promote the battery growth segment and supports innovative marketing activities. Another example is the "Clic & Go" system for 10.8 volt and 18 volt cordless tools, which we expanded to a total of 37 tools last year. With this system, professional tradespeople can combine two tools of their choice with their base set, consisting of two batteries and a charger, for a fixed price. Every tool comes with a matching L-Boxx. The professional tradesperson benefits from the “Clic & Go” system in three ways at once: he can individually compile his tools whilst simultaneously saving money and easily transporting his tools.

Both innovative products and marketing concepts can be experienced with particular intensity at some 800 specialist retailers who focus on Bosch cordless tools in their marketing – the so-called “Bosch Cordless Specialists”. They benefit from the marketing support for the salesroom, while their customers benefit from the free "24-month ProService" – a two-year repair service which goes well beyond the usual manufacturer’s guarantee and covers the tool, battery pack and charger.

Professional tradespeople appreciate Bosch’s online services
In a working world which is becoming increasingly networked, Bosch boasts numerous online services, and these are being increasingly taken advantage of. In 2014, we recorded an increase of nearly four million visitors to our website for professionals, whilst at the same time more members and fans registered with our professional "Bob Community" and on Facebook. Professional tradespeople can quickly find all the information they need about Bosch innovation and product ranges in the various ways and familiarize themselves with the benefits of these in videos. The Bosch website also enables power tools, measuring tools and accessories to be purchased via Bosch retail partners' online shops. We also support our retailers by presenting Bosch Power Tools to the user in an attractive manner online, providing a wide range of product information, numerous usage examples and even an accessories finder for this purpose.

Professional tradespeople are given customized information in the form of a new newsletter which is optimized for each recipient. This means that the addressees receive all the information they need to help them to perform their tasks efficiently as quickly as possible, including experience reports from colleagues, for example. Last but not least, we make it possible for professional tradespeople to work productively with our digital services. In 2014, for example, we introduced the GLM floor plan app for tablets – an additional benefit for the Bosch GLM 100 C Professional laser measure. Using the app, professionals and planners can quickly and easily draw floor plans digitally on a scale of 1:50 instead of using a pencil and paper. In addition, the floor plans can also be imported in order to, for example, check that they are correct. This working method is efficient and prevents errors.

Successful marketing of innovation for do-it-yourselfers
Our innovative products have also enabled us to acquire more additional customers amongst do-it-yourselfers. The PLR 15 laser measure, for example, makes measuring simply simple, and not just for dedicated do-it-yourselfers – it is also the ideal tool for novices and for everyday measurements around the home.

This easy-to-use, self-explanatory tool – the PLR 15 – has therefore enabled us to broaden the entire market segment and further expand our market leadership in the area of measuring tools. Our success is also thanks to a multimedia campaign, in which we linked our TV advertisement closely to other activities in printed, online and social media, which was aimed at getting users interested in this innovation.

More and more do-it-yourselfers are accessing Bosch's mobile online services
Overall, increasing numbers of do-it-yourselfers are using our online services, especially via smartphone. In addition to our DIY website and the German Facebook page "Bosch Heimwerken & Garten Deutschland" (Bosch DIY & Garden Germany), our Bosch 1-2-do.com Community is recording a rise in user numbers: with over 100,000 members, it is the largest DIY community in Germany. The "MyBosch" service communications platform offers do-it-yourselfers information, services and expert advice from Bosch which has been tailored to meet their individual needs. The examples and figures relating to online services demonstrate that we are making extensive use of these online options – for inspiration, information and for dialog.

New multi-channel services for professional tradespeople and do-it-yourselfers
We will continue on this successful path in 2015 and, using new products and services, will fully exhaust the opportunities provided by the networked world. We are combining the benefits of stationary trade and the Internet, as well as promoting multi-channel marketing with new solutions – with products and services for both professional tradespeople and do-it-yourselfers.

“Bosch Premium Partners”: New app makes offering advice easier
Since the beginning of the year, we have been offering a new sales concept for the specialist market in the professional area – "Bosch Premium Partners" (BPP), to meet the requirements and needs of trade and users even more efficiently and faster. This concept replaces "Bosch System Specialists" (BSS) and includes an app for field service staff working in the retail trade. This means the staff can meet the user's needs more easily by quickly providing comprehensive information and advice. We are therefore solving an everyday problem: when a professional tradesperson asks for advice, they expect detailed information fast, as well as rapid and precise answers to their specific questions. However, up until now it has been very difficult for field service staff to meet this requirement since they move around off site with catalogs containing up to 50,000 items. This means that it is very difficult for them to always have all the detailed information about the many thousands of products on offer, the matching accessories or system solutions at their fingertips.

The app for "Bosch Premium Partners", however, now enables the retailer to obtain advice and process orders clearly, quickly and competently. At the touch of a finger, information and details about products, applications, accessories and system solutions are made available in a matter of seconds. In addition, orders can be forwarded directly to the branch, regardless of where the meeting with the customer takes place. With the new logistics package, "Bosch Premium Partners" can guarantee their customers rapid availability of tools and a flexible choice of delivery location: the desired Bosch tool is ready to use by the next day at the latest, either from a Paketshop or at the construction site. We therefore create a consistent customer experience for professional tradespeople – with excellent service, advice and logistics services.

“Bosch Experience Zone” combines a wealth of information and experience
Do-it-yourselfers can also benefit from networking – 80 percent of users search for information online before buying a product. However, 70 percent of purchasing decisions continue to be made at stationary outlets. For do-it-yourselfers, these are essentially DIY stores. They offer hands-on experience of the product, something which the customer is usually keen not to miss out on. However, the wealth of information provided online is what is currently missing from these stores. Bosch has now developed a solution for this, which satisfies both points of view – the "Bosch Experience Zone".

It is an enhancement of the successful "Shop-in-Shop" concept and combines the experience of a top quality goods presentation with an extensive range of multimedia services. The core of the "Bosch Experience Zone" is an easy-to-use touch terminal with a large screen, where the customer can call up all the information they want on products and applications. This terminal also provides an accessories finder, product advisors, promotion coupons and QR reader with a direct link to the product.

The "Bosch Experience Zone" additionally provides the customer with the option of testing Bosch tools themselves on the spot. Intensively trained Bosch advisors are regularly on hand to answer any questions. The customer can then make a purchase at the DIY store in the traditional manner at the checkout or online with home delivery. Thus the new "Bosch Experience Zone" provides a strong shopping experience, as well as inspiring confidence in and enthusiasm for the Bosch brand.

Forecast
The user has always been, and will continue to be, our focus. We will bring a number of new tools to the market again this year, with which we hope to inspire our customers. Here, we will focus on customized services at all contact points, particularly online. With this basis, we are well-placed to continue our success story in 2015.

Thank you for listening.

The Power Tools Division of the Bosch Group is one of the world’s leading providers for power tools, power tool accessories and measuring tools. In 2015, its roughly 20,000 associates generated sales of 4.5 billion euros, about 85 percent of which outside of Germany. With brands such as Bosch, Skil and Dremel, the division stands for customer focus and great engineering progress. The core success factors are innovative strength and pace of innovation. The division generated about one third of its sales in 2015 with products that have been on the market for less than two years. In 2016, Bosch Power Tools will again launch more than 100 new products onto the German market in its four business segments power tools, accessories, measuring tools and garden tools.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of 70.6 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at 118 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

Further information is available online at www.bosch.com and www.bosch-press.com, http://twitter.com/BoschPresse.

RF00250 - March 18, 2015

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