09/05/06

Selly 2006 for the Würth Group

Winner of the new award of the German Marketing Association determined. "Selly" - the brand-new award for top selling performance goes to the Würth Group. The way it combines strategy and sales is "best practice", passion for selling and decisive for its success.

The reasons given by the jury:

The word "to sell" forms the stem for the word Selly, the new award which will from now on be presented annually by the German Marketing Association (DMV) for outstanding selling performance in the framework of a holistic marketing strategy. With Würth as the first winner of the award the jury has chosen a company which implements this idea as successfully as hardly any other company. In addition, it stands for a lively selling culture.

As world market leader for assembly and fastening technology Würth has written a continuous growth story and, according to the preliminary Group statement, managed to increase its sales by 11.1 percentage points to a new record of EUR 6.89 billion. In Germany, Würth also grew by 9.6 percent to EUR 2.77 billion.

An important key figure for the success of the Würth Group is the compound annual growth rate, that is the average sales growth per year. Between 1954, the year in which Prof. Reinhold Würth took over the company, and 2005 this value amounted to 25 percent.

"The core competence of Würth is selling", Prof. Reinhold Würth, whose life's work has been to turn the Würth Group form a local supplier to a global player, tends to say. The jury was impressed by the ability of the company, to keep the management concepts simple and apply them to an organization which is kept decentralized on purpose. Würth is now represented in 82 countries, consists of 358 actively selling companies, and continues to grow. By presenting the Selly award to Würth, the jury would like to express how important the human being will be in the sales of the future. Over 50 percent of the nearly 52,000 employees of the Würth Group work in sales. In 2005, Würth increased the number of sales representatives by 5.4 percent to almost 27,000. Since the year 2000, the company has stepped up the number of its sales representatives by 60 percent. The way for this development was paved in 2003, when Würth was in a phase of consolidation and decided, against the backdrop of a difficult market environment, to invest a great deal in the extension of the global sales network. According to the jury, this was not only courageous but also innovative in a Würth-like way, against the backdrop of the change of paradigm towards electronic sales platforms.

Würth has created a growth-oriented corporate culture in which not only products, services and the brand are in the management's focus but also the sales management, its organization and how to give them incentives and motivation. Sales is the top discipline of the Würth Group - the sales representatives are the most important employees. The company sucessfully refuses to follow management fashion and uses technology and media only in those areas in which it seems sensible. Direct selling will remain the core business of the company.

A central instrument of representation both within and outside the company is sport sponsoring, which has been pursued consistently in the Würth Group since 1977. Inspired by its own corporate culture Würth exclusively sponsors team sports, which set themselves apart by dynamism, performance, precision but also by courage and modern technology. The Würth brand can be found in cycling, football, car racing as well as in Nordic skiing and thus becomes more well-known and popular. In addition, Würth makes use of this commitment to promote its sales performance, by using the sport events to tie the customers to the company and give incentives to the staff.

Although the persons responsible turn to the potential of the Würth brand to a greater extent in order to define new fields of growth, this does not alter the basic principle of steering the entire organization towards successful sales. At a time, at which many companies look for more efficiency and effectiveness when working the market, Würth is a best-practice example when it comes to implementing the corporate strategy which is unique in its kind in Germany.