Stage 1

Our Competitors

30 Slides

Our Competitors Overview

Who are Our Competitors?

Market Awareness

Route to Market

Margin Makers

Terms & Discounts

SWOT Analysis

Who are our Competitors?

The roof window industry is a highly concentrated market with a clear market leader. The powerful branding of Velux has created such a strong association that for most consumers a typical roof window is commonly known as a 'Velux'.

Alternative brands have entered the market over the years to offer competitive solutions at a variety of price points. Today the UK market is dominated by Velux, Keylite & Fakro.

Velux

• Current Market Leaders

• Danish Manufactured

• Established for over 75 years

• Manufacturing & Sales operations in more than 40 countries

• 2.5 billion annual turnover

• 170 million UK & NI turnover

• 10,000 employees worldwide

• Perceived as dominant

• Win orders through architect specifications and public recognition of the brand

Fakro

• Polish brand

• Manufacturing and Sales Operations across 12 countries

• Established for over 25 years

• 200 million annual turnover

• 6 million UK & NI turnover

• 8 million ROI turnover

• 3300 employees

• Win orders through buying groups specifically on price and specification

Dakea

• Danish brand

• Budget brand created by Velux to drown out competition in the market

• Established for 7 years

• Manufacturing and Sales Operations across 12 countries

• Installer reward scheme guarantees up to £5.00 cashback to the roofer for every Dakea window installed

• Perceived as the budget window

• Win orders through Velux

The Rooflight Company

• Bespoke design service

• Manufactured in the UK

• Established 25 years

• < 2 million annual turnover UK only

• 70 employees

• Weak brand awareness, expensive products

Roto

• German Brand

• Manufacturing & Sales Operations in more than 20 countries

• Established for over 40 years

• 600 million annual turnover

• 2 million UK & NI turnover

• 1200 employees across Europe

• Not a significant competitor in the UK as they do not have a direct route to the UK market, however have a strong presence in Europe

Market Awareness

Market Awareness

The concentration of the UK roof window market is highly competitive between Keylite and Velux, offering high quality products at comparable price points. Although at Keylite, we are marketed as less expensive, we do not want to be perceived as an inferior quality alternative.

Quality

Price

Market Awareness

The presence of these competitor brands will have areas of strengths across the UK. It is essential to understand the concentration of the competition within each sales area. This will help Area Sales Managers when approaching their customers by identifying the key selling points within their local market.
 

Eg. Where a particular location has a high presence of Velux, Keylite would focus on conversation with end users to create new demands in local markets and generate new business for Keylite stockists.

Route to Market

Route to Market

Identifying the variety of routes to market helps our Area Sales Managers understand not only the competition within their areas but also the channels which supply their local market. It is important to be mindful of where customers may search to find the best products at the best price for them.

Route to Market

As well as understanding the variety of every route to market, ASM's should also be conscious of the many ways sales are driven. Every route which transpires into orders, is a method that Keylite can use to their advantages.

Eg:  Specification

       Price

       Ease of installation

       Product Quality

       Manufacturing lead times

       Availability of products

       Product Guarantees

Focusing on all areas will maximise sales opportunities and drive Keylite's exposure in the roof window market.

Margin Makers

Keylite stockists can earn up to 50% greater margins upfront as this is taken into account with our pricing structure.

This shows the 2019 breakdown for a White Painted, 780x980mm, Centre Pivot, Manual Roof Window.

See below our customer breakdown based on a PVC, Centre Pivot, 780x980mm, Thermal roof window with a Tile flashing to suit. Distributing our Polar roof windows achieve the greatest margins for Keylite stockists.

Terms & Discounts

Buying Groups

The terms and discounts Keylite customers are eligible to receive will vary based on business capacity generated through our individual customers. Merchants can often be part of large buying groups, in this case their terms are predetermined and consistent for all companies who purchase through the same account. Many of Keylite's largest customers are part of one of the examples below.

Discounts

The majority of our competitors follow the same procedure where an agreed level of discount is given from a published list price. Some competitors provide high levels of discount which Keylite cannot and will not compete with, due to our higher quality product offering.
​

The market leader has a slightly different approach. All their customers receive the same discounts according to their six point tiered buying structure.

Rebates

Rebate structures vary dependant on the roof window manufacturer. For example, Velux reward their customers by giving increased rebates based on a 6 point loyalty scheme. Keylite stockists will earn greater margins upfront selling our roof windows in comparison as this is taken into account with our pricing.

Online

When a customer purchases their Keylite roof window via our website, the closest geographical merchant will benefit from this sale.
 

Anyone from a trading customer to a homeowner can purchase from our online
store, however the level of discount received
will remain the same across all transactions.

Keylite's current online roof window discounts are as follows:

• Polar - 22%
• Timber - 25%

Online

Velux do not include merchants in their online sales, they provide 29.5% discount on their roof windows online which is also available to every customer.

Fakro's online system operates similarly to Keylite's where the merchant will receive a percentage of each transaction. Fakro currently offer 25% online discount.

SWOT Analysis

Strengths

• Excellent customer service
• Award winning business
• Responsive technical and aftersales services
• Unique innovative solutions to maximise ease of installation
• Large product variety available Next Working Day for stockists
• Builder's merchants achieve greater margins selling Keylite
• Strong engagement with market
• Committed to merchants
• Ability to make quick decisions to support customers

Weaknesses

• Weak brand recognition amongst specifiers
• Weak brand awareness amongst general public
• High demand to 'keep up' with new solutions and technology released by market leader
• Perceived to be the cheaper alternative not a quality alternative
• Heavy focus on lower price point to win orders rather than USPs to win lasting customers

Opportunities

• Currently supply to 12 countries worldwide whilst also emerging into new markets
• New patent opportunities
• Build on relationships with national house builders
• Focus on alternative routes eg. targeting architects not just merchants
• Engage more with builders/installers to build brand awareness
• Communication of installer benefits

Threats

• Competing against extremely strong market leader
• Too reliant on merchant relationships to sell our products
• Budget roof window brands for customers solely purchasing on price
• Increased building regulations, essential to withhold verified
• Rapid growth can strain production capacity

Quiz

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