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Corporate strategy

TAKKT’s goal is to be the leading global B2B direct marketing specialist for business equipment. To accomplish this, specialized companies with different strengths are combined in a portfolio that is stable in the long-term, profitable and growth-oriented. The Group companies focus on the marketing and sales channels of print, online, tele and field as part of a multi-channel PLUS approach. 

Further information can also be found in the most recent annual report.

A key strategic issue for TAKKT in further development of the business model is digitalization. In addition, TAKKT wants to develop its position as role model for sustainability by the end of 2020. The strategic objectives of the TAKKT Group are presented in the following overview.                                 

Strategic goals
Grow profitably
  • Long-term sales growth by an average of ten percent per year – around half organically and half through acquisitions
  • An EBITDA margin of between 12 and 15 percent
Diversify risk
  • Significant contributions to sales on at least two continents
  • Diversified share of sales with the manufacturing, trade and service sector industries as well as government institutions
  • Balanced product range
Act sustainably
  • Industry role model for sustainability
  • Sustainability as “built-in” rather than an “add-on” in day-to-day corporate management

TAKKT aims to continue its profitable growth and increase its sales by an average of ten percent each year, with an EBITDA margin of 12 to 15 percent. Considered over a long period of time, around 50 percent of this growth is expected to be organic, with the other 50 percent developing through acquisitions.

Organic growth at TAKKT is driven by two initiatives.

DYNAMIC

As part of the strategic growth initiatives, TAKKT is especially focusing on expansion of the multi-channel activities. The reason for this approach is the observation that the behavior of the customer is changing worldwide. TAKKT is on the way to develop from a traditional mail order business to a multi-channel PLUS company in order to take the next logical step in the evolution of the business models. With this in mind,TAKKT had already developed a multi- channel concept as early as 2012 (multi-channel PLUS). This strategic concept mainly includes intensification of dynamic customer relationship management through different marketing and sales channels, targeted extension of the product range and expansion of the private labels.

The Group-wide growth and modernization initiative DYNAMIC, which follows from the multi-channel concept, mainly extends to the areas of purchasing, marketing, sales and IT and comprises around 40 projects. The goal of the initiative is to continue to achieve the targeted organic growth in the Group of four to five percent. TAKKT has identified seven important growth drivers as part of a decentralized process. The success of DYNAMIC is measured with the following indicators that reflect the development of these growth drivers.

 

DYNAMIC indicatorsGrowth drivers
Share of new products in order intakeTopicality and expansion of product range
Share of private labels in order intakeMore private labels
Share of direct imports in purchase volumeMore direct imports
Share of web-only products in entire product rangeExpansion of web-only products
Share of SEO in order intake via search engines

Profitable expansion of e-commerce activities
Share of e-commerce in order intakeGeneral expansion of e-commerce activities
Share of telesales/field sales activities in order intakeMore outbound calling & field sales

 

Intensification of digitalization activities

Looking forward, digitalization is the key strategic issue for us. This is why we are setting the course for a successful digital transformation. In times of fast-paced technological transformation, we see the constantly evolving customer needs and changes in the workplace both as a challenge and an opportunity. Digital technologies and new methods open new possibilities for TAKKT along the entire value chain. We see the potential for us to distinguish ourselves from the competition even more in the future, by impressing customers with innovative solutions.     

As a next step, we now want to accelerate digital transformation. We have developed a digital agenda and our Vision 2020 in the year 2016. This vision encompasses four goals: (1) We want to double our e-commerce business by 2020. (2) We strive to transform our organization in a step change by putting digital first and focusing on customer centricity. (3) We want to invest up to EUR 50 million in existing and new employees as well as in new technologies and (4) increase our organic sales growth in the medium term. We have defined six focus areas and initiated concrete measures within these in the six divisions of the TAKKT Group in order to make the digital transformation a reality.   

TAKKT strives to further diversify the risks of the Group and become more independent of economic influences. With customer groups, product ranges and regions, three levels are taken into consideration here.

At the end of 2016, we met an important interim objective: TAKKT is the role model for sustainability in the industry. We were able to achieve this by making sustainability an integral part of every area of our company and making progress in all focus areas. TAKKT’s single-tier direct marketing model generally offers clear advantages over trading systems with local stores. Shipping routes are optimized and emissions minimized due to the elimination of additional transportation steps. At the same time, since 2011 we have been working continuously to reduce the use of resources at all stages of value creation and be as environmentally friendly as possible.  

We see the possibilities of the growing digitalization as a clear opportunity to make processes even faster and more efficient. For example, systematic expansion of the e-commerce business has allowed us to increase the efficiency of customer-oriented marketing and save on resources at the same time by reducing paper use. We are of the firm conviction that long-term business success is not possible without sustainable action. We will continue to maintain the course we have adopted to see sustainability as an integral part of our company strategy. Our goal is to create a long-term balance between economic, environmental and social concerns in order to optimize the benefits for all stakeholders.   

Additional information on sustainability at TAKKT can be found here.