The unprecedented economic downturn that marked 2009 was followed by positive challenges in 2010, with the market seeing a quicker upturn than expected and with countries within the APAC region seeing positive GDP growth.
Cummins Power Generation benefited as distributors and delivery partners rode on the market upturn, lending great support to the business. Within 2010, we have invested heavily in Sales Training (STAR program), Low kVA incentive program (BOLD), Customer/Consultant seminars, Digital marketing initiatives, and Customer Service Excellence (CSE) program. These investments prove to be valuable in return value, which has already begun to show in 2010.
The BOLD program has produced good results, with significant growth in low kVA sales compared to 2009. We have also penetrated the Telecom sector in key countries in the region (such as Vietnam, Thailand, etc.). Rental sales saw improvement, as did Q78 generator sales in Singapore and the South Pacific. Marketing activities and the Thailand Pilot program (for Dynasty products) have seen success. We have also retained our market leadership position in the high-horse power segment in the region.
Cummins Power Generation has traditionally been conservative in Advertising & Promotional work (A&P) and training expenditures. Looking ahead to 2011, we will however continue to work with distributors to further enhance these areas, as they are being re-emphasized as key drivers to business growth.
Moving forward, Cummins Power Generation is also expecting an increasingly challenging year with stronger competition. Market forecasts suggest that, while 2011 will see more positive GDP growth for countries in this region, this growth will take place at a much gentler rate.
I am confident that we will continue to keep the momentum going by working closely with the distributors to navigate through the hills and valleys.
Once again, on behalf of Cummins Power Generations, I congratulate all our distributors on a job excellently done in 2010. I take this opportunity to wish you and your family a great year ahead!
Director, Cummins Power Generation
Commercial Product Business