Featured Project-Evaluating and improving distribution network 2016-10-24T22:59:27+00:00

Our client is a Japanese machinery equipment manufacturer. After successfully placing its products in Turkey, we were invited to evaluate and improve its dealership network in the Philippines.

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Client Issues

Our client has been successfully diversifying and expanding its global market presence for over three years. TJT acted as a market research and business strategy execution consultant for the Turkish market. Market dynamics in these countries show similar technical characteristics, but there are substantial differences in regulations and customs. For the Philippines market a Japanese “shosha” (general trading company) had convinced our client to enter the market but later sales fell short of targets. There were issues with:

  • Dealer accountability and transparency
  • Fit and strategy
  • Local regulations

Our client has been committing resources to market its product in the form of seminars, trade fairs, direct visits and numerous marketing presentations. They wanted:

  • a re-assessment of the market potential for their product
  • a proper product positioning strategy
  • an assessment on the appropriate marketing and sales formula
  • an appropriate pricing strategy
  • an assessment of the dealer network

TJT Solution

We met with the dealers, talked to the regulators, and visited some potential client facilities to understand how the current network was planning to deal with the various issues. We recommended that:

  • dealer network should reengineer itself from sales to market development
  • regulatory issues should properly addressed and a new approach should be devised to create competitive advantage
  • an analysis of alternative and parallel marketing venues should be done
  • clear milestones and targets should be devised and imposed
  • communication should be improved
  • the product application should meet local distribution and supply chain dynamics
  • competition dynamics should be understood

Key and Additional Benefits

We engaged our dealer network in a constructive discussion and reengineering process. We worked together to improve perception among local decision makers  towards our product. As a result local professionals and key decision makers accepted us as an eligible supplier. We repositioned ourselves as a unique device maker offering many additional benefits in excess of the basic requirements, at the same cost. We re-engineered our dealer network with clear milestones and targets.