gino sa distribution channel management
TRANSCRIPT
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GINO SA:DISTRIBUTION CHANNEL MANAGEMENTCASE STUDY
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Current Scenario
• Gino SA manufactures burner and sells via distributor’s channel.
• 95% of Gino’s burners are sold by three main distributors.
• Distributors began to bargain more for better prices and lower quotas.
• Feima, a leading boiler approached Gino for direct sales- A profitable deal for Gino
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BUT……
Being the leading distributor of Gino and hence Feima, Jinghua OPPOSED the offer.
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GINO HAS A DECISION TO MAKE
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Should Zhou, Marketing manager of Gino ACCEPT Feima’s OEM business offer ?
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OR..
Should Zhou, Marketing manager of Gino REJECT Feima’s OEM Business offer?
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Is there a solution that satisfies BOTH: the distributors and also helps to achieve Gino’s
long term OEM goal?
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Issues to be considered while coming to a Solution:
• Revenue & high profitability
• To determine a win-win situation
• Control distributors bargaining power
• Achieve long term goal of penetrating into industrial segment
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LET US ANALYSE ALL THE POSSIBLE ALTERNATIVES….
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1. DECLINE FEIMA’S OFFER
• Strengthen distributor-manufacturing relationship.
• Increase in distributor power.
• Heavy loss of opportunity in Industrial segment.
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2. ACCEPT FEIMA AS JINGHUA’S CUSTOMER
• Increased unit sales.
• Relationship with distributors strengthened.
• Decreasing power of distributors.
• Loss of potential OEM
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3.DEVELOP FEIMA AS OEM
• Increased unit sales through Feima.
• Decreased distributor power.
• Disappointed Jinghua(Distributor).
• May leave a negative impact on other distributors too.
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So we can conclude that…
Accepting Feima as Jinghua’s customer leads to maximum profitability.
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These slides were created by Ila Singh as part of an internship done under the guidance of Prof. Sameer Mathur
(www.IIMInternship.com)