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Case Study

Building a distribution and dealer network in China

Reconstruction and  re-alignment of sales division for a mechanical engineering company

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Company Details

  • Production company in Tianjin, sales company in Shanghai, after-sales company in Tianjin, main production in Germany 2 production sites
  • 12 sales staff, sales decreased in past years from 30 units (2018) to 7 units (2021)
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Situation and Challenge

  • Drastic decline in sales figures, sales staff without motivation
  • No visible leadership of sales team
  • Damage caused by former director of sales (larceny, corruption, etc.)
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Objective and tasks

  • Reconstruction and re-alignment of sales division, evaluation of existing team, recruitment of new sales staff
  • Search, selection, and training of dealers (sales and after-sales)
  • Creation of sales division Dongguan, hire-and-train, management as a profit center, creation of repair shop
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Measures and Approach

  • Presentation of concept at parent company incl. CEO, assuming personal responsibility for Dongguan sales division
  • Definition of parameters for dealers, preparation of contracts, personal interviews with executives
  • Selection interviews, training program for sales staff, technical training for dealers,
  • New guidelines and incentive schemes for successful after-sales, motivational program, dismissal of corrupt staff
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Results and Achievements

  • Sign-off of parent company for direct sales concept via dealerships in China
  • Selection of 4 potential new sales staff, new dealership parameters: compulsory purchase of 2 machines per dealership
  • Found 1 qualified after-sales dealer and 20+ potential new dealers across China: planning, contact, travelling recce team, selection
  • Contracts and training schemes defined, selection criteria and task lists, definition of timelines

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