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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