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Case Study

Development of a sales and dealer network in China for a mechanical engineering company

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Development of a sales and dealer network in China for a mechanical engineering company

A mechanical engineering company was suffering from a drastic drop in sales and a demotivated sales team. By rebuilding the sales department and creating a dealer network, new sales staff and after-sales dealers were recruited and contracts and training programs were implemented. This led to a significant stabilization of the sales structure and the parent company’s approval for direct sales via dealers in China.

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Company Details

  • Production company in Tianjin, sales company in Shanghai, after-sales company in Tianjin​
  • Main production in Germany with 2 production sites​
  • Sales team consists of 12 staff, sales declined from 30 units in 2018 to 7 units in 2021​
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Situation and Challenge

  • Drastic sales decline, demotivated sales staff​
  • Lack of visible sales leadership​
  • Damage from former sales director’s misconduct (larceny, corruption)​
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Objective and tasks

  • Reconstruct and realign sales division, evaluate existing team, recruit new sales staff​
  • Establish and train dealership network for sales and after-sales services​
  • Create profit center sales division in Dongguan, including repair shop setup​
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Measures and Approach

  • Present concept to parent company, assume personal responsibility for Dongguan sales division​
  • Define dealer parameters, prepare contracts, conduct interviews with executives​
  • Select and train new sales staff, provide technical training for dealers​
  • Implement new after-sales guidelines and incentive schemes, dismiss corrupt staff​
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Results and Achievements

  • Parent company approval for direct sales via dealerships in China​
  • Identified 4 potential new sales staff, set dealership parameters​
  • Established qualified after-sales dealer and identified over 20 potential new dealers across China​
  • Defined contracts, training schemes, selection criteria and timelines​

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