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    Group10 Gino

    Uploaded by

    Sadhana Venkat
    Gino is facing a decision about whether to accept an OEM partnership offer from Feima or maintain its existing distribution relationships. It must consider responses from distributors, competition, management goals, and solutions to potential challenges. The key options are: 1) Decline Feima's offer to avoid upsetting distributors, 2) Accept the offer to enter the industrial market and boost sales, or 3) Offer Feima a discount through an existing distributor to satisfy both parties. After analyzing advantages and disadvantages, Gino decides that accepting Feima's offer is the best choice as it aligns with its long-term strategy and goals.

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    Group10 Gino

    Uploaded by

    Sadhana Venkat
    122 views13 pages
    Gino is facing a decision about whether to accept an OEM partnership offer from Feima or maintain its existing distribution relationships. It must consider responses from distributors, competition, management goals, and solutions to potential challenges. The key options are: 1) Decline Feima's offer to avoid upsetting distributors, 2) Accept the offer to enter the industrial market and boost sales, or 3) Offer Feima a discount through an existing distributor to satisfy both parties. After analyzing advantages and disadvantages, Gino decides that accepting Feima's offer is the best choice as it aligns with its long-term strategy and goals.

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    GINO - B2B

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    Gino is facing a decision about whether to accept an OEM partnership offer from Feima or maintain its existing distribution relationships. It must consider responses from distributors, competition, management goals, and solutions to potential challenges. The key options are: 1) Decline Feima's offer to avoid upsetting distributors, 2) Accept the offer to enter the industrial market and boost sales, or 3) Offer Feima a discount through an existing distributor to satisfy both parties. After analyzing advantages and disadvantages, Gino decides that accepting Feima's offer is the best choice as it aligns with its long-term strategy and goals.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    122 views13 pages

    Group10 Gino

    Uploaded by

    Sadhana Venkat
    Gino is facing a decision about whether to accept an OEM partnership offer from Feima or maintain its existing distribution relationships. It must consider responses from distributors, competition, management goals, and solutions to potential challenges. The key options are: 1) Decline Feima's offer to avoid upsetting distributors, 2) Accept the offer to enter the industrial market and boost sales, or 3) Offer Feima a discount through an existing distributor to satisfy both parties. After analyzing advantages and disadvantages, Gino decides that accepting Feima's offer is the best choice as it aligns with its long-term strategy and goals.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13
    At a glance
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    Decision making requires considering multiple factors from different parties and analyzing all aspects before choosing the best option to increase sales and profits while aligning with management strategies.

    The market is segmented into domestic, commercial and industrial markets. Gino SA has significant penetration in domestic and commercial markets but poor penetration in industrial markets. Feima has approached for OEM status but the main distributor Jinghua opposes this deal aggressively.

    Resolve conflicts with distribution channels, decide on giving Feima OEM status, increase annual combined and industrial burner sales, develop OEM accounts, improve spare parts and supply, and build the brand image.

    GINO SA : Distribution Channel Management

    B2B Marketing
    PROBLEM STATEMENT

    Zhou has to decide whether Gino needs Feimas OEM business based in the following
    aspects:
    Response from distributors
    Competition
    Ginos management
    Feimas response
    Solutions to face
    GINO BURNER CO.

    Founded in 1931, manufacturer of burners, headquartered in Paris, France


    Three competitive edges:
    In-house production capability
    Well-established channel network
    International exposure

    Largest burner manufacturers and exporters in the world


    GINO - FUNTIONING
    Segmentation:
    Domestic boilers
    Commercial boilers
    Industrial boilers
    Distributor Functions:
    Credit
    Stock
    Sales & Service
    Pricing:
    Transfer price
    Base price
    Public price
    Contract price
    SWOT ANALYSIS

    Strengths Weaknesses Opportunities Threats

    Market leader Poor market China Lose of


    Financially penetration emerging distributors
    stable No direct market Presence of
    International sales force Industrial large local
    presence Total segment distributors
    In-house dependence expected to with political
    production on grow by 20% connections
    distributors annually
    CURRENT SCENARIO
    Market is segmented into 3 parts: Domestic, commercial and industrial
    Significant penetration in domestic range market and also impressive in
    commercial range but poor in industrial markets
    Feima boilers have approached for getting OEM status
    Feima is a customer of Jinghua hence opposing the deal aggressively
    Companys global distributor meeting with the director of commercial
    department of Gino burner
    GOALS

    Resolve conflict with distribution channel


    Decide whether to give OEM status to Feima
    Increase annual combined sales
    Increase annual sales of industrial burners
    Develop OEM accounts
    Improve spare and supply
    Build brand image
    DECISION 1 DECLINE FEIMAS OFFER

    Advantages:
    Maintain good relationship with distributor
    Retain competitive advantage
    Disadvantages:
    Forgone revenue from potential sales
    Opportunity cost in lucrative industrial segment
    Increase in dependence distributor power
    DECISION 2 ACCEPT FEIMAS OFFER

    Advantages:
    In-line with management strategy
    Penetrate into industrial market
    Resolve warehouse issues
    Increase in overall sales and profitability
    Disadvantages:
    Channel conflict difficult to convince distributors
    DECISION 3 OFFER DISCOUNT TO FEIMA THROUGH
    JINGHUA

    Advantages:
    Satisfy both parties
    Can work further on manufacturer-distributor relations
    Disadvantages:
    Not aligned to Ginos strategy
    Other OEMs distributors fight for margins
    Distributor power increases further
    Overall margin of industry will be impacted
    FINAL DECISION

    Decision 2 is recommended
    Completely aligned with long term business strategy and achieves target of 200 industrial
    burners
    Jinghua can compensate 10% discount by its additional sales
    Warehouse will have industrial burner inventory
    KEY TAKEAWAYS

    Decision making involves considering multiple factors, multiple parties and multiple
    aspects
    In B2B, impact of decision making is huge
    Intensive analysis of every side is required before a choice is made in B2B
    Good and wise decision making should result in increase sales & profitability along with
    alignment of key management principles
    THANK YOU

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