bDistributor Search and Evaluation

On the basis of the market analysis and knowing about two active major purchasers in Russia, Meier ProTools decide to continue their cooperation with distributors, also taking into account the two already existing partners. The company now needs to consider whether they want to expand their distributor network or whether they want to focus on one or only a few chosen distributors. The latter would ensure exclusivity and it would enable segmentation by regions and markets (B2B and B2C).

At this point, Sergey Frank International checks Best Practice from other, comparable foreign markets. This includes:

  • Distribution partnerships with other, non-competing suppliers in the relevant sector
  • Listings in retail/DIY markets which are already offering the company’s products in other countries
  • Transfer of an existing cooperation with a distributor in other markets onto the Russian market
  • Analysis of existing purchasers as possible distributors
  • Identification of possible further distributors

The five additional distributors, which have been selected after a thorough analysis and further discussions with Meier ProTools, and the two already existing distributors are eventually being subjected to a comprehensive evaluation to make sure that they match the requirements of Meier ProTools.

Following this analysis, Meier ProTools decide to terminate their cooperation with one of the existing partners and to acquire four new distributors. Sergey Frank International also carries out a due diligence review (through a cooperation partner) and defines all the necessary interfaces, e.g. the right contact person at headquarters for the distribution partner.

Additional information on Meier ProTools GmbH

The medium-sized family company Meier ProTools GmbH with altogether 230 employees and a global turnover of 110 million Euro produce and sell professional power tools such as jack hammers and concrete grinders for the B2B sector as well as electric tools for end-consumers in the B2C sector. Meier ProTools are already manufacturing in Germany, Poland and Great Britain with products being sold through twelve sales and service offices in Western Europe and the USA. These are also the main export markets, with exports accounting for currently 40% of the overall turnover. In Russia business is running on a relatively low level via two distributors.

Meier ProTools are planning to increase their international activities and are considering a market expansion in Russia and entries into other growth markets at a later point. In order to evaluate the economic feasibility of such an expansion, Sergey Frank International carries out a comprehensive analysis of the target markets and accompanies Meier ProTools on their way into the new foreign markets.

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