aMarket Analysis and Strategy

Sergey Frank International is being commissioned to analyse the market potential for customers from the B2B as well as B2C sector in Russia. The analysis is meant to describe the Russian market for construction as well as drilling equipment in the construction business (B2B) and in the DIY sector (B2C). Furthermore, it is meant to identify the existing structures in both sectors, to give an overview of current competitors and to analyse market potentials.

In order to gain detailed information about current sales, including turnover, competitors, possible purchasers etc, a preliminary meeting between Sergey Frank International and the management of Meier ProTools is being held at the client’s headquarters.

Sergey Frank International then analyses the market situation and competition in the construction business and DIY sector and breaks down and interprets the data deriving from this first analysis.

The result shows an estimated market volume which would be by far bigger than the current turnover in Russia. Compared to the volume of other markets (Germany, Western Europe, USA), Meier ProTools could increase their turnover in Russia by the factor 5. For this reason, the company decides to become more active on the Russian market. This leads to some strategic questions regarding the sales organisation, e.g. whether it would be feasible to work with additional or other distributors or whether it would be more effective to organise direct sales through an own subsidiary.

On the basis of a comprehensive SWOT analysis, which takes criteria such as price, quality and service into account, Sergey Frank International develops an action plan for both possible scenarios (cooperation with distributors and foundation of a subsidiary). If, on the one hand, Meier ProTools decide to work with distributors in Russia, suitable partners will have to be found. If, on the other hand, they are planning to establish their own organisation in Russia, a couple of legal, financial, administrative and logistic questions will have to be answered. These answers would be provided by selected experienced cooperation partners of Sergey Frank International.

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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