cSales Optimisation

After having acquired several suitable distributors, the turnover of Meier ProTools increases, especially in the bigger B2B sector. The customers’ feedback regarding quality and service is continuously good.

Therefore, the company’s top management decides after three years to establish a subsidiary in Russia and to assemble the products on site to optimise distribution and cost. This means that components such as know-how, patents and others will be provided by German headquarters, whereas components like bodies, cables and contacts are being sourced in Russia. This way prices can be reduced by 20% and the products can be made more competitive. Also, additional market potential may arise as the company can now participate in public tenders/PPP projects due to the now existing “local content”.

It is Sergey Frank International’s task to find and evaluate suitable partners or to, alternatively, analyse possible production sites. The comprehensive research focuses on geographical possibilities for a new location, the prevalence of suitable technical staff and local price and salary levels. The subsequent strategic consulting concentrates on the foundation of a subsidiary and discusses the possibility of licence production vs own manufacture/assembly.

Sergey Frank International helps Meier ProTools establish their own subsidiary and start a production partnership, including a due diligence via a cooperation 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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