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8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Building and sustaining an international distrib
network
Pekka Santanen
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Market entry – evaluating mode
Indirect export
Outsourcing
Channel sales
Direct export Online-sales
Joint Marketing
Join Venture
Direct investment
Engagement, control
Investment risk
Source: Adapted from Ahokangas & Pihkala
Licensing
Franchising
High
Low High
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Improving thMarket Positi
Establishing thePresence
Planning theMarket Entry
Preparing theGrowth
AcquisitionCandidate
Search
MarketMonitor
SalesAccelerator
Entry Options Partner SearchInternationalGrowth Plan
Test Drive
Right Markets
Sales ChannelDevelopment
Direct Sales
Establish
Company
SupplierEvaluation
Export PartnerGroups
Trend Pulse
Phases of internationalizatio
© Finpro
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Improving the
Market Position
Establishing the
Presence
Planning the
Market Entry
Preparing the
Growth
Company’s internationalization process
Company’s business growth path
Growth curve of an internatioCompany
© Finpro
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Improving thMarket Positi
Establishing thePresence
Planning theMarket Entry
Preparing theGrowth
AcquisitionCandidate
Search
MarketMonitor
SalesAccelerator
Entry Options Partner SearchInternationalGrowth Plan
Test Drive
Right Markets
Sales ChannelDevelopment
Direct Sales
Establish
Company
SupplierEvaluation
Export PartnerGroups
Trend Pulse
© Finpro
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Pekka Santanen
Work experience:
•
Rauma Repola• IBM
• Setec
• Sonera
• iCare Finland
• Navicore
• 4TS Corporation• Finpro
• Image Soft
Education & training:
• M.Sc. International Eco
• MBA, Corporate Strateg
• CMC - Certified ManagemConsultant
• Diploma in InternationBusiness Administration
• IBM Sales School
• High school examinati• Columbian High School
• Pohjois-Haagan Yhteisk
• Military service: Field Se
• International sports c
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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• Based in Pohjois-Haaga, Hels
• Est. 1990 with moderate gro
•
Simulators for maritime tra• Customers: maritime institu
shipbuilders, navies
• Focus in Europe, Middle East
• Also solutions in defence t
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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The basic elements of (any) busin
Ouroffering
Potentialcustomers
Oursolution
Competitors’solutions
Benefits
of oursolution
Customerneed
SEGMENTATION
COMPETITIVE EDGE
VALUE PROPOSITION
- Who benefits the most of o
- Competitive positioining, Di- Unique Selling Points
- Strong & measurable cost badditional income- Functional, emotional, sym
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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If you don’t know where yare going you will mostprobably NOT get there.
… or you just might, by accident
Alice in Wonderland meets Chesir
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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It is a jungle out there...
Blurryplans
Partnermismatch
Short termpriorities
Lack of
resources
Lack ofskills
Inaccuratefocus
Unclearoffering
Ambiguousgoals
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Building … and sustaining a distribnetwork
Mappingcustomer
needsMarket
data
Valueprop. to
customer
Valuechain
Partnercriteria
Practical tools:- Partnership
Donut- Joint Marketing
Plan
Roles andresponsibilit
ies
Partner’s
earningmodel
Building Sustain
Ouroffering Value
prop. topartner
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Selecting a business partner
A Partner is a Partner is a
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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A Partner is a Partner is aPartner?
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Selecting a Partner
Ideal partner profile:
© Finpro
• Partner’s target (customer) segment?
• Partner’s product portfolio?
• Partner’s Sales & Marketing capacity?
• Partner’s resources?
• Partner’s skills & competences?
• Partner’s reputation?• Partner’s motivation?
• Partner’s long term commitment
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Sustaining a Partner
Ideal Principal:
• Our target (customer) segment?
• Our product portfolio?
• Our Sales & Marketing capacity?
• Our resources?
• Our skills & competences?
• Our reputation?• Our motivation?
• Our long term commitment?
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Partner donut
Division of t
• Who does wh
• Rights?
• Liabilities?Warranty
service
calls
Help desk
7.
Deliveryand installation
6.
21.
2.
3.
4.
8.
5.
Lead generation
and management,
Marketing activities
F2F sales contacts
- product presentations
- demo units
Quotation withSpecifications
Negotiations
Deal closing
Ordering
Client relationship
management
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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Building a Joint Action Plan
• Turnover / sales goal for the PartnerTurnover
• Agreed in the ContractTarget market
• Which segments should the Partner activelyapproach – which ones not
Target segment /customers
• Partner’s appointed sales resources to usSales resources
• Partner’s appointed technical resources to
usTechnicalresources
• Division of responsibilities and tasks (brandbook, marketing material, resourcing etc.)
Marketingmaterial /resources
• List of Grand Slams and local events
(according to previous) – Annual ActionPlan, Vuosikello
Activities
• How the activities are fundedBudgets
• Reporting procedures, partner managementprogram
Relationshipmanagement
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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The channel does not sell – selected ex
• Product related• Lack of competitiveness• Deficient product related services• Unappealing sales argumentation
• Principal related• Poor partner selection criteria• Stumbling in getting started• Poor management of the
partnership
• Partner related• Bad partner profile• Partner’s business model / culture
• Poor motivation• Competing products in portfolio
€, $, £
8/19/2019 Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf
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The channel does not sell…
80% are Principal relatedreasons
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Bonus topics
• Contracts, contracts, contracts
• Channel development in the long run?• Cost pressures• How to measure success
• Reseller paradox
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Cases
• 4TS: Segmentation
• Navicore: Channel evolution
• North Force: Adapting to market requiremculture
• PowerKiss: Positioning in the value chain
• Gymstick: Ideal partner case
•
Valtavalo: Strong value proposition• Aimo Kortteen Konepaja:Segmentation, Right Market
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Thanks so much
040-1391204
mailto:[email protected]:[email protected]