Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf

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


2/22

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


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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


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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


5/22

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


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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


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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


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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


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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


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It is a jungle out there...

Blurryplans

Partnermismatch

Short termpriorities

Lack of

resources

Lack ofskills

Inaccuratefocus

Unclearoffering

Ambiguousgoals


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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


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Selecting a business partner

A Partner is a Partner is a


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A Partner is a Partner is aPartner?


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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


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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?


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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


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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


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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

€, $, £


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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

[email protected]

040-1391204
mailto:[email protected]:[email protected]

Documents

Building and sustaining an international distribution network HANDOUTS - Haaga Helia 160915.pdf