Channel Review in Thailand for Heavy Machinery Manufacturer

Client Overview

This is a case study of a channel review in Thailand for a European Heavy Machinery Manufacturer.

Client had appointed a local distributor in Thailand several years ago. The distributor became complacent and relied on a few existing clients. The distributor was not transparent in sharing available market information and tried to keep the principal in the dark. At the same time distributor’s aftermarket sales performance fell below expectations. Some end-customers also complained about overpriced spare parts, leading to grey imports and the use of unlicenced spare parts. Many of the existing customers complained about the lack of response by the distributor. Other potential customers did not want to approach the distributor due to its negative reputation.

Our Solution

In the first phase of the assignment, Asian Insiders conducted an in-depth analysis covering the construction industry. This included both industry specific data as well as government data and statistics. The study was complimented by a number in interviews with end-customers and industry experts. The combination of all data was then used to develop a client specific addressable market size model. This dynamic model predicted a five-year addressable market for the company.

In the second phase of the review, Asian Insiders assessed potential distributors filtering down to a shortlist of six companies including the existing distributor. These companies were visited on site and interviewed. Based on the interviews and the assessment reports, the principal met the existing distributor as well as two additional candidates. The principal decided to move the distributorship to another of the shortlisted candidates.

Results

The final report and the dynamic addressable market size model was used as the foundation for the client’s five-year strategy. Following the appointment of the new distributor, new sales increased in a matter of months with positive feedback from existing clients towards the new distributor.

Following the channel review in Thailand, the client has initiated similar projects in other parts of Asia. Asian Insiders remain a trusted advisor to the company’s management.

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