Chapter 6 Channel Participants Selection Case Study Joyang was initiated in 1993 in Jinan,Shandong Province,a private enterprise which specializes in the production of kitchen appliance.It has never met a powerful competitor since its first beancurd machine in 1994.To develop the market,it set its offices,which turned into exclusive distributions in Here are selection criteria as followed: a)The exclusive distributor must be professional and have sense of identity of the company and its products. b) The exclusive distributor must be capable of expanding the market. c)The exclusive distributor must have sound finacial condition or widespread and nice social relationships. d)The exclusive distributor must be sympathy with the companys product categories. Currently the effect is remarkable with getting contracted with some 160 distributors. When to Select Channel Members a) The last step of channel design b) Modifying & Expanding the market c) Out of credit inspection when the company inclines to design intensive distribution channel Source of Channel Members a)The enterprise can hire sales personnel by himself or ge t recommended by the current brokers. b) Business approach(Trade Organization/Publication/Pho nebook /Commercial Exhibition) c) Enquiry through the Internet d) Customers e) Other approaches(advertisement/waiting for voluntary i nterested contact/acquaintance recommendation/hiring co mmission brokers to find the distributors) Channel Members Seletion Criteria Market Scope (Geography/Customers) Products Knowledge & Structure Sound Financial Condition & Service Capabilities Cooperation Level & Reputation Selection Method Channel Members Seletion Methods a)Forced Decision b) Sales Analysis c) Selling Expenses Analysis d)Breakeven Analysis Total Expense Comparison Expenses Comparison Cost-effectiveness Analysis Selecting the Retailers by Weight Grade Method Evaluation factor Weight Number Retailer 1Retailer 2Retailer 3 score Weight Score Score Weight Score Score Weight Score Geographical Location Operation Scope Customer Flow Market Reputation Cooperation Spirit Information Communication Payment Settlement Total Score Identify the Channel Members &Assignment Signing the contracts is a symbol of establishment of channel cooperative relationship. The negotiation includes Sales index Price policy Payment terms Coverage of distributors and regional authority Specific service provided by the two parties Thinking & Discussion How to be a supplier of WAL-M? Thank you for your time!