Gino sa
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Transcript of Gino sa
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GINO SA:DISTRIBUTION CHANNEL MANAGEMENT
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What Are Burners ?
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Burners are electromechanicallycontrolled appliances that providecontrolled flame for combustionapplications such as boilers and
furnaces.
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PARTS OF BURNERS
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BODY
Electric circuit, FanDumper, Valve,
Pump and Control Box
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HEAD
Heat Proof CarbonSteel Tubes With
Nozzles
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MARKETS FOR BURNERS
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World Market For Burners(in thousands of units)
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BACKGROUND
GINO SA
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It is a burner manufacturingCompany headquartered in
Paris, France founded in1931
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GINO’SCOMPETETIVE EDGES
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IN-HOUSE PRODUCTION CAPABILITY
WELL ESTABLISHED CHANNEL NETWORK
INTERNATIONAL EXPOSURE
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BURNER MARKET SEGMENTATION
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DOMESTIC BOILERS AND HEATERS
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INDUSTRIALBOILERS
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Gino Worldwide Production(in thousands of units)
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Burner Market In China
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PERIOD BEFORE 1990(As coal was a major source of energy, coal-combustion
boilers were used which did not have burners. )
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PERIOD BETWEEN 1990-1995(Oil combustion boilers started
replacing coal combustion boilers)
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PERIOD BETWEEN 1995-1998(Increase in Diversification and
Competition in Chinese burner market)
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POST-1999
• The commercial range became the mainstream market.
• Growth in demand for industrial burners at 20 percent per year
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CUSTOMER BUYING PROCESS
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Gino’s Distribution Network In China
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ORGANIZATIONAL STRUCTURE
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GINO’S DISTRIBUTORS
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WAYIP TRADING CO.(GUANGZHOU,SOUTH CHINA)
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FUNG’S CO.(SHANGHAI)
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Jinghua Mechanical Engineering Co.(BEIJING)
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DISTRIBUTORS’ FUNCTIONS
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CREDIT
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STOCK
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SALES AND SERVICE
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LEVELS OF PRICING
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TRANSFER PRICE(Price in dollars that Gino quoted to the
Distributors.)
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BASE PRICE(Total acquisition cost to the distributorsfor full ownership and ready to sell stock of the burner )
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PUBLIC PRICE(160% of the base price for all models in local currency.)
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CONTRACT PRICE(Actual transaction price reached by a distributor
in transaction with a customer.)
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EMERGING ISSUES
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CHANGE IN
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In order to deliver on its commitmenton corporate strategy in 1998, GINO CHINA was assigned the following goals for the next three years:
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Problems Due ToFollowing Distributor Behavior
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DEMAND FOR BETTER TERMS
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STOLEN SALES
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RELUCTANCE TO STOCK INDUSTRIAL BURNERS
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CURRENT PROBLEM
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FEIMA was a leading boiler factory in north china.It approached Gino for OEM(Original Equipment Manufacturer) treatment for more discount on burners. In return, it promised Gino of buying 50% and 100% of its commercial (and industrial) and domestic burners respectively from Gino .
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Zhou liked Feima’s idea of OEM treatment because:
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Jinghua opposed because:
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Zhou had to consider the Following aspects before arriving at the decision:
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Zhou took out the distribution channelbetween Gino and its distributorsand made it clear that Gino hadthe right to develop OEM business in a distributor’s territory without its consent.
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CREATED BY SHUBHAM GANGILIIT(BHU), VARANASI DURING ANINTERNSHIP BY PROF. SAMEER
MATHUR, IIM LUCKNOW
DISCLAIMER