【正文】 p。 channel management (without own sales force) Step II: Distributors, channel management and building own sales force Critical point Sales performance amp。 2) Attention to market exploration ? Ad. and other marketing activities ? POP materials in terminals ? Free products are the most widely accepted promotion method 3) Brand and price management would be implemented。 channel management (without own sales force) Step II: Distributors, channel management and building own sales force When products sell well in market。 The corresponding channel model must ply with stepbystep entry strategy of Hisamitsu。 High resource requirement。 Quick and effective market entry。 building own sales force Channel Control Entry speed Response speed Investment and management requirement Evaluation 10 9 12 15 14 Notes: ?Each item is with 5 grade scale. Grade 1 is the lowest and grade 5 is the highest. ?Scores are based on parison of five channel models. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 20 Conclusion on five channel models for Hisamitsu in China channel models Direct sales Distributors only Distributors and channel management (without own sales force) Distributors, channel management and building own sales force With high resource requirement and slow entry process, this model is not feasible. With low control on market and slow response speed, this model is not feasible This model is feasible in the early stage of entry With high resource requirement, this model may be feasible after distributors and channel management model Directlytoretailers With high resource requirement and slow entry process, this model is not feasible. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 21 Evaluation of channel models Identification of channel models Suggestions for Hisamitsu’s channel models Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 22 It is suggested for Hisamitsu to take distributors amp。 Eminent market performance。 Low cost on sales personnel。 The market share is small normally in this model. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 16 Advantages and disadvantages of distributors amp。 Lowcost test on product acceptance。 Slow market entry process。 Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 14 Advantages and disadvantages of directlytoretailers model Advantages Disadvantages Effective control on retailers。 High cost in personnel。 ? Two methods in payment: ? The distributor buys goods at a discount price and bears risks。 sales expenses Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 3 Analysis of channel models Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 4 Evaluation of channel models Identification of channel models Suggestions for Hisamitsu’s channel models Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 5 In selection of channel models, local policies and practice should be considered for Hisamitsu Manufacturer Distributors Retailers Consumers Drug manufacturers must have GMP certificate and pharmaceutical manufacturer license, while there is no such requirements on cosmetic manufacturers. Drug distributors must have GSP certificate and pharmaceutical distributor license, while there is no such requirements on cosmetic manufacturers。 At present, there is no FOE distributor in China yet. Drug retailers must have GSP certificate and pharmaceutical retailer license, while there is no such requirements on cosmetic manufacturers. There are obvious area differences in China, and consuming habits and levels are different. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 6 In practice, there are mainly 5 typical channel models for pharmaceutical and cosmetic manufacturers in China market channel models Direct sales Distributors only Distributors and channel management (without own sales force) Distributors, channel management and building own sales force Zerolevel channel Relying on distributors absolutely Through distributors with effective management Through distributors with effective management, and own sales force in terminals Directlytoretailers Selling directly to retailers Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 7 In direct sales, the manufacturer employs its own sales force or other methods to sell products directly to consumers Direct sales Characteristics Manufacturer ? No distributors and retailers between manufacturer and consumers。 ? The distributor would obtain mission fee without buying goods and bearing risks. Manufacturer Distributors Retailers Consumers One of wellknown enterprise with this model is Teiyaku pany, with the brand of Yitieliang sheeting, which employs Shandong Youhe pany to distribute products. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 10 In distributors and channel management model, the manufacturer employs distributors to distribute products, and at the same time implements brand and price management by itself Distributors amp。 High marketing work expense。 Overing distributors’ negative impact on the supply chain。 High distribution expenses。 Low marke