【正文】 hler and Geberit in the area of marketing support Kohler (China) Marketing parison Geberit (China) Advertising support ? 2% of the ordering amount of domestic manufactured products can be offered to distributor as cooperative advertising suppport ? Advertising expenditure support from Kohler China to distributor can be up to 50% of the total advertising expenditure (newspaper, magazine,TV, outdoor display etc) ? No established policy ? Very few expenditure on advertising (depending on special cases) Product display ? Clearly defined product display standard (location and size of showroom and space allocation, decoration standard from Kohler, product selection) ? Contract signed with distributors with clearly defined terms about product display ? Construction bonus offered to product display outlet ? There is no standard product display ? Display varies significantly region by region ? Sales staff has no influence on distributors as to marketing activities ? In general, it is difficult for distributor to get enough display board, lighting box, let alone other support Marketing expenditure million [RMB]1) Around 50 million [RMB] 1) Percentage of sales turnover 910% Around % Number of marketing personnel 5 Around 60 in China 1) Year 1999 121 Geberit as a brand is not well recognised in branddriven China while Kohler has successfully set up itself as a premium brand ? High end brand ? Well recognized Kohler (China) Geberit (China) ? Very few people outside the industry have heard of Geberit ? Not yet wellrecognized ? Slogan – ―THE BOLD LOOK OF KOHLER‖ ? Slogan – ―Modern sanitary concept‖ (in Chinese) Geberit “ Modern sanitary concept‖ Kohler Advanced American sanitary products 。Traps) ? Geberit distributiors have limited knowledge of Geberit product knowhow, installation and application technology ? Intensive training is a must ? The selection of toilet bowl to bine with Duofix or Chantier varies region by region ? Distributors select toilet bowls themsleves Product display Pricing Merchandiser training Product bination (Chantier, Duofix) 101 Distributors in different sales regions select ceramics by themselves Example Example: Duofix Region Ceramic provider for Duofix Shanghai Duravit Beijing Laufen Guangzhou Casero, Swell Shenzhen Duravit, Laufen Vitra Southwest Siu Fong, Swell, Casero, Amerian Standard Hangzhou American Standard Nanjing Swell, Casero 102 As to ceramic provider selection, there exist disparate responses both within and outside the anization ―Geberit should not choose Swell as the partner. Swell is a low end brand? ‖ — one regional sales manager of Geberit ―If only you promote Geberit as a leading plumbing technology provider, it doesn?t matter with whom you are bined to sell ? ‖ — another regional sales manager of Geberit ―In selecting Swell, Geberit has made a mistake. As a leading premium brand, Geberit should go for Laufen, Duravit etc. ? ‖ — one distributor in Shanghai ―Given the stock shortage of Europeimported wallhung toilets and lack of ceramic ourselves, we don?t have many options. With the aid of Swell, we could increase market influence. ? ‖ — one distributor in Sichuan Example Example: Duofix 103 Project channel GSHA 104 The core process of Geberit project sales consists of four main steps that Geberit should follow Steps Project initiation Project design Project construction/ installation/decoration Project pletion and ongoing Process Project owner and developer obtain government39。 Chengdu amp。 Traps Chantier 1) 20xx 17 93 Geberit’s products are sold through 3 channels: retail and project sales through distributors and OEM Existing sales channel Geberit GSHA GDAI Distributor Project Distributor owned retail outlets Subdistributors Project Subdistributor owned retail outlets OEM Ceramic providers 94 Each of Geberit’s distributors has its own channel orientation, focusing on retail business or project sales Project Retail Gegerit‘s top 10 distributors Xiamen Hai Sheng Shanghai SEC Guangzhou Hua Run Shenzhen Xin Yue Shanghai Zhong Xin Nanjing Jin Lin Beijing Jie Xin Te 30%70%Retail Project National channel sales structure Source: Roland Berger amp。 Partners39。s development target is, nor do