【正文】 tic manufacturers。 ? 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。 Overing distributors’ negative impact on the supply chain。 Low marketing expenses. Absolutely relying on distributors。 Quick response speed in petition. High expense on brand image building and marketing activities。 channel management model first in order to enter the market quickly and effectively, and then building its own sales force in future Distributors amp。 Quick response speed in severe petition. Own sales force Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 23 For exporting, distributors amp。 When response speed and market control are highly required in the petition. Critical point According to local practice: Step I is applied in the early phase of exporting, and Step II is applied in the latter phase of exporting amp。 market situation Step Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 30 For face masks, US$250,000 in each city is the critical point for Hisamitsu between the two channel models according to market size and petitive situation ?The total turnover of face masks in China is US$120 million, and each city of Beijing, Shanghai and Guangzhou covers about 10%。 ? Hisamitsu sets up its own terminal sales force to deal with drugstore salesclerk training, terminal promotions, etc., and distributors are responsible for distributions to drugstores and turnover. Distributor for hospital Distributor for drug store Through Hisamitsu’s own sales force to strengthen terminal management Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 49 Organization design and functions Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 50 Organizational functions of Hisamitsu China Headquarters in different phases Organizational functions of Hisamitsu China Headquarters Application phase Exporting phase WOS phase 1. As a Rep. office 2. Main functions ? Import application ? Administration management 1. As a Branch office 2. Main functions ? Marketing ? Terminal Management ? Channel Management ? Promotion ? Administration management ? Import and storage 1. As a Subsidiary pany 2. Main functions ? Production ? Marketing ? Terminal Management ? Channel Management ? Promotion ? Administration management ? Storage Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 51 Organization for cosmetics Organization in the application phase Organization for drugs Organization for branch offices Suggestion for personnel arrangement Analysis of marketing amp。 ?The market size and petitive situation in Beijing, Shanghai and Guangzhou are much similar, therefore, US$250,000 would be the critical point in each city between the two channel models. In China, the total turnover of face masks is about US$ 120 million Critical point for market share of Hisamitsu in each city is about 2% Each city of Beijing, Shanghai and Guangzhou covers about 10% of total turnover Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 31 Marketing channel design for cosmetics in Step I Hisamitsu China Headquarters Beijing branch office Shanghai branch office Guangzhou branch office Distributor Distributor Distributor Distributor Distributor Distributor …… …… …… ?The number of distributors in each city is determined by local petitive situations and distributors’ market covering power Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 32 There are four important points about cosmetic marketing channel in Step I To focus on three cities To select influential cosmetic distributors Terminal management In step I, it is suggested for Hisamitsu to focus on three cities, ., Beijing, Shanghai and Guangzhou It is suggested for Hisamitsu to select influential cosmetic distributor in the three cities Terminal management is implemented by distributors Sales condition According to each market, if the turnover is under US$250,000, the distribution should ply with this mode Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 33 Remendations on possible distributors in Beijing, Shanghai and Guangzhou for cosmetics Beijing cosmetic distributors Beijing Yishangmeijie Trade Corp. Shanghai cosmetic distributors Shanghai Yike Corp. Shanghai Renguang Trade Corp. Guangzhou cosmetic distributors Guangzhou Haolin Trade Co., Ltd. Hisamitsu China Market Entry Strategy July 6, 2020 Confidential, Copyright20xx by Sinotrust 34 There are five important points about channel management of cosmetics in Step I Channel management Selection criteria on distributors Distributor evaluation Negotiation with distributors Contracting with distributors Distributor motivation Reputations, capital, terminal control ability, experience,etc. Evaluating distributors according to criteria Negotiating with distributors on sales targets, payment meth