【正文】 Traps Product range Premium brand Not established yet Brand ? Unique product design ? Reliable quality ? Good technical support/pre and after sales services ? Strategic relationship with distributors and influencers ? Advanced technology ? Reliable quality Core petence ? Three factories – Foshan – Beijing ? Two factories – Daishan – Shanghai Overall petition Manufacturing plants – Shanghai * Year 1999 114 Unlike Kohler who centralizes sales and marketing functions, Geberit divides sales and marketing into two separate parts without achieving synergy Kohler Foshan plant for ceramic Shanghai plant for bathtub Beijing plant for faucet Kohler China sales and marketing pany (Shanghai) … … Geberit ? Purchasing ? Independent production operation ? Delivery to customer ? Business planning ? Sales and marketing operation ? Central customer service centre (CCSC) – Pricing – Customer order processing – Delivery – After sales service Around 50 authorised distributors nationwide Distributor work GSHA GDAI Sales and marketing Sales and marketing Ceramic providers … … OEM Distributor work CCS 115 Kohler’s distribution channel strategy is divided into four stages with retail market sales as the strategic focus for the future Content ? Focus on project sales in five star hotels in China ? In cooperation with two distributors one in Shanghai, one in Hongkong ? Dominate high end hotel sanitary market (around 90% of market share ) ? High brand awareness in hotel Industry Project sales stage I Project sales stage II Project/retail sales III Retail/project sales IV ? Expand into four star hotels, government institution buildings, business buildings ? Set up national distribution work ? Increasing brand awareness and reputation ? Increasing market share ? Significant efforts put into development of retail distribution work (due to shrinking project business ) ? Projects ongoing ? Increasing brand awareness among end users ? Focus on retail market sales ? Grab more market share Output Current stage Future Past Past 116 Having successfully set up distribution work focusing on project sales, Kohler is extending retail work massively Kohler’s distribution work ? Kohler wholly depends on distributors to do business has set up strong business partnership with distributors ? Around 50 authorised distributors in Kohler?s national distribution work ? Kohler has spent lots of effort on developing subdistributor work and increasing retail outlets ? Kohler China adopts regional protective policies to help local distributors win projects Local sales staff will provide support in project bidding If distributors other than local one also attend bidding, Kohler will offer preferential project price of less than 5% of origional one to local didtributors ? Around 70% of Kohler?s current sales volume is achieved through projects Kohler product: Unlike Geberit, Kohler can provide oneset solution to customers ? Distributor?s work has been mainly project oriented, however, strategic focus has been switching to retail sales 117 Customer services of Geberit lag far behind that of Kohler China Analysis Kohler (China) Geberit (China) ? Kohler (China) requires its distributors to employ Kohler Technical Specialist (KTS) to deal with preandafter sales services ? Kohler (China) provide KTS with technology training and relevant support ? In addition, technical staff from Kohler sales representative office will further support KTS ? Services functions are not clearly defined – Practice differs region by region – Mostly covered by regional sales staff themselves – In case of technical problems that can‘t be solved, sales staff turn to application and services department for assistance ? Training from GSHA is far from enough Customer service parison Customer services Impact ? High service level ? High customer satisfaction ? Reputation built up both for Kohler and distributors ? Better understanding of Kohler products by distributors ? Latest technical information update ? Slow responsiveness ? Customer plaints/low customer satisfaction ? Low service level ? High service cost ? Sometimes cause damage to reputation 118 KTS selection ? Selection of KTS personnel