Case study analysis on Gino SA: Distribution Channel Management

1. GINO SA:DISTRIBUTION
CHANNEL MANAGEMENT
CASE STUDY

2. Current Scenario
• Gino SA manufactures burner and sells
via distributor’s channel.
• 95% of Gino’s burners are sold by three
main distributors.
• Distributors began to bargain more for
better prices and lower quotas.
• Feima, a leading boiler approached Gino
for direct sales- A profitable deal for Gino

3. BUT……
Being the leading distributor of Gino and
hence Feima, Jinghua OPPOSED the offer.

4. GINO HAS A DECISION TO MAKE

5. Should Zhou, Marketing manager of Gino
ACCEPT Feima’s OEM business offer ?

6. OR..
Should Zhou, Marketing manager of Gino
REJECT Feima’s OEM Business offer?

7. Is there a solution that satisfies BOTH: the
distributors and also helps to achieve Gino’s
long term OEM goal?

8. Issues to be considered while
coming to a Solution:
• Revenue & high profitability
• To determine a win-win situation
• Control distributors bargaining power
• Achieve long term goal of penetrating into
industrial segment

9. LET US ANALYSE ALL THE POSSIBLE
ALTERNATIVES….

10. 1. DECLINE FEIMA’S OFFER
• Strengthen distributor-manufacturing
relationship.
• Increase in distributor power.
• Heavy loss of opportunity in Industrial
segment.

11. 2. ACCEPT FEIMA AS JINGHUA’S
CUSTOMER
• Increased unit sales.
• Relationship with distributors
strengthened.
• Decreasing power of distributors.
• Loss of potential OEM

12. 3.DEVELOP FEIMA AS OEM
• Increased unit sales through Feima.
• Decreased distributor power.
• Disappointed Jinghua(Distributor).
• May leave a negative impact on other
distributors too.

13. So we can conclude that…
Accepting Feima as Jinghua’s customer
leads to maximum profitability.

15. These slides were created by Ila Singh as
part of an internship done under the
guidance of Prof. Sameer Mathur
(www.IIMInternship.com)