This document discusses Gino's burner market and operations in China. It provides background on Gino's founding in 1931 and its product line of over 50 burner models classified by capacity. It then outlines China's burner market development from 1990-1999 and post-1999 expected 20% industrial burner growth. Gino established its China office in 1995 and aims to achieve annual sales targets through optimizing distribution channels, improving service, and building its brand image. Distributors demand better terms, steal sales from each other, and reluctantly stock industrial burners.

1. GINO SA:DISTRIBUTION
CHANNEL MANAGEMENT

3. BACKGROUND INFORMATION
DAVID ZHOU:MARKETING MANAGER OF CHINA
JEAN MICHEL PIERRE:ASIA PACIFIC MANAGER
HENRY GONG:JINGHUA GENERAL MANAGER

4. COMPANY BACKGROUND
• FOUNDED IN 1931
• HEADQUARTERS IN PARIS,FRANCE
• WIDE PRODUCT LINE:50+ ODELS

5. ITS PRODUCT:BURNERS
• IT PROVIDES
CONTROLLED FLAME
• CLASSIFICATION BASED
ON ITS CAPACITY

7. SCENARIO OF
BURNER MARKET IN
CHINA

8. BEFORE 1990
• China rich in coal but due to its low
efficiency
• Boilers used were coal combustions so no
burners used.

9. 1990-1995
• Emphasis on pollution control
• world’s major manufacturers
entered chinese market

10. 1995-1998
• Demand for commercial range
began
• Gino price leader in domestic range
• Domestc-14% commercial-8%
industry-3%

11. POST 1999
Industrial burner growth expected
20% for next five years.

12. GINO CHINA
• ESTABLISHED ITS OFFICE IN 1995.
• AGGRESIVE COMPANY WITH GOOD BUDGET.
• BONUS –SALES TARGET RMB8000-RMB10000
• COMPENSATION THREE TIMES THE AVREAGE

13. CUSTOMER BUYING
PROCESS

14. MOST MANUFACTURERS RELY ON
DISTRIBUTORS.

15. OEM’S OFTEN TRIED TO
BYPASS DISTRIBUTORS.

16. MANUFACTURERS REFRAINED
FROM GIVING QUOTATIONS

17. SEGMENTATION

18. FUNCTIONS

19. CREDIT FUNCTION:LINE OF
CREDIT

20. STOCK FUNCTIONS:MAJOR
MODELS ACCOUNTED FOR 20%
OF SALES

21. SALES AND SERVICE
FUNCTIONS.

22. PRICING
• TRANSFER PRICE IN US DOLLORS
• BASE PRICE IN RMB
• PUBLIC LISTED PRICE IN RMB
• TRANSACTION PRICE IN RMB

23. GOAL FOR THREE YEARS
• ACHIEVE ANNUAL SALES OF 15000
UNITS.
• ANNUAL SALES OF INDUSTRIAL
BURNERS OF OVER 2000 UNITS.
• OPTIMIZING CHANNELS FOR MORE
AREA COVERAGE
• IMPROVE SERVICE AND SPARE SUPPLY.
• BUILD THE BRAND IMAGE

24. DISTRIBUTOR
BEHAVIOUR

25. DEMAND FOR BETTER
TERMS
1

26. STOLEN SALES
2

27. RELUCTANCE TO STOCK
INDUSTRIAL BURNERS
3