This document provides a case study about Gino SA, a burner manufacturer founded in 1931 and headquartered in Paris. It discusses Gino's expansion into the Chinese market in 1995 by establishing an office in Beijing and partnering with three distributors in different regions of China. It then describes how Gino achieved success in China by lowering domestic product prices. A key distributor, Jinghua, had a major customer, Feima, but was not pursuing other opportunities. Feima requested to purchase directly from Gino. This caused issues with Jinghua. The document recommends that Gino pursue the Feima contract directly while compensating Jinghua to maintain the important distribution relationship. It also suggests Gino

1. GINO SA:
DISTRIBUTION
CHANNEL
MANAGEMENT
CASE STUDY

2. INDEX

3. INTRODUCTION OF GINO
 Founded in 1931
 Headquarters in Paris, France
Product Line:
BURNERS
DOMESTIC
COMMERCIAL
INDUSTRIAL

4. Set up Beijing office in 1995.
Marketing Manager:
DAVID ZHOU
 Three new distributors in China:
 Wayip Trading Co based in South China city
Guangzhou
 Fung’s Co based in Central Coastal city
Shanghai
 Jinghua mechanical engineering company based in
Northern city Beijing

5. MARKET POSITION IN CHINA
 GINO achieved edge among its competitors
in domestic line by lowering its prices and
maintaining profit margin.
 GINO also started doing better in
commercial line
 GINO started investing in R&D on new
industrial models

6. GINO MARKET ASSOCIATIONS WITH
FEIMA
 Feima was a leading factory in Northern China and
typical of the twenty largest OEMs(Other
Equipment Manufactures.
 In 1999 Feima bought from Jinghua 350 sets of
Domestic burners,50 sets of Commercial burners
and three sets of Industrial burners.

7. EMERGING ISSUES:
 Jinghua had been placing much emphasis on
Fiema and was missing other major windows of
opportunity
 Feima asked permission to buy burners directly
from Gino rather than from Jinghua
 Given the size and potential of the business and
after receiving consent of Jinghua David entered
into dicussions with Feima.

8.  But as project progressed Jinghua had been opposing
the deal.
 Feima told Zhou it would not increase the purchase
unless it been given OEM status.
Analysis
 There was lack of service and technical support to the
new customers.
 Lost sales of atleast 50 units on part of Jinghua.

9. DECISION
Gino should start with Feima OEM business
for a contract basis in order to increase its
sales.
As in the distribution contract Gino has right
to do business with Feima.
Gino must provide better compensation as in
the contract to Jinghua for gaining its
confidence as Jinghua is its major distributor.

10. Also for other distributors Gino
should start other OEM ventures
to increase business and market
stability

11. THANK YOU
Created by Aditi Jain ,LSR
New Delhi, under the marketing
internship of professor Sameer Mathur