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WHAT IS GINO?
1. One of the largest burner
manufacturers in the world- 14%
market share
2. Set-up in France
• Choosing between an OEM proposal
from Feima and agitating its well-
established distribution channel.
THE PROBLEM
• Jinghua that constitute 40% of
revenue in China- the distributor
• FEIMA- Potential OEM. Also, major
client of Jinghua- the buyer
• GINO-the main producer
WHO ARE INVOLVED
• grow its annual unit sales by 20%,
industrial sales by 200 units.
• build two OEM & end user channels
by improving service standards.
THE AIM
• Feima’s OEM businesses may lead to
frayed relationship with existing
distributor, Jinghua.
THE RISK INVOLVED
• Choose between pleasing distributors or
setting up OEM.
• If OEM: create a pricing strategy for potential
OEM’s including Feima.
• To open two OEM accounts, develop more
distributors and assist through marketing
and technical support, increase annual
industrial burner sales to 200 units, and over
all sales to 15,000 units.
OBJECTIVE
IMPORTANCE
Low High
URGENCY
Low
 Increase Industrial Sales
 Increase overall unit Sales
 Improve service and spare supply
High
 Develop OEM channel
 Optimize Distributor channel
 Build brand image
 Feima Proposal
PRELIMINARY ANALYSIS
Sales
SWOT ANALYSIS(1/5)
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
• global presence, well-established channel
network and strong brand reputation.
• price gap from competition of up to 30%
• contribution margins (30% - Industrial, 25%
- Commercial, less than 20% - Domestic).
• 14% market share
• reputable employee base
STRENGTH(2/5)
• reliance on oligopolistic distribution
channel for meeting the sales targets
• Unable to take over industrial burner
market
• Unable to steal major market from
competitors
WEAKNESS(3/5)
• Increasing demand (20% higher in the next
five years) in Industrial range.
OPPORTUNITIES(4/5)
• Political influence of local manufacturers
leading to increased output and selling
power.
• Declining growth in western markets.
THREATS(5/5)
•WHAT CAN BE DONE?
ALTERNATIVES
•Accept feima as jinghua’
customer
ALTERNATIVES (1/3)
• Increase in unit sales
• Relationship with distributors strengthened
• Improved service standards
• Industrial burners emphasized
• New distribution channel established
• Reduced cycle time
• Decreasing power of distributors
Advantages
• Loss of potential OEM
• High investment
Disadvantages
• Develop Feima as OEM
ALTERNATIVES (2/3)
• Increased unit sales through Feima.
• Brand image and potential end-user channels built.
• New OEM channel developed. Decreasing
distributor power
Advantages
• Disappointed Jinghua.
• Fear in distributor channel may lead to poaching
and exits.
• Industrial stocking remains a challenge. High
marketing investment.
• Longer cycle times.
Disadvantages
•Reject Feima
ALTERNATIVES (3/3)
• New OEM and end user accounts
• Relationships with distributors remain undeterred
• Industrial segment sales promoted
• Shortened cycle time
Advantages
• OEM account lost.
• Guaranteed unit sales lost.
• Distributor power remains.
• High investment.
Disadvantages
• These slides were created by Siddhant Ahuja,
as part of an internship done under the
guidance of Prof. Sameer Mathur
(www.IIMInternship.com)
Disclaimer
Gino sa case study internship

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Gino sa case study internship

  • 1. WHAT IS GINO? 1. One of the largest burner manufacturers in the world- 14% market share 2. Set-up in France
  • 2. • Choosing between an OEM proposal from Feima and agitating its well- established distribution channel. THE PROBLEM
  • 3. • Jinghua that constitute 40% of revenue in China- the distributor • FEIMA- Potential OEM. Also, major client of Jinghua- the buyer • GINO-the main producer WHO ARE INVOLVED
  • 4. • grow its annual unit sales by 20%, industrial sales by 200 units. • build two OEM & end user channels by improving service standards. THE AIM
  • 5. • Feima’s OEM businesses may lead to frayed relationship with existing distributor, Jinghua. THE RISK INVOLVED
  • 6. • Choose between pleasing distributors or setting up OEM. • If OEM: create a pricing strategy for potential OEM’s including Feima. • To open two OEM accounts, develop more distributors and assist through marketing and technical support, increase annual industrial burner sales to 200 units, and over all sales to 15,000 units. OBJECTIVE
  • 7. IMPORTANCE Low High URGENCY Low  Increase Industrial Sales  Increase overall unit Sales  Improve service and spare supply High  Develop OEM channel  Optimize Distributor channel  Build brand image  Feima Proposal PRELIMINARY ANALYSIS
  • 9. • global presence, well-established channel network and strong brand reputation. • price gap from competition of up to 30% • contribution margins (30% - Industrial, 25% - Commercial, less than 20% - Domestic). • 14% market share • reputable employee base STRENGTH(2/5)
  • 10. • reliance on oligopolistic distribution channel for meeting the sales targets • Unable to take over industrial burner market • Unable to steal major market from competitors WEAKNESS(3/5)
  • 11. • Increasing demand (20% higher in the next five years) in Industrial range. OPPORTUNITIES(4/5)
  • 12. • Political influence of local manufacturers leading to increased output and selling power. • Declining growth in western markets. THREATS(5/5)
  • 13. •WHAT CAN BE DONE? ALTERNATIVES
  • 14. •Accept feima as jinghua’ customer ALTERNATIVES (1/3)
  • 15. • Increase in unit sales • Relationship with distributors strengthened • Improved service standards • Industrial burners emphasized • New distribution channel established • Reduced cycle time • Decreasing power of distributors Advantages
  • 16. • Loss of potential OEM • High investment Disadvantages
  • 17. • Develop Feima as OEM ALTERNATIVES (2/3)
  • 18. • Increased unit sales through Feima. • Brand image and potential end-user channels built. • New OEM channel developed. Decreasing distributor power Advantages
  • 19. • Disappointed Jinghua. • Fear in distributor channel may lead to poaching and exits. • Industrial stocking remains a challenge. High marketing investment. • Longer cycle times. Disadvantages
  • 21. • New OEM and end user accounts • Relationships with distributors remain undeterred • Industrial segment sales promoted • Shortened cycle time Advantages
  • 22. • OEM account lost. • Guaranteed unit sales lost. • Distributor power remains. • High investment. Disadvantages
  • 23. • These slides were created by Siddhant Ahuja, as part of an internship done under the guidance of Prof. Sameer Mathur (www.IIMInternship.com) Disclaimer