Brazil - Company Representative Sanitary products
Article by operational management on a consultancy with the side Italian industry that shows seriousness in words, even if totally inconsistent.
An example of serious mistakes to avoid in entering into Brazil market ... due to a lack of a solid pragmatism. Consultancy such as these have no more reason to happen.
To follow the "white paper" without the contacts between the producer and distributor to be specified in the order in XXXX and YYYY.
In practice, the Italian company sold in Brazil and already had a distributor with a customer base. The Italian manufacturer for reasons due to unpaid payments will end the relationship and find another distributor. In this sense in doing a search for a new distributor we were unable to communicate with the manufacturer's name and in this scenario we managed to find the largest wholesaler and distributor of sanitary ware in Brazil up to him to sign a contract of € 600,000 per year.
We start from the first meetings with the company to understand the product, create a SWOT analysis, to understand the current situation with the distributor in Brasilea and agree on common strategies to the objectives of the Italian.
One of the main factors of our interest in the product was to be qualitatively of a high-end and have a much lower price and high-end products in Brazil (a little but not much higher than average low-end) and existing contracts with some major Home Center in Brazil, then it is we the representatives of Italian industry in Brazil.
In a first series of contacts with companies distributing very few had shown interest, although few among them the leading company in the industry was concerned.
On this basis, sent the first product information without stating the company and with a price list.
The Brazilian company is interested in a product made in Italy and with a competitive price in order to penetrate between the high-end products.
At this point you decide to focus the main company (which buys about € 20 million per month and sells for € 35 million per month, 115,000 customers, 700 stores, and 140 people in telemarketing) and send the sample products and make the direct meetings at their headquarters to pursue the matter.
The distributor in Brazil and then asked to go ahead with the process to see the operating contract between the manufacturer and as their distributors.
Now he had to formally terminate the previous contract for failure to meet the same and in this sense.
Without the interest of the company in Brazil to distribute the product begins to request information on industries that produce to see how to place products on their barcodes ... From this point things start to no longer be linear.
In practice it turns out that the production is not only made in Italy but that the other components and parts are made in China.
Also, the old distributor is making an impact and create problems, the contract by XXXX was terminated by fax a letter in which I stated the reason (totally wrong as regards the Brazilian legislation).
After learning the procedure for the contract period we have requested a copy of the contract, but always denied for a speech privacy, so we communicated to proceed quickly and correctly saw that this was causing problems and delays YYYY.
After more than three weeks that the producer could not get in touch with the lawyers of his St. Paul even though out of our responsibility to go forward and we were alerted by our lawyers in 36 h had been filed in court in a formal termination of the contract.
The company distributes after seeing all these abnormal situations you decide to sign the contract, but to remove a minimum turnover in the first year and to indicate a target of € 600,000 for verifying the validity of the product in the market.
With the signed contract, what's more the old distributor comes in contact with the leaders of the new Brazilian distributor threatening complaint against them, which annoyed but not legally on the factor of a joke on a serious matter that is work.
Also view the fluctuation of raw materials in China as prices start to increase at double-digit percentage, which does not exalt anyone.
Last factor is the incredible fact that the Brazilian company sends us the previous contract made between the producer and the former Italian distributor and sent by it. To our surprise we see that by reading the contract was made not by a Brazilian company, but with an individual (Italian) and area of representation was not for Brazil but for all of South America.
In this situation we do an analysis on how to get out at the operational and positive, given that strong action was required to show the validity of the products, the result of our analysis and informed the XXXX. Introduction
Once signed the distribution agreement, the possibility exists of falling into the contract after the distributor has made its sales analysis at different customers and having as a result of XXXX not salable;
Action is now offering a strong development of the sale together with the YYYY for a minimum of a positive result, and was further disclosure of the brand and sales growth.
Different problems to be addressed
The statement is wrong or different reality that we used to do sign the distribution at the time was notified but not completely proven and must be clarified through formal communication from XXXX to YYYY.
-Dell 'list of the customer, the most important ones do not know and have never bought XXXX: the customers are Gafisa, and Cyrel Telhanorte (names that have been essential for YYYY to XXXX think of a mark already present among the larger companies housing and home centers in Brazil.
-The Contract with 500,000 reais Telhanorte is nonexistent and there will be for 2007
-Some customers who have bought no longer want to buy
- Addressing the problems with some customers who have bought previously and create a form of compensation, not in money but in benefits to reduce their dissatisfaction.
-Getting to sell at a minimum score so that the contract is successful
Initial Sales Strategy
Initially, the strategy would be to provide benefits to the buyer.
Propose a brand made in Italy with quality at low cost and other advantages over competitors.
Communicate to contacts made before the change of service provider and then, listening to their views and offer solutions to those who have had postive objective problems.
Use strategies for stores such as:
-Create bonus for customers who buy a particular value
-Provide the gazebo with advertising XXXX / YYYY place for the customer's brand.
-Making of agreements with major companies such as Construction and Cyrel Gafisa
Promotion after the first purchase
Giving visibility for different stakeholders
-Join the institutions of the sectors, in this case the Anamaco,
-Being present in trade shows, such as FEICON
-Create showroom in partnership with other realities, such as brands, professionals, Shops
-Participating in CASACOR least one of Sao Paulo initially ... sometimes sponsoring architects
-Sito Internet, outdoor advertising, magazines, etc. areas.
Adapter-lines to the Brazilian market, for example, creating the DUCHA higiene, surely the absence in that line XXXX will be a question for customer in time of 'purchase
-the launch of the ceramic toilet and sink, it would be very important to complete the line bathroom.
Sales growth strategy
-propose to adopt the brand architects in their projects in exchange commission
Propose-use products to manufacturers as an agreement beneficial to them
-Making partnerships with other brands of other types of products, for example:
a brand of porcelain to get together as a combined sale ... Buy the porcelain for the floor of the bathroom and kitchen and takes a discount of xx% in metals health XXXX.
In response have received disinterest in investing in and see how it goes. In view of the Italian manufacturer is not he who had to develop the market with the distributor. At this point we decided to go out and consider the loss as gain experience that will never be repeated.