AbstractsBusiness Management & Administration

Distributor Evaluation Model for New Markets

by Petri Ruohonen

Institution: Satakunnan ammattikorkeakoulu
Year: 2014
Record ID: 1133220
Full text PDF: http://www.theseus.fi/handle/10024/73232


The purpose of this thesis was to create a distributor evaluation model with measurable criteria for a Finnish manufacturing company, which conducts marketing, distri-bution and after-sales activities in export markets through independent distributors. The company is considering entering new markets and one of the major questions the company has encountered in the market entry phase is: How to evaluate and rank the distributor candidates? The conceptual framework of the thesis compromised of three parts: Theoretical part, qualitative research and final outcome of the thesis. The theoretical part was built on literature and other sources on distribution management, supply chain management and relationship management. They suggest that relationships are the company´s most important asset and that proper risk evaluation, both financial and operational, in the partner selection is necessary as being prepared for problems is more efficient than spending precious time in solving problems ad-hoc. The empirical research was conducted in three phases. First, the researcher inter-viewed the sales management in the case company about their expectations for an ideal distributor. The second part was to benchmark successful exporters on their processes in selecting, evaluation and maintaining relationships with their distributors. The third part included the introduction of Analytical Hierarchy Process into a distributor selection process. The Analytic hierarchy process is based on human´s ability to make decisions on small problems. Based on the case company´s expecta-tions and results from benchmarked companies, an ideal distributor profile was drawn. The profile was finally processed using AHP-online software and an evalua-tion tool with weight of the criteria was created. The tool was tested by submitting information on candidates that the case company previously evaluated when they searched for a distributor in Russia during 2013. The AHP-process demonstrated much clearer difference between the alternatives and changed final ranking order be-tween positions 2 and 3 compared to the original result. An ideal distributor is an expert in the industry, has an existing customer base and a variety of completing products to serve the target group. Finally, desire and motiva-tion strives distributor to success. Passivation of a distributor is a most common ob-stacle that exporters face in their distributor relationships. Regular communication and close relationships help to maintain information exchange and sales on desired level.; Tämän työn tarkoituksena oli laatia maahantuoja ehdokkaan arviointikriteeristö suomalaiselle konepajateollisuuden valmistajalle, jonka myynti, markkinointi ja jakelu vientimarkkinoilla tapahtuu itsenäisen maahantuojaverkoston avulla. Yritys suun-nittelee uusille markkinoille menemistä ja yksi tärkeistä kysymyksistä markkinoille tulovaiheessa on: Millä kriteereillä maahantuoja ehdokkaita voi arvioida ja miten ehdokkaat voi asettaa paremmuusjärjestykseen? Työn konseptuaalinen viitekehys koostui…