GINO SA:Distribution

channel management
By Group-6
Swapnil(ABM12016)
Abhi(PGP31246)
Sandeep(PGP31249)
Jasneet(PGP31266)
Vidya Sagar(PGP31273)
Somya singh(PGP31294)

 3 new distributors-Wayip,FUNG,Jinghua
Increasing bargaining power
Carry only Gino burners and spares
The
The
The
The

competition in the domestic segment is very ferce and price based.

growth scope has become very narrow
commercial market has become mainstream
market leader in the industrial boiler segment is Weishaupt.

There are 310 manufacturers in the domestic boiler segment with

capacity ranging from 50 to 1500 units
The market size of commercial segment is around 22000 units
In the industrial segment their are approximately 60 manufacturers
producing about 3400 boilers

Founded in 1931,manufacturer of burners

Market share-14% ,50+ models
Market leader in commercial & domestic burners

Collaborator
s

Competitors

Market

Company

Overview

 Will have to set up new distribution network

they cannot be replaced

Losing any of the distributor is a major threat as
Industrial segment is expected to grow annually by
20% in next 5 years
Opportunity to develop OEM business with Fiema
Poor market penetration in industrial buyer segment
Heavy dependency on distributor for sales and
services
Doesnt have any direct sales force
Market leader in domestic burner segment
In house production facility adds to competitive
advantage
Well established channel and strong brand
reputation

Threats
Opportunities
Weaknesses
Strengths

SWOT Analysis

Distributors Functions
Credit Functions-Whenever an order was placed, the

distributer opens a letter of credit through its bank to Ginos

bank which eliminates the risk to the manufacturer as the
bank guarantees the payment when the goods are shipped
Stock Function- The distributors are required to make a 3
month forecast to Gino which needs to be very accurate so
as to avoid over and under stocking. The distributors are
also expected to maintain a minimum inventory for spare
parts
Sales and Service Function- Since Gino head office only
handles consumer and technical training and rarely carries
out the feld training services, the same is carried out by the
distributors. The distributors work on the installation as well
as provide after sale services

Changing distributor behavior

Demand for better terms
Stolen stales
Reluctance to stock industrial burners

Pricing
Transfer Price- The free on board price quoted by GINO to

its distributors. The prices are adjusted each year according

to the inflation
Base Price-This the real acquisition cost to dealers inclusive
of import duty, value added tax etc.
Public Price-This the public customer price quoted by Gino
on base plus 60 percent basis
Contract Price-The contract price is the actual transaction
price calculated after reducing 20-25% discount from the
public price

Value proposition
Promise of value
Target group

Market segmentationPoints Of Difference(POD)

Reasons to believe

Alternatives
1.Decline Feima offer
2.Accept Feima offer for industrial segment and
other segments to Jinghua
3.Offer discount to Feima through Jinghua

Thank you