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Agenda Topics
1. Overview of Elite
2. Selection Criteria
3. Singapore Review
4. The Future
Singapore Case Study – emita
1. Overview of Elite
Overview of Elite
Elite is a leading international furnace manufacturer based in Market
Harborough Leicestershire
The Elite brand was launched in 1999
Elite manufacturers a wide range of standard and custom designed
electric furnaces
Its products are widely used in Research, Education and Industrial
applications throughout the world
“Delivering Excellence through Technical Innovation & People”
Overview of Elite
Typical Markets
Ceramics
Materials Testing
Glass
Education
Metals Industry
Finishing Industry
Electronics
Superconductivity
Petrochemical
Quality Assurance
Automotive
Research
Aerospace
Nuclear
Elite exports products to 25+ countries through a combination of
distributors, agents, OEM`s and direct sales.
Export sales are increasing and currently account for 60% of turnover
“Delivering Excellence through Technical Innovation & People”
Singapore Case Study – emita
2. Selection Criteria
• Market Selection
• Routes to Market
Selection Criteria
Market Selection
Do we have existing contacts / to date
Is the economy buoyant
Market Segmentation
Natural Resources & size of territory
Language / Cultural issues
Transportation Logistics / Infrastructure
Trade Barriers (Tax/product
standards/insurance)
Competitor Activity
Existing Brand awareness
Spin off Territories
Resources required to support the local sales
organisation
Resources required to support the local sales
Selection Criteria
Routes to Market
Direct
Sales
Distributor
On-Line
Sales
Agent
OEM
Singapore Case Study – emita
3. Singapore Review
• Review Conclusions - Positives & Negatives
• Why did Elite decide to actively trade?
• Elites experience to-date
Singapore Review
REAL GROWTH %
Positives
Already had trading experience
through a previous company.
REAL GROWTH %
12
10
8
6
4
2
0
1999
2000
2001
2002
2003
2004
2005
2006
YEAR
Elite had already sold products
into Singapore through various
organisations.
•“Singapore Acts as Haven for Stem Cell Research”, The new
York Times Aug 2006
•“$10 million in research funding awarded by Singapore
A*STAR”, Agency for Science Technology and Research
Press Aug 2007
Economy is very buoyant with lots
of government funding for
research and development.
$ MILLION
Singapore has one of the highest
per capita Gross domestic
products (GDP) and is a highly
successful free market economy
SINGAPORE G.D.P
250000
200000
150000
100000
50000
0
1980
1985
1990
1995
2000
2005
2007
YEAR
G.D.P AT MARKET PRICES ESTIMATED BY I.M.F (@ 1.56 $D = 1USD)
Singapore Review
Positives
Strong focused industrial
activity.
Good transport and logistics
(both sea & air)
Port of Singapore is the
busiest port in the world.
No significant barriers to
importation of goods
Communication is relatively
easy. English Is widely spoken
and understood.
Spin-off sales potential in
Malaysia.
Singapore Review
Negatives
Market is totally fragmented-This
applies to both sales representation
and purchasing decision makers
Strong reliance on purchasing by
Tender and Sealed Bid.
Strong price competition
Culture traits
Innate desire to secure a bargain
Negotiation is generally a
structured form of “horse trading”
The absolute need to retain
respect/ status which can
compromise loyalty
Singapore Review
Why did Elite decide to actively trade in Singapore?
The knowledge that there was a high ongoing demand for furnace
products
Pressure from a number of potential distributors
Elite identified a partner that was well connected and who appeared
to have a similar business philosophy
Elites experience to-date
Positives
Sales have increased.
Singapore Sales Values (£)
140000
There is a developing sales
potential in Malaysia &
Vietnam due to the activities
of our distributor
120000
VALUE (£)
Elite Brand name has
become very well known.
100000
80000
60000
40000
20000
0
1999
2000
2001
2002
2003
2004
2005
YEAR
COMPLETED SALES
CONFIRMED ORDERS
2006
2007
Elites experience to-date
Negatives
Communications
There is prolific amount of interaction by email & telephone
Quotations / specifications have to be very comprehensive
Communications are very selective / evasive
Commercial
Budgets are always set unrealistically low
The customer is always deemed to be right
High warranty costs
High costs in supporting the distributor
Singapore Case Study – emita
4. Future Strategy
The Way Forward
Put additional resource into distributor training
Time scale:
- Distributor training – 4 months ending 31/12/07.
- Distributor activity / review – 6 months ending 30/06/08.
After the training has been delivered review the distributors
performance / approach.
Possible Outcomes
a) Continue to trade in Singapore through
a distributor that truly understands and
supports Elites sales & marketing objectives.
b) Stop actively promoting sales in
Singapore through an exclusive
representative.