Research For AGCO China Channel Building

AGCO is the world’s top500enterprises, among the global top three in the agricultural equipment industry. In2010, AGCO, together with its two brands, Massey Ferguson and Valtra, officially entered the Chinese market, starting local production and sales process. AGCO global marketing model is to consider region and brand as well, that is the regional agency and brand agency system.After studying the local major brands such as Dongfanghong, Foton Lovol and some other major joint venture brands like John Deere, Kubota, the paper has a deep thought and research for AGCO marketing channel design by using systematic knowledge of marketing channel management. The research includes the application and generalization of channel marketing theory, brief introduction of agricultural equipment industry and channel analysis of major competitors, introduction of current major competitors typical channel model. Finally, combining the theory with practice, the paper has an overall design for AGCO’s sales channel in China and gives procedures and processes of channel development and reasonable suggestion of channel member selection. Meanwhile, the paper also focus on effect factor of channel design, several key elements of design, way of appropriate channel structure selection and channel members selection method. Through the research and design of AGCO marketing channel system, the paper puts forward a series of proposal to solve the problem of marketing channel and creates a top-ranking marketing channel to adapt to China’s national conditions! The paper also can be provided for reference and discussion to the peers of channel management in agricultural equipment industry.