Channel Incentive Study Of Solution Sales For MK Company

MK is a multinational company with world reputation for selling high quality and advanced multi-functional devices (MFP) in office supply industry. And its biggest competition in market is coming from Japanese companies like Fuji Xerox, Sharp, Toshiba, and Ricoh, etc. Among those various business models, some reply on direct selling, but some sell machines through partners. MK Company focuses on the channel sales model and has successfully built the network containing many loyal partners in second and third tier cities all over the country after over ten years’ growth in China.However, in recent years, the MFP business declines significantly due to financial crisis, political impact and government budget control, not even for MK but for all players. Meanwhile, the low price competition, the trans-regional outflow and the product homogeneity have further pressure margins. Therefore, it’s time for MK to transform and find new areas of growth. Other players in this industry already started the transformation and targeted to become the value added service provider. It’s also critical for MK to discover and build a solution-based incentive strategy, to encourage the partners to contribute more sales.The objective of this paper in that context is to study the theories of solution sales and channel incentive management, to apply those in practice by analyzing the current state, bottleneck and future possibilities of MK Company. This paper mainly focus on the incentive strategy discussion about channel solution sales, including how to set the bar for encouraging more distributors to join the incentive program, how to grow together with the partners, how to assign resources, capital and arrange training and incentive travel, and how to establish the supporting platform and improve the partner evaluation mechanism, how to set the proper price and develop related software, and so on. Apart from those, a series of support strategies for channel incentive program have been further proposed. And the implementation of channel incentive program has also been covered by discussing the organizational restructure and release of’Solution partner program’.This paper aims to provide a comprehensive and feasible solution so that MK company can achieve win-win situation with all manufacturers, partners and end users, and establish industry benchmark.