| Over the last decade, with the growing scale of production and sales of China’s manufacturing industry, the domestic construction machinery industry has experienced a rapid growth miracle. However, as the economic cyclical industry, the impact of international and domestic economic growth is slowing down, and experienced rapid growth before 2011, began to enter the "winter." Meanwhile, China’s economy has entered a "new normal" stage of development. The domestic construction machinery enterprises inevitably severely affect the underemployment rate, the market demand declines.M company which I am working for is an engineering machinery enterprises is a wholly owned subsidiary of a foreign-funded enterprises, is one member of China’s construction machinery industry enterprises, the main products are Wheal Loaders and road construction machinery. Since 2008, due to changes in the marketing channel strategy, the introduction of several foreign dealers brought many problems for company’s distribution channels, a sharp decline in market share, business losses, etc. Thus, from 2013, M company began to adjust the distribution channel strategy, channel optimization and re-recruitment of new dealers. Facing continues economy declining, the construction machinery industry downturn, and investors have no confidence to the industry, it is really a big challenge to recruit good and appropriate dealers.The purpose of this paper is:through the brief introduction of the industry background and comparison of distribution channel and dealer system between M company and industrial enterprises, analyze the failure causes of foreign dealers with large-scale and strong finance capacity and the influencing factors to dealer selection criteria, to quantify the impact of these factors. At the same time, analyze the problems encountered during the process of dealer selection and development in the "new normal" economic state to help M company design a series detailed, appropriate dealer selection criteria and propose on how to coach the new dealers in the future to help dealers start work smoothly and healthily.The main innovation of this paper is:Firstly, quantify dealer selection on scale and coverage area, neither the size is the bigger the better, is not a simple "mom and pop", but for the size of M company’s product line, helpful to the rapid increase of market coverage and market share, and also to have some space for future development. Secondly, "background survey results" and "compliance" is very important to be a veto factors to those candidate dealers. That’s the requirement to all the enterprises in China. Two research methods are used in this paper:the 1st one is comparative study, select a number of successful domestic construction machinery enterprises in case of failure or comparative analysis, it is possible to more effectively identify problems and solve the problem. The 2nd is case study method, conduct detailed study and analysis on M company’s failure of using large foreign dealers.If the study and recommendations above are verified and implemented in M company, that will help M company complete the current gap in the market coverage, as well as continue to optimize the blank channels generated, achieve the distribution channel optimization strategic objectives.From a practical point of view, this article will provide some reference to the construction engineering machinery industry’s distribution building and dealer development. I hope China’s manufacturing enterprises detours, learn from the successful experience of the western companies, take full account of our different market environment, different product positioning, customer demand, build their own distribution building mode to match their own business development strategy creatively. |
