Strategic Market Analysis and Distributor Management in Europe
The importance of testing new target markets first and staying flexible before making long-term decisions regarding investments is well understood by EuroDev. Therefore, we offer introduction programs that enable North American companies to familiarize themselves with the European retail markets cost-effectively and reliably. Below, the collaboration with a US manufacturer of swimming pool deck equipment is outlined through the different phases.
About our Partner
Established in 1932 and based in Canby, Oregon, our partner has been a leading manufacturer of diving boards for over 85 years. Building on their success in the U.S. swimming pool market, they expanded by acquiring a roto-molded slide manufacturer, which fueled their interest in the European market. They subsequently acquired a European company specializing in patented access lifts, launching a new product line focused on the disability market. Today, the company generates over $50 million in sales across its diverse business operations.
Problem Identification and Objectives
Our partner initially experienced success in Europe with two primary distributors and a warehouse in Belgium. However, sales began to decline without any apparent reason. To address this issue and restore their previous success, they sought the assistance of EuroDev.
For EuroDev, the objective was to resolve the client's current issues by aligning their market strategy with prevailing trends and optimizing their distribution network.
This was to be achieved through:
-
1Eliminating language barriers to ensure clear and effective communication
-
2Offer adaptable strategies tailored to the evolving market.
-
3Reviewing the company's previous performance in Europe to pinpoint areas needing improvement.
-
4Conducting extensive market research to identify shifts in market trends and changes in EU regulations.
Key Milestones
In the first year, the EU team found that the largest distributor was trying to push their products instead of our partner's products, slowly replacing their products with private labeling. After an audit and discussion, the distributor was given one year to implement some changes.
Sales stabilized during the second year and increased by 15%. By recruiting local distributors in weaker sales areas, the new strategy focused on a larger European scale.
After commercializing new products to be more in line with the overall European market standards, the sales figures showed an increase of 20% in the third year.
Are you Ready to Optimize Your Distributor Network?
Whether you have two distributors or ten, EuroDev's sales outsourcing model can help optimize your European distribution network and strengthen your relationships. Contact us for a customized solution to enhance your market penetration.
Stephen Viljoen
Vice President