Identification of German Agent

 

Client Indian manufacturer of equipment for the chemical processing industry
Situation Client disposes of a long term business as supplier to Asian and Middle East manufacturers and first contract with a German general contractor for a project in India.

Client intends to expand business to German chemical plant manufacturers. These widely dispose of high technical expertise and enjoy a good reputation worldwide. Client considers a high sales potential of his products to these clients.
Position of Rainer Kozik
  • Consultant for business evaluation
  • Consultant for sales agent in Germany
Analysis
  • Target clients have long term relation with existent suppliers
  • Target clients will accept Indian manufacturer only if he is able to render same quality of performance and remarkable benefit for first order.
  • Cost structure of client is low. Therefore client will be able to offer that benefit
  • Target clients will only accept a negotiation partner being familiar with his order placement procedure
  • Technical evaluation for any projects worldwide will be made by the engineers of target client in Germany
  • Target client will not accept any commercial risk while placing order to new Indian supplier
Strategy
  • Indian manufacturer needs an agent with profound technical expertise of his products
  • Depending on situation agent might purchase the equipment from client and sell it to target client, or will act as commission agent
  • Agent needs to dispose of personal relation to decision makers in the German chemical industry
  • Indian manufacturer needs to widely accept the commercial conditions of German target clients
  • Agent needs to be furnished with specific authorizations during contract negotiation
Execution
  • Rainer Kozik has identified 4 agents matching the requirements of client.
  • 2 of them were willing to enter into negotiation with Indian client for a representative agreement.
  • The owner of Indian company and Rainer visited both agents in Germany for exchange of mind and personal assessment.
  • Finally Indian client closed exclusive representation agreement with one agent in Germany.
  • The aforementioned process took 3 months from start until successful execution.
Success
  • The appointed agent was in the position to source inquiries from German general contractors matching the portfolio of Indian client
  • Agent was in the position to divide the inquiries into A, B and C categories
  • Few months later the Indian client received first order from one German general contractor for a project in Indonesia
  • Further the Indian client received orders for projects in Latin America and Africa.
  • The margins have been satisfying.
Further information I gladly provide on request in a personal meeting.