DEVELOPING A DISTRIBUTION STRATEGY

DEVELOPING A DISTRIBUTION STRATEGY FOR THE GENERATOR BUSINESS

China Qianjiang Group is situated in the Southeast China, 480 kilometers from Shanghai City. China Qianjiang Group, with 12,400 employees, manufactures and markets a wide variety of products, including small electrical power generators for home use and light business use. While enhancing its domestic market share, Qianjiang Group actively seeks opportunities to extent the company's reach to overseas markets. Today, the company's products are exported to more than 39 countries and regions in Europe, North America, South America, the Middle East, and Southeast Asia. The company has annual revenue of US$453 million from its major businesses, earning a net profit of US$25.4 million annually (China Qianjiang Group, 2004a).

This research develops a proposed distribution plan for the small home generators manufactured and marketed by China Qianjiang Group that will be sold in the United States market. The small generators manufactured by the company range in generation capacity from 1.33 kilowatts to 4.5 kilowatts. The distribution plan developed in this paper focuses on the consumer leisure business segment of the small generator business. The consumer leisure segment of the generators involves the sale of small capacity generators through distributors to end users for recreational uses (camping, and so forth), emergency power generation (in periods of power blackouts or other emergencies), and for

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on page 5. The comparison of the competing generator brands includes the following information: (a) performance data; (b) price range; and (c) distributors that carry the brand. Exhibit 1: Distributors/Retailers of Generators in the United States Market Distributor/Retailer Number of Outlets Locations, Markets, & Main Business Focus Generator Brands Lowe's Companies 930 Locations in 45 states in the United States focusing on (a) do-it-yourself home improvements & (b) remodeling contractor business Troy-Bilt Home Depot 1,700 Locations in all parts of the United States (as well as Canada & Mexico) focusing on (a) do-it-yourself home improvements & (b) remodeling contractor business Coleman Power Complete 1 The company is located in New York. The company sells directly to end users via telephone and the Internet; Mail business is power generation, distribution, and safety equipment Coleman Gillette Continental Engines 5 Company distributor locations in South Carolina & North Carolina distribute products to retailers in all parts of the United States; Main business is (a) commercial & industrial engines and (b) electrical power generation equipment Honda EVAPAR 4

Category: Business - D