Background
A Master Distributor in the automotive aftermarket distributed
its products through a network of independent stocking
distributors across the country. Strict licensing agreements
in place with the distributor network, limited the company
in appointing new distributors, broadening their reach
and growing the business.
Challenge
In recent years the company had undergone notable change.
It had moved away from a known and respected brand name
in the marketplace to one that was new in the North
American market. With the name change came a new expanded
product line as well as a range of technological products
distributors had not carried in past. Finally, the company
had also experience a change in its senior management.
The new team was younger, more aggressive and more oriented
to the use of computers and electronic support – areas
that were somewhat foreign to the distributor network.
Solution
Whiting & Holmes quickly assessed the current position
of the company and acknowledged the necessity of attaining
growth through increased sales and Distributor wealth,
not an increase in number of distributors. To do so
would require loyalty and buy-in to new management,
new direction and the inevitable change that would occur.
A Distributor Perception Study was conceived, created
and undertaken by W&H that would reveal Distributor
perceptions and opinions on the industry, the company
and recent changes. By speaking directly to individual
Distributors, W&H was able to elicit comments on
how the company could help them maximize growth potential,
the strengths and weaknesses they perceived with the
Master Distributor. Last but not least, they were encouraged
to offer ideas that they felt would improve the business
as a whole and build value for their distributorship.
The results of the study helped to define both short
and long-term activities that would help move the Distributors
and the company forward. In turn, these strategies strengthened
the long-term position for the company as an industry
leader in its segment.
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