Distribution Channel Strategy Design

Case study – Ipsos Business Consulting was commissioned to conduct market research of the Chinese automotive maintenance and beauty market in order to provide the client with a comprehensive market entry strategy.

The client company is an American automotive care and maintenance products manufacturer. Its two major brands are among the most recognised auto care appearance and fuel additive brands in the world. Brand A’s product line consists of protectants, wipes, tyre and wheel care products, glass cleaners, leather care products and washes designed to clean, shine and protect interior and exterior automobile surfaces. Brand B’s product line includes oil and fuel additives, functional fluids and automotive appearance products. The client’s brands target the car maintenance and beauty segment.

The company is a global business generating net revenue of US$300m with products available in more than 40 countries. It is a relatively new player in the Chinese market and sells its products under the two above-mentioned brand through a single distributor. The client recently opened an office in Shanghai in order to establish an in-country presence. As of 2011, combined sales of the client’s products in China were 1.5m yuan (approximately US$240,000).

In this deck, you'll discover:

  • Market evaluation
  • Distribution evaluation
  • Company evaluation
  • Key insights and suggested distribution model

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