Case Study

Development of a sales and dealer network in China for a mechanical engineering company

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Development of a sales and dealer network in China for a mechanical engineering company

A mechanical engineering company was suffering from a drastic drop in sales and a demotivated sales team. By rebuilding the sales department and creating a dealer network, new sales staff and after-sales dealers were recruited and contracts and training programs were implemented. This led to a significant stabilization of the sales structure and the parent company’s approval for direct sales via dealers in China.

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Company Details

Production and after-sales company in Tianjin, sales company in Shanghai
Main production in Germany with 2 production sites
Sales team consists of 12 staff
Strong sales decline

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Situation and Challenge

Drastic sales decline, demotivated sales staff
Lack of visible sales leadership
Damage from former sales director’s misconduct (larceny, corruption)

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Objective and tasks

Reconstruct and realign sales division, evaluate existing team, recruit new sales staff
Establish and train dealership network for sales and after-sales services
Create profit center sales division in Dongguan, including repair shop setup

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Measures and Approach

Present concept to parent company, assume personal responsibility for Dongguan sales division
Define dealer parameters, prepare contracts, conduct interviews with executives
Select and train new sales staff, provide technical training for dealers
Implement new after-sales guidelines and incentive schemes, dismiss corrupt staff

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Results and Achievements

Parent company approval for direct sales via dealerships in China
Identified 4 potential new sales staff, set dealership parameters
Established qualified after-sales dealer and identified over 20 potential new dealers across China
Defined contracts, training schemes, selection criteria and timelines

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