Sergei Manevich, President Alliance Marketing Group, LLC October 29, 2003 .


23 views
Uploaded on:
Category: Sales / Marketing
Description
Opportunities and Challenges of Distribution in Russia. Sergei Manevich, President Alliance Marketing Group, LLC October 29, 2003 . Agenda. What is Distribution Specifics of Russian Distribution Alliance -10 years of business experience. What is “Distribution” ?.
Transcripts
Slide 1

Openings and Challenges of Distribution in Russia Sergei Manevich, President Alliance Marketing Group, LLC October 29, 2003

Slide 2

Agenda What is Distribution Specifics of Russian Distribution Alliance - 10 years of business experience Alliance Marketing Group, LLC 2003

Slide 3

What is "Appropriation" ? "Conveyance" (di-stre-byoo\'shen) – The way toward promoting and providing products from makers to retailers. The American Heritage Dictionary Alliance Marketing Group, LLC 2003

Slide 4

Filling the crevice MANUFACTURER CONSUMER Manufacturers need to produce, customers need to purchase. How to fill the crevice? Collusion Marketing Group, LLC 2003

Slide 5

Filling the crevice MANUFACTURER DISTRIBUTOR CONSUMER Distributor is the interfacing join in the chain. Organization together Marketing Group, LLC 2003

Slide 6

Potential of dissemination in Russia is a "recuperating", not a "rising" market Russia is the second quickest developing business sector on the planet (after China) Highly taught populace (96% proficiency rate) converts into sophisticated purchasers Significant interest for shopper hardware and PC items No residential assembling of PC related items Large topographical region (9 time zones) requires neighborhood nearness Lack of created base avoids development of e-trade Opportunity perceived by worldwide organizations (Intel, Samsung, HP) None of the major of Western PC merchants has a nearness in Russia Alliance Marketing Group, LLC 2003

Slide 7

Challenges of Distribution in Russia Low normal salary Price driven market Large region to cover Domination of little affiliates and retailers (booths) Lack of worldwide showcasing (divided) Lack of monetary and strategic base Complicated multilevel conveyance structure Alliance Marketing Group, LLC 2003

Slide 8

Delivery and Payment Challenges UPS, FedEx, DHL and USPS are not satisfactory for business operations in Russia Majority of nearby conveyances are finished by wholesaler or client coordinations Only 4% of Russians utilize Credit Cards 99% or retail exchanges are done in real money Bank to Bank exchanges take up to 48 hours US$ is a noteworthy Foreign coin in Russia Alliance Marketing Group, LLC 2003

Slide 9

Central Position in a Supply Chain Manufacturer R&D Design Marketing Tech Support Contract Manufacturer Design Support Mass Production QA Testing Distributor Purchasing Delivering Warehousing Reseller/Retailer Advertising Selling Integrating Supporting Alliance Marketing Group, LLC 2003

Slide 10

Central Position in a Supply Chain Manufacturer R&D Design Marketing Tech Support Contract Manufacturer Design Support Mass Production QA Testing Distributor Purchasing Delivering Warehousing In Russia Marketing Promoting Packaging Customizing Certifying Financing RMA Tech Support Reseller/Retailer Advertising Selling Integrating Supporting Alliance Marketing Group, LLC 2003

Slide 11

Outsourcing versus possess conveyance Strengths Existing Infrastructure Extended Coverage Local Expertise Specialization Weakness Limited Control Dependency Threats Reliability Market Disconnect Exclusivity (select.) Opportunities Fast Expansions Limited Risk Cost Reduction S W T O Alliance Marketing Group, LLC 2003

Slide 12

Alliance Marketing Group, LLC Gateway to a Global Technology Connection Business Overview October 2003 Alliance Marketing Group, LLC 2003

Slide 13

Our Business Alliance Marketing Group gives discount and retail appropriation, and promoting and business counseling administrations in Eastern Europe. Cooperation benefits an extensive number of the world\'s best known PC and shopper electronic producers. Union serves as the vital extension between Global providers and the quickly growing Eastern European markets Alliance Marketing Group, LLC 2003

Slide 14

Alliance\'s Business Snapshot Core Businesses: Distribution of Computer Components & Peripherals and Retail Sales Value Added Services : Marketing and Consulting The esteem included administrations supplement the center business permitting Alliance to give a wide range of coordinated answers for its sellers and clients Alliance Marketing Group, LLC 2003

Slide 15

Distribution (Intel, Gigabyte, Logitech) Alliance\'s Service Profile Manufacturer\'s Effort Distributor\'s Effort Alliance Marketing Group, LLC 2003

Slide 16

Product Launch/Branding (Altec, Adaptec, Cobra, USRobotics) Distribution (Intel, Gigabyte, Logitech) Alliance\'s Service Profile Manufacturer\'s Effort Distributor\'s Effort Alliance Marketing Group, LLC 2003

Slide 17

Retail (Pilotage,VAT) Product Launch/Branding (Altec, Adaptec, Cobra, USRobotics) Distribution (Intel, Gigabyte, Logitech) Alliance\'s Service Profile Manufacturer\'s Effort Distributor\'s Effort Alliance Marketing Group, LLC 2003

Slide 18

(Vobis, Vist) Business Retail (Pilotage,VAT) Product Launch/Branding (Altec, Adaptec, Cobra, USRobotics) Distribution (Intel, Gigabyte, Logitech) Alliance\'s Service Profile Manufacturer\'s Effort Distributor\'s Effort Alliance Marketing Group, LLC 2003

Slide 19

Alliance\'s Global Vendors Alliance is one of the biggest Eastern European merchants of Mitsumi, Gigabyte and Logitech Alliance Marketing Group, LLC 2003

Slide 20

Distribution Product Mix (Q2\'03) In numerous item amasses Alliance holds 10-15% of the aggregate circulation piece of the overall industry in Russia Alliance Marketing Group, LLC 2003

Slide 21

Significant Customer Coverage Murmansk St.Petersburg Arkhangelsk Smolensk Yakutsk Orel Perm Kazan Ekaterinburg Nizhnevartovsk Voronezh Ufa Samara Khabarovk Rostov Volgograd Irkutsk Astrakhan Orenburg Omsk Novosibirsk Vladivostok Moscow organizations 58% Regional organizations 42% Total Customers 500+ The Company\'s client base spreads more than 9 time zones and comprises of more than 500+ records Alliance Marketing Group, LLC 2003

Slide 22

Alliance\'s Customer Base Vertical Sectors incorporate Consumer, Business, Government, Education, Energy and Medical. Partnership\'s main 100 records produce 80% of the aggregate deals income Alliance Marketing Group, LLC 2003

Slide 23

Boston, USA Office: 1,500 sq feet, 5 workers Moscow, Russia Office: 600 sq meters, 45 representatives Warehouse in Moscow: 2,000 sq meters, 20 workers, ERP empowered Nominated Freight Forwarders in: San Francisco, Boston, New York, Amsterdam, Dubai, Helsinki, Taipei and so on. Lead time to Moscow: - Ground (by means of Finland): 1-2 weeks - Air: up to 1 week Infrastructure and Logistics Alliance Marketing Group, LLC 2003

Slide 24

Navision Financials Navision Financials ERP framework (executed in 1997) Optimization of offers and appropriation Real-time stock data Accurate money related reporting Client Relationship Management B2C and B2B adaptability Part of Microsoft Business Solution Navision gives a center structure in every single working exchange of the Company Alliance Marketing Group, LLC 2003

Slide 25

Attributes of Alliance\'s Success 10 years of beneficial operations (since 1993) with $29 mil income in 2002 (anticipated $42 mil in 2003) are owing to: Experienced US and Russian administration group Sophisticated worldwide foundation reasonable for distribution of a wide assortment of items Strong, referenceable client base (500+ clients) Excellent long haul seller connections Combined information of Russian Culture and Western style of Management Alliance Marketing Group, LLC 2003

Slide 26

Top 10 purposes behind entering Russia World\'s 6th biggest nation (populace 145 mil) Three continuous years of monetary development Number one in Eastern Europe Recognized Market Economy Stable political climate Sophisticated purchaser base (96% proficiency rate) High interest for quality brand items Fast development of neighborhood brands Improving political association with Western nations Recent increment of enthusiasm by Western speculators The planning has never been exceptional to enter the developing Russian economy by utilizing Alliance\'s built up stage of accomplishment Alliance Marketing Group, LLC 2003

Slide 27

Thank you for your consideration Sergei Manevich, President Alliance Marketing Group, LLC Alliance Marketing Group, LLC 2003

Recommended
View more...