1. The market entry method that Triumph should use in entering the North American market is exporting indirectly to an Importer/distributor. Here, the importer/distributor actually buys the motorcycles from Triumph, stores them in a warehouse and sells them on to a third party. The mark-up is usually around 33%.
The reasons why they should use exporting to an importer/distributor are;
Distributors, merchants, dealers or factors are characterised by two features. First, unlike agents who take a commission, they buy stock for re-sale. Second, they are usually but not always appointed by the manufacturer to cover a specific geographical area or sector of the market. Typically the distributor is a small company, perhaps with only one or two branches. It may be privately owned and managed by the proprietor, an ex-salesman who has opted for a life of greater independence.
The ideal environment for a distributor is a market with many small customers and where the level of sales service required is high. The spread of customers is difficult and expensive to reach with a directly employed sales force that is more suited to dealing with a limited number of large buyers. Distributors generally aim to win business on sales rather than technical service. Their stock of products means customers can have instant delivery.
Easy to support the Agent or Distributor
Agents will only take your product line if they think it will make money for them. They must be convinced that it is a good selling proposition, that your company is efficient and committed and that you can supply sufficient quantities to make handling your account worthwhile.
Support your agent to make the selling job as easy as possible. This may involve supplying selling aids, providing product and ...