Question

Pick a product you feel you know well. What intermediaries do you think are used in bringing this product to market? What valuable services do you think these intermediaries provide?

Answer 1

Product chosen- imported diesel engine, manufactured in Japan

Process of Sales is- manufactures sells and dispatches an intermediary company in respective country. That intermediary company will further sell and dispatch to a customer in the country

Role played by the intermediary:

• It takes the order from the end customer
• It places an order on the manufacturer, after reporting all technical and commercial requirements and terms
• Manufacturer sells to intermediary after receiving 50% upfront payment from intermediary, and dispatches via port. Intermediary takes care of the process to pick from port, transport it via international sea route, bears freight and insurance cost for the customer
• Intermediary then will sell and dispatch locally to the customer after pricing along with freight and insurance and custom charges, along with taxes
• So intermediary has played below roles of:

Channel partner

Cost bearer

Risk bearer

Local supporter for sales and service support

Brand representative and promoter

Local operational supporter

Inventory holder, for the manufacturer