Identifying and Evaluating End-Users and Distribution Channels in the Baltic Countries and Poland

Abstract

Gaining market share and increasing revenue stream are important aspects to every company. In order to reach these goals, sometimes companies have a need to explore foreign markets that can provide new business opportunities for their product solutions. However, there might be many barriers to achieving these goals, for example lack of access and information from the targeted end-users and differences in languages and culture too.

The objective of this thesis is to develop a framework for identifying potential end-users and how to target them, that is, how to find suitable distribution channel partners that have access to the targeted market segments that can resell the products to them. To answer these research objectives, the theoretical framework proposes a model for identifying and segmenting the market and for evaluating and selecting an appropriate distribution channel partner.

The main results of the research indicate that there is potential for both products studied. In the case of the Standard Price Pylon, it was observed that there are approximately 6.716 fuel stations in Poland and around 47 per cent of them are owned by independent gas station owners, who can be considered as potential end-users for this product solution. The potential distribution channel partners selected are two companies that are distributors of gas station equipment such as gas pumps, hoses and guns. They, too, can provide additional value added services such as the construction and restoration of fuel stations. These companies operate in Poland and they are PetroNova and Fortis.

In the case of the LED-line, it was more challenging to identify potential end-users because this solution depends more on the value added perceived by its potential end-user which is relative to their own perception. However, there are several interesting potential distribution channels that operate in the Baltic countries and Poland. The company to be considered the best channel alternative is Onninen. /Kir10