The Federation of Canadian Manufacturers in Japan: Market Development and Business Support Services in Japan

Federation of Canadian Manufacturers in Japan

Japan Market Development Specialists
Minimizing Risk, Reducing Costs and Maximizing Revenues

Case Studies

All FCMJ clients have unique requirements however the following are typical scenarios illustrating the value and diverse support we can offer for different channel structures.

Exclusive Distributor Management

Global visual technologies company offering projection equipment and display solutions for business, entertainment and industrial markets in digital cinema, large audience environments, control rooms, business presentations, training facilities, virtual reality and 3D, education and simulation applications.

Challenges

  • Unsatisfactory communications with exclusive distributor’s sales and technical staff.
  • Excessive margins impeding ability to compete and limiting sales growth.
  • Market focus limited with multiple untapped core market segments.

FCMJ Solution

  • Position FCMJ as sales and technical liaison to improve communications.
  • Negotiate reduction in margins to more competitive levels.
  • Work with distributor to expand target market coverage.
  • Identify and develop independent OEM accounts to increase penetration in core areas.

Results

  • 40% reduction in margins achieved, expanding market penetration into multiple segments.
  • Successfully developed independent OEM business in two core markets.
  • Doubled sales within two years and achieved long term double digit growth with Japan becoming client’s second largest market.
  • Provided ongoing client liaison and sales support for 11 years.

Endorsement – Director of Sales, Asia Pacific Region

“FCMJ functioned as our local representative to our Japanese customers and provided a consistent and professional service that was instrumental in growing our business in Japan, conducting various research programs of the Japanese market and were fundamental to developing unique marketing plans for the Japanese market. They were responsible for identifying new customers and assisting not only our international sales team but also our marketing and engineering from our head office. The FCMJ team was more like an employee and our staff certainly saw them as one of our family.”

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Multi-Tiered Channel Management

Manufacturer of Electro-Magnetic Disk/LED hybrid displays, components and systems for bus, rail and airport terminal passenger information, traffic information, financial, sports and advertising applications.

Challenges

  • Exclusive distributor’s sales performance and market coverage unsatisfactory with sporadic sales results.
  • Principal unaware of end user selling price and competitive situation in core markets. 
  • Distribution structure appears to be overly complex with too many middlemen.
  • Necessary to investigate feasibility of either continuing on with distributor or implement alternative channel strategies.

FCMJ Solution

  • Evaluate distributor’s performance, market coverage and selling price to determine feasibility of continuing relationship.
  • Assess market for key segment applications and qualify alternative distribution strategies and strategic partners. 
  • Recommend and initiate optimum long term strategy.

Results

  • Due to excessive margins, reactionary sales approach and convoluted channel structure the exclusive distributor agreement was re-negotiated to non-exclusive status.
  • In parallel implemented direct channel structure with major OEM accounts and system integrators in all major target markets resulting in drastic reduction in selling prices.
  • Provided comprehensive long term local support and liaison covering all aspects of sales, market development, account management and post sales support requirements.
  • Secured multi-million dollar sales results throughout the 18 year relationship with the client.

Endorsement – Manager, International Sales

“FCMJ has provided invaluable assistance to our marketing efforts in Japan, providing us with accurate market intelligence data and uncovered potential clients for our products…the day to day liaison work performed has resulted in an excellent rapport with our clients and has served to establish a high degree of credibility for our company.  They conduct all their business affairs in a most professional manner and have deservedly earned a high level of respect from Japanese contacts.”

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Direct End User Channel Management

Market leader in the reverse engineering and analysis of semiconductor devices and electronic systems for product design, competitive analysis and support in asserting intellectual property rights.

Challenges

  • Existing exclusive distributor ineffective in penetrating the market
  • Determine optimum long term strategy to develop business with all major Japanese semiconductor manufacturers and electronics firms.

FCMJ Solution

  • Recommend termination of distributor agreement.
  • Establish direct sales channels to design and intellectual property departments in target companies.

Results

  • Developed and managed direct accounts in multiple design and intellectual property groups in the top 25 semiconductor and electronics firms with more than 1,500 customer contacts.
  • Achieved consistent multi million dollar annual sales equivalent to 30% – 40% of annual revenues. Represented client in this capacity for 14 years.
  • Assisted in establishment of Japanese branch office and provided ongoing customer support for 2 years until transition was completed.

Endorsement – Vice President and Chief Operating Officer

“We worked with the FCMJ with phenomenal success to develop our business presence in Japan. Working with FCMJ has enabled us to develop our business from virtually nothing to over one third of our total revenues in a very reasonable time frame. When we first engaged FCMJ we had no direct contacts in Japan and we had to work from scratch to develop the territory. Over the first 18 months FCMJ worked closely with our team to develop contacts, establish relationships and foster trust with virtually all the major Japanese semiconductor and electronics firms. In the following years our business experienced outstanding, exponential increases year over year and our Japanese clients have proven to be some of our most faithful and loyal long term customers.”

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