INTERNATIONAL REPRESENTATION AND DISTRIBUTION

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INTERNATIONAL REPRESENTATION AND DISTRIBUTION
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BUSINESS OPPORTUNITIES FOR U.S. MANUFACTURERS IN
THE INTERNATIONAL AFTERMARKET
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CANADA

• They speak English in most parts
• Their vehicle mix is quite the same as the States
• Shipping is mostly overland

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MEXICO

• Market about 10 the size of the U.S.
• Same product mix
• Chrysler, Ford, GM and Nissan plants
• Volvo truck, Volkswagen cars and trucks,
  Kenworth, John Deere, International,
  Mercedes-Benz and others.
• This is not just any market it is sophisticated
• One of the larger free zone areas in the world
  for drawback industry
• The market of the chocolates

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EXPLORING EXPORT OPPORTUNITIES

• LATIN AMERICAN HAS SOME DISTINCT
• ADVANTAGES THAT SHOULD BE
• CONSIDERED
• Proximity of the Market
• Availability of Spanish speaking personnel for
  marketing, sales and customer service
• The US dollars is used almost interchangeably
• Invoicing is in US dollars
• Shipping and other east coast ports
• Trade agreements

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CENTRAL AMERICA

• Cars and pickups, the US has a max of 12 of the
  market
• Asian vehicles running 80
• But Heavy Duty trucks and buses are almost all
  US
• 65 is US

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CARIBBEAN

• Puerto Rico with more vehicles than all of
  Central America put together
• 50 of the total Caribbean market
• Mixture of some 60 Asian cars and pickups, 30
  U.S. and the remaining 10 from Europe
• The Heavy Duty market is almost all US trucks and
  buses
• Trade exclusively with the US

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SOUTH AMERICA

• Venezuela has always been a wonderful market for
  the US before Latin America
• South America, aside from Venezuela offers a
  different mix in vehicles
• Brazil is a different type of market
• Importation of vehicles and parts is very
  restricted
• Being an OE supplier does not guarantee success

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LATIN AMERICA

• Countries have a changing proliferation of
  brands
• The age of our vehicles will be up to 15 to 20
  years
• American
• American (Latin American)
• European (Europe)
• European (Latin American)
• Japanese
• Japanese (US)
• Japanese (Latin American)
• Japanese (other)
• Korean (Korea)
• Korean (US)
• Korean (Latin American) (incipient)
• The leaders in the overall car and pickup
  population are Toyota and Nissan, followed by
  Hyundai, Mazda and Kia

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INTERNATIONAL REPRESENTATION
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INTERNATIONAL REPRESENTATION

• The always changing market and especially during
  an economic downturn, the use of agencies or
  representatives typically increase
• Regardless of the economic environment agencies
  will continue thriving
• Outside sales representatives will not just work
  very hard selling your products, but can provide
  vital information about the market
• Sales agencies sell more than products they can
  sell services as well

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MORE VARIABLES MAKE THE MARKET CONDITIONS EVOLVE

• Advances in technology
• The downsizing of manufacturing sales and
  customer service staff
• Move toward outsourcing
• Focus on the importance of cost in bringing the
  product to market

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YOU WILL FIND THAT A REP IS OUTSOURCING

• BUT TAILORED TO YOUR PRODUCT AND YOUR MARKET.
  SOME OF THE ADVANTANGES OF AN INDEPENDENT SALES
  AGENCY ARE
• Provide immediate entry into a territory
• Provide Regular calls on customer and prospects.
• Provide quality salesmanship
• Provide predetermined selling expense

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SELLING THROUGH INDEPENDENT REPS BY HARRY
NOVICK

• What You See is What you Get
• You Are Faced With a Second Set of Competitors
• Selling through reps is more complex than with a
  direct sales force, at the same time it also
  carries with it
• Professional salesmanship
• Customer continuity
• Commitment to selling
• The ability to provide customers business
  entertainment
• The benefits of synergistic products with their
  complementary product lines
• Knowledge of the customers processes
• Cash flow-with a DSF
• A variable selling expense
• Improved return on investment
• Lower administrative cost
• A business advisory source

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COMPARING The DSF and The Rep
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THE FOUNDATION OF AGENCY SELLING IS THAT AGENTS
ARE PAID ONLY FOR RESULTS
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THE DISTRIBUTOR

• Mom and Pop Stories

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THE DISTRIBUTOR

• Structured warehouse distributors
• Central America have distributors that while
  wholesaling, also have a chain of retail outlets

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THE DISTRIBUTOR

• Importers in Central America have been global
  long before the term existed
• Brand loyalty exists as long as there is a total
  profitability package for the buyer as well as
  there should be for the supplier
• Distributors in all of the countries are
  insisting on specializing due to the vehicle
  proliferation
• Cherry picking between two or three suppliers is
  a common practice in the market

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THE CONSUMER (MECHANIC) DECISION MAKER IN
LATIN AMERICA

• The decision maker by far is the mechanic
• Very little DIY
• Purchase choice is determined by
• Perception of what is good
• Idiosyncrasy
• Price
• Availability
• Brand loyalty is strong based on a mixture of the
  above mentioned factors
• Mechanics are of the ages 15-35 years old
• They learn by osmosis

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THANK YOU !