Trioliet is a leading Dutch manufacturer of feeding machines and systems for dairy farms. The company already has more than 65 years of experience in feeding technology. Through all the years. Trioliet is continuously improving through new solutions and development by listening to the needs and requirements of their customers.
The focus of this report is the entry of a new market in Africa. The company exports to more than 40 countries all over the world, but the African market is still an unknown market for Trioliet, except Algeria. Here Trioliet is already active. This report will analyze the markets in Africa and determine if there are serious market opportunities for feeding technology for Trioliet. The objective is to produce an exportplan for Trioliet; it contains recommendations how and with what instruments the company can enter the market for feeding technology in one of the selected countries in a profitable way.
First of all, an internal company analysis is carried out giving an overview of the company’s resources regarding to knowledge, personnel and financials and if Trioliet is capable of exporting its products to Africa. After that, a country selection is made based on the three-phase filter-model determining which of the above mentioned countries provides the best opportunities for Trioliet. Then macro- and meso environmental analysis are made in order to understand the environment in which the company operates and also to have a clear picture about the customers, distribution channels and competitors. Based on these findings, a SWOT analysis and a confrontation matrix can be made. Hereafter, the market strategy and market entry options are set. At the end of the report, recommendations will be formulated based on the evaluation.
1. Company analysis
3.1 Company overview
Trioliet is a manufacturer of feeding machines for dairy farms. It is a family-run company: the brothers Max, Fred and Kees Liet founded the company in Purmerend 60 years ago. Since 2007, Robert Liet is the principal of the company. He is also the son of one of the founders. At the moment, there are working 230 people at Trioliet. Following departments can be found at the company: logistics and production, development, human resources management, financial, purchase, quality, export, marketing and internal sales and service department (appendix ”). The core values of the organization are tradition, innovation, vitality and entrepreneurship. The company offers a wide range of livestock feeding machines, such as silage cutters, feed mixers, self-loading or self-propelled feed mixers and complete automatic feeding systems. The company aims to make the products as user-friendly, safe, sustainable and economical as possible. Trioliet is continuously improving through new solutions and development in respect to the people and a healthy environment now and in the future. The machines are tested at special experimental farms meeting the customer’s needs and requirements (Trioliet Company Profile, 2015).
Mission and Vision
The mission of Trioliet is to develop feeding technologies and systems with a high quality for professional dairy farms. Alle the machines have the objective to help the modern livestock farmer managing his farm efficiently. The vision of the company is to provide a unique performance and high productivity which is cost-effective, convenient and easy to use for the dairy farmers (Trioliet Company Profile, 2015).
3.2 International Strategy
Trioliet exports over 80% of its machines to more than 40 countries worldwide. The company is operating successfully; there are tens of thousands farmers using machines of Trioliet. The company exports its products to Europe, America, Australia and China. 67 % of the exported machines are sold in Europe. There are currently four export managers responsible for different regions in the world. Trioliet employs in some countries local sales representatives. An export manager is responsible for the importers in the different countries; these importers manage the dealers in a country. The company does nog have importers in every country; the organization is also directly in contact with individual distributors. This is due to the fact that the countries have different market potentials. In countries with a high market potential, it is beneficial for Trioliet to employ a foreign importer or even a sales manager who is responsible for purchasing the goods to different dealers and providing support and customer service on-site. If a market has a lower potential, Trioliet sells its products via individual dealers in a country. Having a foreign importer means less work regarding to import related tasks for Trioliet, but it takes more time to build a broad dealer network in a foreign country as you can see in the figure below (see appendix ‘).
In addition, Trioliet has warehouses mainly for parts in the USA, France, the united Kingdom, China and the Netherlands. The machines are manufactured in Oldenzaal, the Netherlands. When they are manufactured, parts will be delivered to these warehouses. The machines will be assembled in Oldenzaal and sent to the dealers all over the world. Because of the local warehouses, Trioliet has a strong worldwide dealer network for sales, service and parts. Via a strong dealer network customers are provided with optimal and professional service directly on site (Trioliet Company Profile, 2015).
The complexity of the machines and the sophistication of Trioliet’s products require a knowledgeable dealer who helps the farmers to choose the most suitable feeding machine for their dairy farm. Trioliet’s dealers have been specifically chosen for representing the company and selling its products. A dealer has to meet following criteria in order to work for Trioliet: he must have an adequate facility, a deep knowledge and good understanding of the market for feeding technology in his region/country, sufficient financial resources and wide experience in the field of feeding technologies. If the dealer is operating in a foreign country, he must have good English skills in order to communicate with Trioliet’s employees (see appendix ‘). With these criteria Trioliet has reliable dealers who represent the company.
As mentioned, Trioliet sells its products via a strong dealer network. The company has not sales offices except one in China. A sales office is linked with additional costs: one has to pay the rent and the employees who are working in the sales office. A dealer network is a more simply way for Trioliet and means fewer costs in comparison with a sales office. Trioliet has a sales office in China because of governmental restrictions. When Trioliet started doing business in China, it was confronted with an import restriction. The only way to sell machines in China, is to build a sales office in the country. This is the reason why Trioliet has a sales offices in China. In all other countries the company sells its products via dealers (see appendix ‘.).
Trioliet offers the whole range of its products in all countries; it depends on the farm scale which products are sold. It is already useful for a farmer with a small-sized farm to purchase Trioliet’s machines; even if he has only 10 dairy cows on his farm, a product like a silage cutter would be beneficial and a worthwhile investment. Thereby it is not possible to state exactly which machines are sold for which farm scale. The orders are as individual as the dairy farmers; Trioliet’s products are useful for every farm scale. The strategy is to export standardized machines, but in several countries the machines have to be adapted because of special restrictions. For instance in USA, the machines have instead of a drawbar eye a clevis and in France the machines must have a backlighting (Meijerink, 2015).
The company Trioliet is participating in conferences, trade shows and exhibitions of the dairy sector in the different countries. It is an effective and direct way to build new relationships and to reach the customers who are interested in buying feeding machines. Trioliet also advertises in the foreign journals and displays online advertisings on specified agricultural websites on the internet (see appendix ‘). ‘
Meijerink, J. (2015). PR Manager at Trioliet B.V.
Trioliet Company Profile. (2015).
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