With oil prices and commodity markets in flux for the foreseeable future, Middle East and African governments are investing heavily in increasing local processing and manufacturing capabilities. Both regions also have massive infrastructure development projects underway, with committed project funding in the billions of dollars. As a result, American equipment and machinery, as well as best practices, are in high demand.
ISI has worked with companies representing or serving a broad cross-section of the sector:
- Construction & farm equipment
- Industrial automation & controls
- Electrical distribution
- Power & energy equipment
- Manufacturing equipment
- Building & residential automation
- Water & wastewater equipment
Below are some examples of our work in this area:
RESTRUCTURING OF DISTRIBUTOR NETWORK & SALES STRATEGY
The Client: A multi-national Fortune 500 equipment manufacturer supplying the energy industry with operations in the Middle East and Africa for over 35 years
The Assignment: Assist in restructuring the company’s regional business and distributor network to increase profitability.
Actions & Results:
- Conducted an in-depth assessment of the company’s business in the Middle East and Africa providing recommendations on key markets in which to re-focus the company’s efforts
- Assisted the company to consolidate and restructure its sales and distribution network, involving reducing the number of markets served and identifying replacement distributors in certain key markets.
- Reduced the company’s regional operating budget by 30% resulting in a substantial increase in profitability and the regional division achieving the highest ROI ranking in the company
MARKET ENTRY STRATEGY & REPRESENTATION
The Client: A mid-sized U.S. based industrial manufacturing equipment broker
The Assignment: Create and implement a pan-African market-entry strategy and provide interim sales management services while establishing a local distributor network
Actions & Results:
- Implemented a Market Scorecard analysis on Africa for market potential of the company’s products as well as other factors such as ease of doing business, and developed a plan for rapid entry into selected markets
- Represented company at trade events and meetings with clients and trade associations in several African countries, identifying and developing opportunities, and conducting contract negotiations
- Conducted search and selection process for strategic partners in target markets
- Established the company as a dominant market player in several high potential African markets and generated a strong pipeline of future business
GROWTH STRATEGY & DISTRIBUTOR MANAGEMENT
The Client: A leading manufacturer of equipment for the construction and infrastructure industry with an existing dealer network but weak sales in Middle East and African markets
The Assignment: Increase sales and profit margins in the Middle East and African markets from the company’s existing dealer network
Action & Results:
- Devised and implemented a dealer management program to create more accountability, transparency and incentives for dealers, involving negotiating new dealer agreements
- Developed recommendations to better localize the company’s product offering and pricing structure for greater sales potential and higher margins.
- Devised and coordinated implementation of new regional marketing strategies to strengthen company’s long term position within the region, including:
- promotional events throughout the region
- regional dealer and client group visits to the company’s U.S. headquarters
- new product launches across the region
- Increased regional revenues by 50% over 2 years and attained market leadership position in 3 of the largest markets.