New Key Customers in Russia

The Background

Company X is the German subsidiary of a large British engineering group, which specialises in manufacturing high tech components that are used in laser engraving and precision optics. The group has been operating for more than 100 years and boasts a turnover of £1 billion+ p.a. It is listed on the London Stock Exchange FTSE 250 and employs over 10,000 people worldwide in 35 countries. Company Y is recognised as a technological leader in its field and has been supplying the most prestigious customers on a global basis for many years.

The Opportunity

Russia’s fast growing economy is home to some of the leading manufacturers of devices which use the specialised components produced by Company Y, yet Company Y did not supply any of them. However, our in-depth research of the market indicated about a dozen potential customers, each with a substantial business potential.

The Challenge

Company Y had never succeeded in meeting any representatives of the target Russian companies, despite having exhibited at a number of international trade fairs and conferences. Without any contact and limited language capability, it was therefore difficult for Company Y to establish communication with decision-makers in those organisations. In addition, as Company Y operates in a very small industry niche, they did not believe it was commercially viable to establish their own local office.

Varega

Varega were hired by Company Y both to investigate the overall market for their products in Russia, and to draw up a list of potential prospects:

Our initial approach was to ‘cold call’ the prospects, qualifying each company in terms of their activity and structure, and identifying relevant points of contact and decision making. We introduced Company X to them, focusing on their products’ USP’s and commercial offer. We gathered a wide range of information, including prospects’ turnover, pricing and supplier, and evaluated the data accordingly. We communicated all the advantages associated with sourcing from Company X, and answered their objections. These detailed communications included commercial quotations, delivery lead-times and terms of business.

The Results

Based on the result of Varega’s market intelligence and actions, Company X was able to successfully progress discussions with one major potential customer. Company X were also better able define their position in the Russian market and what was required for them to operate successfully. Thanks to Varega’s targeted yet flexible approach, Company X had the support of a reliable partner for the duration of the sales cycle, while not having to commit resources unnecessarily to the market.