Distributors minimize receivables risk but ultimately control a company’s brand reputation, distribution strategy and pricing policies. Subsidiaries offer full control but add rapidly to overhead costs and require constant managerial attention.
Kastel offers clients a third way, a creative approach that structures their US businesses such that capital-intesive efforts (logistics, warehousing) are taken on by proven outside parties, while strategic and revenue generation activities (sales, marketing) are controlled entirely by the client. Kastel’s ongoing relationship with a client provides experienced managerial oversight on a variable cost basis from a fully functional US headquarters. Through a constant exchange of information, Kastel enhances understanding at the client’s home base to aid decision making and support production development. This approach emphasizes client profitability and growth objectives, with current clients enjoying US operations with grow double digits annually, on average.
Assessing the Market
Building a profitable, sustainable operation in the US begins with a clear understanding of overall market conditions and the relative advantages of a client’s products. Kastel’s services start with an analysis of the US market, the relevant competitors and all important distribution channels. The next step is to develop a business plan; this phase of work includes discussions with key potential customers and sales representatives to ensure that the plan is both informed and pragmatic. Finally, all legal and logistical elements are considered, from forming the most appropriate legal entity to negotiating with reputable third party service providers for needed services.
Planning to Action
Once the optimal structure has been achieved, Kastel assists the client in implementing its marketing strategy – promoting the brand, creating pricing policies, managing selected distribution channels, and setting up a sales and marketing arm in the US, as well as providing managerial oversight for the infrastructure that has been put in place. This arrangement ensures that the client has full access to all information, including client lists, sales representatives’ details and vendor data, so that the client remains in full control of their US business.
Speed & Flexibility
Kastel leverages the many caliber services available in the US market, combined with a tailored marketing penetration strategy, to begin transacting business as quickly as possible. A turnkey operation generates revenues immediately, without the limitations of classic distributorship or the complexities and expenses of fully functional subsidiaries. Kastel’s clients utilize a flexible business model that emphasizes variable costs, thereby maximizing clients’ tactical options while focusing on profits.