YAROVIT Production Organization. Sales and Services Policy

It is not enough, in the automotive business, to produce a truck, it is also necessary to sell it at a profit. Which is why the company YAROVIT Motors attributes utmost attention to the problem of sales, marking it out as the most important task of the marketing complex. The task of sales (distribution) consists in ensuring that the goods in demand are delivered to the required place at the required time, in required quantities, complete and in proper condition.

Resolution of the distribution tasks shall be separated from the production. For this purpose, the company CJSC “Investment company “YAROVIT Motors” (Moscow) has been set up, of which one of the most important missions will be to create and manage the commodity distribution network, as well as to act in the capacity of the general distributor.

An optimal commodity distribution network ensures minimization of the expenses and time of delivering the goods to the end consumer, as well as furnishes the owner with a tool of supervising the implementation of the sales policy, the sales and pricing discipline at all levels of the distribution channels.

Forming the “IC “YAROVIT Motors” commodity distribution network is based on the following principles:

­ “IC “YAROVIT Motors” acts as the general distributor;

­ distributors and dealers are set up based on the territory- and branch-of-industry principle;

­ The commodity distribution network is fully controlled by “IC “YAROVIT Motors”. Control is enforced due to the controlling share of the “IC “YAROVIT Motors” in the authorized capital of each distributor;

­ Pricing in the chain from the producer to the consumer is controlled by the general distributor “IC “YAROVIT Motors”;

­ The sales discipline and the company sales policy are enforced through regional control of the distributors in whose authorized capital “IC “YAROVIT Motors” retains a share, and also through the sales performed by the general distributor;

­ Distributors and dealers can be set up in the regions jointly with major consumers as well as with other companies and service stations.

Delivery of a wide nomenclature of spare parts for the local dealers is carried out using a high-capacity computerized logistics center and the central warehouse servicing local warehouses and storages.

Logistics center. A single logistics center equipped with a powerful computer system controls the commodity flows in real time. The computer system is linked with all the suppliers, central and local warehouses.

The central warehouse is owned by “IC “YAROVIT Motors”. It is a damping link between the production and regional distributors.

Regional distributors are the companies set up by “IC “YAROVIT Motors” and its partners on regional markets. These have at their disposal warehouses storing spare parts and work on the basis of distributor agreements by creating their dealer networks. Regional distributors also are entrusted with supervising quality of the sales and services on their assigned territory and extending information, advertising and legal support to the dealers.

Regional distributor warehouses perform the most important function of the sales network. They turn accidental demand of isolated consumers into their own determined demand which can be analyzed and predicted, which is important for forming the production program.

Dealers are sales and servicing enterprises (both affiliations of “IC “YAROVIT Motors” and independent ones) working on the basis of dealership agreements and creating their own network of service stations. Dealers perform the functions of storing the trucks and spare parts, signing contracts for delivery of equipment and spare parts, pre-sale preparation, warranty and after-sale servicing, advertising support.

Service. Service stations can be dealer and independent ones. Major dealers have to dispose of several service stations, small dealers may have one service station. Service stations are evenly distributed over the target market territory and have to be certified to service YAROVIT trucks.