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94
Delta Computers
Bradifield Estate, Bradfield Road, Wellingborough, Northamptonshire NN8 4HB
To: - Date: 31 August 19-
From: J.M. Norman
Declining Sales in Germany
1) I was sent out to Germany last month to find out why sales have fallen
by 40% over the past two years, and while there I interviewed a number
of out leading customers who were very helpful in explaining how and
why German demand for our products has contracted.
2) Between 1983 and 1990 we were one of the leading exporters to
Germany from this country, with an annual turnover of ₤2.6m from that
market, with our share of the market never below 10% of their imports
for our product. However, in 1991 it was evident that we were losing
ground despite increased advertising and promotion. Although our
customers maintained regular orders, the orders themselves were
smaller, in some cases half their previous net values.
This fall in demand continued until two years ago when we found our
share of the market had fallen to six per cent, and from that time has
shrunk to three per cent.
3) Our market researchers have already prodused two reports explaining
the decrease in demand, and my trip and interviews have confirmed
their findings.
Our exports have become more expensive to buyers, despite the
European single market economy, and as our customers saw this as a
trend, they began to look for new suppliers, which they found in the Far
East.
These countries, who were keen to earn hargcurrencies and develop their
Information Technology industries, were prepared to cut their prices, in
some cases by 60%, while at the same time maintaining the quality and
standard of the products. They also offered first rate after-sales service,
long-term guarantees, cheap transportation, and short-term delivery dates.
If may be of little consolation, but in the face of this competition most of
our rivals in the West have also experience a decline in sales to this
market.
Delta Computers Bradifield Estate, Bradfield Road, Wellingborough, Northamptonshire NN8 4HB To: - Date: 31 August 19- From: J.M. Norman Declining Sales in Germany 1) I was sent out to Germany last month to find out why sales have fallen by 40% over the past two years, and while there I interviewed a number of out leading customers who were very helpful in explaining how and why German demand for our products has contracted. 2) Between 1983 and 1990 we were one of the leading exporters to Germany from this country, with an annual turnover of ₤2.6m from that market, with our share of the market never below 10% of their imports for our product. However, in 1991 it was evident that we were losing ground despite increased advertising and promotion. Although our customers maintained regular orders, the orders themselves were smaller, in some cases half their previous net values. This fall in demand continued until two years ago when we found our share of the market had fallen to six per cent, and from that time has shrunk to three per cent. 3) Our market researchers have already prodused two reports explaining the decrease in demand, and my trip and interviews have confirmed their findings. Our exports have become more expensive to buyers, despite the European single market economy, and as our customers saw this as a trend, they began to look for new suppliers, which they found in the Far East. These countries, who were keen to earn hargcurrencies and develop their Information Technology industries, were prepared to cut their prices, in some cases by 60%, while at the same time maintaining the quality and standard of the products. They also offered first rate after-sales service, long-term guarantees, cheap transportation, and short-term delivery dates. If may be of little consolation, but in the face of this competition most of our rivals in the West have also experience a decline in sales to this market. 94
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