Analysis of Plastic Product Distributors for DIY and Construction Retail Chains and Identification of Key Decision-Makers

Desired outcome

The task involves conducting a comprehensive market analysis of the plastic product distribution sector for DIY and construction retail chains in Europe. Students will explore three key areas:
1. Regional distributors – companies responsible for supplying plastic products to DIY and construction retail chains.
2. Decision-makers in distribution companies – individuals responsible for procurement and collaboration with manufacturers.
3. Decision-makers in DIY and construction retail chains – buyers, category managers, and procurement specialists.
To complete the task, teams will utilize analytical tools such as Apollo, LinkedIn, Google, Xing, and Sales Navigator to build databases of strategic contacts and cooperation models.

Initial Problem Description

Collaboration with DIY and construction retail chains is a crucial element of the sales strategy for many manufacturers, including Stella Green. However, expanding into new markets or strengthening the company’s presence in existing ones requires a deep analysis of the supply chain and the identification of key players.
The main problem is the lack of transparency in:
• Who supplies plastic products to DIY and construction retail chains in various countries?
• Who makes purchasing decisions in distribution companies serving these chains?
• Who within DIY and construction retail chains is responsible for selecting suppliers and plastic product assortments?
This task involves conducting a market analysis in the UK, Germany, France, Scandinavia, Benelux countries, Czechia, Slovakia, and Poland to precisely define how the plastic product distribution system operates and who makes purchasing decisions.

Context

This task is particularly relevant for B2B companies seeking to better understand purchasing mechanisms and develop effective sales strategies. For Stella Green, the analysis will enable:
• Identifying the right distribution partners – understanding which companies have existing relationships with DIY and construction retail chains.
• Adjusting the sales strategy – knowledge of key decision-makers will allow for more precise targeting of sales efforts.
• Building a competitive advantage – understanding how cooperation models between suppliers, distributors, and retail chains are structured.

Connection to cross-cutting areas

• Circular Economy – Stella Green supplies products made from 100% recycled materials, which is essential for ESG strategies of many DIY and construction retail chains.
• Overall Sustainable Development – Increasing regulatory and market pressure on the use of renewable materials means that the analysis should consider suppliers operating under circular economy principles.
• Industry 4.0 & Digitization – Utilizing modern analytical tools (Apollo, LinkedIn, Google, Xing, Sales Navigator) to collect and process market data.

Input

Input data and tools used by students:
• countries that are most relevant to this analysis: United Kingdom, Germany, France, Scandinavia, Benelux countries, Czechia, Slovakia, and Poland
• Analytical tools for research that can be used: Apollo, LinkedIn, Google, Xing, Sales Navigator.

Expectations

• A database of plastic product distributors supplying DIY and construction retail chains in the UK, Germany, France, Sweden, Norway, Finland, Denmark, Czechia, the Netherlands, Slovakia, and Poland.
• A database of decision-makers in distribution companies, responsible for plastic product procurement in the above-mentioned countries.
• A database of decision-makers in DIY and construction retail chains, involved in purchasing plastic products in the specified markets.
• Recommendations for Stella Green on entering or strengthening its position in the target markets.

Desired Team Profile

• Students from fields such as economics, management, international business, business analytics, supply chain management, global business, industrial process engineering, project management, digital business processes, branding, and marketing strategy.
• Individuals skilled in market research and data analysis.
• Familiarity with the DIY and construction retail market is a plus.
• English proficiency at a minimum of B1 is required for international markets. For DACH countries, German proficiency at B1 or higher is advantageous.

Additional Information

• Plastic product manufacturers rely on regional distributors for several reasons:
1. Cost efficiency – Manufacturers avoid bearing logistics costs and the burden of delivering products directly to retail chains, which operate under a listing model. Listing involves small, frequent orders, where the buyer specifies the exact quantity of each requested product, which must be carefully packed for transport. Maintaining the necessary staff and infrastructure for listing operations is often unprofitable for manufacturers.
2. Simplified approval process – DIY retail chains have long and complex supplier verification processes. However, regional distributors already have an established reputation and do not need to undergo verification again when introducing a new product to their portfolio.
3. Stronger sales network – Regional distributors offer a wider product range and have larger sales teams, making them more effective at introducing products to smaller retail chains and individual retailers than manufacturers could on their own.
• In addition to listing, DIY retail chains may place orders through an IN-OUT action. In this case, the product is not added to the permanent assortment, but rather a specific batch is ordered and sold in a limited-time campaign. IN-OUT actions are typically conducted for two reasons:
1. To test a product’s sales potential in a retail chain.
2. To meet seasonal demand, for example, gardening products see significantly higher sales in the spring.
• Some DIY retail chains operate under an exclusivity model, which limits market entry opportunities for new suppliers.
• Sustainability is becoming a key purchasing factor, making it essential to consider ESG strategies of distributors and DIY chains in market analysis.

Related Keywords

• Sustainability
• Industrial Products
• Communications
• Data Communications