To:To: Hamed Alavi Hamed AlaviFrom: From: David GelashviliDavid Gelashvili

Irakli SaamishviliIrakli SaamishviliDate: Date: 16/07/09 16/07/09

Case #1Case #1

““Tollens N.V. Holland – Surfstone”Tollens N.V. Holland – Surfstone”

CompanyCompany

The company Tollens was established in1953. Company expanded through the

excellent reputation of its kitchen furnishing and entered German & Belgium

Market.

Their marketing effort was:

•Excellent relationship with Distributors•Rising of customers loyalty

MarketingMarketing

Company decided to concentrate its resources on the manufacturing of solid surface material sheets and develop a wide network of certified fabricators of

Countertops.

In 1970 - Company started aggressive marketing.

In 1972/77 - Company entered France, Switzerland, Italy & UK

The New AgeThe New Age

In 1982 - Sons started control of the company. They hired several experienced marketing managers (Kees

van der Maas).

Marketing efforts increased sales 90% during next seven years.

Most successful Products were:Most successful Products were:• Surfstone-solid surface material• Share 17% from European market

Kees van der Maas – Kees van der Maas – Director of salesDirector of sales

The boom gave him an opportunity to demonstrate his skills of planning & managing salesman's,

distributors, dealers, fabricants.

Tollens Expansion formula was: Recognizing the importance of local tastes and traditions, Tollens

decided to concentrate its resources on the manufacturing of solid surface material sheets and

develop a wide network of certified fabricators - 350

Relationship with distributorsRelationship with distributors

• Over 60% of Tollens distributors had been with the company for 10 years or more (relationships were personalized)

• Managers were very well positioned in the construction circles. (architects and interior designers)

Training & Reputation Training & Reputation

Training of employers was part of the strategy of Tollens. Courses were offered: Regularly in Amsterdam, Twice in every major capital.

• 92% - of orders where done in 5 days • Warehouses near major market• Good electronic control system

The ProductThe Product

Solid surface materials are used for countertops

Advantages:

• More durable then laminate• Easily repaired • Easy for technical installation• Big choice of color (15)

The American marketThe American market

Negotiations with Jonathan Butler

3 major areas:

1. The size and structure of American market.

2. The analyze of end user, Purchasing criteria, Purchasing decision making process.

3. Profile of the major manufacturers

The American marketThe American market

The American market for solid surface materials is estimated to be $600 million.

Hospital / LaboratoryHospital / Laboratory Industry Industry

• 1989- Hospitals administration started to control budget

• Solid surface materials are not used yet.

Laboratories started growing slowly. Solid surface are very important for them

Advantage from laminate

Non-permeable surcease discourages the growth of germs and mildew

Hotel IndustryHotel Industry

Home Construction/RenovationHome Construction/RenovationIndustryIndustry