Business Challenge : A leading Auto - component client was planning a growth strategy to expand its operations across industry sectors, regions and also evaluate the product technology trend.
They wanted to evaluate opportunities for its product line beyond automotive sector in India and understand the size of opportunity in each of end user segments and which region and segment should they concentrate for maximum profitability.
What We Did : We recommended an opportunity assessment, technology evolution and market segmentation study
To ensure a full understanding of the market , our team conducted in - depth primary interviews at every stage of the supply chain, competing manufacturers, distributors, importers, industry experts and end customers. The total market size was calculated & Segmented by following approach :
- Exhaustive list of relevant end - user segment and sub - segments and competition established
- Primary Interviews conducted with stakeholders across segments
- Product usage practices and technology need - gap evaluated from users
- Supplier assessment to evaluate current product portfolio, technology levels, infrastructure, current product - mix, key customer segments and their contribution to total turnover
- Norms of spending on product established for each user segment
- Total Market size for each segment estimated
- Addressable market established at segmental level
This left our client with a full understanding of the size and nature of the opportunity, all within the competitive context, product landscape and segmentation enabled their marketing team to device right strategy.
The study outcome was also an eye-opener as they had never imagined there exists a greater opportunity to do business in segments other than what they had been focusing for last decade. What also interested them is select users were already importing high-technology products which they could produce indigenously.
Our client decided to focus on two of the three recommended end user segment, upgraded technology and production capacity, installed a new sales force with clear targets in that location.
Within 20 months of implementation of study recommendations, the client achieved 45% y-o-y growth in turnover.