Defining the Standard Processes for a Leading Tyre Distributor in Qatar

Challenge

The client, a leading tyre distributor in Qatar was primarily engaged in selling to the institutional customers and had five outlets for retail sales and tyre related services. The company had grown rapidly at a compound annual growth rate of approximately 15 percent over the last 13 years, with a current annual turnover of QAR 19 million. Some of the key factors responsible for such a robust growth were:

  • Strong construction activity in the region
  • Implementation of strategic initiatives like adding new product lines (Off the road/ Farm tyres), rationalising dealer base, building strong focus on key accounts through customer relationship management (CRM) initiatives

Thus, considering the future demand potential, the top management was looking at a clear strategic direction to profitably grow its business with a focus on the retail business. It turned to UC to define a blueprint for its growth in the future.

Our Approach 

To define the growth strategy for the client, UC adopted the following approach:

  • Analysed sales and profitability for different brands and products across customer segments
  • Conducted primary research and met customers in the wholesale and retail business to understand and analyse
    • Customer preferences and requirements
    • Customer perception about the client
    • The client’s position as compared to the competitors
  • Prepared strategy map for both retail and institutional businesses
  • Defined strategic initiatives for retail and institutional business as follows
    • Identification of product focus strategy on the basis of sales and profitability
    • Identification of value added services for wholesale and retail business
    • Revival of dealer channels for specific product lines
    • Creation of a segment focus strategy for customers in the wholesale business
    • Introduction of new retail formats
    • Design of promotions and CRM related activities
  • Designed an organisation structure and defined the job profile, job description, performance evaluation system, key performance indicators and key result areas for each position
  • Defined management information system reports

Impact

The client received a detailed implementation plan to determine the growth of its organisation.