Cases

Defining the Growth Strategy for a Leading Tyre Distributor in Qatar

Challenge

The client, a leading tyre distributor in Qatar wasprimarily 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.