Creating Value in Auto Aftermarket Distribution

distribution

Client Challenge

Client intended to grow in aftermarket consistently at a CAGR of 25-30% and their current distribution set up poses limitations in addressing this growth objective. Therefore, the client was considering to set up an independent distribution entity supplying high quality & accredited products in the market.

Our Approach

  • We initiated the project with context building so as to understand client’s current capabilities and strategic intent for a new concept to be tested. In this stage, we met the top management and other senior personnel to collect
  • Perspective on existing capabilities and business operations
  • Perspective on strategic intent for target entry into the selected segments, preferred position in the value chain, value proposition to customers, etc.
  • UC Strategy identified 13 cities for the research based on the inputs from the client
  • As part of deep dive analysis of above-shortlisted cities, UC Strategy conducted in-depth secondary research and discussions with various entities in the value chain (distributors, wholesalers, retailers, service centres, industry experts etc.) to understand
  • Their response to the concept whether it would feasible for such a new entrant
  • Current challenges in the market which be addressed by the new entity being envisioned
  • Key purchase criteria, credit period norms, customer’s preferences in the selected cities
  • Key success factors for the proposed entity in the view of key members of value chain
  • Existing market and supply chain structure in the selected cities

Our Impact

Based on our findings, UC Strategy collated the response to the new concept being envisioned, major challenges and key success factors. We also identified regions which were most attractive to start the venture.

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