Download Understanding of Commercial Vehicle Market

Case Study
Understanding Of Commercial Vehicle Market
in the Middle East
AUTOMOTIVE
CONTEXT
Our client is a leading Japanese commercial vehicle manufacturer. They are
particular interested to investigate the market situation in a middle eastern country
because their sales performance is declining in it.
IMPACT
The main objectives of the study are
• To understand competitive environment of commercial vehicle market in the
country
• To assess the growth potential and direction for the client
APPROACH
Ipsos Business Consulting analyzed the country’s market landscape by
concentrating on the following four areas:
Market
Overview
Dealership
Analysis
Competitor
Analysis
Strategic
Recommendation
We conducted primary and secondary research of automotive industry environement in the
two countries, in-depth interviews with key opinion leaders, main competitors and dealers.
The client understood the
landscape of the
commercial vehicle
competitive environment
and the reason why their
sales decreased in the
country. With the market
intelligence provided by
Ipsos, the client was able
to make action plan of
improving their sales
activity.
Case Study
Understanding Of Commercial Vehicle Market
in the Middle East
AUTOMOTIVE
FINDINGS
• The study was completed based on primary research interviews of KOL, competitors and dealers
• The three factors, “Economy”, “Politics” and “Business type” are found out to influence the demand for CV’s in the
country.
• While all layers of distribution from the mother company to the dealer are crucial to the selling process, the
relationship of the dealership and the end user is the most important as it is the one which can optimize sales.
Commercial Vehicle Sales
– Market Trend & Demand
Commercial Vehicle Sales
– Overall Distribution
Case Study
Understanding Of Commercial Vehicle Market
in the Middle East
AUTOMOTIVE
DEALERSHIP ANALYSIS - FINDINGS
• Leveraging comprehensive primary and secondary research, information about the dealership were gathered to
understand their types and strategy.
• There are two types of dealers in the country, exclusive dealership and regular one. Exclusive dealers have some
advantages such as having the permission from the mother company to grant warranty’s etc compared to regular
dealers.
There are two types of dealers,
exclusive dealerships ( exdusive distributers )
and regular dealers (resellers).
The exclusive dealerships and the dealers
differentiate themselves from one another
by showcasing their offerings.
Case Study
Understanding Of Commercial Vehicle Market
in the Middle East
AUTOMOTIVE
COMPETITOR ANALYSIS - FINDINGS
• The strength and weakness of the dealership competitor are found out.
• Some of the dealers of particular brands have the added benefit of highly appealing to consumers with a holistic
purchasing experience.
• Two key essential factors are revealed by the interviews which shape consumer purchasing preference.
Dealers of Japanese and Korean brands have an
advantage in light weight vehicles as they are
perceived to offer high quality for good price.
When considering consumer demands and the markets
brand offering, xxxx and xxxx as the factors which shape
consumer purchasing preference.
Case Study
Understanding Of Commercial Vehicle Market
in the Middle East
AUTOMOTIVE
STRATEGIC RECOMMENDATION - FINDINGS
• Two recommendations are suggested to the client so that they can make their business grow in the country.
• One is strengthening relationship with clients.
• The other is capitalizing differentiated brand offering and dealership advantages.
Recommendations