Industry

Automotive

Company Profile

  • Annual revenue of approx. USD 2bn
  • Tire manufacturer based in India

Situation and Objectives

  • Our client wanted to identify and tap white spaces in the market through asset-light entry strategies separately from their existing business
  • Simultaneously, competitors were increasingly conducting transactions online and competing for digital space in developing markets
  • Online penetration and consumer needs and behavior differ significantly across customer segments
  • Identify high potential white spaces in the market and define market-entry strategies
  • Establish a direct online sales channel that shortens the value chain and allows for more touch points with the consumers
  • Adapt the digital sales strategy within the guiding parameters that caters for the particular intricacies of the target markets

Approach

  • Defined the digital platform, aligning it with the client’s strategic focus and existing infrastructure
  • Evaluated potential service providers with respect to service offering and growth direction
  • Benchmarked existing competitors and eCommerce specialists to derive best practices in serving and tackling existing customer pain points

Strategy design framework

Results

  • Identified off-the-road agriculture tires, sport motorcycle tires, and historical racing tires as high potential segments
  • Proposed go-to-market price model; transactional purchase with option to supplement with flatrate and pay per use once established
  • Developed a cost benefit analysis of the different potential configurations of the platform

Impact

  • Outlined digital market entry strategy
  • Defined eCommerce platform success criteria
  • Constructed a clear digital implementation and scaling roadmap for the next five years
  • Estimated profit impact of USD 22.2 million is expected over the next five years

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