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  • Sectors: Driving

Case Studies

Market Expansion for Leading Auto Parts Supplier

One of North America’s largest auto parts suppliers serving both OEM and aftermarket segments with presence in China for nearly 20 years.

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Issue

The client had a problem with little penetration on aftermarket sales because multiple brands and products were mostly outsourced. The client wanted to know how to align and focus on a compelling growth strategy from a late entry perspective.


Approach

Our consulting team chose 12 cities representing tier 1-3 markets in different regions and interviewed over 150 different garages, distributors, competitors, and customers. We profiled our client’s “as-is” position to use as a benchmark on which to build a growth strategy plan.


Solution

We provided an in-depth pricing and benchmarking strategy for multiple price tiers. We also provided competitive benchmarking into local and international competitors and similar multi-branded companies. Based on client's feedback, we outlined a compelling brand strategy.


Engagement ROI

We quantitatively identified which product segments had the highest growth rates, margins and penetration potential, clustered opportunities by near-term, medium term and long term priorities leading to a $200 million possible roadmap. We modeled competitive distributor strategies and value creation to the market (i.e. why some appeared more profitable and remain loyal longer). We partook the Initial development of a possible supporting acquisition strategy with the client.