Car Accessories

Market Entry For Vehicle Aftermarket

The Challenge: A large global automotive parts manufacturer wanted to identify its opportunities in one fast-growing specialty segment of the automotive aftermarket.

Assessment: Blue Canyon undertook a comprehensive study of the specialty segment and its sub-segments. Detailed forecasts were developed of growth by market sub-segment, customer chains were developed to understand the participants in the market and their relationships, and the factors that will drive purchase decisions by key market participants were identified through a combination of in-depth interviews and economic models.

Strategic Solution: Blue Canyon identified the “growth segments” that were available to this company, those in which the company could succeed by capturing new customers rather than facing the harder task of converting existing customers of competitors. We also defined the key channel partner relationship strategies that could enable the company to quickly achieve a significant presence in the market. Product development priorities were established for two key lines of business in order to facilitate this company’s entry into this market.

Results:
The company implemented the recommended action plans, and introduced two significant new products within a year, establishing new channel relationships in the process. The firm has exceeded its growth targets for each of the two subsequent years and has now expanded into an additional market sub-segment.

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