Infiniti’s Market Assessment Service Helps a Prominent Automotive Manufacturing Client Gain Better Visibility into Effective Market Positioning Strategies

January 11, 2018

The number of cars purchased by the millennial segment saw a radical decline of 30% and is expected to witness a further decline in the coming years.

In recent years, the global automotive industry has started witnessing high investments in research and development to comply with the stringent regulatory measures and increase profit margins. The growth in the automotive space is marked by the rise of shared economy, partnerships with disruptive tech companies, and the growing demands among the consumers. Despite the economic crisis, prominent automotive manufacturing companies are planning to enhance their offerings to stay competitive and offer low-cost models to the customers. After the global economic recovery, leading automotive manufacturers have started investing in technologies, clean energy, and autonomous vehicles to reach out to the target audiences in an agile and seamless manner. Although the automotive industry is witnessing promising growth, several factors may influence the growth of the market. These factors include:

Increasing globalization: With the increasing globalization, leading clients in the automotive manufacturing sector have started facing challenges when it comes to penetrating niche target segments and enhancing business offerings. Moreover, the regulatory trade practices are restricting prominent automotive manufacturing companies from enhancing their operational efficiency while meeting the quality concerns.

Innovations: The competition in the automotive space is growing manifold, and major OEMs and dealers need to rely on innovations to meet the growing demands for customization. Moreover, automotive manufacturing companies need to find innovative ways to reach out to the customers, while meeting the quality standards.

Changing consumer preferences: The automotive industry is nearing its saturation due to the presence of a considerable number of competitors, globally. Due to the presence of numerous brands, the preferences of the consumers have started changing, and consumers are no more concerned about brand loyalty.

To address such challenges and gain strategic insights into the market landscape, organizations are facing the need for effective market assessment solutions. Market assessment provides an accurate understanding of the market dynamics and helps companies frame value-creating strategies. Moreover, such solutions also provide greater insights into the automotive manufacturing space in terms of the demographic and economic overview, location mapping, competitor analysis, and key demand drivers.

The Business Challenge

  • The client: A leading automotive manufacturing client
  • Area of engagement: Market assessment

The client, a renowned automotive manufacturer, wanted to gain insights into the market landscape and identify the regional opportunities and challenges. The client wanted to seek ways to identify the most profitable segments and refine their relationship with the consumer base. With the help of Infiniti’s market assessment solution, the client also wanted to gain adequate insights into the customer awareness, the usage, and perceptions of the brand, and major competitors in the automotive manufacturing space. The primary concern of the client was to understand the purchasing habits of the customers and adequately allocate their marketing resources to meet the business requirements.

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Our Journey

To assess the current market scenario, the market assessment experts at Infiniti carried out extensive research, comprising interviews and discussions with leading stakeholders in the automotive manufacturing space. Furthermore, to identify potential bottlenecks and improve the market opportunity, the experts also compiled information from a wide array of secondary sources such as trade shows, government bodies, industry forums, and company presentations in the automotive manufacturing space.

The Solution Benefits and the Business Impact

The market assessment solution offered by Infiniti helped the automotive manufacturing client gain a detailed assessment of the business characteristics in terms of the organic and inorganic growth. The solution also offered adequate insights into the current market scenario and helped the client develop customized value propositions. The engagement also helped the client position their products based on the customer’s preferences and mitigate potential bottlenecks related to market entry.

The Future

The future of the automotive manufacturing is likely to be marked by innovations and engineering developments in terms of IoT, connected cars, and haptic sensors. OEMs and suppliers should invest highly in R&D to develop new technologies and technical talent.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the automotive manufacturing space.


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