A leading automotive original equipment manufacturer from the United States wanted to identify new market opportunities by increasing its software development capabilities and bridging the gap in its product portfolio.
The company aimed to align its offerings with the market dynamics to maximize its profitability up to over 20% by understanding the demand for different vehicle models by effectively providing its customers with cutting-edge features in all of its brands of automobiles.
Our team at Research Nester used its supply & demand analysis model to identify the gap in the company’s existing marketing strategies, to provide insights into current market trends, and customer preferences. Further, this would help the company to set competitive prices and enhance its overall profitability in the market.
Every industry is undergoing a digital transition, and the automotive sector is known to be a pioneer in implementing digital technologies. Looking at the numerous opportunities and evolving customer expectations, a US-based automotive OEM felt a strong need to change its existing product portfolio by developing new products with digital technology. The client teamed up with Research Nester to assess the demand for different models around the globe by identifying key customer segments. The organization aimed to expand its business by continuously monitoring market trends and embracing product innovation to stay ahead of the competition. However, to achieve this objective our client had to face several difficulties:
1. Lack of knowledge about current market trends
2. Unavailability of proper guidance about how to integrate technological advancements
3. Need for constant innovation due to the presence of a highly competitive market
Research Nester used its unique 3-stage CDG analytical model to understand the dynamics of the automotive market, which was useful in identifying customer preferences, and the current market trend. To analyze the gap in the company’s product portfolio our team collected data on a global level to assess the demand for different vehicle models such as electric vehicles and other hybrid vehicles. Moreover, this analysis helped in identifying areas for product innovation and guided investment decisions for new product development. Our team gave in-depth research for future growth prospects by developing contingency plans to prevent potential risks. Further, our client was suggested to develop partnerships with software development companies and invest in research & development activities to explore technological innovations trending in the market. We also suggested the client in other major areas to help them achieve strong growth by acquiring new capabilities :
By utilizing these analytical tools, the company could optimize its inventory, manage its suppliers, and figure out the current market trends to strategize its production.
By following the right market strategy the company was successfully able to understand the current demand for the products which enabled them to produce the right quantity of vehicles with up to 40% more efficiency. The company also expanded its market in underserved market segments by developing new products and by improving its digital functionality. This resulted in an increase in its profits from 15% in CY2021 to 25% in CY2022. The company was able to determine the optimal level of production which helped in reducing costs associated with excess inventory which helped in generating robust returns in the current year.