Business Case
Background
Best-Year, a group company of 3G international, a leading engine manufacturer, started its business in
organized automotive Aftermarket sector in the year 2006. After establishing the initial network of
channel partners across India, it now has evolved into full range of aftermarket solutions.
Best-Year provides the product range spanning from Engine parts, Auto Electric components, Lubricants,
Engine Oil, Tires, Batteries etc. The primary stakeholders who influence the buying decision are Service
Centers, mechanics, Car Dealerships Unorganized service centers etc.
Best-Year deals in Manufactured as well as traded products to offer One-Stop Solution to the end
customers.
Market Overview
With the Automotive Mission 2026 in place, India aims to be in the top three auto markets in the world. As
per this plan, the auto component market will reach a revenue of USD 75 billion in exports by 2026, with
24% annual growth. With this size of the market, the aftermarket segment will have a share of 18%, making
it a lucrative market for all the leading players to participate in.
In the aftermarket category, The two-wheeler market has the largest market share of about 80% followed by
Passenger Cars at 13%. Three-wheeler spare parts is the distant third at about 4 %.
The Driving, Transmission and Steering product category accounted for the largest part of the aftermarket
at 21%, followed by Engine Components at 19% and Electricals at 18%. New Braking rules and Exhaust
norms are favoring market growth of ABS and Exhaust systems.
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Aftermarket customer-Channel split is finely balanced between OEM dealers and Unorganized Independent
workshops.
1
The RTM of the Equipment makers/ sellers comprise of OEM dealerships and Distributors/Retailers.
Authorized service centers have highest control on the end customer purchase followed by workshops/
mechanics.
Work force Placement-
Depending on the market potential, each of the state is headed by a State Head for After Market Business.
The key deliverables are as followsThe respective person would be responsible for the overall business of Auto Engines Components for the
After Market Business for the state, as State Lead and would be handling Spare Parts sales & provide
Service support to the OEM’s as per the requirement (in the ratio of 80:20, Spares sales & Service support).
The position would be responsible for the overall business volume for the state, and would be handling 4-5
Distributors of 3W, 10-12 dealers of 2W, 1-2 Lubricant dealers and identify and onboard electric part
dealers.
The position would be responsible to take care/support the established business and continue to grow it up
as per the potential of the market and the company’s expectations. The position would be supported by 1
Market Sales Representative (MSR) and if required more 1or 2 more will be added as per the business
demand.
You have recently appointed as State Head for Karnataka with clear KRAs:
1. Sales Performance across Product Portfolio
2. New Product Performance
3. Network Expansion
4. Receivables
5. Sales Hygiene
State Heads work closely with Channel partners like Distributors, Dealers who fulfill the demand
generated by OEM dealerships and Multi brand Workshops/Mechanics as they influence which type of
products and which brand to buy. Internally, they work closely with your sales team. Additionally, they
also identify new dealerships, workshops and mechanics who can promote our products.
Key Challenges
1.
Best-Year, has been aggressively focusing on the growth across locations. State heads are expected to
follow the rigor of the weekly phasing and meet the monthly targets. Additionally, the management wants
to focus on the product categories with higher margins (Auto Spare) for meeting the EBITDA goals. The
product Mix data and revenue targets and achievement details for last six months for Karnataka are as
follows:
April’22
May’22
Jun’22
Jul’22
Aug’22
Sep’22
Actual Target Actual Target
Actual
Total
Revenue
10
0
90
10
0
60
100
73
100
60
100
60
100
60
Auto
Spare
(Brand)
70
65
70
71
70
62
70
71
70
73
70
71
3W
Multibran
d
20
16
20
14
20
19
20
14
20
15
20
14
New
Products
10
6
9
10
10
9
10
10
9
10
11
9
2
Actua Target Actual Target Actua Target
l
l
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Parameter
Target
s
Currently, State Head is managing a team of 2 MSR’s driving the demand creation in the market. Due to
geographical spread, apparently, the State Head is finding it difficult to manage the extended geographical
market with just 2 MSR’s.
Additionally, there are some issues raised by channel partners and key stakeholders, mentioned below:
Few retailers have complained that the State heads and MSR’s visit them hardly once in a month and rather
like to work through phone calls. Channel partners find it difficult to work like this and feel they are not
‘heard’ enough. They are of the view that the sales team ismissing pulse of the market.
The demand generation events like interactions / workshops with key customer groups have reduced
drastically in some areas and in fact, whatever little business comes is through retailers’ individual efforts
and network.
The Customer Visits data and Influencer Activity details for last six months for Karnataka are as follows:
Apr’22
Parameter
Customer Visits
Influencer Activity
Distributor
Appointments
Dealer Appointments
Retailer Appointments
May’22
Jun’22
Jul’22
Aug’22
Sep’22
Target Actual Targe Actua Target Actual Target Actual Target Actua Target
t
l
l
18
13
18
13
18
21
18
15
18
13
18
10
2
6
0
10
2
6
0
10
2
7
0
10
2
3
0
10
2
6
0
10
2
2
25
1
15
2
25
1
15
2
25
2
10
2
25
1
15
2
25
1
15
2
25
Actual
1
3
6
0
1
1
5
State Head is expected to meet 18 customers per month including distributors, dealers, Authorized Service
centers, Multi brand workshops. The rigor of visits and process compliance remains a challenge for most
of the sales calls.
Market Challenges
Karnakata is a highly competitive market as the potential is high. Due to this all After market players are
continuously active in the market and invest in activities like Dealer meets, Mechanic engagement programs,
incentives, schemes, etc. In addition, most of the OEMs are focusing to build their business in this category
leading to significant competition.
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3
You as a newly appointed State Head need to formulate a well-rounded strategy comprising of Business
development, Sales, Finance schemes, Marketing activities and Manpower plans to build the business to
about 30 Cr for the Karnakata Market and present to the leadership for their approvals.