Launching Refrigerated LCVs: A Dealer’s Success Story
In today’s fast-paced market, businesses must stay ahead of the curve to meet the ever-evolving demands of their customers. A prime example of this is a reputed business conglomerate and automotive dealer in the Middle East, which sought to break new ground by launching refrigerated Light Commercial Vehicles (LCVs). This case study, conducted by Drive Global, illustrates how the client successfully tapped into the growing need for refrigerated LCVs by gaining a deep understanding of the existing value chain and quantifying the market opportunity.
Understanding the Market Landscape
Refrigerated LCVs, equipped with Chillers, Freezers, or Dry Boxes, are crucial for various industries, including FMCG, Dairy, Bakery, Frozen Foods, Pharmacy, and Retail. These vehicles ensure that perishable goods are transported in optimal conditions, maintaining their quality from source to shelf. However, most customers in this segment were reliant on third-party service providers to convert standard LCVs into refrigerated units. Recognizing this dependency as a significant market gap, the client aimed to offer factory-fitted refrigerated LCVs, providing a seamless solution for their customers.
A Multi-Pronged Approach to Research
Given the exploratory nature of the exercise, Drive Global adopted a comprehensive, multi-pronged methodology to achieve the research objectives:
1. In-depth Interviews (IDIs) with Segment Stakeholders
Drive Global conducted IDIs with a diverse range of stakeholders, including experienced managers at top conversion companies, SME end-users, and industry experts. These interviews covered various sectors such as FMCG, Dairy, Bakery, Frozen Foods, Pharmacy, and Retail, ensuring a holistic view of the market. Additionally, conversations with drivers, cargo loaders, and maintenance workers provided valuable insights into the operational challenges and needs of the segment.
2. Desk (Secondary) Research, Data Triangulation & Analysis
Primary data collected from IDIs was meticulously triangulated with secondary data from online desk research and the client’s sales data. This approach allowed for a robust analysis of the market landscape, identifying key trends, conversion preferences, and cost implications for different types of LCVs.
3. Mystery Shopping
To further validate the findings, the team employed mystery shopping techniques. Using established SME trade licenses, they obtained price quotations for LCV refrigerator conversions from leading conversion companies. This step added an extra layer of authenticity to the data, ensuring that the client had a clear picture of the market’s pricing dynamics.
Quantifying the Market Opportunity
The research revealed that the most popular LCV models for refrigeration conversions were small vans, 1-ton pickups, and 1-ton vans. Brands like Peugeot Partner, Renault Dokker, Toyota Hilux, and Toyota Hiace dominated the market, each contributing a significant share to their respective segments.
When it came to conversion types, Chillers and Freezers were the most sought-after options, especially for transporting perishable goods that require temperature control. The cost of conversion varied depending on the type of LCV and the specific conversion type, with Chillers being the most expensive due to the advanced cooling technology required.
Driving Innovation in the LCV Market
By executing a well-rounded research strategy, Drive Global helped the client unlock the market potential for factory-fitted refrigerated LCVs. The insights gained from the study enabled the client to offer a value-added product that met the precise needs of their customers, thereby gaining a competitive edge in the market.
The launch of these refrigerated LCVs not only filled a significant market gap but also demonstrated the power of data-driven decision-making in driving innovation and growth. As the demand for temperature-controlled logistics continues to rise, the client’s move to offer ready-to-go refrigerated LCVs positions them as a forward-thinking leader in the automotive industry.