Project Description

Concept Viability and Market Entry Study for a Road Side Assistance (batteries) business into Qatar Market

  • Qatari market for automotive batteries has grown at a CAGR of over 22% in the past five years. Private cars and private transport together account for nearly 90% of the demand for batteries in the country. Private cars account for nearly 68% of the battery demand in the country while private transport account for nearly 22%.
  • AAA is the only comparable roadside assistance service provider in the Qatar market who gets one moving. They do not provide any battery replacement service. Rest of the battery replacement market ‘on –site’ is mostly unstructured. With high disposable incomes the consumer habits are geared towards seeking new value-added services. There exists an opportunity for a new market entrant that provides a consumer convenience and value-added service from a battery replacement service point of view.
  • Currently there are no major ‘on-site’ battery replacement service providers in the Qatar market. Any new market entrant catering to this space can garner the first mover advantage and gain momentum and market share offering this as a value-added service.
  • Critical to success of the business would be factors such as: great service experience, on time delivery and conveniently located in areas such as Al Duhail, Salva Road or Doha Expressway. While the overall market size may be much smaller when compared to Dubai.

Table of Content:

Executive Summary

Qatar Market Analysis (and Supply Side Analysis)

  • Qatar market overview
    • Population
    • Demographics
    • Tourism
    • Industry
  • Automotive industry analysis:
    • Number of vehicles
    • Transportation and Commute Trends,
    • Number of residents with a driving license
  • Market sizing of automotive batteries, retrofits
  • Typical life of a battery, options and ways of replacing the same, the process, roadside assistance
  • Geographic and area analysis:
    • Split of population across Qatar
    • Affluent areas
    • Key catchment areas (primary & secondary)
  • Market assessment current players offering this service, if yes – what is their offering, pricing, value offering, market penetration, business model, etc.
  • Ease of doing business in Qatar – Direct, via a JV partner, local partner type, best suited business partner definition, etc.
  • Legal and regulatory environment to set up a business. External factors that support or undermine the business

Consumer and Trade (Demand side) Analysis

  • Consumer habits by nationality set:
    • Travel habits and trends,
    • Buying trends – cash vs. payment by credit card, etc.
  • Leisure activities: activities that the residents do over the week-ends / week-days
  • Target market and customers segments assessment, buying propensity, etc.
  • Establish demand for a service provider who can deliver batteries to doorstep or a place of their convenience with a great a great customer experience

Strategy Road Map Based on the Market and Consumer Needs

  • Market opportunity assessment for a new entrant into Qatar
  • Strategic recommendations on the business model and customer engagement process
  • Geographic areas that hold particular opportunity for the business in Qatar
  • Develop a product and pricing strategy
  • Where should the business be located in Qatar
  • Best suited legal framework, financial set-up (credit card and cash payments) and business model (kind of set-up, repatriation of money to Dubai; currently the company banks with Emirates NBD) available
  • Possible impact if FIFA World Cup was to pull out of Qatar
  • Centralized call center operations in UAE for UAE and Qatar
    • can this be an option for the client
    • operational and cost implications