Finding expansion opportunities with a new perspective

Shakti Sai Tyres has adopted a new approach to meet ambitious growth goals

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Sector

Retail Tyre Specialist

Headquarter

Mumbai

Facts & Figures

Founded

1994

Stores

5 in Mumbai

Employees

Product used

GfK Market Intelligence: Sales Tracking

Working with GfK has changed our perspective on our sector. Without the data, insight and expertise from the team, we would still be following an expansion strategy that was likely to underdeliver on our ambitious targets. We’re delighted with the progress we’ve made together in a short space of time. We look forward to many more years of collaboration.”

Vinod Tripathi

Director, Shakti Sai Tyres Pvt Ltd

Shakti Sai Tyres is one of the largest tyre retail chains in Maharashtra. As well as selling a wide range of tyre brands, alloys and accessories, the retailer offers services such as wheel alignment and balancing.

Identifying growth in a stagnant market

Team Shakti Sai Tyres and GfK joined hands early January 2022 when the large retailer’s expansion strategy hit a wall. The company had ambitious financial targets which necessitated increasing the retail footprint in Maharashtra, particularly in Mumbai. However, despite adding four large-scale stores in the city, they were unable to meet expectations in terms of scale and so the desired uptick in revenue had not materialized.

Our market is competitive, crowded and complex. The support we receive from GfK is invaluable in helping us navigate and win the Indian Passenger Vehicle Tyres market. We are confident in the expansion plan we have developed and will continue to work together to achieve it.”

Vinod Tripathi

Director, Shakti Sai Tyres Pvt Ltd

A data-driven approach to support a new strategy

Our collaboration in 2022 began by subscribing to the monthly Point-of-Sales data. In addition, GfK built custom reports to allow Shakti to benchmark their performance against the market. This included a historical analysis of current and emerging trends and a granular report focused specifically on Mumbai and Maharashtra.

Using this portfolio of intelligence, GfK advised Shakti Sai Tyres to refocus its resources on investment where there was more opportunity in the underpenetrated Tier 3 and Tier 4 cities in comparison to the saturated market in Mumbai. This new perspective on the expansion strategy not only pinpointed growth opportunities but explained why investing in Mumbai, a Tier 1 city, had not delivered the ambitious return on investment/target for them.

Making growth happen

The retailer is currently exploring expansion opportunities in Tier 3 and Tier 4 cities in Maharashtra to meet ambitious commercial goals of doubling revenue.

A trusted relationship

Although this is a relatively new relationship, Shakti Sai Tyres and GfK have become close allies since January 2022. Monthly, quarterly and bi-annual reports and meetings ensure that both teams are in constant contact and can discuss opportunities as they emerge.