Client
A global construction machinery manufacturer with a broad heavy equipment portfolio (cranes, excavators, etc.), expanding its presence in the Middle East. The firm had a strong international reputation but needed to grow its sales and market share in Abu Dhabi’s competitive construction sector.
Issue
The client’s Abu Dhabi sales had stalled amid fierce competition and changing market dynamics. They were losing deals to rivals and rental firms offering more flexible financing and better local support. Contractors were increasingly favoring high-tech, fuel-efficient equipment – an area where the client lagged. Furthermore, limited visibility into upcoming mega-projects resulted in overstocking some machinery models while under-preparing for others in high demand.
Solution
We delivered a targeted market research and strategy engagement to help the client align its offerings and sales approach with Abu Dhabi’s needs.
Key solution components included:
- Market Demand Forecasting: Analyzed planned construction and infrastructure projects to forecast demand for various equipment categories in Abu Dhabi.
- Customer Insights: Interviewed local contractors and project managers to understand preferences for buying vs. renting machinery and what factors (e.g. cost, technology, support) drive those decisions.
- Competitive Benchmarking: Assessed how top competitors price and support their equipment (leasing options, maintenance services) versus the client’s approach, identifying gaps in technology offerings and service quality.
Approach
Our research approach integrated multiple sources of insight:
- Market Analysis: Examined industry data and Abu Dhabi development plans to map upcoming projects and estimate demand for different types of machinery.
- Customer Outreach: Surveyed and interviewed local contractors and equipment rental firms to understand their equipment preferences and pain points.
- Competitor Intelligence: Studied competitors’ pricing strategies and service offerings to gauge their market approach and identify areas for differentiation.
- Internal Review: Analyzed the client’s local sales and inventory data to find slow-moving stock and mismatches between supply and actual market demand.
Recommendation
Based on the findings, we outlined key strategic recommendations:
- Launch Rental & Financing: Introduce flexible rental programs and financing plans to attract clients who prefer lower upfront costs over owning machinery.
- Strengthen After-Sales Support: Set up a local service hub and rapid maintenance team to improve equipment uptime and build client loyalty through reliable support.
- Integrate Advanced Tech: Fast-track the inclusion of smart features (telematics, fuel-efficient models) in the equipment lineup and highlight these innovations in marketing efforts.
- Strategic Project Focus: Dedicate a specialized sales team to pursue upcoming mega-projects, tailoring offerings (e.g. equipment bundles with on-site support) to secure these large contracts.
Engagement ROI
Within 12 months of executing the strategy, the client realized notable improvements:
- Achieved a 25% increase in equipment sales revenue in Abu Dhabi, reversing the prior flat growth trend.
- Won supply contracts with three major construction firms, including one for a high-profile infrastructure project, significantly expanding market presence.
- Launched the new rental program which attracted over 20 local clients in its first year, contributing a new revenue stream and broadening the customer base.
- Reduced idle inventory by 30%, freeing up capital and lowering carrying costs through better demand forecasting and stock alignment.