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We can provide You information about Ukrainian market of spare parts for certain group of goods. The sample of market research You can find below. If You have request please contact us: Andrei Stygar, stygar@autoukraine.info, +38(097)199-11-59.


Sample of market research

Ukrainian market of spare parts*

* spare parts — means certain product group

CONTENTS:

  1. Objectives of market research
  2. Parameters of the research:

2.1. Geography of the research,
2.2. Structure of participants by main activity,
2.3. Structure of participants for their position,
2.4. Total quantity of spare parts, which participants buy during a year

  1. Scheme of distribution of spare parts from producers to end-users
  2. Frequency of replacement of spare parts
  3. Quality of brands
  4. Consumer’s preferences in selecting of spare parts
  5. How do sales managers of shops and service centers influence on final decision of end-users?
  6. Providing advertising products by distributors of spare parts
  7. Share of spare part brands on the Ukrainian market
  8. List of distributors of spare parts in Ukraine
  9. Share of distributors of spare parts in Ukraine
  10. Distributors’ promotions
  11. Customers’ recommendations for producers of spare parts regarding promotion of brand
  12. Analysis of competitors’ prices
  13. Structure of fleet of European heavy duty vehicles in Ukraine

15.1. Structure of the market by brands of trucks
15.2. Statistic of quantity of heavy duty vehicles in regions of Ukraine
15.3. Structure of the market by age of vehicles
15.4. Structure of the market by carrying capacity of vehicles
15.5. Share of semi trailer trucks

  1. Calculation of market size
  2. Profiles of Ukrainian distributors of spare parts

1. Objectives of market research

Following objectives for Ukrainian market research of spare parts were determined:

  • Your objective 1.
  • Your objective 2.
  • Your objective 3…

2. Parameters of the research

2.1. Geography of the research

100 companies take participation in market research. On the diagram 1 you can see the structure of participations by regions of Ukraine.

Diagram 1.

share of participants in market research

As for the parts of Ukraine the structure of participants you can see in the table 1.

Table 1

Structure of research participants by parts of Ukraine
Structure of research participants by parts of Ukraine

The central part of Ukraine consists of the following areas: Summy region, Poltava region, Kyiv region, Kirovohrad region, Chernihiv region, Cherkasy region.

The eastern part of Ukraine consists of the following areas: Zaporozhye region, Lugansk region, Kharkiv region, Donetsk region, Dnipropetrovsk region.

The western part of Ukraine consists of the following areas: Zhytomyr region, Volylnskaya area, Vinnytsia region, Transcarpathian region, Ternopil region, Rivne region, Lviv region, Khmelnytsky region, Ivano-Frankivsk region, Chernovcy region.

The southern part of Ukraine consists of the following areas: Odessa region, Mykolaiv region, Kherson region, Crimea.

2.2. Structure of participants by main activity

As for the main activity of participants of research you can see the structure of it on the diagram 2.

Diagram 2.

Structrure of participants by main activity

2.3. Structure of research participants for their position

Below in the table 2 you can find information about the structure of participants by their positions, which they hold at companies.

Table 2.

Structure of participants by their positions at companies
Structure of participants by their positions at companies

2.4. Total quantity of spare parts, which participants buy during a year.

Total quantity of spare parts, which participants buy during a year, is XX XXX pcs.

3. Scheme of distribution of spare parts from producers to end-users

On Ukrainian market we have following scheme of spare parts distribution from producers to end-users (see scheme 1):

 Scheme 1.

Distribution of spare parts from producers to end-users

Usually on the Ukrainian market distribution of spare parts from the manufacturer occurs through authorized distributors, which often become wholesale companies, such as «Cargo Parts» «Omega-Autopostavka«, «Irbis-Auto» and others.

Then wholesale companies sell the spare parts to the shops of spare parts and service centers, which are located in regions of Ukraine. End-users are small fleets of trucks and owners of several vehicles.

Also wholesale companies sell spare parts directly to the large fleets of trucks, such as “Transpele”, “Orlantrans”, “Trans-Service-1”, which have dozens of trucks.

Following types of companies have large fleets of trucks:

  • transport companies,
  • large national retailers and manufacturers,
  • seaports,
  • large building companies,
  • agricultural holdings.

4. Frequency of replacement of spare parts

The participants of research informed us about the frequency of replacement of spare parts on heavy duty vehicles. Each of participant gave us information for his opinion how often spare parts of different quality are changed. You can find summarized information about it in the table 3 below.

 

Table 3.

Frequency of replacement of spare parts
Frequency of replacement of spare parts

As we can see in the table 3:

  • ХХ,Х% of participants think, that brands of low quality are changed once per 1 year,
  • ХХ,Х% of participants think, that brands of medium quality are changed once per 2 years,
  • ХХ,Х% of participants think, that premium brands are changed once per 3-4 years.

In average spare parts are changed for about once per 4 years.

This information will be used in calculation of size market (paragraph 16).

5. Quality of brands

In the table 4 you can find information about the quality of the brands, which are more popular in Ukrainian market.

Table 4.

Quality of spare part brands
Quality of spare part brands

The results of the table 4 inform us, that participants of research think spare parts of high quality are “Brand 11” (100% participants’ votes), “Brand 6” (90,0% participants’ votes) and “Brand 1” (75,0% participants’ votes). As for the Brand 3, which positions itself as a brand of high quality, opinion of research participants is following:

  • 50,0% of participants thinks, that it’s brand of high quality,
  • 50,0% of participants thinks, that it’s brand of medium quality.

Brand 4 (85,0% participants’ votes), Brand 5 (77,0% participant’s votes) and Brand 12 (68,0% participants’ votes) were classified as medium-quality brands.

Other brands were determined as brands of low quality.

6.  Consumer’s preferences in selecting of spare parts

One of the question, which was interesting for us, is “What is the percentage of end-users prefers to buy  brands of medium or low quality?”

In average XX,X% of end-users don’t have enough money for spare part service of their vehicles, therefore they buy cheap spare parts (usually it’s Turkish spare parts). Often in this case end-users don’t think about a certain brand. They simply buy more cheaper spare parts.

YY,Y% of end-users can buy premium-brand spare parts.  Often they know which brand is more interesting for them. Many of end-users know about brands such as “Brand X”, “Brand Y”, “Brand Z” and “Brand Q”.

In different channels we determined following preferences as for the quality of spare parts (see table 5):

Table 5.

End-user’s quality preferences in different channelsEnd-user’s quality preferences in different channels

As you see, shops of spare parts sell spare parts of low quality – XX,X%, and medium quality – XX,X%. As for the service centers, XX,X% of low-quality and XX,X% of high-quality spare parts are sold there. Fleets of trucks prefer to buy medium-quality spare parts (XX,X%) and premium-brands of spare parts (XX,X%).

7. How do sales managers of shops and service centers influence on final decision of end-users?

During the market research we found out about the following opinion of participants:

-  in XX,X% of cases sales managers of shops of spare parts and service centers influence on customer’s final decision as for the brand of spare part.

Producers and distributors should pay much attention to sales managers, which worked at shops and service centers. It’s important to form spare part opinion regarding to certain brand. It’s necessary to inform sales managers  about the advantages and quality of brand.

8. Providing advertising products by distributors of spare parts

We asked participants: «What advertising products did you get from distributors of spare parts during a year?”:

  • XX,X% of participants answered, that they didn’t get any advertising products,
  • XX,X% of participants informed, that they got only paper catalogues of spare parts,
  • XX,X% of participants got some posters and calendars,
  • XX,X% of participants got another advertising products such as pen, keychain, cup…

As you see XX,X% of participants didn’t get any advertising products from distributors of spare parts, which exist on Ukrainian market.

9. Share of spare part brands on the Ukrainian market

Total quantity of spare parts, which is bought by participants of research per year, is XX XXX pcs. We used following methodology of market share calculation by brands:

  1. participants of research informed us the share of each brand and total quantity of spare parts, which they bought during a year,
  2. for each brand we determined the exact quantity of spare parts, which was bought by each participant,
  3. for each brand we summarized a quantity of spare parts,
  4. then we determined a share of each brand by dividing quantity of spare parts on total quantity.

It was determined a following shares of spare parts by brands on Ukrainian market (see table 6).

 

Table 6.

Structure of Ukrainian market by brands of spare partsStructure of Ukrainian market by brands of spare parts

10. List of distributors of spare parts in Ukraine

There are wholesales companies on Ukrainian market, which sell spare parts. In the table 7 you can find brief information about the wholesales companies and brands, which they sell. In the end of this document (paragraph 17) you can investigate detail profiles of each distribution company.

 

Table 7.

Brief information about Ukrainian distributors of spare partsBrief information about Ukrainian distributors of spare parts

11. Share of distributors of spare parts in Ukraine

Diagram 3.

Share of distributors of spare parts in Ukraine

12. Distributors’ promotions

There were following promotions in Ukraine during a year:

  • «Distributor 1» – …
  • «Distributor 2» – …
  • « Distributor 3» – …

13. Customers’ recommendations for producers of spare parts regarding promotion of brand

Below you can find recommendations for producers of spare parts which were given by customers (employees of shops of spare parts and service centers):

  • The producers should provide customers (dealers, service centers, shops) more paper catalogues.
  • It’ll be nice to have leaflets for certain brand, which inform us:
    • OE producers of vehicles which use this brand and products.
    • What are the design features of products?
    • Information about factories.
    • There are no promotion materials on the market.

14. Analysis of competitors’ prices

For comparison purposes it was necessary to determine the base level of prices in relation to which we could compare other brands. The Competitor2 prices (Distributor4) were determined as base price level. Then the competitive prices of each brand were compared in comparison with the prices of Competitor2, which made it possible to determine the overall situation in the market for each brand.

The prices were collected on date XX.XX.2012.

Below you can see a summary table with average percentage deviation of prices for each brand with comparison to Competitor2 prices (Distributor4).

comparison of the price for spare parts in Ukraine

As you can see in the table, the main competitors of Competitor2 goods are following brands: Competitor9 (Distributor2), Competitor8 (Distributor1), Competitor10 (Distributor3).

The Competitor8, Competitor10 and Competitor9 brands are valued by customers of the market as brands with low quality. But any way the customers make their preferences in direction of these brands, because the main criterion for selection in the 73,8% of the cases is the price.

You can see, the prices of Competitor10 in average on 12,39% cheaper than prices of Competitor2, offered by «Distributor4″. And Competitor10 goods from Distributor3 are cheaper than Competitor3 goods (Distributor3) in average on 8,21% («-12,39%» and «-4,18%», respectively with comparison to Competitor2).

By non-cash payments the Competitor8 goods (Distributor1) is cheaper only in average on 2,57% than Competitor2 goods (Distributor4). If we compare the Competitor8 prices (Distributor1) with Competitor3 prices (Distributor3), then we can see the Competitor3 prices are cheaper on 1,61% («4,18%» и «2,57%», respectively with comparison to Competitor2).

As for the Competitor4 goods, they also can compete with Competitor2 and Competitor3, because many market participants are convinced that the Competitor4 goods are produced in Germany, but in fact these products are produced in Chinese factories. So Competitor4 goods (Distributor4) are more expensive:

  • than Competitor2 (Distributor4) on 10,31%,
  • than Competitor3 (Distributor3) on 15,8%.

Other brands (Competitor6, Competitor5, Competitor0, Competitor1) are significantly more expensive brands, therefore they don’t compete with Competitor2 and Competitor3.

15. Structure of fleet of European heavy duty vehicles in Ukraine

Structure by truck brand (quantity)

chart of structure by car brand
Structure by truck brand and region

fleet trucks cars buses region of Ukraine
Range of trucks age

information about age of trucks cars buses in Ukraine
Structure by carrying capacity

structure by carrying capacity ukraine trucks cars buses
Structure by type of truck

share by type of trucks in Ukraine

16. Calculation of market size

For calculation of market size it was necessary to determine initial conditions:

New 1-3 years old trucks and trucks older than 20 years are not using in calculation of market size.

  1. Quantity of vehicles, which we use in calculation of market size:
  • semi-trailer trucks — XX XXX vehicles,
  • other trucks (lorries)  -  X XXX vehicles,
  • semi trailers — XX XXX vehicles (X semi trailer for X semi-trailer truck).
  1. Average quantity of spare parts which are used on vehicles:
    • trucks of 15-20 tonns capacity with 2 axles have in average X spare parts,
    • trucks of 21-25 tonns capacity with 3 axles have in average X spare parts,
    • trucks of 26-30 tonns capacity with 3 axles have in average X spare parts.
    • Semi trailers have 6 spare parts usually.
  1. How often does spare parts use on commercial vehicles?
    • trucks – in XX% of cases,
    • semi trailers – in XX% of cases
  1. Average frequency of replacement of spare parts is X year (see the results in paragraph 4)

For calculation of market size we used following formula:

V market = Vh * Us * As / Ch,

where Vh – quantity of vehicles,

Us – percentage of using spare parts on vehicles,

As – average quantity of spare parts used on vehicles,

Ch – average frequency of spare part replacement

Calculation of market size for semi-trailer trucks:

V market of semi-trailer trucks = XX XXX vehicles * YY% * Z spare parts / Q years = XXX XXX spare parts

Calculation of market size for semi-trailers:

V market of semi trailers  = XX XXX vehicles * YY% * Z spare parts / Q years = XXX XXX spare parts

Calculation of market size for other trucks (lorries):

  • V market of 16-20 tonns capacity trucks = XX XXX vehicles * YY% * Z spare parts / Q years = XX XXX spare parts
  • V market of 21-25 tonns capacity trucks = XX XXX vehicles * YY% * Z spare parts / Q years = XX XXX spare parts
  • V market of 26-30 tonns capacity trucks = XX XXX vehicles * YY% * Z spare parts / Q years = XX XXX spare parts

Total market size of other trucks is XX XXX spare parts.

Calculation of total market size:

V total market = V market of semi-trailer trucks + V market of semi trailers  + V market of other trucks (lorries) =

= XXX XXX spare parts + XX XXX spare parts + XX XXX spare parts = XXX XXX spare parts

 

So, today the market size of spare parts for European trucks, lorries and trailer is for about XX XXX spare parts.

17. Profiles of Ukrainian distributors of spare parts

profile of Cargo-Parts - ukrainian commercial spare parts distributor


If You want to get more details, please send us request by e-mail: stygar@autoukraine.info