Client Situation
Our client is a leading UAE manufacturer of Aerated Autoclaved Concrete (AAC) blocks. As a part of its diversification, it wished to expand its offering with AAC Panels (reinforced AAC products). The client was therefore keen to assess the UAE markets from the demand and competitive standpoints.
Cedar’s Approach
The client mandated Cedar to perform a UAE market assessment exercise to facilitate its decision-making process. Cedar’s approach was as follows:
- Collection and review of secondary data through all available market reports and other secondary data sources available via the Cedar database
- Collection of all relevant internal data from the client
- Primary research through quantitative and qualitative interviews with expert stakeholders such as manufacturers, consultants, contractors and Real Estate firms
- Validation and analysis of all gathered inputs
- Presentation of the final recommendations to the client
Outcome
Some of the key insights and outcomes were as follows:
- Detailed assessment of size and structure of the UAE markets, including their growth, regulation overviews, demand drivers and key substitutes and competing products
- Overview of profiles of key competitors covering product ranges, manufacturing locations, capacities, sectors and geographies catered to, clients, future plans etc
- Identification of critical success factors :
- Awareness Creation: It was critical to market the products across the value chain of Design Consultants, Contractors & Regulators
- Technical Support: ‘Supply & Train’ capabilities were advised to be developed as UAE usage and application of reinforced products was negligible
- Cedar suggested that the client enter the market with a smaller capacity of 30-50k m3 p.a, as the market was highly attractive in the long term & moderately attractive in the medium term