Launch of Amaron Automotive Batteries (1)
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Transcript of Launch of Amaron Automotive Batteries (1)
LAUNCH OF AMARON AUTOMOTIVE BATTERIES
AMARA RAJA BATTERIES LTD. Amara Raja Batteries Limited (ARBL) was started in 1985 by Mr Ramachandra N. Galla The first company to manufacture sealed maintenance-free valve-regulated lead acid (VRLA) batteries for industrial applications in India The largest manufacturer of VRLA batteries in the Indian Ocean Rim and among the top 10 in the world Technical collaboration with Johnson Controls, a global automotive component manufacturer.
SEGMENTS IN STORAGE BATTERY MARKETStorage Battery Market Automotive Battery Market Industrial Battery Market
OEM
Replacement
AUTOMOTIVE BATTERY MARKET The
automotive battery segment has a market
share of 62% in the storage battery market and is valued at Rs 160 billion OEM
(Original Equipment Manufacturer) Market:-
Batteries supplied to automotive manufacturers Market Leader is Exide with 90% market share
Replacement
Market:-
Batteries supplied to individual buyers Market Leader is Exide with 25% market share Highly unorganized market
STP Segmentation
:- Replacement Market
Targeting
:- Maintenance Free & Temperature Resistant Batteries :- Long Lasting
Positioning
Product DifferentiationForm:o
Black casing made of strong propylene material
oo o
Convenient fold-down handlesFancy looking wends Ribbed side-walls
Featureso o o o
:-
Charge Indicator Non-corrosive plates Heat resistant technology No water topping required
Performanceo o o o
Quality :-
Low Maintenance Leak Proof Low Reaction Made to match Indias weather condition
Durabilityo
:-
Long Life
Styleo o
:-
Fluorescent green on black Eye-catching font
Services Differentiation 100
Franchisees spread across country, named Pit Stops store design through 7,250 retailers
Standard
Distribution
Service Stations Accessory shops Old Battery dealers Lubricant dealers etc.
Planning to distribute through departmental stores
Promotion Campaign Ad
Lasts Long, Really Long
won Gold Abby at Mumbai Lyrics to make brand youthful & sporty
Hinglish Fables
and animated characters
Mineral
cities
Water campaign during summer in variousGo-karting & Motor sports
Sponsored Narain
Karthikeyan Brand Ambassador
Award Winning Ad
RESULTS Captured
6% of replacement market within 3 years.
By
making a mark in the replacement market, the company was also gaining ground in OEM segment. Ex- Ford, GM, Daimler Chrysler & Hindustan Motors.
SWOT AnalysisStrength Maintenance Free Long Lasting Promotion & Branding Heat Resistant & Low Reaction Strong distribution
Weakness Less experienced in Automotive Battery Market
Opportunities Attracting customers of OEM market Increasing brand awareness through retailers
ThreatsCompetition from unorganized sector Exide may also come up with competitive product
Why did Amara Raja focus on the replacement market ? Tough Better After
competition from Exide in OEM Price Realisation
making a name in replacement market it can
enter into OEM market
In what way does branding help Amar Raja to market a low involvement product like automotive batteries ? After
making a name in replacement market it can enter into OEM market by grabbing the attention of Big Companies positioning Easy to recall brand
Effective
What should ARBL do to penetrate OEM segment to increase market share? Product Meeting
customizationrequirements of OEM in Cost effective
manner
THANK YOU
Q&A