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 MARKET

Storage 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 Differentiation
Form:o

Black casing made of strong propylene material

o
o o

Convenient fold-down handles

Fancy looking wends Ribbed side-walls

Features
o o o o

:-

Charge Indicator Non-corrosive plates Heat resistant technology No water topping required

Performance
o o o o

Quality :-

Low Maintenance Leak Proof Low Reaction Made to match Indias weather condition

Durability
o

:-

Long Life

Style
o 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 various

Go-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 Analysis
Strength
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

Threats
Competition 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

customization
requirements of OEM in Cost effective

manner

THANK YOU

Q&A