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Introduction:
Amara Raja Batteries Limited (ARBL) is the technology leader and one of the largest
manufacturers of lead-acid batteries for both industrial and automotive applications in the
Indian storage battery industry. It was established in 1985 and the first company to
manufacture sealed maintenance free valve regulated lead acid (VRLA) batteries for
industries in India with a market share of over 40%.
Replacement Market
The launch of Amaron batteries brought long-lasting power that added style and zoom to
consumers.
Amaron batteries looked stunning, offered peace of mind with zero maintenance and the
longest warranty. It provided quality products and service meeting the international
standards and fulfilling its promise to customers.
Ansoff’s Matrix -
Market Penetration:
1. Innovative promotion strategy
3. Amaron brand Colors and font highlights clear visibility, recognition and reflect the battery’s
rugged appearance
Product Development:
1. Patented technology of Silven X alloy that gives it the power to last long.
2. Maintenance Free
3. Heat resistant technology
4. No water topping required
5. Charge Indicator
6. Non-corrosive plates
7. Different look with black casing made of strong polypropylene material
Market Development:
1. 100 franchisees spread across the country named as Pit Stops.
Service Stations
Accessory Shops
Old Battery Dealers
Lubricant Dealers
6. Gaining ground in OEM segment with supply of batteries to Ford, GM, Daimler Chrysler, and
Hindustan Motors.
Diversification:
1. Launched private label’s program aimed at manufacturing batteries for other brands.
2. Supplying batteries to Lucas Indian Services for its Lucas batteries and to MICO and GM for their
brands Acdelco and Bosch, respectively.
Q.1) When the OEM market is the key segment in the automotive battery industry, why did
Amara Raja focus on the replacement market? What should it do to increase the market
share?
Ans:
After making a name in replacement market it can enter into OEM market
Q.2) In what way does branding help Amararaja to market a low involvement product like
automotive batteries?
Ans:
After making a name in replacement market it can enter into OEM market by
grabbing the attention of Big companies
Effective positioning
Easy to recall brand
Ans:
Product customization
Meeting requirements of OEM in cost effective manner