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 Amara Raja Batteries Limited was started by Ramachandra N.

Galla,
in 1985
 First to manufacture sealed maintenance free valve-regulated lead
acid (VRLA) battery for Industrial Applications in India
 Market leader with 40% share in stand-by VRLA battery in India
 Largest in Indian Ocean Rim and amongst top 10 in world
 Technical collaboration with Johnson Controls

Storage Battery
Industrial Battery
Automotive Battery
Overall 62% market share
Value of Rs. 160 billion
Replacement segment
Share of market leader Exide
is 25%
Dominated by local players
and other non-branded
batteries
Original Equipment
Manufacturer segment
Share of market leader Exide
is 90%
 Analyzed market
 Decided to target replacement segment
 They worked on following aspects mainly:
 Brand
 Product
 Distribution Network
 Promotion




Features
 Non-corrosive plates
 High heat resistant technology
 Low reaction rate due to which consumption of water is less

Performance Quality
 Low Maintenance
 Leak Proof Battery
 Matches India’s extreme weather conditions

Durability
 Long Life
Style
 Fluorescent on black
 Brash and loud ‘in your face’ font

Design
 Convenient fold down handles
 Charge indicator
 Fancy wends, ribbed side walls

 100 pit-stops across the country
 Standard store design
 Rugged and functional environment inside the
store
 Distributing products to 7250 retailers
 Planning to distribute through departmental stores

 Humour as a platform for promotion
 Clay models + animation was used for advertising
 Hinglish Lyrics to make brand youthful and sporty
 Innovative field promotion
 Association with sports events
 Sponsored Go-Karting competitions
 Narain Karthikeyan as brand ambassador
 Captured 6% of replacement market within 3 years of
product launch
 By making a mark in the replacement market, the
company is also gaining ground in OEM market
 Private label’s program to manufacture batteries for other
brands
 Positioning(Lasts Long, Really Long)
 Features
 Promotion Strategy
 Performance


 No prior experience in automotive
industry
 Highly unorganized replacement
market.
 Excide is the only major player with
market share of 25%.

 Competition from Exide in OEM
segment
 Local brands can penetrate market
using cost leadership strategy
Question 1 : When the OEM market is the key segment
in the automotive battery industry, why did Amara raja
focus on the replacement market?

 It was difficult for ARBL to penetrate and gain market
share.
 Exide was market leader in OEM market with 90%
market share.
 Where as replacement market was highly unorganized.
 Exide was the only major player having a market share
of 25%.
 There was a scope for better price realization.

Question 2 : What should it do to increase
market share of replacement batteries?
 Make a deal with local dealers, service stations and give
them promotional offers
 Product - Added Features like Battery life indicator
 Price - Exchange offers for older batteries .
 Promotion - E-advertisement, automotive magazines
and websites.
 Provide replacement guarantee and extended warranty.



Question 3 : In what way does branding help
Amara raja to market a low involvement product
like automotive batteries?
 High brand recall by effective positioning
 Visibility in the market – branding creates brand
awareness amongst people which will make consumer
influence the buying decision in future

Question 4 : What should ARBL do to penetrate
the OEM segment?
 Segmenting on the basis of Vehicle categories (HMV, LMV)
 Customization based on ampere rating
 Coordinating with OEM’s internal engineers in order to meet their
technical and quality standards in the most cost effective manner