1. Launch of Amaron Automotive Batteries
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%.
It launched Amaron brand automotive batteries in 2000. It focused on replacement segments
due to its highly unorganized structure, individual buyers, and scope for better price.
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 -
2. Market Penetration:
1. Innovative promotion strategy
2. Amaron name signifying the product attribute of Lasting long
3. Amaron brand Colors and font highlights clear visibility, recognition and reflect the battery’s
rugged appearance
4. Ad Campaign highlights “Lasts Long, Really Long”
5. Lasting Impact on the target audience to achieve high brand recall
6. Humor as a platform to communicate the product value to customers
7. Hinglish lyrics to make brand youthful and sporty
8. Fables and animated characters used in the ad campaign
9. Mineral water campaign in various cities during the summer
10. Association with Motor Sports and Go-Karting
11. Narain Karthikeyan as brand ambassador
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
3. 7. Different look with black casing made of strong polypropylene material
8. Convenient fold-down handles
9. Ribbed side walls
10. Long Life
11. Fluorescent green on black
12. Eye catching font
13. Warranty period
Market Development:
1. 100 franchisees spread across the country named as Pit Stops.
2. Standard store design
3. Distribution through 7250 retailers
• Service Stations
• Accessory Shops
• Old Battery Dealers
• Lubricant Dealers
4. Planning to distribute through Departmental Stores
5. Captured 6% of the replacement market within three years of launch.
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:
• Tough competition from Exide in OEM
4. • Better price realisation
• 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
Q.3) What should ARBL do to penetrate the OEMsegment?
Ans:
• Product customization
• Meeting requirements of OEM in cost effective manner
