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 Indias 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 labels 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 OEMs internal engineers in order to meet their
technical and quality standards in the most cost effective manner