Launch of Amaron Automotive Batteries

            


Details


Case Code : CLMM001
Publication date : 2005
Subject : Marketing Management
Industry : Automobiles
Length : 05 Pages
Price : Rs. 100

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Key words:

Amara Raja Batteries Limited (ARBL), VRLA Battery Segment, Johnson Controls, Storage Battery Market, Industrial Battery Market, Automotive Battery Market, Original Equipment Manufacturer, Replacement Segment, Price Realization, TNS Mode, Ogilvy & Mather (O&M), Exide, Promotion Strategy, "Amaron", Claymation, Narain Karthikeyan, Franchisees, Brand Attributes, Private Label's Program.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.


 


Abstract:
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The caselet gives an overview of automotive battery market in India. It examines the factors that made Amara Raja Batteries Limited (ARBL) enter the automotive battery segment. The caselet discusses the new product development process followed by ARBL for the launch of its automotive battery brand 'Amaron'. Finally, it explains the company's efforts to differentiate the brand in all aspects of marketing mix.

Issues:

   Segmentation and targeting in Indian automotive component market
   New product development process
   Challenges in new product development
   Branding of low involvement products
   Marketing mix elements

Introduction

Amara Raja Batteries Limited (ARBL) is a leading industrial and automotive battery manufacturer in India. The company was started by Ramachandra N. Galla, an NRI, in 1985.


It was the first company to manufacture sealed maintenance-free valve-regulated lead acid (VRLA) batteries for industrial applications in India and a market leader in the stand-by VRLA battery segment in India, with a market share of over 40%.

It is also the largest manufacturer of this type of batteries in the Indian Ocean Rim and among the top 10 in the world. The company has a technical collaboration with Johnson Controls, a global automotive component manufacturer...

Questions for Discussion:

1. When the OEM market is the key segment in the automotive battery industry, why did Amara Raja focus on the replacement market?

2. In what way does branding help Amara Raja to market a low-involvement product like automotive batteries?

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