Consulting Case

Topics: Marketing, Economics terminology, Retailing Pages: 2 (465 words) Published: January 4, 2013
Case Study
Consulting has been engaged by Green Lantern, a leading battery manufacturer globally who has recently entered India, to review their small but growing distribution network for auto batteries and improvise it for increasing their market share in India. -----------------------------------------------------------------------------------------------------------------------------------------------------------

Input: Exhibit A
As India strengthens its position to emerge as a global automotive hub, leading global and domestic Auto OEMs are looking for preferred vendor for batteries both in the four-and two-wheeler categories. Also the growth of ‘green’ vehicles is expected to improve the demand for batteries. There is growth momentum also in the auto batteries aftermarket and battery manufacturers are trying to increase visibility, through attractive product offering and enhancing their network pan-India. Standby-PowerTraxx India, Dec 2012 Issue

The Auto Storage battery Market has very high competitive intensity: * Charge Ltd is the market leader in the automotive storage battery in India with around 70% share in the OEM market and ~30% market share in the overall aftermarket segment. There is also small but considerable unorganized play in the aftermarket segment. * Charge Ltd is the largest player in the industry with 2W capacity of 15 million units (4.5 times that of the second largest player Shock Pvt. Ltd) and 4W capacity of 10 million units (2 times that of Shock Pvt. Ltd) * Charge Ltd has the widest network of dealers and distributors in India with around 10,000 dealers for the automotive segment with almost 40,000 touch points (dealers & distributors + retail outlets) compared with ~20,000 touch points for Shock. The main distribution channels for automotive batteries are – * Direct Sales (OEM Tie-up)

* Dealers, Distributors and Retailers - Bazaar Segment

Major trends of Indian Battery Market are:
* Visible Channel...
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