A Project Report on Exide Batteries

A RESEARCH REPORT

ON

“Analysis of market potential, competitors strength in car

segment with special reference with Exide (Area, Brand

available and specific factors having major influence on

consumer purchase behavior)”

At Exide Industries Limited

BY:

Amol Ritesh Toppo

XISS

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XAVIER INSTITUTE OF SOCIAL SERVICES

A RESEARCH REPORT

ON

“Analysis of market potential, Competitors strength in

car segment with special reference with Exide (Area,

Brand available and specific factors having major

influence on consumer purchase behavior)”

at

Exide Industries Limited

BY:

Amol Ritesh Toppo

In partial fulfillment of the requirement of MBA program of

Xavier Institute of Social Service, Purulia Road, P.O.Box 7

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Ranchi-834001

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APPROVAL SHEET

This is to certify that Summer Project entitled “Analysis of market potential, competitors

strength in car segment with special reference with Exide and specific factors having

major influence on consumer purchase behavior” Exide industries limited has been

prepared by Mr. Amol Ritesh Toppo in partial fulfillment of the requirement for the

award of Post Graduate Diploma in Management (Finance/Marketing) at Xavier Institute

Of Social Services, Ranchi. The study embodies data collected analyzed and complied by

the researcher under the guidance of the undersigned guide of the institute and thereby

approved as indicating the proficiency of the researcher.

Prof. Arup Mukherjee

(Research Guide) (Summer Internship Coordinator)

Prof. A.R.Bodra (HOD Dr. Fr. Alex Ekka s.j

Marketing) (Director,XISS)

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DECLARATION

I, Amol Ritesh Toppo hereby declare that the project on the topic “Analysis of market

Potential, Competitors strength in car segment with special reference with Exide and

specific factors having major influence on consumer purchase behavior” is submitted in

partial fulfillment of the award of the Post Graduate Diploma in Marketing

Management. This is to declare that the facts & figures used in this report have been

true to the best of my knowledge. All the data provided has been authentic as far as the

sources of data is concerned.

Place: Name:

Date: Roll No.

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ACKNOWLEDGEMENTS

It is a great honor for me to be assigned this topic. The success of this project is due

to the dedication, support and enthusiasm of many people. I am immensely thankful to

Professor Arup Mukherjee (HOD, Marketing) for providing me his constant guidance and

inspiration. I would also like to thank Mr. Sanjay Das (Exide industries limited)) for

providing me the opportunity and his able guidance. Finally, my gratitude goes to my

parents and siblings for their financial and moral Support. I could not have survived this

challenge without them. I thank God for using this work to reveal my weakness to me

and build me up. All glory to God for He makes the impossible become possible!

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PREFACE

“Give a man a fish, he will eat it.

Train a man to fish, he will feed his family.”

The above saying highlights the importance of Practical knowledge. Practical training is

an important part of the theoretical studies. It is of an immense importance in the field

of management.

This project is all about the knowledge and experience gained about the buying

behavior and market potential of Exide batteries in the city of Ranchi.

I have taken my objectives to study the “Customer Buying Behavior and market

potential of Exide batteries in the HCV segment”. For this purpose, the primary data is

used. The data is collected through survey method.

With my best efforts, I have incorporated all the necessary details to the best of my

knowledge.

I hope that the project will be praised by all.

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Table of ContentsABSTRACT........................................................................................................................9INDUSTRY PROFILE:.....................................................................................................10

The Product:...................................................................................................................10Purchase Occasions:......................................................................................................10Target Audience Demographics:...................................................................................10Behavioral:.....................................................................................................................11Competition:..................................................................................................................11Products:........................................................................................................................12Factories:........................................................................................................................12Quality:..........................................................................................................................12OEM Supplier to:...........................................................................................................12R&D:..............................................................................................................................12Exide Industries hold:....................................................................................................13Leaders in Power Storage Solutions:.............................................................................14Manufacturing Capacities:.............................................................................................15

COMPANY PROFILE......................................................................................................18Vision Statement:...........................................................................................................20World Class Manufacturing:..........................................................................................20Collaborations:...............................................................................................................20Executive Committee.....................................................................................................22

PRODUCT PROFILE.......................................................................................................26RANGE OF EXIDE EXPRESS BATTERIES:.............................................................29INTIAL CHARGING DESCRIPTION :.......................................................................29SPECIFIC GRAVITY:..................................................................................................30

CAUTION:................................................................................................................30INTRODUCTION TO CAR BATTERIES.......................................................................30

Research and Development:..........................................................................................31Functional Areas:...........................................................................................................31Battery Design & Development:...................................................................................32Technology for Tropical Countries:..............................................................................32Infrastructure / Laboratories:.........................................................................................34Product Testing Facilities:.............................................................................................34

MRR for ISO and QS Quality Standards...........................................................................35MARKET ANALYSIS......................................................................................................37

S.W.O.T ANALYSIS...................................................................................................37CCOMPETITOR ANALYSIS......................................................................................38PURPOSE AND OBJECTIVE OF STUDY.................................................................40

RESEARCH PLAN...........................................................................................................41RESEARCH METHODOLOGY......................................................................................42

(a) Type of Research :....................................................................................................42(b) Data Collection Method :.........................................................................................42(c) Primary Data Collection Method :...........................................................................42(d) Primary Data Collection Technique :.......................................................................42(e) Universe of the Study :.............................................................................................43

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(f) Sample Unit :............................................................................................................43(g) Sampling Technique :..............................................................................................43(h) Sample Size:.............................................................................................................43

LIMITATIONS..................................................................................................................43(j) Analytical Tools.......................................................................................................43

FINDINGS AND STUDIES..............................................................................................44Respondents dealing with different brands:..............................................................44

INTERPRETATION:....................................................................................................45INTERPRETATION:....................................................................................................47INTERPRETATION:....................................................................................................49INTERPRETATION:....................................................................................................50INTERPRETATION:....................................................................................................50

Market Potential Analysis Procedure at aproxima....................................................52FINDINGS:........................................................................................................................56RECOMMENDATIONS:..................................................................................................57LOCATION WISE MARKET POTENTIAL...................................................................58

LOCATIONS:................................................................................................................58SOME OF THE IMPORTANT PROMOTIONAL AND ADVERTISEMENT CAMPAIGN IN THESE AREAS SHOULD BE UNDERTAKEN:............................58

DETAILS OF THE DEPARTMENTS WHERE I WORKED FOR MY S.I.P.................61BIBILIOGRAPHY............................................................................................................62QUESTIONNAIRE...........................................................................................................63

THE MARKET POTENTIAL OF EXIDE AUTOMOTIVE BATTERIES.................63

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List of Tables----------------------------------------------------------------------

1 BOARD OF DIRECTORS........................................................................................................21TABLE 2 SPECIAL FEATURES....................................................................................................27TABLE 3 RESPONDENTS DEALING WITH DIFFERENT BRANDS..........................................................44TABLE 4 DEMAND FOR AUTOMOTIVE BATTERIES........................................................................46TABLE 5 FEATURES CONSUMERS CONSIDERS DURING PURCHASE OF AUTOMOTIVE BATTERIES...............48TABLE 6 COMPLAINS BY EXIDE CUSTOMERS...............................................................................49TABLE 7 AVERAGE SALES OF CAR BATTERY DEALERS IN RANCHI......................................................53

Table of Figures---------------------------------------------------------------------------

FIGURE 1 RESPONDENTS DEALING WITH DIFFERENT BRANDS OF CAR BATTERIES...............................45FIGURE 2 DEMAND FOR AUTOMOTIVE BATTERIES IN RANCHI........................................................46FIGURE 3 CUSTOMERS OPINION ABOUT EXIDE BATTERIES FEATURES...............................................48FIGURE 4 PERCENTAGE OF COMPLAINS RECEIVED BY EXIDE CUSTOMERS.........................................49FIGURE 5 ROLE OF MEDIA IN ATTRACTING CUSTOMERS................................................................50FIGURE 6 NUMBER OF VEHICLES REGISTERED IN RANCHI DISTRICT.................................................53

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ABSTRACT

The current Project work titled “Market Potential of Exide Automotive Batteries in Car

segment in the city of Ranchi” covers the following aspects. Product Profile, which

describes the importance of Exide Batteries. The Company profile, which includes the

history of company and its collaborations. Industry profile includes the story of how

manufacturing of batteries started, where and for what purpose these products are

invented etc. The current scenario of Exide batteries in the car segment describes the

present scenario demand and consumers response to the product. It also helps in future

projection of the product and helps understand the futuristic potential of the products

in the car segment. The analysis part includes the clear analysis of the views of

interviews and is also supported by graphs for clear understanding. Findings include the

important information or facts known during the process of data collection.

Recommendations are produced according to the findings, these includes the

suggestions which will be helpful for the organization.

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INDUSTRY PROFILE:The Product:The product is a maintenance-free battery, similar in design to a conventional

automotive battery, but just a heavier-duty version of the same arrangement. Many of

the components have thicker construction, and different, more durable materials are

typically used. This design is called a lead-calcium battery. The heavier-duty parts ensure

that fluid loss is kept to a minimum and that components have a much longer life.

Purchase Occasions:

The automotive battery business consists of OE (original equipment) and after-market or

replacement market segments. The OE market is around 1.2 million units and the larger

replacement market is around 5 million units per annum in India. Purchase therefore

occurs when the current battery ‘dies’, which is usually after a period of approximately

two years.

Target Audience Demographics:

Region: India, urban population

Occupation: Service, working professional, self-employed

Gender: Male

Religion: Insignificant

Income: 1, 80,000 p.a. upwards

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Behavioral:

Occasions: When previous battery ‘dies’/breaks down

User status: First time user

Loyalty status: Not defined

Readiness Stage: Uninformed

Attitude toward product: Inquisitive

Attitude toward brand: Trusting.

Competition:

Exide is a market leader in the original equipment (OE) automotive batteries segment

with a market share of over 85% in the OE automotive batteries segment and more

than 25% in the replacement market (more than 60% amongst the organized players).

The unorganized players have a bigger role in the replacement market, with a market

share of above 55%. For the rest 15 per cent of the pie, there’s a clamour between

players like Prestolite, Bosch, Tata Green & Amaron. Other players in the organized

market are and Amco.

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Products:

Lead Acid Storage Batteries for Automotive, Motorcycles, Genets, Trawlers, VRLA,

Industrial Standby, Motive Power and Submarine applications.

Factories:

Exide has 9 Factories spread across India. Together the annual production capacity is of

over 7.2 million automobile batteries (including motorcycle batteries) and over 360

million AH of Industrial Power.

Quality:

Exide is certified to ISO9001, QS9000 and ISO14001 Quality Systems by RWTUV,

Germany.

OEM Supplier to:

Honda, Fiat, Toyota, Hyundai, Telco, Suzuki, Mazda, GM, Leyland, Maruti suzuki,

Mitsubishi, Piaggio. Only manufacturer of Submarine Battery in India.

R&D:

Exide has a Govt. approved sophisticated R&D Centre manned by highly qualified

personals. Exide R&D owns 11 Patents for Battery Development Technology. This

member's information has NOT been authenticated or verified by Alibaba or any third

party. Only Alibaba Gold Suppliers and Trust Pass members have completed an

authentication and verification procedure conducted by third-party credit agencies.

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Exide Industries hold:

HELPED by the robust demand from the automobile segment, battery major Exide

Industries recorded a 28 per cent growth in turnover for the quarter ended December

2004. As the leader in the original equipment market of the automobile battery

segment, the company benefited from the growth in the automobile production seen in

the recent quarters.

The company also has a presence in the industrial battery market, which accounts for

about 40 per cent of revenues. The enhanced activity levels in telecom and power

sectors have resulted in increased demand for industrial batteries as well. The

profitability was under pressure owing to spiraling input cost. The price of lead, the key

raw material, rose by over 40 percent during the period under consideration. Lead

accounts for about 75 percent of the total cost of production and raw material cost over

50 percent of revenues. Owing to a sharp spurt in lead price, the operating profit margin

dropped to 13 per cent from 19 per cent in the quarter ended December 2003. The

competitive environment and the growing demand from the original equipment

market have limited the scope for revising battery prices to completely accommodate

changes in input cost. The soft interest rate regime and the low gearing have given the

company savings in interest cost. The company's performance depends on the trend in

the price of lead.

Though sustaining volume growth would not be difficult, the fluctuation in. The cost of

inputs would be the key determinant of growth in bottom line. The increased

automobile production in the last couple of years would translate into enhanced deman

from the lucrative replacement market. The efforts to gain access to the rural

marketwould also drive demand from the replacement market. The implementation of

the more stringent norms pertaining to recycling of used batteries is another positive

trigger. This is likely to dilute the presence of unorganized sector players in the

replacement market.

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The company is also implementing capacity expansion projects. This, along with the

location of the unit from Aurangabad (Maharasthra) to Bawal (Haryana), would have

long-term positive implications. On the flip side, the recent decision to permit duty-free

imports of sealed maintenance free batteries could expose domestic players to the

threat from cheaper imports. Besides, the removal of anti-dumping duty on lead acid

batteries could also affect the prospects of domestic players.

The government had imposed an anti-dumping duty a few years ago on complaints from

the domestic companies about the dumping of cheaper imported batteries.Though

Exide has strong brand equity and products positioned across various price points, it

would remain vulnerable to the threat from imports, especially in the replacement

market segment. There would, however, be a marginal impact in the original equipment

market due to relaxed norms for imports.

From an investment perspective, shareholders can retain their holdings Fresh exposures

may be considered on evidence of softening of lead price or sustained buoyancy in

automobile production. The key risk is the prospective threat from cheaper imports.

Besides, any further rise in lead price would also have an impact on profitability.

Leaders in Power Storage Solutions:

Exide Industries Limited, India's flagship of the storage battery industry- is also

the largest Power Storage Solutions company in South and South East Asia. It

manufactures the widest range of storage batteries in the world from 2.5Ah to

20,600Ah capacity, to cover the broadest spectrum of applications. Capital Rs.712

Million.Turnover Rs. 12182 Million in 2003-04 ,Employees Over 4000, Market Share

33% Market Share in overall domestic Auto Battery Market and 90% Market Share in

Automotive OE. industrial battery market share 50%.

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Manufacturing Capacities:

Factories (Established) Capacity K Units M Ah Auto MC INDL:

Shamnagar (1946) - 600 - 140

Chinchwad (1969) - 1300 - 2400

Haldia (1981) - 1000 - 160

Hosur (1997) - 700 - 270

Taloja (1998) - 600 - 750

Multi location hedge supply risks to customers - delivery confidence Strategically

located near markets Logistically efficient, considering 70% raw materials imported

Proximity to ports - cost efficiency in exports

Marketing Network

Offices - 26

Exide Care Centers - 100

Exide Power Centers - 25

SLI - 3423

MC - 2469

Marketing Staff - 291

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EIL is the market leader in the organized sector in both the automotive and industrial

segments. 'EXIDE' and 'SF(Standard Furukawa)', the flagship brands of the Company, IS

also the leading battery brands in the country.

The Company has the dominant share in the original equipment segment for

automobiles. It powers almost all the cars which have been introduced in India such as

Honda City, Honda Accord, Hyundai Santro, Hyundai Accent, Hyundai Sonata, Suzuki

Baleno and Suzuki Wagon R, Mitsubishi Lancer, Tata Indica, Tata Indigo, Fiat Palio, Opel

Corsa, Toyota Qualis, Mahindra Scorpio and Mahindra Bolero. EIL also has the dominant

share in the organised sector replacement segment for Automobile batteries.

The Industrial applications of EIL batteries extend to Power, Telecom, Motive Power,

Mining, Railways, Emergency Lighting and Non-Conventional Energy Sources. The

Company is the largest manufacturer of caplamp batteries in the world. It is also one of

the five companies in the world which has the capability to make submarine batteries

for both Russian and German types.

EIL is the first battery company in the country to introduce polypropylene case batteries

and maintenance-free batteries. It is also the pioneer of several new technologies like

flat-plate, and tubular plate batteries. By virtue of being the largest Sealed Maintenance

Free(SMF) batteries in Asia outside Japan, the Company has earned the status of a

global supplier to American Power Conversion, the largest UPS manufacturer in the

world. Besides, it also caters to other multinationals operating within the country i.e.

Siemens and Ericsson and other major players as TVSE, HTL, Tata Liebert, Numeric and

ITI. The Company has always believed in working closely with the Government in

developing and sustaining applications which are best suited to the country's national

interest. It has tried to do its bit for the country by providing batteries specially tailored

for Boors guns, armored vehicles and tanks, wireless transmission, solar applications in

remote areas and devising anti-pollution masks among others. The country's first

battery powered electric boat, designed and developed by EIL is an extension of its Page | 17


social initiatives and it contributes towards building an eco-friendly and pollution free

nation.

Exide was the first to introduce batteries for electric vehicles, Traction batteries for

electric wheelchairs, flat-plate batteries for golf carts and batteries for automated

guided vehicles. In an agrarian economy such as India, the farm sector is one which

cannot be ignored. Accordingly, Exide's avowed objective was to cater to the tractor

segment as a thrust area. Its major initiative, Project Kissan, has made steady inroads

into the rural regions, particularly those of the North and West. This has helped to

spread consciousness among the rural populace on the need to use eco-friendly and

technologically superior batteries. Exide has made extensive use of Kissan Melas and

Dhabas to promote this scheme and has introduced "Jai Kissan" battery to cater to the

replacement market in this segment. In furthering its social commitment, EIL has

planned to adopt select villages to improve social welfare. The Company exports

batteries which have captured niches in South East Asian.

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COMPANY PROFILE

The Company was incorporated as Associated Battery Makers (Eastern) Ltd., on 31st

January, 1947 under the Companies Act, 1913 to purchase all or any of the assets of the

business of manufacturers, buyers and sellers of and dealers in and repairers of

electrical and chemical appliances and goods carried on by the Chloride Electric Storage

Company (India) Ltd, in India , since 1916 with a view thereto to enter into and carry

into effect (either with or without modification) an agreement which had already been

prepared and was expressed to be made between the Chloride Electric Storage Co

(India) Ltd on the one part and the Company of the other part. The name of the

Company was changed to Chloride India Ltd on 2nd August, 1972. The name of the

Company was again changed to Chloride Industries Ltd. vide fresh Certificate of

Incorporation dated 12th October, 1988. The name of the Company was further

changed to Exide Industries Ltd. on 25th August, 1995.

The Company manufactures the widest range of storage

batteries in the world from 2.5 Ah to 20,400 Ah capacity,

covering the broadest spectrum of applications. The

Company has six factories strategically located across the

country – two in Maharashtra, one in West Bengal, two in

Tamil Nadu and one in Haryana. The Company’s predecessor carried on their operations

as import house from 1916 under the name Chloride Electrical Storage Company.

Thereafter, the Company started manufacturing storage batteries in the country and

have grown to become one of the largest manufacturer and exporter of batteries in the

sub-continent today.

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Exide separated from its UK-based parent, Chloride Group Plc., in 1989, after the latter

divested its ownership in favor of a group of Indian shareholders. The Company has

grown steadily, modernized its manufacturing processes and taken initiatives on the

service front. Constant innovations have helped the Company to produce the world’s

largest range of industrial batteries extending from 2.5 Ah to 15000 Ah and covering

various technology configurations.

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Vision Statement:

"To win our customers, stakeholders and employees by transferring quality into a

Performance oriented business which will secure market leadership and profitable

growth through effective fulfillment of customers' needs. "

World Class Manufacturing:

Exide has eight manufacturing plants producing world class products. Exide factories

are located strategically around the country to provide logistic support for its

production of over five million batteries per annum.Each of these factories are

equipped with state-of-the-art equipment sourced from the best battery making

machinery manufacturers in the world. Exide, due to its strong roots with the erstwhile

Chloride group, has access to the best manufacturing practices in the Acid Batteries.

A technology tie-up with Shin-Kobe, Japan the makers of world class Hitachi VRLA

batteries has given Exide the technological edge in maintenance free batteries. Other

strategic technology agreements with Furukawa, Japan and Oldham, U.K. has given

Exide the competitive edge in providing the most reliable solutions for packaged power.

Collaborations:

Shin-Kobe Electric Machinery Co. Ltd., Hitachi Group, Japan For Automotive and VRLA

Batteries The Furukawa Battery Co. Ltd.,Japan For Automotive Batteries at Taloja.

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1 Board of Directors

Mr. S.B. Ganguly Executive Chairman & Chief Executive

Officer

Mr. R.B. Raheja Vice Chairman & Non-Executive Director

Mr. T.V. Ramanathan Managing Director & Chief Operating

Officer

Mr. S. Chand Director-Corporate Affairs

Mr. P.K. Kataky Director-Automotive

Mr. G. Chatterjee Director-Industrial

Dr. S.K. Mittal Director (R&D)

Mr. R.G. Kapadia Non-Executive Director

Mr. H.M. Kothari Non-Executive Director

Mr. B. Mitter Non-Executive Director

Mr. S.N. Mookherjee Non-Executive Director

Mr. A.H. Parpia Non-Executive Director

Mr. S.B. Raheja (Alternate D.S.Parekh) Non-Executive Director

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Mr. W. Wong Non-Executive Director

Mr. V. Aggarwal Non-Executive Director Compliance

Officer

Mr. Barun Das Divisional Head - Legal & Company

Secretary

Executive Committee

Mr. S.B. Ganguly, Mr. T.V. Ramanathan, Mr. S. Chand, Mr. P.K. Kataky, Mr. G. Chatterjee,

Dr. S.K. Mittal, Mr. Barun Das, Mr. Monodip Chaudhuri, Mr. R.P. Ray.

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Milestones Achievements

1916 Chloride Electric Storage Co. (CESCO) UK sets up trading operations in India

as an import house.

1946 First factory set up in Shamnagar, West Bengal.

1947 Incorporated as Associated Battery Makers (Eastern) Limited on 31 January

1947 under the Companies Act.

1947 Incorporated Chloride International Limited (previously Exide Products

Limited)

1969 Second factory at Chinchwad, Pune

1972 The name of the Company was changed to Chloride India Limited

1976 R&D Centre established at Kolkata

1981 Third factory at Haldia, West Bengal

1988 The name of the Company was changed to Chloride Industries Limited

1994 Technical collaboration with Shin Kobe Electric Machinery Co. Ltd. of

Japan, a

subsidiary of the Hitachi Group.

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1995 Chloride Industries Limited renamed Exide Industries Limited

1997 Fourth factory at Hosur, Tamil Nadu

1998 Acquisition of industrial/ manufacturing units of Standard Batteries Ltd

located at

Taloja & Kanjurmarg (Maharashtra), Guindy (Tamilnadu) and plant at

Ahmednagar (Maharashtra) from Cosepa Fiscal Industries Limited as a

going

concern.

1999 Acquired 51% Shareholding in Caldyne Automatics Ltd

2000 Acquisition of 100% stake in Chloride Batteries S E Asia Pte Ltd., Singapore

and

49% stake in Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka.

2003 Commissioned plant at Bawal, Haryana

2003 New joint venture in UK, ESPEX, with 51% holding.

2004 Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka became a

subsidiary consequent to acquiring further 12.50% Equity holding.

2005 Investment in 50% shareholding of ING Vysya Life Insurance Company

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Limited

2007 Caldyne Automatics Ltd becomes 100% subsidiary consequent to acquiring

the

balance 49% shareholding.

2007 Investment with 26% shareholding.in CEIL Motive Power Pty Ltd. A Joint

Venture

in Australia.

2007 Acquired 100% stake in Tandon Metals Ltd.

2008 Acquired 51% stake in Lead Age Alloys India Ltd

PRODUCT PROFILE

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The product in focus is “Exide automotive batteries mainly the car batteries”

Exide is a dominant player in the Industrial Battery segment, with a product range

covering capacities from 2.5 Ah to 10,000 Ah and more. Using the latest technological

inputs, exide manufactures industrial batteries for the power, telecom, infrastructure

projects, computer industries, as well as the railways, mining and defense sectors. The

product range includes both Flooded type Lead Acid batteries as well as the Sealed

Maintenance Free (SMF) VRLA type ,in the Mono block and 2V range to meet most

applications needs. VRLA batteries are manufactured in Technical Collaboration with

Shin Kobe - Japan Manufacturers of Hitachi Range of Batteries. Exide is in a continuous

process of developing new products and enhancing existing products in the R&D Center

at Kolkata .

Table 2 Special Features

CHARACTERISTIC ADVANTAGES

Polypropylene container Strong and durable.

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With strengthening ribs Ability to withstand bumps and vibration.

Factory Charged Ready for fitment.

Eliminates possibility of contamination (because of use of

impure acid/water during initial charging in the field).

Low self discharge characteristics because of use of high

quality acid/water.

Side Vented Design Top surface of battery remains clean, as such no loss of

change because of surface leaking of current.

Microporous filter disc Curtails emission of acid fumes thus preventing corrosion

of cable clamps or components in the engine

compartment.

Magic Eye Enables state of charge or electrolyte level to be

ascertained without having to open the service plugs.

PE/Glassmat assembly Enables battery to withstand high vibrations and

minimizes possibility o through shorts which cause

premature failure to the battery

Hybrid Design Enhanced low maintenance characteristics (topping up

requirements in normal working conditions would be

once in six months)

Ability to withstand high ambient operating conditions as

prevent in India

Low Internal Resistance Ability to generate high cracking power during starting.

Enables battery to quickly recharge while in use. (The vehicle

does not need to drive long distances to ensure full change

of the battery)

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Low degradation Ensure long trouble free service

RANGE OF EXIDE EXPRESS BATTERIES:

These batteries are strong durable polypropylene containers with heat shield leads.

The plates in these batteries are manufactured to an exclusive design using special

grid Alloys to give durability and resistance to corrosion.

The special low resistance flat separators bounded on to non-degradable glass wool

retainer mats prevent plate shedding and ensure enhanced charge –discharge life

Cycle.

INTIAL CHARGING DESCRIPTION:

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Apply petroleum jelly on the terminal cable clamps. Remove the filling plugs loosely

place them in position.

Ensure positive and negative terminals of the battery are connected properly to the

Corresponding charger terminals to avoid reverse charging.

Continue charging at this rate approximately for 8-12 hours till the cells are gassing

freely and the voltage remains same for three hourly consecutive readings at the top

of charge terminal voltage of 16.2 volts for 12v battery. Adjust the obtained specific

gravity to the recommended final specific gravity by

Replacing requisite quantity of electrolyte with distilled water in case the obtained

Specific gravity is higher. Dilute sulphuric acid of 1.400 specific gravity in case of the

obtained specific gravity is lower .

Confirm specific gravity and levels of all cells are identical as per requirements.

Tighten filling plugs, wash the top of the battery with tap water and apply petroleum

jelly on the terminal cable clamps before installing the battery of the vehicle

SPECIFIC GRAVITY:

Initial filling –1.230+- 0.005 . Gravity is fully charged condition (270 c)-1.230-1.240. Charge

duration 8-12 hours.

CAUTION:

While charging more than one battery, make sure that identical type batteries are

Charged and they are connected in series keep the charger off before connecting or

Disconnecting a charger load.

While charging if Electrolyte temperature exceeds 50deg centigrade stop charging and

allow battery to cool.

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While charging is in progress, always keep the filling plugs in loose condition so that

gases escape freely. Batteries expel explosive gases, keep naked flame away.

INTRODUCTION TO CAR BATTERIES

A (HCV) battery is principally used to start the engine of heavy vehicles. It is also used

to filter or stabilize .power and to provide extra power for the ignition, lighting and

other accessories when their combined load exceeds the capability of the charging

system, i.e., when the engine is idling. It also provides power to the electrical system

when the charging system is not operating.

The battery lies hidden under the bonnet and is an essential component of the vehicle.

Regular care is a must, for if it in bad shape, the vehicle will refuse to move. "Push-start"

is a solution but cannot be carried on for long. A well-maintained battery lasts for 2

years.

Research and Development:

In the era of intense competition, technological changes are putting extreme pressure

on Companies to innovate or decline.Therefore, contribution of innovation &

technology is becoming a key success fator in many of the organizations. Exide

recognizes the importance of technology & innovations. In order to maintain

technological leadership, Exide R&D have been actively developing differentiated

battery technologies for tropical countries. The Exide R&D has been recognized by the

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Department of Scientific & Industrial Research, Ministry of Science & Technology,

Government of India since April 1977.

R&D work is carried out on various facets of lead-acid battery technology, which include

development of new products for applications such as Automotive, Motorcycle, VRLA,

Telecom, UPS, Railways, Defense, etc. primarily to make the product range

internationally competitive. In addition, the R&D is engaged in projects embracing

process technology aimed at improving the product quality & consistency, production

efficiency and material utilization. Furthermore, R&D program includes improvement

and indigenization of materials such as metals, alloys, plastics, etc. R&D emphasis is on

studying and improving the environmental aspects associate with the manufacturing

process.

Functional Areas:

All the above specific areas are well administered by a strong group of human assets The

qualified R&D personnel are Ph.D.'s in Engineering / Applied Science, Post-Graduate /

Graduate in Engineering / Science, MBA's and Diploma in Engineering with broad

spectrum of experience and they work in the following functional areas:

Battery Design & Development:

Process Development

Tool Design & Development

Alloy Development

Development of Plastic Components

Hard Rubber / Soft Rubber Components Development

Analytical Services

Battery Testing & Quality Assurance

Environmental Health Monitoring

Page | 32


Technology for Tropical Countries:

In tropical countries like India, automotive battery life is adversely affected by the

following conditions:

High ambient temperature

High Vehicle Vibration due to rough roads

Outdated charging system particularly on old vehicles

Sluggish vehicle movement in congested city drives Frequent start - stop

Weak infrastructure for maintenance

Inferior quality of water for topping up.

Exide R&D Centre, therefore, has a special focus on developing the desired

automotive battery characteristics for India / Tropical conditions which include the

following:

High temperature endurance

Recovery from deep discharge

Resistance to vibration & bumps

High reserve capacity

Page | 33


Some of the major development work done at the R&D Centre and viewed at a glance is

as follows:

Japanese range of automotive batteries, Japanese range of Motorcycle batteries, Jai

Kisan range of Tractor batteries, MHD range of automotive batteries as per Indian

Standards, DIN range of automotive batteries suited to vehicles of European origin,

Valve Regulated Lead Acid (VRLA) batteries for Telecom application, Valve Regulated

Lead Acid (VRLA) batteries for Indian Railways, Valve Regulated Lead Acid (VRLA)

batteries for Inverter application, Motive Power Batteries for Fork-lift Trucks and

Submarine battery for Indian Navy, High energy density battery for Electric Vehicles §

Plante batteries for Power stations New products have been developed for the domestic

and export markets, such as Jai Kisan range of batteries for tractors. Furthermore, long-

life, maintenance-free batteries for cars have also been developed which are presently

being marketed under the brand name Exide Eternity. Also a new heavy duty, MHD

Range of batteries have been developed and introduced for the entire commercial range

of vehicles. Batteries were also developed for CNG/LPG powered three-wheelers and

golf carts. A range of batteries for Industrial application including new batteries for

Telecom, Solar, Traction and small VRLA for UPS system was also developed. Major OE

customers for automotive batteries include Toyota, Hyundai, Honda, M&M, Maruti,

GMI, Tata Motor, etc. etc. Major OE customers for motorcycle / three-wheeler batteries

include Bajaj Auto, Hero Honda, LML, Kinetic Motor, Yamaha, etc. etc.

Major OE customers for industrial batteries include DOT, RDSO, NPC, NTPC, APC, etc.

Infrastructure / Laboratories:

Page | 34


Exide R&D Centre is also well equipped with a Tool-Room, CAD facilities, material testing

and laboratories having the modern equipment for testing of the raw materials and

components used for manufacture of batteries. These include optical emission

Spectrometer, Particle Size Analyzer, Porosemeter, Image Analyzer Workstation, Profile

Projector, Universal Tensile testing machine, etc.

Product Testing Facilities:

Product Testing Department acts as the nodal point for product validation through intra

R&D linkage with Automotive Design Department for Automotive, Motorcycle & EV

batteries Industrial Design Department for VRLA, Plante (Flooded), Tubular (Flooded),

Submarine, Solar, Minars' Cap Lamp, etc. Process Development Department for change

or improvement in manufacturing processes .

MRR for ISO and QS Quality Standards

Product Testing Department also interacts with all the manufacturing units i.e.

Shamnagar, Chinchwad, Haldia, Hosur, Taloja, Ahmednagar & Guindy for testing and

quality assurance of their products from time to time and as per QS Standards. In order

to achieve Business Generation through Type Approval Tests of newly developed

products, Product Testing Department keeps liaison with Industrial & Automotive

Marketing Department and carry out Type Approval Tests which is usually witnessed by

the customer / ultimate user at R&D Test House. R&D Test House is equipped with

state-of-the art test facilities which are mainly Microprocessor based computer

Page | 35


controlled charge – discharge test system Environmental test machines e.g. Vibration,

Controlled Temperature & Humidity Chambers, etc.

High Current Discharge Circuits for Automotive & Industrial . Some special testing

machines e.g. High Voltage Tester, Spark Tester, Short Circuit Tester, etc.

In the era of intense competition, technological changes are putting extreme pressure

on Companies to innovate or decline.Therefore, contribution of innovation &

technology becoming a key success factor in many of the organizations.

Exide recognizes the importance of technology & innovations. In order to maintain

technological leadership, Exide R&D have been actively developing differentiated

battery technologies for tropical countries. The Exide R&D has been recognized by the

Department of Scientific & Industrial Research, Ministry of Science & Technology,

Government of India since April 1977.

R&D work is carried out on various facets of lead-acid battery technology, which include

development of new products for applications such as Automotive, Motorcycle, VRLA,

Telecom, UPS, Railways, Defense, etc. primarily to make the product range

internationally competitive. In addition, the R&D is engaged in projects embracing

process technology aimed at improving the product quality & consistency, production

efficiency and material utilization. Furthermore, R&D program includes improvement

and indigenization of materials such as metals, alloys, plastics, etc. R&D emphasis is on

studying and improving the environmental aspects associate with the manufacturing

process.

Exide , a name coined out of Excellent Oxide –a product ingredient, has through its

continuous commitment and customer-need focus, emerged as one of the most

powerful brands in existence today.

Page | 36


MARKET ANALYSIS

S.W.O.T ANALYSIS

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic

position of the business and its environment. Its key purpose is to identify the strategies

that will create a firm specific business model that will best align an organization’s

resources and capabilities to the requirements of the environment in which the firm

operates. In other words, it is the foundation for evaluating the internal potential and

limitations and the probable/likely opportunities and threats from the external

affect the success. A consistent study of the environment in which the firm operates

helps in forecasting/predicting the changing trends and also helps in including them in

the decision-making process of the organization.

Following is the SWOT analysis made for Exide Industries limited (EIL) operating in the

city of Ranchi.The analysis is particularly done keeping in view the HCV’s segment in

the city.

Page | 37


Page | 38


Wide range of selection of batteries from 2.5Ah to 10,000 Ah and more Pioneer in Industrial Batteries Highly respected brand Only company to manufacture Plante’ batteries Lion’s share of market.Offers all major varieties of industrial batteries i.e. Plante’, Tubular and VRLA.Large numbers of distributors and dealers.

Strength

Poor after sale service No personalized attention to esteemed clients.Lack of pro- activeness.Lack of proper training to distributors and dealers.LethargyComplacency

weakness

The company enjoys a very good brand name and it can cash in on it if it improves its after sales service.The company can capture more market share due to lack of any substantial competition as of now.The company can capture more market share if it offers guarantee rather than warranty on its products.

opportunities

Complacency on the part of the company may cause it to lose its market to emerging competition.Emerging competitors are very aggressive in their marketing and this can become a problem if Exide continues to be harsh on its terms and conditions.Lack of pro-activeness and poor after sales service can compel the customers to switch over to alternatives.

threats

CCOMPETITOR ANALYSIS

The biggest advantage that Exide enjoys and which is a very rare scenario in

today's competitive world is lack of any substantial competition. The company

has around 80% market share in industrial batteries in West Bengal, Jharkhand and

Orissa..

There are a few emerging players like Amara Raja and HBL with around 8%

market share each but the kind of brand name and goodwil l that Exide

enjoys is beyond comparison. Amara raja is an important emerging

competitor and it manufactures only VELA batteries (Power Stack and

Quanta). These new players are marketing their products very a

aggressively by way of offering the products at Highly discounted rate and

also offering long term guarantees but the way things are going, it seems the only

factor that can make them succeed is Exide itself i.e. if Exide itself' makes some grave

mistakes and paves its way down.

Page | 39


PURPOSE AND OBJECTIVE OF STUDY

The objective of the survey is to know the market potential of Exide

automotive (HCV) batteries in ranchi and to rate the batteries in terms of sales,

services.To know the complaints received by the mechanics. To get suggestions and

other information from the mechanics in order to increase the sales by providing good

services.To know factors having major influence on consumer purchase behavior and to

compare with other brands of batteries in terms of performance, price, after sales

services, package, promotional activities and other related information.

This is also done to know the features consumers will consider using the purchase of

batteries and to know the brand suggestions given by the mechanics to their customers,

to know the role of advertisement in drawing the attention of customer and to know the

effective medium of communication such as T.V, radio, news paper , magazines, shop

paintings and also to know the strengths and Weakness of Exide batteries and to get

good suggestions in order to boost the sales of Exide batteries.

Page | 40


RESEARCH PLAN

To achieve the objectives, a questionnaire was prepared consisting of

questions covering all aspects for which information was to be derived.

1. DATA SOURCE : Primary data

2. RESEARCH INSTRUMENT : Questionnaire

3. RESEARCH APPROACH : Survey

4. SAMPLING PLAN

a) Sampling unit : People

b) Sampling Size : 100

c) Sampling Procedure : Random Sampling

5. CONTACT METHOD : Personal

Page | 41


RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It refers to

the methodology refers to the methodology, techniques that are used for the activities

involved in performing the research operations such as making observation, recording

data etc.

(a) Type of Research :

This study is based on Descriptive Research which includes surveys and findings of

different kind .This research aims at answering the ‘What’ and ‘Why’ of the current

state of some system . It provides an accurate description for something that is

occurring .Description & explanation are its two main aims.

(b) Data Collection Method :

Primary data. Because this was more suitable according to my survey & sample size.

(c) Primary Data Collection Method :

The primary data can be obtained either through observation or through direct

communication with respondents in one form or another or through personal

interviews. The data collection Method used for research is Survey method.

(d) Primary Data Collection Technique :

The data collection technique used is Questionnaire. A questionnaire is framed and then

data is collected by making it fill by the respondents. The questions are in the form of

open ended as well as close ended.

Page | 42


(e) Universe of the Study :Owners of cars in Ranchi.

(f) Sample Unit :

Dealers of Exide Batteries.

(g) Sampling Technique :

Sampling is done according to my own convenience and so the sampling techniques

used in this project is Convenience sampling.

(h) Sample Size:

100 People.

LIMITATIONS

The project was constrained by the time limit.

Respondent are not used to such surveys and hesitate in telling opinion frankly.

Some people didn't have enough time to fill up the questionnaire.

Mindset of people may very depending upon their age, gender, income etc.

Respondents were very busy in their schedule. So it was very time consuming for

them to answer all the questions properly.

(j) Analytical Tools

Graphs ( Bar diagram , pie charts , etc.)

Page | 43


FINDINGS AND STUDIES

Table 3 Respondents Dealing with Different brands

Respondents dealing with different brands:

Respondents dealing with Exide and Amron are 30% Respondents dealing with Exide ,

Amron and Amco are 29% Respondents dealing with Exide and Tata Green are 6%

Respondents dealing with Exide, SF, Amco are 3 % Respondents dealing with SF and

Page | 44


BRANDS NO. OF RESPONDENT’S PERCENTAGE

Exide, Amron

Exide , Amron, Amco

Exide, Tata Green

Exide, SF, Amco

SF, Amron

All

Exide,SF,Amron

30

29

6

3

10

2

20

30%

29%

6%

3%

10%

2%

20%

Total 100 100%

Amron are 10% Respondents dealing with all brands are 2%. Respondents dealing with

Exide, SF and Amron are 20%

30%

29%6%

3%

10%

2%

20%

Exide, Amron Exide, Amron,amco Exide, Tata Green Exide, SF, AmcoSF, Amron All Exide,SF,Amron

Figure 1 Respondents Dealing with Different Brands of car batteries.

INTERPRETATION:

Exide holds most of the market share with above 50 % of the market,next in line just

behind Exide or in other words a fierce competitor of Exide is Amaron followed by SF

and amco which covers about 30% of the market share.The features that Amaron gives

in its batteries is much similar to Exide but it has captured the market on the strength of

a very good after sales service and through giving warranty on its products.

Page | 45


Table 4 Demand for Automotive Batteries

:

Page | 46


HIGH MEDIUM LOW0

10

20

30

40

50

60

70RESPONDENTS

Figure 2 Demand for Automotive batteries in Ranchi

DEMAND NO. OF RESPONDENT’S PERCENTAGE

High 60 60%

Medium 40 40%

Low 0 0%

Total 100 100%

INTERPRETATION:

Respondents viewed high demand for automotive batteries are 60%. Respondents

viewed medium demand for automotive batteries are 40%. Respondents viewed low

demand for automotive batteries are 0%. In a city like Ranchi the annual income of

individuals have surpassed the records of all times, growth has been seen in all sectors

this is a very good indicator of the changes in lifestyle of the respondents {sample

group} in large it is viable to say that with the increasing trend of urban lifestyle, the

potential of possessing a car has doubled. Therefore with the above data it is clear that

the demand of car batteries have increased and has a very good potential in the future.

Features consumer will consider during the purchase of the batteries:

Respondents have given their views with respect to the Features of Exide batteries in

different parameters such as performance, price, Promotional Activities, Aftersales

Services, and Packaging. The table given below shows the percentage weightage given

by respondents on different parameters of the battery. It is seen that

Page | 47


Table 5 Features consumers considers during purchase of automotive batteries.

FEATURES CATEGORY PERCENTAGETOTAL

RESPONDENTS

PerformanceSatisfied 54

100unsatisfied 49

PriceHigh 53

100Low 2

Competitive 54

Promotional activitiesGood 35

100Average 48

Poor 17

PackagingAttractive 32

100Normal 50

Not attractive 18

After sales serviceGood 30

100Average 37

Poor 33

performance Satisfied 11%

performance unsat-isfied 10%

price high10%

price low0%

price Competitive11%

promotional activities good7%promotional activities average

9%

promotional activi-ties poor

3%

packaging attractive6%

packaging normal10%

packaging not at-tractive

4%

after sales service good6%

after sales service average

7%

after sales service poor6%

Figure 3 Customers opinion about Exide batteries features.

Page | 48


INTERPRETATION:

The respondents considered price and performance the most i.e 35 % while purchasing

a particular battery product , followed by performance of the battery and brand

name.i.e 30 % . the price and brand name played an important factor in making

purchase decision followed by the package and performance.

Complains by the Exide customers

Table 6 Complains by Exide Customers.

COMPLAINTS NO OF RESPONDENTS PERCENTAGE

YES 34 34%

NO 66 66%

TOTAL 100 100%

INTERPRETATION:

Page | 49


YES NO0%

10%

20%

30%

40%

50%

60%

70%

34%

66%

PERCENTAGEFigure 4 Percentage of Complains received by Exide customers.

No. of respondents received complaints are 34, No. of respondents did not received any

complaints are 66. Out of the total 100 % respondents 66% of the respondents did not

have any complaints about Exide batteries where as 34 % of them had complaints about

the battery which included the rapid discharge of the battery melting of the poles.

Which media will draw more attention of customers ?

TV

Radi

o

New

spap

ers

Mag

azin

es

Disp

lay

Boar

d

Shop

pai

nting

hoar

ding

Electronic Media: Print Media: Shop display’s:

01020304050607080

71

29

68

32 30

44

26

Figure 5 Role of media in attracting customers

INTERPRETATION:

After the survey of 100 respondents it was found that the respondents gave more

weightage to Advertisements via electronic media and print media, display of the brand

is also competitive in spreading brand awareness. In order for positioning the brand in

the minds of the customers the brand should commercialize through TV, and Radio.

Newspapers and magazines also contribute in reaching out to new markets; shop

display is more common in rural areas.

Page | 50


Market potential analysis

Estimating the market potential for a business requires specific information on the

number of People or potential buyers, an average selling price, and an estimate of

consumption or usage for a specific period of time. Once this information has been

collected, it can be plugged into the Following formula to derive the estimated market

potential.

Estimating Market Potential: [MP = N * O * Q]

; Where:

MP = market potential

N = number of possible buyers

P = average selling price

Q = average annual consumption

Page | 51


Market Potential Analysis Procedure at aproxima

Page | 52


SPECIFICATION OF MODEL

ASSUMPTIONS

Development of assumptions regarding the cause-effect relationships between factors use

DATA COLLECTION

Analyses of secondary information or specially conducted surve

SPECIFICATION OF THE NUMBER OF

CONSUMERs

Often from secondary statistical source

ESTIMATION OF PURCHASING

RATES

Determination of average consumer spending through random sample analysi

CALCULATION OF MARKET

POTENTIAL

Multiplication of specified number of potential consumers with determined average purchasing rate

No. Of Registered Vehicles In Ranchi (Data Source:- HO-RTO Durwa Ranchi)

Year Two wheelers Cars Trucks Buses Taxis Jeep Three Wheelers Tractors Trailers

2007-08 125967 12874 5688 478 1488 4507 5585 2806 1946

2008-09 141641 15750 6492 429 2566 5186 6209 3880 2854

2009-10 137991 19517 7217 557 3012 6760 9396 4766 3479

2010-11 207130 26850 6304 592 2543 7737 9799 5604 4093 Figure 6 Number of vehicles registered in Ranchi District.

Table 7 Average sales of car battery dealers in Ranchi

SHOP LOCATION MIN MAX AVG YEARLY SALES1 New Battery Centre MAIN ROAD 5 6 5.5 662 Bharat Electronics Spares MAIN ROAD 10 15 12.5 1503 Vision Enterprises MAIN ROAD 10 15 12.5 1504 New Battery Point MAIN ROAD 5 10 7.5 90

5 Calcutta BatterisKARBALA CHOWK

5 76 72

6 Excel BatteryKARBALA CHOWK

5 107.5 90

7 Compserve Electronics KACHERY 3 4 3.5 428 Bablu Auto Electrical DORANDA 4 5 4.5 549 Runa Electricals HARMU 6 7 6.5 78

10 Om Distributros HARMU 6 7 6.5 7811 Vaishali Agency KANTATOLI 5 10 7.5 9012 Power Tron UPPER BAZAR 15 20 17.5 21013 Premier Agencies KACHERY 4 5 4.5 5414 Cargo Battery Centre HINDPIRI 10 20 15 18015 Power Point HB ROAD 5 6 5.5 6616 Power Point HB ROAD 7 8 7.5 9017 M K Motors HINOO 10 15 12.5 15018 Sagar Agencies HINOO 10 20 15 180

Page | 53


19 Gupta Battery Centre RATU ROAD 1 2 1.5 18

20Om Prakash Storage Battery RATU ROAD

8 109 108

21 Power Battery RATU ROAD 5 10 7.5 9022 Sona Light RATU ROAD 8 10 9 10823 Santosh batteries RATU ROAD 5 6 6 7224 Runa Electricals HARMU 3 4 3 3625 Wonder Tyres THARPAKHNA 5 10 7.5 9026 Ashoka Battery HINOO 10 12 11 13227 Battery Home BOOTY MORE 5 10 7.5 9027 Power Systems DHURWA 5 10 7.5 9029 Manjoor Motor Garage MAIN ROAD 5 6 5.5 6630 Lucky bharat Garage HARMU 2 3 2.5 3031 Mokhtar Garage HINOO 7 8 7.5 90

32 Israel Garage KARBALA

CHOW3 4

3.5 4233 Surjit Motors RATU ROAD 10 15 12.5 15034 Binod Motors FIRAYALAL 2 3 2.5 3035 Raza Enterprise FIRAYALAL 4 5 4.5 54

36 Md. Younus Auto & Battery

KOKAR 6 76.5 78

37 Maharana Electronics DORANDA 5 10 7.5 9038 Amco Shopee MAIN ROAD 2 3 2.5 3039 Prasad Electronics KATATOLI 4 5 4.5 5440 Tamkoria Battery Center DHURWA 5 10 7.5 9041 Oriental Electricals SINGH MORE 6 7 6.5 7842 Priya Batteries BAHU BAZAR 2 3 2.5 3043 Sagar Angel Battery MAIN ROAD 5 7 6 7244 Rama Auto PANDRA 2 3 2.5 3045 Maruti Automobiles RATU ROAD 5 7 6 7246 Rozi Batteries KARBALA 2 3 2.5 3047 Kiran Car Care KACHERY 4 5 4.5 5448 Sri Sai Raja Batteries KOKAR 10 12 11 13249 Swastik Motors KOKAR 5 6 5.5 66

50 Dhanraj Garrage & Batteries

KOKAR 10 1211 132

AVERAGE SALES PER YEAR 85.10AVERAGE SELLING PRICE 4000

AVERAGE DEMAND 12874

Page | 54


MARKET POTENTIAL 5.18

Interpretation

A total of 50 retail stores selling car batteries were interviewed on the average sales of

exide batteries per month in different regions of ranchi. The average sales of these

retailers were multiplied by 12 (12 months) in order to get the yearly average sales of

Exide batteries in the selected region of Ranchi. The average price of these car batteries

vary due to price competition and dealer margin for profit and also other market

conditions. However the average price for a regular exide car battery has been taken as

per the interview to be Rs 4000. The average demand of the car battery has been

determined from the data obtained from the regional RTO office Doranda Ranchi. The

data shows the number of cars registered (year wise) it was seen that the number of

cars being registered has been continuously increasing over the years. This is a clear

indication of increasing sales of Exide batteries in the coming years, as the average life

of the OEM battery fitted in the brand new car lasts for an average of 3-4 years,

therefore the sale of Exide batteries pitch in after the vehicles has been registered for 3-

4 years. The data obtained from the RTO. Shows 12874 vehicles have been registered in

the year 2007-08 which is our potential demand for the batteries in the present year.

Market potential has been calculated with the help of the formulae stated above,

multiplying the average sales per year, average selling price, and the average demand of

the battery after 3-4 years. The findings were distinct as the average sales per year is

4224 units. The market potential is 66%.

FINDINGS:

Page | 55


After sales services are not up to the mark at several areas.

There is no quick response after receiving the complaints.

Exide batteries stands first in ranking, amaron ranked third and SF ranked second.

While purchasing batteries consumers will consider mainly performance, brand name,

and price.

As far as sales are concerned Exide ranks first, SF second, amron third etc.

Only few complaints are received from the customers of Exide.

The price of Exide batteries is high as compared to other batteries.

As far as advertisement is concerned T.V, news papers, shop displays and shop

paintings.

Play major role in drawing the attention of the consumers.

According to the garage people automotive batteries has got high demand as there is an

Increase in the purchases of cars and commercial vehicles.

Most of the mechanics suggest their customer to go for a particular brand.

Exide, amron and amco are the brands which are dealt by many of the garage people.

RECOMMENDATIONS:

Page | 56


Provide better after sales services than the competitors, without delay afte receiving

complaints.

Letting the stock of batteries in the MASS and other big garages by providing them

batteries at discounted prices will help to increase the sales.

Advertisement in TV’s, news papers and shop display’s plays important role in

drawing the attention of consumers.

Should have a good rapport with garage people apart from dealers and retailers.

Dealer’s margin and retailer’s margin should be more than the margin provided

by the competitors so that they can provide commissions to the mechanics.

Take necessary action towards the batteries which are damaged within the warranty

period, without delay.Need to invest more on promotional activities as there is more

potential for automotive batteries. Decrease the price of the batteries as much as

possible according to the competitors.

LOCATION WISE MARKET POTENTIAL

Page | 57


LOCATIONS:

1. KANKE2. LALPUR3. HARMU4. ARGORA5. NAMKUM6. RATU ROAD

DESCRIPTION:These areas have good market potential because there are many markets and transporters who have purchasing power and they can be converted into a loyal customer through company’s strategy and good promotional and advertisement activity.All five areas have prospects where company can pitch the product and create customers. To create good customer base and enhance the knowledge of the customers company could have a lot of activities.

SOME OF THE IMPORTANT PROMOTIONAL AND ADVERTISEMENT CAMPAIGN IN THESE AREAS SHOULD BE UNDERTAKEN:

1. Distribute t-shirts having the full image of Exide batteries specially to the workers at petrol pump on highways in the territory of Ranchi :-Through this activity company can create awareness among the general public as well as the potential customer about the product because whenever people will come to fill petrol in their vehicle they will see this logo on the t-shirt.Cost of distributing t-shirt-30rs/t-shirtNumber of t-shirts required- not more than 60Approximately- 1800rs

2. Start campaigns at the market in territory having canopies and other means of advertising :Campaigns to educate customer about the product and its benefits will also help the company to enhance sales and improve the image of the company. For this purpose company can set canopies at different market (Pandra market, Harmu market e.g.) to introduce the vehicle directly to the existing customer and company can use pamphlets also.Cost of campaigns and pamphlets:It depends on the frequency and coverage of the market.

Page | 58


3. Start educating the existing customers of Amaron about Exide Batteries:It is a kind of strategy to damage the competitor’s image and provide knowledge to them in order to convert them in own customers. This is a very difficult task to do but a well trained and knowledgeable salesman can do this easily.

4. Distribute caps and t-shirts to the mechanics of the vehicles:It is also a very good concept of advertising and promoting the product. If company will distribute caps and t-shirt to all mechanics in the territory of Ranchi, it will also help the company to introduce the battery to potential customer because whenever they will go for maintenance and repairing of the battery they will get the information about the Exide battery..Cost of caps:10-15rs/ cap

5. Use hoarding at the different location:Using hoardings will also help the company to attract potential customer, it will give a proper information about the product and its specification. It will also attract the drivers of the vehicle who are very influential in buying any kind of battery.Cost of hoardings:It depends upon the location of hoarding (generally 5000rs-2000rs in Ranchi)

6. Support advertising with attractive phrase which can create a emotional attachment with the product:Sometimes a good tagline for a product can create an emotional attachment and companies are doing this to enhance their sales. So if company will have some kind of advertising which can hit the emotional sentiment of potential customer then company should try to create such advertisement headline.

7. Distribute keychain and pen at petrol pumps: For promoting the product in the market company should think about each and every Section of the society where they can build the image of the company and educate

the potential customer .this is a kind of intensive advertising through which company will cover all the areas where they can generate sales.

Cost of keychain: 2-3rs/piece

Page | 59


8. Distribute calendars to transport companies and Call them for party and create a personal relationship with themTo convert the existing customers of Competitors, Company should also focus on the big transport companies who are indulge in logistics, because they are the big parties who use to buy a number of batteries the company should give more heed to them. Company can call transport companies for party and Provide gifts to transport companies at different occasion it can create a personal relationship with them to attract and convert them into loyal customer.

9. Create temporary sales force team specially for the Exide batteries and give training to the sales man for converting the potential customer of batteries:The implementation of this entire program can only be done by having a good and well skilled sales force. So company should create a temporary sales force that is highly trained and well skilled to convince the potential customer. This is a very tough task for the company and it will also incur some cost, so if company will create sales force from the existing sales man and give proper training and orientation to the program then company can curtail cost and time.

10. Participate in different kind of trade fairs (like udyog mela in ranchi):It is also a very good opportunity to get attention of people and introducing Exide batteries in trade shows. Through this kind of activity company can also create a brand image and fill the gap between the customer and the product.

11. Provide short tour packages to prime customer:Company can also provide short tour packages to their prime customer (transport companies) to create a brand loyalty among them. This is also creating an emotional attachment with the brand and company.

12. Sponsorship at different events:Sponsorship in different kind of events will also help the company to create a good image and also help the potential customer to identify the product.

13. Hot balloon at different markets:Hot balloons at different market will also help the company to advertise the product.

Page | 60


DETAILS OF THE DEPARTMENTS WHERE I WORKED FOR MY S.I.P

I had worked there in 3 different departments-:

1. Survey- During the survey of the respondents i used to visit at the different locations

randomly and i used to get the response from them by questionnaire that, how much

you are satisfied with Exide batteries as compared to Amaron and other players..

2. Marketing- In this department I had seen that the people in this department are

usually involved in the promotion and advertisement of the product. The main

objective of this department was that boosting of sales to survive into the market. The

main sources used for boosting of sales were posters, hoardings, pamphlets,

newspaper ads.

3. Sales- In this department the sales of the batteries is done through OEM’s where

manufacturers are supplied with the batteries in the manufacturing houses and also it

is done through the replacement market of the batteries. These all process are basically

done for the purpose of creating a business for the organization.

Page | 61


survey

marketing

Exide ind. ltd

sales

BIBILIOGRAPHY

BOOKS: Principle of marketing by Phillips Kotler

Research methodology by C.R Kothari

Advertising and Promotion by George E.Belch and Michael E.Belch

Contemporary issues in marketing and consumer behavior by

Elizabeth parsons and Pauline Mclaran

MAGZINES AND NEWSPAPER: Business standard

4ps

The economic times

Company pamphlets

Times of India

Web sites: WWW. EXIDE INDUSTRIES.COM

WWW. GOOGLE.COM

QUESTIONNAIRE

Page | 62


THE MARKET POTENTIAL OF EXIDE AUTOMOTIVE BATTERIES

Name:

Address:

1. What are the different types of brands you are dealing with?

a)Exide b)Standard furukawa

c)Amaron d)Tata green

e)Amco f)Panasonic

2. How many cars do you own?

_____________________

3. Demand for Automotive batteries?

a)High b)Medium

c)Low

4. What are the features consumers will consider during the purchase of batteries?

a) Price b) Performance

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c) Package d) Brand name

5. Rank the different automotive batteries in terms of sales?

a) Exide ----- b) Standard Furukawa -----

c)Amaron ----- d)Prestolite -----

e)Amco ----- f)Panasonic -----

6. Do you suggest any brand to other car owners?

a) Yes b) No

7. Which brand do you suggest to them?

a)Exide b) Standard Furukawa

c)Amaron ----- d)Prestolite -----

e)Amco ----- f)Panasonic -----

8. Your Opinion of Exide batteries?

i)Performance:- Page | 64


a) Satisfied b)Unsatisfied

ii)Price:-

a)High b)Low

c)Competitive

iii) After sales service:-

a) Good b) Average

c) Poor

iv)Package:-

a)Attractive b)Normal

c) Unattractive

v) Promotional Activities:-

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a)Good b)Average

c) Poor

9. Do you think advertising plays an important role in drawing attention of the

customers?

a) Yes b) No

i) Which media will draw more attention of customers :

a)Electronic Media:

i)TV ii)Radio

b)Print Media:

i) Newspapers ii)Magazines

c) Shop display’s:

i) Display board ii) Shop painting

iii) Hoardings

10. Have you got any complaint after purchasing the batteries?

a) Yes b) No Page | 66


If Yes

i)Furnish some of the complaints you have faced

a)____________________________________

b)____________________________________

c)____________________________________

11. Please furnish the following:

a)Strengths of Exide : ________________________________________

b)Weaknesses of Exide : ______________________________________

12. Any suggestions which help in boosting the sales of Exide batteries?

__________________________________________________________

__________________________________________________________

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A Project Report on Exide Batteries

Documents

exide industries limited

exide area

special reference

major influence

specific factors

amol ritesh toppo xisspage

research report

xiss page