EVEREADY BATTERIES

Agenda Introduction

○ Battery as a low involvement product○ Company background○ SWOT○ Industry view

Brand Eveready○ Past campaigns○ Current campaign○ Other initiatives○ Brand performance

Relationship marketing to help build the brand○ Customer ○ Channel○ Partners○ Company

Low Involvement

Low stakes and low perceived risk

Involves fewer decisions & less deliberation

‘Mental shortcuts’ – do not invest time in decision making

Develop routines for avoiding risks

Prefer national brand names

Low level of engagement

Active processing to a marketing stimulus

Cycle of decision making process is faster

About the Company Eveready Industries India Limited - portfolio comprising dry cell

batteries, flashlights (torches) and packet tea. Recently forayed

into the mosquito repellant industry under brand name,

‘Poweron’.

India’s largest selling brand of dry cell batteries & flashlights

(torches), dominant market shares of about 46% and 85% resp.

Eveready is world’s third largest producer of carbon zinc

batteries, selling more than a billion units a year. Carbon zinc

batteries dominate Indian market with complete range for all

equipment types.

The Eveready brand is synonymous with power

Eveready is celebrating its centenary year in India in 2005

Strengths

•Heritage brand – 104 years old•Extensive distribution network•Value for money product range•Pioneer and dominant organized player in rechargeable batteries in India•The only battery testing laboratory accredited by National Accreditation Board for Testing & Calibration Laboratories•Dominant market share in every segment. E.g. Dry cell, Carbon Zinc batteries etc•The Research Centre has Pilot Plant facilities, Analytical testing facilities such as Atomic Absorption Spectrophotometer (AAS) etc.•AC Nielsen study - enjoys a mindshare of 62.4% in the pencil battery segment and a 73.4% share among D-size battery users primarily in rural areas

Weakness

•Technology is still being imported from foreign countries•Increase in operating costs leading to retail price increase•No significant increase in market share as the overall market pie has shrunk•Low scope for emotional connect

Opportunities

•Introduction of newer lifestyle gadgets•Increase in disposable income•Increased spends on discretionary items•Increased demands from rural markets•New distribution channels

Threats

•Disruptive innovations like iPod and Mp3 players that do not need conventional batteries•Unorganized market•Spurious brands•Dumping by manufacturers from Bangladesh, China, Japan, and South Korea

Brand

EVEREADY

Differentiated brand positioning

Stands for the assurance of power to rural consumers

Promises empowerment to young consumers in urban

India

Rural Urban

Urban campaign

Launched around mid 2006Launched in Early 90s

Give me red campaign

TG – 15-25

Changed the way batteries are perceived in India

The ad highlighted the color "Red“. Next 16 years " red"

was the central point in the brand campaign

" Give me red" positioned the brand as an energetic and

sturdy brand

Popularity of walkmans and portable music players created

a new market

Kuch hai extra - campaign

In 2006, the brand faced a new challenge

Increased competition

Imminent need to communicate the value-added brand experience in a direct and focused manner. Thus, 'Kuch Hai Extra' was born

The new campaign aims to look at more features rather than image

Amitabh Bachan as a brand ambassador reflecting timelessness and reliability

Campaign designed to dramatize the dynamic power of Eveready batteries, using the technique of comic exaggeration

Spend more on advertising - Bulk TVCs

Significant revamp in point-of-sale promotions

Leverage Amitabh Bachchan’s promotions on its 1,000-odd vans that hawk everything from torches to batteries in the hinterland for supply chain

Wipro will work closely with Eveready’s IT wing to devise new enterprise resource planning (ERP) packages and other cost-reduction means by overhauling the supply chain management

Organised sales conference attended by over 480 key Eveready personnel, aimed at "charging" the team for a better performance

A Basic Training Program (BTP) launched for deployment & implementation of TQM practices

Other initiatives

Brand performance The Economic Times’ Brand Equity survey of Brands by Sales, April

2004, put Eveready at no. 22 across brands in all categories

Scores in the CII survey done by the independent brand consultancy Vertebrands, show Eveready scoring a near-perfect 99% total awareness among Target Consumers

As per Vertebrands’ survey, on a 10-point scale, Eveready scored 8 on popularity and 7.7 on contemporariness. Of all consumers surveyed, 41% called it “The Only Brand for Me”

In the study done by Market Research Agency, Mode, Eveready enjoys an impressive 73.4 per cent mind share among the large (D size) battery users. In the pencil (AA) segment, the corresponding mind share is 62.4 per cent

These scores translate into market shares of 85% in torches and 47% in batteries

Recharging

RELATIONSHIPS

Holistic Marketing Dimensions

Customers Channels

Mkgt Dept.

Sr.mgtOther dept.

Communications

Products & Services

Channels

Ethics

Environment

Legal

Community

Company Partners

Scenario building -1Mrs Jigyasa is a 29 year housewife residing in Ahmedabad. Her husband works is a

lecturer at LD college, Ahmedabad. They don’t have any children as of now. Her daily routine follows the following pattern:- 6:30 am – Alarm clock rings wakes up. 6:30 am to 7:30 am - Get tea ready, wake up husband, prepare breakfast and lunch

(packed for husband) 7:30 am to 8 am – read newspaper 8 am to 8:30 – have breakfast with husband 8.30 am to 9:00 – Clean kitchen while listening to Mp3 9 am to 10 - clean up house 10 am to 12 noon – read novel. 12 noon to 1 pm - Relax, talk to neighbours. 1.30 pm – prepare lunch 2 pm to 2.30 – watch tv and have lunch 3 pm to 4.30 pm – sleep 4:30 pm to 6 pm – Gym 6.30 pm to 7 pm: Mr. returns home 7 pm to 8: 30 pm – Spends time with husband; prepares dinner; watch TV 8.30pm to 9 – dinner and watch tv till 10:30 10.30 to 11pm – go for a walk 11 – sleep

Mrs VS Shah is a 34 year housewife residing in Bopal, Ahmedabad. Her husband works in a chemical factory. She has two children – both girls - studying in class three and LKG. Her daily routine follows the following pattern:-•5:30 am – Alarm clock wakes her up.•6 am to 7 am - Get tea ready, wake up husband, prepare breakfast and lunch (packed for husband)•7 am to 8 am – Wake up kids, bathe them, feed them and get them ready for school•8 am - Take older daughter to board school bus•8.30 am – See off husband. •9 am – Take younger daughter (carrying small toy) to nearby kindergarten school •10 am to 12 noon – Wash clothes and tend to household chores, bath and dry hair using hair dryer.•12 noon to 1 pm - Relax, chat on cordless phone.•1.30 pm – Pick up younger daughter from kindergarten school•2 pm to 2.30 pm spend time with the younger daughter•2.30 pm to 3.30 pm – watch TV(remote)•3.45 pm – Go along with younger daughter to receive older daughter at school bus drop off point•4 pm to 5 pm – Kida watch TV, Mrs Shah prepares snacks for them•5 pm to 6 pm – Kids play in neighbourhood; Mrs Shah collects dried clothes and tends to other household work•6.30 pm to 7 pm: Supervise older daughter’s home work•7 pm – Mr. Shah returns home from work and heads for shaving using personal electric shaver •7 pm to 8pm – Spends time with husband; prepares dinner; kids watch TV•8 pm – Kida dinner time•8.30pm – Puts kids to sleep•9 pm – has dinner with husband and watches TV till 10.30 pm•10.30 pm – Off to sleep

Scenario building -2

Scope for Consumption

Consumers

Keeping the excitement aliveContests: Amateur photographer contests Complete the sentence (If Eveready was a person then….) Scratch card contest B-School case-study competitionsEvents: Organise Cross- Country Marathon Region-specific activation plans Boat race in Kerala Urban- Sponsorship Gaming SNS Applications: FB- Battery down Are you charged up Websites

Company website

Brand website

Engaging Users Online

Channel

Partners

Challenge : Battery as a component is not visible to consumers who buy gadgets

Convince all organized retail players that their products would have higher perceived value if they distribute Eveready with their product

Co branding: A mechanism by which different companies come together to form alliances to leverage combined bargaining power

○ LG electronics and Eveready batteries○ Tie-up with Toy company Fisher-price○ Tie-up with modern retail formats

Ingredient branding

• From a competitive standpoint, a battery is a typical commodity. No

performance difference

• To give products (Digicam, MP3) manufacturers and their retail

customers more reason to identify Eveready in their marketing

• Eveready to convince manufacturers that their products would have

higher perceived value if they feature Eveready in their own

marketing

• Eveready to start a “Eveready Recharger” campaign to educate

both the retail sales associates and the consumers about the value

of Eveready and to explain the differences between the batteries

Internal

○ Knowledge sharing and updated information on company

and brand

○ Motivation & Sales training programmes

○ Customer centricity programmes

○ Employee performance measures

○ Project Responsible company with a social vision

EVEREADY BATTERIES