MARKET STRATEGY

Energizer Motors Inc. is committed to delivering value to customers. The uniqueness of

the value to the customers is differentiated with the extent of Trust that is built up right
from the beginning and continues for the forthcoming decades as a treasure to both the
organization and the customers.
Segmentation, Targeting and Market Positioning of Energizer Motors Inc.
Segmentation:
Usually, families seeking a car in Europe look for carrying capacity, fuel economy,
safety features and accessibility. Young singles look for a car that is affordable, stylish,
maneuverable and low in service costs.
Energizer motors inc. has strategically captured various market segments in order to
cover the diversified European car market right from its inception, starting with city
model and coming up with different variants.
Targeting:
Energizer motors inc. has targeted variety of customers ranging from 18 to 55 years of
age with a whole lot of ranges incorporating city model, (Extrum) , a medium sized
sedan, (Astron VT), Large car (Sports utility vehicle), Xcore and premium segment car
incorporating all the luxury add ons XPremium and Xtasy.
In the European market, Russia offers the biggest growth potential for the luxury-car
segment worldwide. Russia is poised to surpass Germany as Europes largest auto
market by 2014, with sales rising to 3.4 million vehicles, according to the Russian
Industry Ministry as more buyers choose upscale cars.
Positioning:
After establishing its position as a key car producer in European car market in City and
Medium car segment, Energizer motors Inc. has further positioned itself as a brand
synonymous with style, comfort and high-tech, foraying into large car segment. It has
further entered into the niche market of Premium luxury car since 2010 and increased
the market share from 1.2 to 4.5% in the forthcoming years.
Energizer Motors Inc.

With the rising costs of fuel, Energizer Motors has opted for the differentiated market
strategy that enables it a positive edge over its competitors, thereby developing the
most efficient fuel engines that attract the customers in the city and medium sized cars.
Growth philosophy at Energizer Motors Inc.

Putting the Customer First, to Make Better Cars:

EM Inc believes an attractive and appealing car is a car that is a joy to own, drive, and
share good times in. It is exciting and fun for everyone on board.
For Energizer Motors to establish this solid foundation, it is important not only to
strengthen technological development and productivity, but also to focus intently on the
customer first. It has determined for making better cars through product-oriented
management strengthened by market-oriented management.
Customer feedback is the key driver in all stages of EMs value chain.
It is our emphasis on the customer First that will make it possible for us to create even
more attractive and appealing cars.
Energizer Motors Inc.

KEY COMPETITIVE SCENARIO

The European Car market is very aggressive both in terms of quality deliverance and
cost competitiveness.
Energizer Motors Inc., with its customer focused strategy has been able to continuously
increase its market share in European car markets; however, it has been facing tough
competition from its gigantic competitors X, Y and Z. The overall market share of
Company X, Y and Z is 20%, 11% and 4.5%, whereas EMs share is 5.5%.
In order to increase the market share, Energizer Motors has heavily invested in the
Research and Development primarily focusing on

Lighter vehicle resulting in increased fuel efficiency.

Lower emissions to control the Carbon emission
Safer and comfortable driving
Hi-tech Systems
Improved body build of the car
Stylish car with value for money.
Improved customer service after sales

For the last 6 years, the market share of Energizer Motors has been increasing YoY
showing the trust of the customers and willingness to own Energizers Motors products.
The rising costs of the basic raw materials and increased pressure of the suppliers for
larger volumes favors the competitors due to their higher volumes, thereby pushing
Energizers Motors under pricing pressure.
Energizer Motors inc. has come up with the pool of local suppliers in order to ensure
quality supplies at highly competitive prices and continue its operations with improved
performance and delivery. Also, with the differentiation strategy, Energizers Motors has
further gained positive edge against its competitors by improved

Employee wages (620 Pounds/week against Average 550 pounds/week)

This has increased the employee retention thereby improving the employee value
proposition (EVP) and hence the productivity. Also, the probability of strike is negated
which further improves the overall performance of the Plants.
Energizer Motors Inc.

Training and development:

The employees have been sufficiently trained for the use of improved automation and
incorporating new technologies and developments with a view to produce highly
reliable cars, thereby reducing warranty and other claims.

Additional production- New factory with experienced manpower

With a view to create higher demand of the medium sized and premium cars, Energizer
Motors Inc. has planned to open new factory with the existing experienced manpower
and blend of the new recruits. This will provide opportunities to the existing employees
to grow in the organization and will help in creating new jobs.

PRODUCT PROMOTION STRATEGY

Energizer Motors Inc.

Online and Social Media

Social Media and Online marketing is where the future lays for many large companies.
Often seen as the best way to track and assess return-on-investment, online
campaigns have grown year-over-year and have become the center of marketing
budgets.
Over a third of EMs impressions served over the past year were rich media display
placements. EMs online TV website moved its content under a new YouTube channel
as well, branded as EM TV. Most of the videos ran under EM TV have also been
featured on other channels as well, and they range from driving and racing footage, to
product presentations and even EM enthusiasts segments. Our facebook fan page
crossed 2.5 million likes last year.
Mobile
Ever since the iPhone/iPad has set a new standard in mobile and Smartphone devices,
the mobile market has grown to impressive levels year-after-year. Mobile applications
have become the driving factor behind phone sales and with hundreds of thousands of
applications developed specifically for the iPhone and android, a new can of worms has
opened: mobile advertising.
Seen as a direct connection to the customer, EM have developed specific applications
for Apple products and recently, Android platform. These applications vary from video
content, news, brand experiences and online magazines. The Expression of
Enthusiasm app was one of the first EM apps to make it onto the iPhone platform and
featured a 360 degree view of the New Xtasy performing a painting exercise in motion.
EM is also developing an online racing game for android phones.
Magazine
Print magazines, while not as important as ten years ago, remain popular in marketing
campaign. To promote the cars EM launched a series of spreads in January issues of
Conde Nast titles such as Bon Apptit, GQ, Vanity Fair, W and Wired.EMs print focus
has been centered around its Sport scar Experience Driving School.

Sponsorships
Energizer Motors Inc.

EURO Cup 2016

UEFA Champions League
Youth Campaigns in European Colleges and universities

MARKET SEGMENTATION

Energizer Motors Inc.

Currently, EM is operating with a strong presence in all the segments i.e. CITY,
MEDIUM, LARGE & LUXURY. Company is having a reasonable market share in these
segments.
The Company is planning to expand by increasing its production volume in all
segments. Along with this the company is coming with another model in luxury segment
with SUV concept. The decision of coming up with a new model in the Luxury segment
is backed by the over whelming response and market acceptance of the earlier Luxury
car as well as overall market trend towards SUV.
The higher growth expectation in luxury segment along with higher profitability in this
segment is also backing the decision of the company to launch a new car in this
segment. The Company was able to sell its entire production in this segment. EMs
product quality in this segment is well established and has created significant demand
for EM products in the market.
Market share at the end of sixth year:Segment

City

Market share 1.22

Medium

Large

Luxury

1.83

1.35

1.68

Expected Market Share: Projections for five years:Market Segment

Year 01

Year 02

Year 03

Year 04

Year 05

City

1.67%

1.93%

2.18%

2.33%

2.68%

Medium

1.92%

2.12%

2.17%

2.25%

2.55%

Large

1.58%

1.93%

2.27%

2.63%

3.30%

Luxury

1.77%

2.39%

2.62%

3.15%

4.42%

STRATEGY
BUSINESS STRATEGY

Energizer Motors Inc.

We continue to focus on Medium & Luxury car segment, while offering products in most
segments of the European passenger car market. We aim to achieve our principal
objectives by pursuing the following business strategies:
Growth and enhance product range:
We intend to utilize EMs expertise in small car technology to produce new variants of
our existing models and to upgrade our products with contemporary technology and
features.
Increase reach and penetration:
We plan to continue to utilize our extensive sales and service network to increase the
reach, in terms of geographical spread by penetrating into new markets and increase
sales volume of our products across the European Market.
Making arrangements for financing options:
We continue to seek opportunities to expand the size of the European car market by
providing third party financing options. In this regard, we have recently entered into an
agreement with Komercijalna Bank.
Continue to offer superior products at competitive product value:
Cost competitiveness will be our central strategy to expand the size of the market by
offering competitively priced and high quality products.
The components of this strategy are:

Higher levels of localization

Vendor participation in cost optimization
Establishing new safety and product reliability standards
Achieve further cost reduction through higher productivity
Continuous improvement in product quality
Customized options in luxury segments

Lower cost of ownership:

Through our business strategies, we seek to reduce the consumers cost of ownership
of our cars, which comprises of the cost of purchase, higher fuel efficiency and low
maintenance cost (special 3 year warranty period) including spare parts and repairs,
during the life of the vehicle, insurance and resale value.
Energizer Motors Inc.

Green Initiatives

To strengthen our competitiveness in the European car industry, a recycling and

reutilization project has been undertaken to ensure the channeling of large portion
of production waste back into the process cycle

Define vehicle pollutant emissions, based on a thorough analysis, with the aim
of delivering a timely reduction of CO 2 emissions below 75g/km by 2015 as per
European norms, hence, contributing to improved air quality.

Invest in developing fuel efficient and alternative/renewable fuel based car

technologies like hybrid and solar power cars.

Research and Development (tapping the untapped potential)

EM has an aim to excel in making high performance cars in terms of fuel efficiency,
greener fuels, lighter materials, style, safety and comfort.
With this aim in mind we have successfully completed the following R&D projects:
Completed Projects
Advanced Diesel Engine
Fuel Efficient Engine
Breath analyzer interlock
Low Emissions
30% Lighter Car
Accident prevention system
Energy recovery system
Zero emission engine
Anti-theft tracking
Smart noise insulation
Frost free windows
Improved build quality
Alternative bio fuels
Better electric car battery
Hybrid Engine Technology

City
Online
Online

Medium

Large

Luxury

Online
Online

Online
th

8 year

Online
9th year

Online
8th year

Online

Online

8th year

Online
8th year

Online

Online

9th year
7th year

9th year

Online
8th year
Online
Online

We have successfully incorporated the newly developed technologies through the

above R&D projects in our existing product line, delivering high end cars in each
segment to increase customer satisfaction. We have plans to increase our R&D

Energizer Motors Inc.

spending by further investing extensively in the following projects, the cost and areas
are shown in the following table
Projects
Aerodynamic remodeling
Fuel saver start stop system
Frost free windows
Carbon Fiber bodywork
Green painting process
Light weight Ceramic bakes
On board internet

City

Medium

5.38

5.38

Large

Luxury
4.46

3.24
11.01
6.36
1.83

1.83

5.08
1.83

Risk Factor
It is expected that uncertainty to be a cause of concern for European economy. There is
a probability of decrease in the growth of car market in some of the European
countries, which may impact the inventories of finished goods of our company and
could also influence demand for cars and profitability.
However, in order to insulate our market share, we are penetrating our products into
new and growth oriented markets by providing superior and fuel efficient range.

Warranty Plan
All new EM Vehicles are covered by a 3-year/120,000km warranty against
manufacturing defects, bad workmanship, metallurgical defects and malfunctioning of
systems and spares. In addition, most of our models are covered by a 12-year anticorrosion warranty. This warranty will hold good provided the vehicle is serviced as per

Energizer Motors Inc.

our servicing manual and genuine EM spares are used. This warranty comes along
with each EM vehicle at no additional cost to customer.

Service Plan
EM AutoMotion
Peace of mind you can rely on:
At Energizer Motors, we believe that when you purchase a vehicle, you are not simply
buying a car. Every Energizer Vehicle is manufactured with particular attention to detail,
uncompromising care and an integrity you can trust.
With a choice of AutoMotion Service Plan and AutoMotion Maintenance Plan, you
can rely on the fact that after driving off in your new car; it will be taken care of for years
to come. That's peace of mind.
AutoMotion Service Plan
A 5-year/90,000 km AutoMotion Service Plan is available at a pre negotiated highly
competitive price on all EM vehicles. The EM AutoMotion Service Plan does more than
cover scheduled vehicle servicing - it helps you to maintain a competitive resale value.
Further this plan is extendable up to 180,000km, at an additional cost.
AutoMotion Maintenance Plan
A 5-year/60,000 km AutoMotion Maintenance Plan is available at a pre negotiated
highly competitive price on all EM vehicles. The Maintenance Plan not only covers
servicing costs, but also wear and tear items such as wiper blades or brake discs that
are not usually covered by service plans.
What's more, the AutoMotion Maintenance Plan also covers mechanical and electrical
breakdowns should they occur within the duration of the plan, with an assurance that
only genuine EM parts are fitted during the lifetime of the plan.
Maintain your cars resale value

Energizer Motors Inc.

Every EM vehicle owner can be sure that the vehicle, whilst covered by the EM
AutoMotion Service Plan or AutoMotion Maintenance Plan, will be maintained by
qualified technical staff within the EM Dealers network. The customer will have a
complete service history from our Dealer, which helps him to maintain its resale value.

SWOT Analysis: EM Inc.

STRENGTHS

Energizer Motors Inc.

WEAKNESS

 Investors friendly has distributed

dividend on a sustained basis despite
market turbulence

Comparatively Low market Share.

Small presence in Luxury segment

Market value increased over six fold in

six years
Strong market presence in all segments
Very high production to sales ratio Production to Sales ratio more than 80%
last six years and in 3 years out of 6, it is
more than 100%
Product offer maximum features in each
category premium feel to the buyer
irrespective of segment
Focus on R&D 18 projects under
development, another 18 online
Sustained drive towards green cars
Expertise
engines

in

energy

efficient

diesel

Strong financials
High skill level, well paid and highly
motivated workforce very low levels of
strikes / absenteeism

OPPORTUNITIES

Emerging markets - nations coming out

of socio economic crises
High success ratio of past R&D projects
provides larger platform for undertaking
Energizer Motors Inc.

THREATS

General slow growth projected for

European markets in segments other
than Luxury
Pace

of

growth

of

commercial

R&D
projects
relating
technologies/developments.

to

new

Increasing tightness in environmental

regulations for emissions being the
leading investing company in Green
technologies, will put EM far ahead of
competitors.
With the market growth, demand for
skilled manpower will be high and
availability low having motivated and
skilled workforce will lead to low attrition
and enable utilization of own skilled
workforce to train new workforce
Higher liquidity and cash reserves

ready for expansion/ acquisition

companies to gain market share

ASSUMPTIONS
1) Inflation:Year 01:Year 02:Year 03:Year 04:Energizer Motors Inc.

2%
1.9%
1.8%
1.9%

of

market for new technologies like

hybrid, electric cars may not be
commensurate with the investments
company has made for these
developments
Macro economic uncertainties in the
European region may impact overall
growth of the European car market.

Year 05:- 2%
2) Automobile market growth (Segment wise):Market Segment

Year 01

Year 02

Year 03

Year 04

Year 05

City

8%

2%

-3%

4%

9%

Medium

5%

1%

-3%

2%

5%

Large

5%

2%

-2%

1%

5%

Luxury

13%

11%

2%

9%

11%

3) Credit terms:Credit on Material & Supplies: - 30 Days

Credit to Customers and Dealers: - 30 Days
4) Stock Upkeep Cost:Upkeep Cost is 15% of the Prime Cost of Production (based on past experience).
5) Material cost:Material cost is calculated as Cost of Raw material, cost of Options and Design
adjusted for inflation in respective years.

6) Labour cost:As a trend shown from the past experiences of Our Company, labour productivity
can be maintained as follow, by providing an increase in weekly wages and putting
more efforts and expenditure on Training the labour force.

Weekly wages

Energizer Motors Inc.

Year 01

Year 02

Year 03

Year 04

Year 05

680

700

720

740

760

Labour Productivity:City: - 80 Cars per Worker annually

Medium: - 58.33 Cars per worker annually
Large: - 50 Cars per Worker Annually
Luxury: - 10.59 Cars per Worker Annually
Strike Days:- 2 days annually
7) Fixed Overheads:The Fixed overheads are taken as follows (based on past experience)
10% of Wages Bill + 5% of Op. Value of FA + 7.5% of Raw material cost
8) Dividend policy:As evident from our legacy, we have always kept on increasing dividend payout to
our investors, and the company has proposed to maintain the same trend to provide
dividend to investors in an increasing trend in line with profits of the company.

Dividend Payout
(% of PAT)

Energizer Motors Inc.

Year 01
3%

Year 02
4%

Year 03
4%

Year 04
5%

Year 05
5%