Strategic Management for Klevenberg

STRATEGY AND STRATEGIC POSITIONING OF KLEVENBERG

Module Name: Strategic Management Lecturers Name: Shuaib Masters Student ID No: 0043 PMPM 0611

Student Name: U.D.W.C.Abeyratne

Strategic Management For Klevenberg

Executive Summary

This report discusses on a company named Klevenberg which operates in the Automotive Battery industry marketing the Premier UK brand Lucas. The company is owned by Browns which is large diversified company .Browns currently owns the Exide brand which is a mass market Brand having a 50% market share in the automotive battery Industry. Lucas is marketed as a premier brand targeting high income earners and currently holds a 16 % market share. With the relaxation of tax policies on vehicle imports by government during last 2 years the number of vehicles imported has increased significantly making the automotive battery an attractive industry. However the recent budget proposals and Economic conditions prevailing in the country are expected to have a negative impact on the growth rates of the vehicle imports during the next 2 years.The Automotive Battery industry is a highly competitive industry with higher bargain power from Customers and with increase threat of new Entrants due to low entry barriers. Key strength of Klevenberg is the backing from Browns which is a well-known name across the island with a strong financial stability. Currently Lucas is experiencing drop of GP margins and sales despite heavy advertising expenses. Main reason for this is the lack of proper customer segmentation and marketing orientation. Also there is a considerable gap between the corporate strategy of Lucas which is to market it as premium brand with premium pricing, and the Operation level tactics where they sell it with more discounts at the expense of eroded GP margins. Hence drilling down of the corporate strategy to the bottom line is essential. Further area to address is the increased defects rate by enforcing stringent quality criteria‘s on...