NGK Spark Plugs, the world’s leading Japanese Spark plug manufacturer, entered India in August 2006 and set-up a wholly-owned subsidiary named NGK Spark Plugs India Pvt. Ltd. (NGK-India). With its registered office in Gurgaon, the company started off with an aim to market world-class spark plugs and other ignition products for OEMs, vehicle manufacturers and aftermarket customers.
Following its market entry, the then Managing Director of NGK-India, Mr. Nobuyuki Tokioka, realized that the Indian market is quite different from other markets and understood the need for a strong local team with a visionary leader in order to build a successful brand. Since then, Mr. Sudipto Sanyal, Senior General Manager, Marketing & Sales, has taken up the task of building the company from ground, up and establishing the NGK brand and its products in the country.
Around 2006, the spark plug market in India was quite fragmented with established global players on one side and counterfeit brands and low-priced Chinese plugs available in plenty in the market. In order to project NGK as a specialized spark plug manufacturer, Mr. Sanyal and his marketing team projected the brand as ‘The Spark Plug Expert’ which captured the attention of the company’s target audience.
Differentiated approach
India is a vast country and a key success factor for a start-up firm is to reach all corners of India, to the door steps of customers. In order to create a strong presence in the Indian market it is important to create a strong network of distributors. Knowing this and also aware of the fact that generally there is low interest level on spark plug as a product, the company decided to create a value proposition for the distributor which includes a strong sales policy, attractive margins, uniform pricing policy and overall discipline in the way the product is distributed down the line.
This type of channel sales approach was very new to the aftermarket and gradually many started signing up with NGK, resulting in more than 100 distributors all over India. NGK India started its aftermarket business for two wheelers in 2007 and for four wheelers in 2008. It started exports to neighboring countries like Nepal from 2008. The company commissioned its manufacturing plant at Bawal, Haryana, in 2008 to serve the Indian OEMs and its aftermarket customers. Today NGK India is well known for its strong sales policies, disciplined network and innovative way of creating and managing over 100 distributors, 300 sub-distributors, reaching around 8,000 retailers across the country.
Says Mr. Sanyal: “No one in the replacement market ever imagined that we could break the age-old traditional way of selling spark plugs and become successful with a new approach. Our determination, constant focus and our distributors’ belief on our product have been instrumental in our success over the years.”
Versatile product range
NGK India entered the market in 2006 with a wide range of spark plugs from its global product range. Apart from the normal conventional nickel spark plugs, the firm also launched its high performance G-Power and Iridium range of spark plugs which are best for car and bike users around the world.
He explains: “We wanted Indian customers to experience new generation, high performance products and so brought in our Good-Better-Best product strategy which was quite unique for the Indian market. Our customers had the option of choosing from three types of spark plugs with the Nickel type of plugs being ‘Good’, Platinum (also called G-Power) being ‘Better’ and the world’s best type Iridium tagged as ‘Best’. We are proud of our Iridium range as it is used by many racing cars and bikes globally”.
NGK also launched its new series of products called Hi-Ignitability spark plugs for next generation engines developed by various OEMs. Its products K-Plug for Maruti K-series engines, MR-type plug for Honda Activa HET scooters and Iridium plugs for Honda cars are well appreciated and have created a technological revolution in the domestic market.
Aggressive growth plans
From a zero base in 2006 until today, over the last 10 years, NGK India has evolved into an over-Rs. 200 crore company, having a wide network of distributors and retailers covering all the major regions in India and also supplying to major OEMs in the country. Today the company has over 200 employees in its Indian operations and has managed to garner around 20 to 22 per cent share in the aftermarket segment.
NGK India has an aggressive target of capturing an aftermarket share of over 40 per cent by 2020 and in line with its goal, the company is ramping up its distribution base and is looking to introduce more OEM- and technology-driven products in the market. NGK has created a new CRM software through which its sales team is connected to the Head Office for real time communication to be able to deliver better service support to customers. NGK has also launched various digital marketing initiatives to enhance its brand image among the new generation bike and car owners.
With environmental norms becoming more stringent and BS VI regulation likely to be implemented by 2020, coupled with the introduction of GST, there seems to be a huge opportunity for companies like NGK which have intrinsic technological strength and strong sales policies to go for rapid business growth in India.
The NGK advantage
* Japanese technology – perceived to be the best quality in eyes of Indian customers
* World leader status – internal estimates reflect a global market share of over 40% for NGK in spark plugs
* OEM fitment status – major OEMs globally and in India use NGK Spark plugs
* Excellent functionality – each product has unique quality of its own