Targets 50 per cent marketshare by 2020
NGK Spark Plugs India Pvt. Ltd. (NGK-India), the wholly-owned subsidiary of the Japanese firm NGK Spark Plug Co. Ltd., a global leader in spark plugs, has embarked on a massive aftermarket campaign called ‘Salaam Ustaad’ for training and educating mechanics. NGK, which offers spark plugs and other ignition products for OEMs, vehicle manufacturers and aftermarket customers, has kicked off the campaign with the aim of sharing its know-how with the mechanics and is bullish about continuing its strong run in the aftermarket space that has seen it emerge one of the most preferred spark plus brands within its first decade of operation.
MOTORINDIA was invited to Kanpur to be part of the Salaam Ustaad campaign launch in the city. On the occasion, we spoke to Mr. Sudipto Sanyal, VP – Sales & Marketing, to find out more about the campaign and get updates on NGK’s business and future plans.
Excerpts:
Good to know that you are starting a big campaign for the UP market. Could you explain to us the Salaam Ustaad concept?
We have a huge vehicle population in India, and two major aspects while driving on the road are safety and environmental concerns which are both related to best maintenance practices. With BS-VI emission norms coming up, more advanced technology and newer engines would also come up. The knowledge and technology know-how of OEMs is very high, but we find a gap between them and the aftermarket where the mechanics are still not accustomed to the new technology and the new norms coming in.
This is why we thought we would start a campaign called ‘Salaam Ustaad’. We at NGK are spark plug experts, so we are the ustaad in spark plugs. The mechanics are ustaads in their own fields of servicing and maintenance, so we thought we would reach out to these mechanics in various markets. We would like to train them on the new generation engines which are coming in, best maintenance practices, how to use good quality products, how it extends the engine life and thereby reduces environmental pollution.
Last month, we conducted a campaign in Rajasthan and it received overwhelming response from the mechanics. Now our focus is on Uttar Pradesh. We are starting the 30-day campaign from Kanpur and will go up to Varanasi, targeting coverage of 1,500-2,000 mechanics during the period. After UP we plan to target Andhra Pradesh and Telangana, where the vehicle population is very high.
NGK has formed a cross-functional team with marketing, technical and aftermarket technical service persons for the campaign. We have also hired some mechanics and have given them special training because they understand their fellow beings’ voice very well. This team would approach the mechanics and would train them on the above-mentioned aspects using videos, audio visuals, spark plug testers, etc.
Would the training be specific to spark plugs or generic so as to cover other the aspects as well?
The training would be generic, but since we are experts in spark plugs it would focus on our products as well. Spark plugs form the heart of the engine, control emission, combustion, etc. Without a spark plug an engine cannot perform, so mechanics should not compromise on the safety and environment aspects. These are some of the objectives of the Salaam Ustaad campaign.
Why do you think such campaigns are necessary?
NGK India has been in the market for 10 years and are an important player today. We feel we have a responsibility to give back and support our partners and end-users, which is why we want to educate people through these campaigns. It is also a brand development platform for NGK.
NGK has been very aggressive in the aftermarket sector. How big is your aftermarket business and what are your plans for the future?
Our product is very strong in the aftermarket across the globe. This year we have expanded pan-India. We have close to 160 distributors and around 500 stockists, reaching out to nearly 15,000 retail outlets which, in turn, reach over 35,000 mechanics and garages across the country. The year has been very exciting for us and we are growing 25 per cent year-on-year.
With GST coming in, India would become one whole market and this would have a positive impact on the aftermarket in the long term. We plan to introduce more new products – those that have already been well established globally – in the Indian aftermarket.
Digitalization is the next big thing in the aftermarket, with new apps and related technology coming up. What are your views and how are you gearing up for these changes?
Our sales team is connected digitally. We have a CRM software, and all team members have been given a tab and are monitored on a real-time basis. We are also building an app that would be available on Google Playstore and also for Android platform. The app is in the development stage and would be ready in three to four months’ time. With the app, people can know about the product, the compatibility of the engine and spark plug change interval, identifying if the spark plug is good or bad, etc. They can also find out the location of our nearest dealer, distributor or retailer and get our original product.
What NGK India is aiming to achieve by 2020?
We are having very aggressive targets for 2020. One of our strategies would be to train mechanics and retailers on spark plug usage, because with new products coming in, additional know-how needs to be imparted to people. Secondly, after GST reaches every nook and corner of the country, the customer should get the product near his place. By 2020, we aim to be a dominant player in the market with the best technology and service. We have a market share of nearly 25 per cent at present; in two-wheelers we have around 18 to 20 per cent share and in four-wheelers 30 to 35 per cent. By 2020, we want to reach a share of 45-50 per cent on an average.