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Sravanthi Challapalli

Chennai , May 13

BLAUPUNKT, world major in car entertainment systems, plans to set up around 20 exclusive brand shops this year.

Speaking to Business Line here, Mr Ajay Sahney, Divisional Manager (Sales Mobile Communications), Blaupunkt, said various marketing initiatives the company had taken over the last few years had revealed that the time was ripe for the brand to be more visible in the market.

The company made a beginning with its brand shops by setting up one in Ernakulam last year and another in Mumbai this March. These shops are designed to be one-stop shops for a customer's `in-car' entertainment needs. This includes sales and service, display of the entire range of products on offer, demonstrations and installation.

The brand shops are being launched through a network of Blaupunkt distributors. The company is also extending the retail strategy through a `premium dealer' concept at multi-brand outlets.

The company, which is part of the Bosch group, has a 21 per cent value share of the organised in-car entertainment market in India. Mr Sahni said that a Frost & Sullivan survey had put the company in second place three years ago and that the status continues. Kenwood was rated number one. Other competitors in the organised market are Alpine and Sony. The total market is estimated at Rs 600 crore, of which the organised market accounts for 40 per cent.

Blaupunkt's products are sold at a 15 per cent premium to Kenwood and Sony. The products offer higher value, as in the wiring harness that does away with the need to cut wires (which affects the listening experience) during installation, Mr Sahni said. Blaupunkt sells products ranging from Rs 7,000 to Rs 40,000 and has a high-end DVD product priced at Rs 1.25 lakh.

World over, 80-85 per cent of the business for Blaupunkt comes from the original equipment (OE) sector but in India, after-market sales contribute the bulk. The company is the OE supplier to Tata Safari and General Motors brands and a genuine accessory supplier to Hyundai, Ford, Tata Indica and Tata Indigo.

Blaunpunkt's turnover in India is Rs 50 crore, with over Rs 35 crore coming from after-market sales, Mr Sahni said. The over-75-year-old company sells the entire range of car audio systems in India, accessories and video equipment for both cars and buses. It also makes navigation systems but doesn't sell them in the Indian market.

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