BOSCH B2B Marketing - Nested approach

Group-4Akhil K Venugopal

Dheeraj EDLavanya ABIndulekha

Sidharth MadhavYadhav MP

Amrita School of Business- KochiB2B Marketing

• 300 subsidiaries

• Regional companies in over 50 countries

• 3000 patent world wide

• The company was set up in Stuttgart, Germany in 1886 by Robert Bosch

• Largest auto component manufacturer in India

• Group has about 18,000 employees,

• Achieved total revenue of over Rs. 57,000 million.

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Introduction to Bosch Limited

Introduction to Bosch Limited

• Bosch Limited (formerly Motor Industries Company Ltd.) is the flagship of Bosch

• Headquartered in Bangalore. Incorporated in 12th November of the year 1951

• Second largest Indo-German Company in India

• It has 10 manufacturing sites and 7 development and applications center

• Focuses on core competencies in automotive and industrial technologies


• Diesel systems

• Gasoline systems

• Starters and Generators

• Electrical Drives

• Automotive Accessories

• Test Equipment

• Auto Electricals

• Car multimedia

• Power Tools

• Packaging Machines

• Special Purpose machines

• Security Systems


Business division of Bosch Limited


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Product portfolio

• Auto electrical

• Batteries

• Belts

• Breaking system and pads

• Clutch plates and cover assembly

• Diesel system

• Gasoline system

• Filters

• Gear pub

• Horns

• Lighting

• Spark plug

• Lubricants

• Wiper blades

• Relays


Spark plug


About Bosch Spark plug

• Patent for the first spark plug

• Major clients belongs to automobile industry

• 43.7 billion Euros sales

• 80% market share

• A relative monopoly in most of its products

• Sold to OEMs

• Produces 350 million units annually



Road map to segmentation

Decision making unit

• The Marketing department at Bosch is headed by the sales and automotive aftermarket division and sales original equipment(OE).

• Sales and Automotive After Market has the following departments– Marketing and Advertising (SMA)

– Customer Business Development (CBD)

– Sales Planning and Distribution (SPD)

– Sales Export (SXP)

– Corporate Advertising and Publicity (CAP)

– Sales Services (SEE) Sales

– House Administration (SSA)



Decision making unit hierarchy

National Sales Manager Regional

Manager North Regional

Manager East Regional

Manager West Regional

Manager South Area

Area Managers

Territory Executives (Specific area

Objectives)

Geographic segmentation

• It has divided entire country into four geographical locations.

• Northern region, southern region, eastern region and western region.

• Each region has sales offices and Sales houses

• In India 50% of spark plug requirements accounted by diesel segment

• Price sensitive customers

• Government intervention and regulations affects the product specifications


Major applications

Automobile industry

Industry application

BOSCH

Low power engines


Major Customers

Tata motors

BajajMahindra &

MahindraTVS

Maruthi Suzuki

Honda ChevroletGeneral motors

Hero motor corporation


3 Wheelers

• What customer technology we should focus on?

BOSCH Super: pointed ground electrode for 3 wheelersThe ground electrode has a structured profile and is less vulnerable to wear than centre electrode.

• Higher ignition reliability due to faster flash-over of the spark and ignition of the mixture

• Additional cold-start reliability even when battery voltage is low

• More engine protection.

• Since misfiring is avoided, becomes more fuel efficient.

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• BOSCH Super: twin electrode for 2 wheelers

• Technology used-twin ground electrodes.

• Increased ignition reliability throughout the spark plug’s entire service life

• Improved cold-start characteristics

• Low ignition-voltage requirement

• Self-cleaning effects in case of shooting.

2 Wheelers


• BOSCH Super 4:

• The technology combination which is unique throughout the world– Air-surface principle

– Four, thin, ground electrodes

– Pointed, silver-plated centre electrodes

• Optimum engine performance throughout the plug’s operating time, even under extreme operating conditions

• This is used in extreme vehicles

Extreme vehicles


• BOSCH Super Plus:

• This is used in Sports cars

• The technology plus: Yttrium - the innovative alloy– Outstanding protection against corrosion

– Absolutely reliable ignition

• The Original Equipment plus: Tried and proven million times over– State-of-the-art technology from Original Equipment and motor racing

– Installed by leading vehicle manufacturers at the factory

• Specially shaped ground electrode– Ever higher ignition reliability and better protection for the catalytic

converter

Sports car


Customer capabilities

• should we serve customers needing many or few services?

• Customers with huge buying capacity- Bajaj, Tata, General motors, TVS.

• Bosch is focused on bulk serving.

• Most of their revenues come from b2b sales.

• They have a strong customer base with huge volume orders.

• Maintain long term relationships with customers.


• Order type:

• Direct to industry

• Replacement through dealers, online portals

• Order method

• Usually RFQ is followed where the price is quoted

• Some orders are verbally taken but later written down in order application.


Purchasing approaches

• Purchase policy

• With installation

• Without installation

** As per buyer requirement

Payment mode(relationship based)

• Outright payment

• Credit payment(30 days from the date of invoice if nothing mentioned in prior by the buyer)


Purchasing approaches

Situational Factors

• Urgency of order fulfillment:

o It is based on lead time. It is normally between 1-2 months.

o For clients such as Chevrolet, GM the lead time has to be specific as they are very particular about it.

oThere is international standards to be met also. They also rely with quality and performance provided by it.

o For clients such as Maruti, Tata Motors the lead time can vary but only up to a certain period.


• Product Application:

oSpark Plug applies to various clients such as Automobiles, Motorcycles, low-power engines and industrial application.

oThe type and usage of Spark Plug will vary from one client to another.

• Size of order:

o Large lot size is being given by the Automobile companies.

oThe order is given once in a year.

oChevrolet, GM feels yearly scheme is better than monthly scheme looking at the manufacturing activities they have to perform.

Situational Factors14-Mar-14 23B2B Marketing

Conclusion


• Nested segmentation leads to-

• Differentiate products/services in line with your customers

• Improve competitive positioning

• Shape product offering and pricing strategy to fit the markets with most potential

• Provide focus on customers so that you can:o Concentrate on providing profitable products or services

o Target marketing and selling effort

Thank You


BOSCH B2B Marketing - Nested approach

Marketing

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