Group-4
Akhil KVenugopal
Dheeraj ED
LavanyaAB
Indulekha
Sidharth Madhav
Yadhav MP
Amrita School of Business- Kochi
B2B 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.
14-Mar-14 B2B Marketing 2
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
14-Mar-14 B2B Marketing 3
• Diesel systems
• Gasoline systems
• Starters and Generators
• Electrical Drives
• Automotive Accessories
• Test Equipment
• Auto Electricals
• Car multimedia
• PowerTools
• Packaging Machines
• Special Purpose machines
• Security Systems
14-Mar-14 B2B Marketing 4
Business division of Bosch Limited
14-Mar-14 B2B Marketing 5
Productportfolio
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
14-Mar-14 B2B Marketing 6
Spark plug
14-Mar-14 B2B Marketing 7
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
14-Mar-14 B2B Marketing 8
14-Mar-14 B2B Marketing 9
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)
– CorporateAdvertising and Publicity (CAP)
– Sales Services (SEE) Sales
– HouseAdministration (SSA)
14-Mar-14 B2B Marketing 10
14-Mar-14 B2B Marketing 11
Decision making unit hierarchy
NationalSales
Manager Regional
Manager North
Regional
Manager East
Regional
ManagerWest
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
14-Mar-14 B2B Marketing 12
Major applications
Automobile
industry
Industry
application
BOSCH
Low power
engines
14-Mar-14 B2B Marketing 13
Major Customers
Tata
motors
Bajaj
Mahindra &
Mahindra
TVS
Maruthi
Suzuki
Honda Chevrolet
General
motors
Hero motor
corporation
14-Mar-14 B2B Marketing 14
3Wheelers
• What customer technology we should focus on?
BOSCH Super: pointed ground electrode for 3 wheelers
The 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.
14-Mar-14 15B2B Marketing
• 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.
2Wheelers
14-Mar-14 16B2B Marketing
• 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
14-Mar-14 17B2B Marketing
• 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 fromOriginal 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
14-Mar-14 18B2B Marketing
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.
14-Mar-14 19B2B Marketing
• 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.
14-Mar-14 B2B Marketing 20
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)
14-Mar-14 B2B Marketing 21
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.
o There 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.
14-Mar-14 22B2B Marketing
• Product Application:
o Spark Plug applies to various clients such as Automobiles,
Motorcycles, low-power engines and industrial application.
o The 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.
o The order is given once in a year.
o Chevrolet, GM feels yearly scheme is better than monthly scheme
looking at the manufacturing activities they have to perform.
Situational Factors
14-Mar-14 23B2B Marketing
Conclusion
14-Mar-14 B2B Marketing 24
• 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
ThankYou 
14-Mar-14 B2B Marketing 25

BOSCH B2B Marketing - Nested approach

  • 1.
    Group-4 Akhil KVenugopal Dheeraj ED LavanyaAB Indulekha SidharthMadhav Yadhav MP Amrita School of Business- Kochi B2B Marketing
  • 2.
    • 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. 14-Mar-14 B2B Marketing 2 Introduction to Bosch Limited
  • 3.
    Introduction to BoschLimited • 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 14-Mar-14 B2B Marketing 3
  • 4.
    • Diesel systems •Gasoline systems • Starters and Generators • Electrical Drives • Automotive Accessories • Test Equipment • Auto Electricals • Car multimedia • PowerTools • Packaging Machines • Special Purpose machines • Security Systems 14-Mar-14 B2B Marketing 4 Business division of Bosch Limited
  • 5.
    14-Mar-14 B2B Marketing5 Productportfolio
  • 6.
    Product portfolio • Autoelectrical • 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 14-Mar-14 B2B Marketing 6
  • 7.
  • 8.
    About Bosch Sparkplug • 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 14-Mar-14 B2B Marketing 8
  • 9.
    14-Mar-14 B2B Marketing9 Road map to segmentation
  • 10.
    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) – CorporateAdvertising and Publicity (CAP) – Sales Services (SEE) Sales – HouseAdministration (SSA) 14-Mar-14 B2B Marketing 10
  • 11.
    14-Mar-14 B2B Marketing11 Decision making unit hierarchy NationalSales Manager Regional Manager North Regional Manager East Regional ManagerWest Regional Manager South Area Area Managers Territory Executives (Specific area Objectives)
  • 12.
    Geographic segmentation • Ithas 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 14-Mar-14 B2B Marketing 12
  • 13.
  • 14.
    Major Customers Tata motors Bajaj Mahindra & Mahindra TVS Maruthi Suzuki HondaChevrolet General motors Hero motor corporation 14-Mar-14 B2B Marketing 14
  • 15.
    3Wheelers • What customertechnology we should focus on? BOSCH Super: pointed ground electrode for 3 wheelers The 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. 14-Mar-14 15B2B Marketing
  • 16.
    • 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. 2Wheelers 14-Mar-14 16B2B Marketing
  • 17.
    • BOSCH Super4: • 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 14-Mar-14 17B2B Marketing
  • 18.
    • BOSCH SuperPlus: • 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 fromOriginal 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 14-Mar-14 18B2B Marketing
  • 19.
    Customer capabilities • shouldwe 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. 14-Mar-14 19B2B Marketing
  • 20.
    • 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. 14-Mar-14 B2B Marketing 20 Purchasing approaches
  • 21.
    • 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) 14-Mar-14 B2B Marketing 21 Purchasing approaches
  • 22.
    Situational Factors • Urgencyof 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. o There 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. 14-Mar-14 22B2B Marketing
  • 23.
    • Product Application: oSpark Plug applies to various clients such as Automobiles, Motorcycles, low-power engines and industrial application. o The 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. o The order is given once in a year. o Chevrolet, GM feels yearly scheme is better than monthly scheme looking at the manufacturing activities they have to perform. Situational Factors 14-Mar-14 23B2B Marketing
  • 24.
    Conclusion 14-Mar-14 B2B Marketing24 • 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
  • 25.