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.
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Introduction to Bosch Limited
3. 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
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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
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Business division of Bosch Limited
8. 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
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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)
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11. 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)
12. 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
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15. 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.
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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
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17. • 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
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18. • 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
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19. 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.
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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.
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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)
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Purchasing approaches
22. 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.
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23. • 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
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24. Conclusion
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• 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