BOSCH B2B Marketing - Nested approach

1. Group-4
Akhil KVenugopal
Dheeraj ED
LavanyaAB
Indulekha
Sidharth Madhav
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.
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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

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Productportfolio

6. 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
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7. Spark plug
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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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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)
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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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13. Major applications
Automobile
industry
Industry
application
BOSCH
Low power
engines
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14. Major Customers
Tata
motors
Bajaj
Mahindra &
Mahindra
TVS
Maruthi
Suzuki
Honda Chevrolet
General
motors
Hero motor
corporation
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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

25. ThankYou 
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