Individual Assignment

On
Bosch India: B2B Marketing of Spark Plug

Submitted to
Dr. Sreeram Sivaramakrishnan

By
Prashant Pandey, E048
B2B Marketing, Division A
 About the Company

Business Mobility Industrial Energy & Building Consumer

Overview Solutions Technology Technology Goods

Bosch 460 Subsidies,60 countries

Turnover: 78.5 billion euros Employees: 410,000
Global

The Bosch Group is a leading global supplier of technology and services. Its operations are divided into four business
sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a
leading IOT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and
connected manufacturing. It uses its expertise in sensor technology, software, and services, as well as its own IOT
cloud, to offer its customers connected, cross-domain solutions from a single source. At nearly 130 locations across
the globe, Bosch employs some 68, 700 associates in research and development.

Bosch India Turnover: 21450 cr (Inr) Employees: 31,000 12 subsidiaries,18 manufacturing

sites,7 development centres

The Bosch Group operates in India through twelve companies, viz, Bosch Limited, Bosch Chassis Systems India
Private Limited, Bosch Rexroth (India) Private Limited, Robert Bosch Engineering and Business Solutions Private
Limited, Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private Limited, BSH Home
Appliances Private Limited, ETAS Automotive India Private Limited, Robert Bosch Automotive Steering Private
Limited, Automobility Services and Solutions Private Limited, Newtech Filter India Private Limited, Mivin Engg
Technologies Private Limited, Prego Automotive Private Limited and Precision Seals.

Product Portfolio of some companies in India

 Presence in the India Automobile Market
Product portfolio
Batteries Belts Breaking System & Pads
Auto Electrical Components Clutch Pad & cover assembly Diesel System
Gasoline System Filters Gear Pub
Horns Lighting Spark Plug
Lubricants Wiper Blades Relays

B2B Marketing of Spark Plug

Introduction
 Patent for the first spark plug
 Majority clients belong to the Automobile Industry
 43.7 bn euros sale
 80 % market share-22000 different types of spark plugs supplied to the industry
 Relative monopoly of the product in the market
 Sold mostly to OEM
 Production of around 350 nm units annually

Segmentation

Firmographics Behaviour Behaviour

Convenience Size of the Price Sensitive Price Sensitive
Geography Company
Delivery Sensitive Delivery Sensitive
Language End Product
Made Quality Sensitive Quality Sensitive

Decision Making Unit

The Marketing department at Bosch is headed by Sales & Automotive aftermarket division & sales original
equipment(OE).

Sales and Automotive After Market has the following departments

 Marketing & Advertising (SMA)

 Customer Business Development (CBD)
 Sales Planning & Distribution (SDP)
 Sales Export (SXP)
 Corporate Advertising & Publicity (CAP)
 Sales Services (SEE) Sales
 House Administration (HAA)

Major Customers

Tata Chevrol Hero

Bajaj M&M TVS MSIL Honda GM
Motor et Motos
 Decision Making Unit Hierarchy

Manager North

National Sales manager

Region
Manager East
Region
Area Territory
Manager West managers Executive

Region
Manager South
Region
Geographic Segmentation
 Division of the country into 4 geographic locations
 Each region has sales office & sales house
 In India,50 % of spark plug requirements are accounted by the diesel segment
 The customers are price sensitive
 Government intervention & regulation affects the product specifications

Product as per Consumer Needs

Automobile
Industry

BOSCH Spark
Plug Users

Industry Low power

Applications Engines

Industry Served Product Features

3 Wheeler Bosch Super Higher Ignition reliability, cold start reliability, more engine protection
2 Wheeler Bosch Super Low ignition voltage requirement, self-cleaning effects
Extreme Vehicles Bosch Super 4 Multiple Technology combination, optimum engine performance
Sports car Bosch Super Plus Specially shaped, innovative alloy, state of the art tech
Customers Serviced & Purchasing Approach
Bosch focuses on Bulk selling to customers with huge buying capacity. They have a strong consumer base & maintain
long term relationships with them

Order Type Order Method

 Direct to Industry  Usually RFQ is followed where price is quoted
 Replacement through dealers, online portals  Some orders are verbally taken but written
down in order applications
Purchase Policy Payment Model—Relationship Based
 With Installation  Outright payment
 Without Installation  Credit payment (30 days from date of invoice if
(** As per buyers requirement) nothing mentioned in prior by the buyer)

Situational factors
1. Urgency of Order Fulfilment
a. Based on the lead time, normally between 1-2 months
b. For clients such as MSIL, Hero lead time has to be specific as they are very particular
c. Reliance on international standards being followed internally & by the customer
2. Product Application
a. Type & usage vary from client to client
3. Size of Order
a. Usually large order size given by automobile companies
b. Yearly scheme preferred by long term buyers as per the manufacturing activities that are being
performed

Value Price Continuum

The perceived value of the products is high in the minds of the target audience. The investment in R&D for
continuous delivery of better & reliable products as per the needs of the customer & the industry makes their
products & services valued to the customer

Buyer Switching Cost

Switching cost for Automobile OEM are high as product availability, quality & development takes a lot of time
involving participation with the supplier for setting up logistic facilities etc. Due to the high market coverage of
Bosch's sparkplug backed by superior quality &no history of bad performance make the buyer's switching idea
ineffective

Conclusion
“Nested segmentation” of product leads to the following outcomes

 Differentiate products/services in line with your customer

 Improve competitive positioning
 Shape product offerings & pricing strategy to fit the market with potential output
 Provides focus on customers so that
o Concentration is on providing mutually profitable services
o Targeted marketing & selling efforts with better returns & less input cost
 Supply Chain Excellence
1. Purchasing
Many material fields are bundled - based on a global strategy. This provides additional chances for their
partners to use economies of scale to further reduce production cost. Regional suppliers are choosen to
implement local-for-local concepts. Project management purchasing with its technical background is the
interface to all Bosch business units
2. Quality
Agreement on the specific quality assurance measures is carried out during the engineering phase,
importance on failure impact analysis (FMEA) and capability testing for machines, production processes, and
testing procedures. The final stage of this preventive quality assurance process is a final release based on
initial sample approval and process acceptance under production conditions.
3. Logistics
Right from the start of the product development process, Bosch Production System principles and methods
are applied. Suppliers are involved in the design of delivery concepts, such as ship-to-line, and customer
requirements are taken into account early. Material and information flows are brought together and
matched with each other
4. Supplier Development
A rating system used for categorization of suppliers and for selecting partners for a new project based on
many different criteria like technological competence, product and logistics quality, entrepreneurial
potential, price-performance ratio, and production concept.

Major consumption of both Automotive & non automotive products is within the country only with only 8% being

Sources

http://purchasing.bosch.com/en/de/home/start.html

https://www.bosch.in/products-and-services/industry-and-trades/

Bosch India Annual Report