1.

BOSCH LTD
Segmentation, targeting, positioning in the Marketing strategy
of Bosch –
The various population characteristics on forming the basis of segmentation are age,
income, geographic region, religion, attitude, behavior consumption pattern etc. Bosch
uses a mix of demographic, psychographic and geographic segmentation strategies.

It uses differentiating targeting strategy and targets customers
from automobile companies, companies from diversified industries, upper-class social
group, Professionals & Executives.

It co-creates it positioning strategy with the help of the associates in order to make the

primary offering of other companies more apprehensible to the customers. It uses the
mix of user benefit and value-based positioning strategy.

he Company is the global supplier of technology & services and generates 53 % of its
sales from Europe market. The company operates with more than 440 subsidiaries and
regional companies in 62+ countries.

Bosch distributes its products through a network of own sales team, distributors,
resellers, e-commerce sites and associates. 
The market in which Bosch operates is overcrowded with counterfeit products
manufacturers after sales spare marketers, small suppliers/ manufacturers and
grey markets which affect the players operating in the industry.

The performance of the companies operating in the electrical equipment industry

depends on the various factors such as infrastructure available, network, labor cost,
government regulations, supplier availability and bargaining power.

Customer analysis in the Marketing strategy of Bosch- Since the company operates in

diversified products segments, therefore, its customer groups consist of retail as well
as B2B customer group.
Retail customers are in the age group of 20-45 years and are from upper/upper middle
income class group majority of which purchases Consumer goods while the B2B
customer group consist of automobile companies, wholesalers, distributors, resellers.

2. ENDURANCE TECHNOLOGIES

Rising share markets are giving an opportunity for private equity players to exit their
holdings. Another IPO is hitting the market with the sole purpose of giving the private equity
investor and the promoter a chance to exit.

Endurance Technology is tapping the market with an offer for sale for the sole purpose of
getting listed. The company will not get any money from the issue but can enjoy listing
benefits.

Another way of looking at the same issue is that there will be no equity dilution and new
shareholders will benefit from the strong fundamentals of the company. What ultimately
matters for the investors is at what valuation are they being offered the shares and is there
any gains left on the table for them.

Here are 10 things to consider in Endurance Technology IPO:

1. Endurance Technologies is the largest aluminium die casting manufacturer in India and
one of the leading automotive component manufacturers in aluminium die casting (including
alloy wheels), suspension, transmission and brake systems.

2. The company supplies its products to 2/3-wheeler manufacturer in the country and 4
wheelers in Europe. In its product segment, the company is the largest supplier to 2-
wheelers and 3-wheelers in India.

3. The company operates 25 plants, with 18 of these manufacturing plants are in India. Its
units are located in the major automotive manufacturing belts of the country. Endurance
Technologies also has two manufacturing plants in Massenbachhausen, Germany with its
subsidiary Endurance Amann GmbH (Endurance Amann), and five in and around Torino,
Italy, at its indirect subsidiaries, namely, Endurance Fondalmec SpA, (Endurance
Fondalmec), Endurance FOA SpA (Endurance FOA) and Endurance Engineering Srl
(Endurance Engineering). The company is expected to commission a new machining plant
in Massenbachhausen, Germany, in FY2017 and is in the initial stages of planning an
automotive proving ground (test track) in Aurangabad, Maharashtra, India, which can be
operational by the end of 2018.

4. In FY16 India accounted for 70% of the company’s consolidated revenue. Italy the fastest
growing segment was at 23% while Germany was at 7%.
5. The current offer for sale is for 17.5% of the company’s equity. Actis Private Equity is
offering 13.7% of the company’s stake, while its promoter and managing director Anurang
Jain is offering 3.8% share.

6. In terms of products, castings and alloys accounts for 46% of the sales followed by
suspensions at 33%, transmission is 8%, while brakes is 6% and after- market sales
contribute 7% of the sales.

7. In terms of operating margins castings and alloys have the lowest operating profit margin
of around 10%, while others are in the range of 14-17%. After-market sales are the highest
margin segment earning around 18-20%.

8. Endurance Technologies is a dominant player in most of the segments it operates. As of

FY16 its market share in dies segment was 22%, brakes was 14%, transmission segment
was 14% and in suspension the company has a 33% market share.

9. Contribution of higher margin products of the company is steadily increasing, with low
margin casting’s segment share falling from 52% in FY13 to 46% in FY16. As a result while
revenue has grown at a compounded annual growth rate (CAGR) of 11% over five years, its
profits have grown by 18%. Among the peers in the auto component category, Endurance
Technologies has the highest operating margin.

10. Endurance Technologies growth moved in tandem with that of Bajaj Auto, which was its
main contributor to sales. However, its contribution has now fallen to 41% of consolidated
revenues. Its second largest client FCA Italy accounts for 15% while Royal Enfield, the third
largest accounts for 6% of revenue.

Despite the strong fundamentals and leadership position, what matters to the ordinary
investor is whether they will make money in the short run. At a price to earnings (P/E)
valuation of 22 as compared to around 30 levels for companies in the similar product range,
there is some room for upside on listing gains. But the fundamental of the company
suggests it’s one of those that can be kept for the long haul.

3. MINDA LTD
Minda Corporation Ltd is one of the largest suppliers of 2 wheeler 3 wheeler and Off Road vehicles
Electronic & Mechanical Security System. The company is a diversified company with a product
portfolio encompassing from mechanical & electronic security system door system electronic
controllers for electric vehicles plastic interiors and for auto OEM's across the Globe. The company
also manufactures Die Casting Parts and high-class Surface Finishing parts for auto and consumer
durable industry.