Vous êtes sur la page 1sur 13

B2B MARKETING

Project Report: MICO-BOSCH

Bosch Limited (formerly Motor Industries Company Ltd.) is the


flagship of Bosch in India headquartered in Bangalore.
Incorporated in 12th November of the year 1951, Bosch Limited
has grown over the years to become India's largest auto
component manufacturer, and one of the largest in the world. It
is also the second largest Indo-German Company in India. The
Business divisions of the company is classified as Diesel
systems, Gasoline systems, Starters and Generators, Electrical
Drives, Automotive Accessories, Test Equipment, Auto
Electricals, Car multimedia, Power Tools, Packaging Machines,
Special Purpose machines and Security Systems. The
company's manufacturing sites are located in Bangalore,
Nashik, Jaipur and Naganathapura.

The Company was shifted to Bangalore on 16th November


1953 premature Bosch was in Chennai. A letter of intent for
diversification into auto electrical was received in the year
1985 and approval for the import of capital goods was also
obtained. Added a number of new machines both at the
Bangalore and Nasik factories during 1987 under the
modernisation programme. Also a fourth generation on-line
computer facility was installed at the Bangalore factory. The
Company was awarded the status of Trading House in the year
1988. The unit added A `Cold Start' facility enabling testing of
engine at temperature as low as -20oc. The Centre was
appointed as a Bosch Global Development Centre with the
global responsibility for design and development of small single
cylinder pumps for the entire Bosch Group.
Bosch's centre had already developed a new type of single-
cylinder pump for vehicular and stationary applications. During
the year 1991 technical collaboration agreements were entered
for the manufacture of fine horning machines and super
finishing machines. In 1992, The Company introduced certain
new items such as halogen bulbs, ignition cells, horns, voltage
regulators, cluth plates and clutch cover assemblies for the
automobile sector. A technical collaboration agreement was
made with Witzig and Frank Turnatic GmbH for the mechanical
machining systems. Another one agreement was entered with
Robert Bosch GmbH, West Germany for the manufacture of bag
form fill and sealing machines and also Bosch awarded the ISO
9001 certification by the Technischer Ueberwachungs-Verein,
Germany. During the period 1994, two companies became the
subsidiary of the Bosch Ltd, namely Motor Industries Software
Services Ltd (MISSL) and Motor Industries Trading Ltd (MITL).
The Memorandum of Understanding with the Government of
Rajasthan was signed in 1996 to set up Jaipur plant. The three
plants of the Company at Bangalore, Nashik and
Naganathapura awarded the QS 9000 certificate by TUV, Essen
during 1997. The company has entered into car servicing
business in the year 2002, launched India's first Bosch Car
Services Workshop (BCSW) in Delhi. The Industrial Equipment
Division of the company has developed endurance-testing
equipment for Timken and has launched new range of
Products in the same year consisted incar multimedia systems,
the San Francisco CD-70, in-car MP3 player and velocity range
of amplifiers, speakers and subwoofers.

In 2003, the Spark Plug manufacturing activity of the company


at Naganathapura works has been discontinued. Bosch Security
Systems launched Network Video Solutions, a Video Solutions
and Video Surveillance system that allows remote monitoring
over IP (Internet Protocol) networks. Bosch rolls out new
surveillance system during the year 2004. In 2005 the company
moved in production of key products to MICO plants in India
and also launched 30 millionth PF pump as a footprint. Bosch
had Dun & Bradstreet - American Express Corporate Award
2006 in recognition of size and growth among the top 500
companies of India. The Deployment of Business Excellence
based on the European EFQM model has been a focused area
for the company in 2006. Several initiatives was started to
ensure that these concepts percolate down in the organisation
and become a part of the work culture. Bosch opened its first
manufacturing facility for high-pressure common-rail pumps in
2006 in India. Since August 2007, the company has been
manufacturing common rail injectors locally. In 2007 Bosch
made as many as 100,000 Common-rail systems in India. The
CII National World skills, 2007- `Best Company Award was
come to the company's hand. The Brand consolidation for
Bosch in India was made in January of the year 2008, India's
largest auto component supplier; Motor Industries Company
Limited (MICO) has been renamed as Bosch Limited. The
Registrar of Companies, Government of India also approved the
new name of the company on 18th January 2008. As on
February 2008 under expansion activities in India Bosch and
Igarashi Motors India established joint venture Development,
Manufacture and sale of automotive components for growing
Indian automotive market. The company planned to invest Rs
850 crores by 2010, Apart from the expansion of common rail
diesel production, this money will also be invest in the
manufacturing of gasoline systems components from 2008.
Moreover, it is planned to start local ABS production at the end
of 2008, and the production of electronic control units in 2009.
As a leading technology and services company, take advantage
of global opportunities for strong and meaningful development.
The company's ambition is to enhance the quality of life with
solutions that are both innovative and beneficial. Bosch focuses
on core competencies in automotive and industrial
technologies, as well as in products and services for
professional and private use. The diversity of company's culture
is a source of additional strength, that's company lives day by
day.

PRODUCT RANGE BOSCH GROUP :

1. Automotive (MICO)
2. Industrial Products
3. Consumer Goods
4. Product in Automotive domain
5. Auto Electricals
6. Batteries
7. Belts
8. Braking systems Brake pads
9. Clutch plates and Cover assemblies
10. Diesel Systems
11. Filters
12. Gasoline Systems
13. Gear pumps
14. Horns
15. Lighting
16. Spark Plugs
17. Lubricants
18. Wiper Blades
19. Relays

GROWTH OF THE COMPANY


As per the data collected from the Capitaline Databases, we
found that the company is doing really well in the Indian
markets. We can see that the sales has grown from rupees
2977.48 crore in December 2005 to 5201.82 crore rupees in
December 2009. Also the profit before interest and tax has
grown from 542.57 crore in 2005 to 935.31 crore rupees in
2009. When come to Profit after Tax, we see that the company
has grown from 343.07 in Dec 2005 to 743.87 crore rupees in
Dec 2009. The company has shown tremendous improvement
in terms of sales and PAT in the period of Dec 2005-Dec 2006.
Then the company showed a consistent growth from Dec 2006
to Dec 2009.

COMPETITORS: Some of the major competitors of MICO are:

1) DELPHI: Delphi is a leading global supplier for the


automotive, computing, communications, energy, and
consumer accessories markets. It is headquartered in Troy,
Mich. Delphi has more than 100,000 employees in 32 countries
and more than 100,000 employees in 32 countries.

2) DENSO: DENSO is a leading supplier of advanced


automotive technology, systems and components for all the
world's major automakers, operates in 32 countries and regions
with approximately 120,000 employees. Global consolidated
sales totalled US$32.0 billion for fiscal year ended March 31,
2009.

3) SIEMENS: It has a wide presence across the country, its


operations include 17 manufacturing plants and an extensive
network of Sales and
Service offices. It is also part of a vast global network of
475,000 people,
operating in over 190 countries, which serve to enhance our
standing.
CLIENTS: MICO Bosch has a large client base all over the
world. Some of them are as follows:
• TATA MOTORS
• BAJAJ
• MAHINDRA AND MAHINDRA
• TVS
• MARUTI
• HONDA
• GENERAL MOTORS CHEVROLET

CORE COMPETENCIES

1) High Market share: With a market share of almost 95%, it


has a virtual monopoly in the Diesel Fuel Injection Equipment.

2) Technological superiority and strong support from


parent Bosch: Strong parental support in terms of technology
transfer coupled with high degree of localisation has been a key
success factor. MICO has successfully followed the policy of
localising global knowledge.

3) Global R&D hub: MICO Application Centre (MAC) has been


established in India for R&D purposes. It has emerged as a key
global R&D competency centre catering to the ntire Bosch
Group. It is the first of its kind in India and Bosch Group’s first
outside Europe.

4) Alternative Energy: MICO Bosch is moving towards


energies such as electricity while also improving existing power
train technologies, including diesel systems, gasoline direct
injection and hybrids to reduce the energy from conventional
resources. It has also taken up bio diesel and CNG technologies
to address energy challenges.

5) Service: In India 50 per cent of Bosch’s current business is


accounted for by the diesel segment. Bosch positions itself as a
one-stop shop for sales and service and to make available the
entire range of products to those who come for service. Bosch
is expanding the product range in this business by bringing
some of its global technology products into India. It is also
planning to manufacture some of these products in India.
A CORE COMPETENCY CENTRE has been created in the
country to manufacture these equipments in the MICO
production complex.

6) Quality: MICO Bosch has ISO Certified Quality Management


System. Certified Locations are MICO, Incorporated; MICO
Europe ltd. and MICO Mexico.

7) Large Contact Base: MICO has a large supplier and


customer base and maintains a long term relationship with
them.

PRICING STRATEGY
The industrial market understands various aspects of the
pricing since pricing is the most critical part of industrial
marketing strategy. Different strategies such as market
segmentation strategy, product strategy, and promotion
strategy are related to pricing strategy. In order to achieve the
dual objective such as to meet the company objective and
satisfy the market needs, the industrial marketer has to
integrate the various strategies.
Pricing is the critical marketing mix which actually
produces the revenue. Pricing objectives play important role
while deciding on pricing. MICO-BOSCH is the market leader in
the automotive component manufacturing especially in
sparkplug and CRDI (Common Rail Diesel Injection) System. It
has 80% market share in sparkplug business India and 75%
business in CRDI. It has different pricing objectives for different
products.
The pricing of MICO- BOSCH is aligned with its
corporate strategy. The parent company BOSCH keeps aside
92% profit of its business for the charity. So BOSCH is not the
profit seeking organisation.
Pricing Objectives of MICO-BOSCH:
1) Product- Quality Leadership: Though the company is the
market leader in Indian business, the quality is the central
aspect of its business. By providing highest quality of technical
product and efficiency with market acceptable prices it aims to
establish itself as a product quality leader in the market.
2) Avoidance of government’s intervention into the
business: India is not the capitalistic country. MICO-BOSCH is
the market leader with quality products so it might seek higher
prices (i.e. prices more than competitive prices). To avoid
predatory pricing by any OEM, government may intervene in
the pricing strategy and may force company to rethink its
policy. To avoid this possible threat, company has competitive
pricing for all its components.

Pricing Methods:
1) Volume Based Pricing: MICO – BOSCH keeps volume
based pricing for large volume components like sparkplug. For
higher volume products, the price per unit of component is
decreased. This is achieved through economies of scale in
technology. It has a high operating leverage which makes
volumes, the key driver to its profitability. Also it is OEM of all
auto components so it can sustain vibrancy in the market.

2) Administered Pricing: Pricing of products like pumps is


based on administered pricing. The infrastructure cost is
evaluated on the basis of total machines used, shop floor area
used. This evaluation of pricing is called as floor pricing. A
mark-up price is added to this floor price. But it is generally
avoided to ask for ceiling price.

3) Market Skimming: Market skimming is done for its SPM


(Special Purpose Machines). These machines are customised
product of MICO-BOSCH. Every client has different technical
specification for SPMs. These machines are made from high end
technology. They are not produced on large volume basis. So
SPM are quoted with higher prices.

General Practices Followed for Pricing:


1) Different Prices for different customers: The price per
unit of component varies from customer to customer for same
product. It depends upon the volume of business, relationship
with customer etc.

2) Negotiation: Prices are negotiated for all products. It starts


from the highest levels and brought down to the acceptable
prices to both the parties. Value and technological
advancements are core aspects during negotiations.

DISTRIBUTION
The distribution of company’s products is classified broadly in
two types, direct selling and the other is through distribution
channels. In direct selling, products are shipped directly to the
customers of the company at Ex- factory cost.
The MICO- BOSCH has pan India presence for
distribution of its products to serve its entire client base
through its distribution channel. It has divided entire country
into four geographical locations. They are northern region,
southern region, eastern region and western region. Each
region has sales offices and Sales houses.

Northern region: Sales Office- Chandigarh, Panchkula,


Lucknow Sales House- New Delhi
Southern Region: Sales Office- Bangalore, Secundarabad,
Ernakulam Sales House- Chennai
Eastern Region: Sales Office- Guwahati, Patana, Cuttack Sales
House- Kolkata
Western Region: Sales Office- Ahmedabad, Indore, Jaipur
Sales House- Mumbai.
The Dealer network is segmented into:
Authorised distribution: These institutes have company’s
products and they sell the products with license from the
company.

Authorised Workshop: These are the small workshops where


defective products are taken back and made functional again
or replaced if required. These are helpful for reverse logistics.

Stockist: Stockists of the OEM (customers of MICO-BOSCH) are


distributed products of the company.
Authorised Sales Outlet: Company sales its small
components like sparkplugs directly to the end user through its
more than 2500 retail outlets across India.

THE SELLING PROCESS


• Order taking (tendering)
• Order Processing
• Kick off strategy
• Planners of manufacturing unit interact
• Warehouse
• Distribution

PROMOTIONAL STRATEGIES
The special ownership structure of the BOSCH Group
guarantees financial independence and entrepreneurial
freedom. The structure also enables the group to undertake
significant up front investments for the future and does justice
to its social responsibilities in a manner reflecting the spirit and
will of its founder. 92% of the shares in Robert Bosch GmbH are
held by the charitable foundation Robert Bosch sifting.
The slogan “Invented for Life” is part of its
long tradition, through which it communicates the Group’s core
competencies and vision that includes technological leadership,
modernity, dynamics, and quality and customer orientation.
The company has its roots in Germany, but has also always had
a strong international orientation. In the areas in which they do
business, hardly any other companies have such a broad global
presence. Their global production and development sites work
together as a very closely-knit network.
This network and the company’s global
experience have put them in an excellent position to exploit
opportunities in current and future growth regions of the world.
1. On Track Program: Students are encouraged to take up
Industry based Project works and Industry based internships at
Mico - Bosch. Industrial Visits are arranged for students.
Training programmes and workshops are arranged for students
in emerging fields like CAD/CAM/CAE and Advanced Materials.

2. SIAM Convention: Every year, Bosch actively participates


in SIAM convention (Society of Indian Automobile
Manufacturers) which is the apex industry association
representing all vehicle and vehicular engine manufacturers in
India. SIAM, is an advocacy group for the automobile industry
on economic, technology and public policy areas. It got into
discussions involving the following issues during the convention
in August 2009 –
• “Revival – The Current Progress in Reviving The Global
Automotive Industry & Positioning The Indian Automotive
Industry in The Future”
• “Restructuring - Build A Viable Industry Model: Challenges
Facing The Commercial Vehicle Industry”
• “Sustainability – Role of Collaborative Working”
• “Sustainable Mobility - Connecting India: Making a
Paradigm Shift”
• “Leadership in The Two Wheeler Industry”

3. Trade Exhibitions: Bosch has continuously displayed its


capabilities in various renowned trade exhibitions around the
globe. It has been participating in Auto Expo at Pragati Maidan,
New Delhi, Tokyo Motor Show, IAA, IMTX and many more. Auto
Expo is organised jointly by Automotive Component
Manufacturers Association of India (ACMA), Confederation of
Indian Industry (CII) and Society of Indian Automobile
Manufacturers (SIAM) and is a biennial event.

Following are the visitor profiles at such exhibitions:


• Overseas buyer delegations
• International Business visitors
• Dealers Delegations
• Government Officials
• Senior Executives of PSUs
• CEOs/Decision Makers
• Ministerial Departments
• Managers/Department/Division Heads
• Engineers / Technicians
• Diplomats / Embassies / Missions in India
• State Transport Authorities
• Research Institutes / Educational Institutions
• Publication Houses
• Delegations from Technical Institutions
• Auto Enthusiasts
• Socialites
• General Visitors
4. Customized Websites: Bosch operates in various fields of
component manufacturing. It has broadly categorized its
products and divisions and each is having a different portal for
easy understand ability.

5. Automobile and industrial magazines: Mico Bosch


regularly advertises its products and work-culture in magazines
like Autocar, Motor Trend, Top Gear, Overdrive, Auto India etc.
These magazines are published on a regular schedule,
containing a variety of articles on new vehicles, car interiors
and technological advancements in automobiles.

OPPORTUNITIES
Bosch After-Market Service Identifying a huge opportunity in
this segment, Bosch is planning to expand its presence in the
automotive independent after-market business. The company is
targeting a turnover of Rs. 1,000 crores in the after-market and
service equipment business by 2010 against the current Rs.
700 crores.

Sales Force Structuring

(SMA)

Customer Sales Sales Corporate Sales Sales


Planning Export (SXP) Advertising
Business Services House
and and Publicity
Developme Distributio (SEE) Administra
(CAP) tion (SHA)
nt. (CBD) n (SPD)

National Sales Manager

Regional Regional Regional Regional


Manager North Manager East Manager West Manager South

Area Area Area Area


Managers Managers Managers Managers

Territory Territory Territory Territory


SWOT ANALYSIS
Strengths:
Established brand image around the world over the centuries.
High Customer satisfaction. Continuous improvement of
products and quality. Streamlined procedures for every
function of the company. The company’s Corporate social
responsibility has helped to develop its brand and the market.
Employee development is given utmost importance. Employees
are given great importance, this has resulted in less employee
turnover, this has helped to curtail hiring and training costs.
Less dependency on external funds. Cost reduction strategy is
good. Leadership through innovation. Employee’s contribution
towards work is noticeable. World class infrastructure facility.
Continuous improvement of products. Wide portfolio of loyal
customers. Bosch is cash rich, so dependency for external
funds is minimal.

Weaknesses:
Marketing of products is given less importance. Adaptability
towards change is low. Unionized work environment.
Concentration is given to create monopoly opportunities in the
market. Performance appraisal of the employees is not
satisfactory. Haven’t diversified into other lines of business.

Opportunities:
Continuous innovation of products. Produce innovative products
The Indian automotive segment is growing in excess of 40%
annually and is being flushed witha whole new range of cars
and bikes. This gives a lot of opportunity to auto ancillary
companies like Bosch to be tied up with these car
manufacturers for original equipment (O.E) supply and after
sales service.
Bosch can foray into other line of business as it has a
good brand image. It can produce eco friendly to replace
existing products as the market for eco friendly products are
growing and the economic forums have cited the need for
these products.

Threats:
Increase of competition. Brand image being diluted. Too many
substitute products available in the market. Growing bargaining
power of suppliers
and customers. Traditional method of working of the business.

CONCLUSION
MICO Bosch today dominates the Fuel injection equipment and
Spark plugs market in India, and is almost synonymous with
these products. The company enjoys a relative monopoly in
most of its products. This can be attributed mainly to its
continuous innovation and competitive pricing strategies used.
MICO has the advantage of having Bosch as its parent, which
provides it with support in terms of technology transfer coupled
with high degree of localisation. MICO has successfully followed
the policy of localising global knowledge. The company’s
continuous success can also be attributed to its ability to
continuously innovate due to its strong R&D.
Thus, it has been able to provide products that incorporate the
latest technology and meet the requirements of its global and
domestic customers in terms of performance, safety and
emission control. MICO is capitalising well on its core
competencies and will continue to do so thereby further
strengthening its position in the growing auto component
industry.

Vous aimerez peut-être aussi