Académique Documents
Professionnel Documents
Culture Documents
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
CORE COMPETENCIES
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.
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.
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.
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.
(SMA)
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.