Introduction: Volvo Group

Volvo Group Swedish supplier of commercial vehicles

 Founded in : 1927 by SKF

 Headquarters : Gothenburg, Sweden
 Key people : Finn Johnsson (Chairman of the board), Leif
Johansson (President and CEO)
 Revenue: SEK 303,667 million (2008) {Rs.21 lacs mn}
 Profit : ▲ SEK 9,942 million (2008) {Rs.70k million}
 Employees : 101,400 (2008)

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 About Volvo Penta
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 Founded in : 1907
 Subsidiary of Volvo Group
 Provides engines and complete power systems to leisure
boats, workboats, power-generating equipment and similar
industrial applications
 Has written marine history through a number of pioneering
innovations, such as :
i) Sterndrive
ii) Counter rotating propellers
iii) Duoprop

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 Nature of Industrial Marketing
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 Supplier of industrial engines for stationary and

off-road applications and engines for the electrical
power generation

 Key factors of choosing Penta: Technical quality,

reliability and worldwide support

 Network of qualified and skilled service dealers

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 Industrial Markets And Environment
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 Volvo Penta is a ‘commercial enterprise’ which

mainly has institutional customers

 Products majorly includes Capital items, i.e. heavy

machinery, engines, etc

 Services provided by Volvo Penta

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 Industrial Markets And Environment
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 It has production plants around the world

 Wholly owned plants in Vara, Sweden for production of 3to 5
litre diesel engines
 Has plants in Lexington, Tennessee, USA, for production of
all gasoline engines
 A major part diesel engines are manufactured at Volvo´s
common engine plant in Skövde, Sweden
 Final assembling of diesel engines done in China

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 6 - 16 litres Industrial Range
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 Customers
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Commercial Engines:
 Aker Aukra, Norway

 Anytec Marine, Sweden

 Armon Shipyard, Spain

 Cantiere Navale di Pesaro, Italy

 Codecasadue Spa, Italy

 Dockstavarvet, Sweden

 Factorias Vulcano, Spain

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 Customers
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Leisure Engines:
 Astondoa, Spain

 Bavaria, Germany

 Bella-Veneet, Finland

 Beneteau, France

 Botnia Marine, Finland

 Chantiers Jeanneau, France

 Cranchi, Italy

 Dufour Yachts, France

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 Customers
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Industrial Customers:
 CVS, Italy

 Fantuzzi, Italy

 Kalmar Industries,Sweden

 Svetruck, Sweden

 Terberg, Netherlands

 VTA, Tekniikka Finland

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 Customers
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Power Generators:
 Allam Marine, UK

 Atlas Copco, Sweden

 Ausonia, Italy

 CTM, Italy

 Electra Molins, Spain

 Hitzinger, Austria

 Onis Visa, Italy

 Pramac, Italy

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 Environmental Commitment
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 State-of-the-art engines that deliver more

performance and less environmental impact.
 Revolutionary propulsion systems that offer a better
boating experience and a dramatic cut in CO2
emissions.
 Smart accessories that enable eco-driving.
 Manufacturing in environmentally certified (ISO
14001) world-class production facilities

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 Buyer Seller Relationship
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 Seller direct relationship

 Buyer direct relationship
 Consolidator relationship

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 Seller direct relationship
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 Consolidator relationship
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 Industrial Market Segmentation
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 On a Macro level, the segmentation is based on

marine applications and industrial application
 The valve guides utilize corrosion resistant
construction
 The water pumps are intended for a marine
operating environment (seals and bearings)
 The overall duty cycle of a marine engine is very
different than that of an industry application

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 Industrial Market Segmentation
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 On a Micro level, segmentation is based on :

 Customer Interaction needs
 Purchasing Policies
 Personal Characteristics

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 Product Strategy And Product Development
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 27/10/09- Supplier to 22 passenger ferries being

built for the World Expo in Shanghai

 4/11/09 - Formula 1 with Volvo Penta diesel power

 19/11/09 -Whale watchers choose Volvo Penta

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 Product Strategy And Product Development
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Pertaining to Engines:
With an industrial engine range from 66 to 550 kW,
Volvo Penta provides power for different
aplications such as: 
– Irrigation units watering the desert
– Forklifts and tractors in harbours & terminals
– Generating sets providing power at film locations

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 Ready for 2011
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 EU Stage 3B and EPA Tier 4 Interim emission

regulations : effective across the power range 130-
515 kW
 Emission regulations demand a reduction of 90%
particulate matter (PM) and 45% nitrogen oxides
(NOx)

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 Industrial Distribution Channels
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Inbound Outbound
Volvo Penta
Logistics Logistics

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 Sales
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(Rs.47586)
(Rs.18718)
(Rs.1918)
(Rs.11368)
(Rs.2443)
(Rs.82033)

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 Industrial Communication
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 This includes :
 Advertising through print media, trade journals,etc
 Sales Promotion
 Direct Marketing
 Relationship Marketing

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 Industrial Pricing Strategy
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 Skimming Strategy
 Geographical Pricing

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 Prices of Different Items
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$90 $1900
(Rs.4230) (Rs.89300)

$697 $159
(Rs.32759) (Rs.7473)

$76
$944 (Rs.3572)
(Rs.44368)

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 Bibliography
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 www.volvo.com
 www.anachron.com
 http://europa.eu.int/eur-lex
 http://cebp.nacha.org
 http://www.nea.nu
 www.opinion.sifo.se
 Industrial Marketing-Krishna K Havaldar

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Thank You!!!

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Questions??

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