Marketing Strategy of Bosch – Bosch Marketing Strategy: Bosch company is an expert in engineering and electrical equipment and is based in Stuttgart. Its parent company, Robert Bosch GmbH, was founded in 1951.
It is the largest global supplier of automotive equipment. Businesses of the group are driven by IT-enabled services, IoT (Internet of things), and automation across various industries.
Bosch At A Glance – Marketing Strategy of Bosch
Company : The Bosch Group
CEO: Stefan Hartung
Founder: Robert Bosch
Year founded: 15 November 1886, Stuttgart, Germany
Headquarters: Gerlingen, Germany
Annual Revenue: Euro€77.7 billion
Profit | Net income: Euro€2.1 billion
Number of employees : 401,300
Products & Services: Drive and control technology | Energy and Building Solutions | Engineering and Business Solutions | Power tools for professionals | Security solutions | Software solutions
Bosch Fun Facts: In the 1920’s Bosch established a chain of repair and car service centers throughout Germany.
Marketing Strategy of Bosch
Bosch’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Bosch? Let us discuss.
Segmentation, Targeting, Positioning – Bosch Marketing Strategy
To form segmentation, the various characteristics of the population are income, age, geographical area, religion, attitude, and behavior consumption pattern. Bosch employs a mixture of demographic and psychographic as well as geographic segmentation techniques.
It distinguishes targeting strategy from customers from automotive companies, companies in diversified industries, and professional & executive groups.
It creates its positioning strategy together with its associates to make other companies’ primary offerings more understandable to customers. It employs a mix of value-based positioning strategies and user benefits.
Bosch Mission Statement
“To develop and market innovative connected devices and tailor-made solutions for the Internet of Things (IoT). To improve everyday life, increase comfort, security, and productivity”
Bosch Vision Statement
“Invented for a connected life”
“Invented for Life”
Competitive Advantage – Marketing Strategy of Bosch
Diversified offers: The operation business deals in core products like brakes, controls, and electronics; starter motors & steer systems; fuel systems, generators; industrial products such as drives and control, packaging technology, and consumer items; as well as household appliances, power tools and security systems, building products, and Thermo technology.
A strong network of associate companies: Cocreation of offerings with the assistance of associates from different countries is what helps the company to be Glo-cal and stay ahead of its competition. It has 133.974 associates in Germany, 102680 Europe (excluding Germany), 42627 America, 110000 Asia, and other countries.
BCG Matrix – Bosch Marketing Strategy
The Company is involved in several business segments, including Mobility Solutions, Industrial Solutions, and Consumer goods.
Its Mobility Solution segment accounted for 60% of total sales, while industrial technology, consumer goods, and energy & building technology accounted for 9%, 24%, and 7%, respectively.
While the Mobility Solutions business segment is prominent in the BCG matrix, others are still question marks.
Distribution Strategy – Marketing Strategy of Bosch
The Company is a global supplier of technology and services. It generates 53 percent of its revenue from Europe. More than 440 subsidiaries and regional businesses are part of the company’s operations in 62+ countries.
Bosch distributes its products via a network that includes its own sales team, distributors and resellers, sites, associates and
Brand equity – Bosch Marketing Strategy
Bosch was ranked 98th in the Forbes magazine list for Innovative growth companies in 2016.
According to the market capitalization value method, the brand was valued at $9.3Billion in May 2016. This generates revenue of $84.8 Billion.
Competitive Analysis – Bosch Marketing Strategy
This diversified group has more than 389000 associates (226856 Mobility Solutions, 38117 Industrial Technology, 76131 Consumer Goods and 30293 Energy & Building Technology, and 17884 in Other Activities) and is the market leader for the product segments it operates into, especially mobility solutions.
It is competitive with Tyco, Gabriel, and Pelco on the basis of innovative solutions, market reach, distribution network quality, product quality, precision, and price.
Market Analysis – Marketing Strategy of Bosch
Bosch is a market player in the overcrowded market. There are many counterfeit product manufacturers, small suppliers/ manufacturers, and grey markets that affect all players in the industry.
The performance of companies in the electrical equipment sector is dependent on many factors, such as the availability of infrastructure, network, labor costs, government regulations, supply availability, bargaining power, and supplier availability.
Customer Analysis in the Market strategy by Bosch- As the company has diversified product segments, it, therefore, includes both retail and B2B customers.
Retail customers range in age from 20-to 45 and come from the upper/upper-middle class, the majority of whom purchase Consumer goods, while the B2B customers group consists of automotive companies, wholesalers distributors, and resellers.
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