B2B MARKETING

Project Report: MICO-BOSCH

SUBMITTED TO: Prof. V. Sekhar SUBMITTED BY:

GROUP 4

PALLAVI JAIN (08PG109) PRATEEK AGARWAL (08PG250) RICHA MEHROTRA (08PG186) SUNDEEP
SEHGAL (08PG199) TUSHAR PAGAR (08PG208)

DATE: 10TH November 2009

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CONTENTS S. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. TOPIC
LTD. PRODUCTS GROWTH OF THE COMPANY COMPETITORS AND CLIENTS SUSTAINABLE
COMPETITIVE ADVANTAGE CORE COMPETENCIES PRICING STRATEGY DISTRIBUTION & SELLING
PROCESS PROMOTIONAL STRATEGIES PEOPLE AND PROCESSES SWOT ANALYSIS CONCLUSION

PAGE NO. INTRODUCTION TO MICO - BOSCH 4 7 9 10 11 13 14 16 18 21 30 32

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ACKNOWLEDGEMENT We would like to thank Mr. Sreeharsha for providing us an insight
into the functioning and role of the marketing in business marketing in his
organisation. We are also thankful to Mr. Rohit Gupta for providing additional
inputs that went a long way for completion of our project. We would also extend
our thanks to Prof. V. Sekhar for providing us an opportunity to carry out this
project which is so much of relevance to the real world industry today.

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INTRODUCTION TO MICO - BOSCH LTD.
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 electricals 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

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(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 Fransisco
CD-70, in-car MP3 player and velocity range of amplifiers, speakers and sub-
woofers. 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 came 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,
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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.

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PRODUCT RANGE
BOSCH GROUP 1. Automotive (MICO) 2. Industrial Products 3. Consumer Goods

Product in Automotive domain

Auto Electricals

Batteries

Belts

Braking systems Brake pads

Clutch plates and Cover assemblies

Diesel Systems

Filters

Gasoline Systems

Gear pumps

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Horns

Lighting

Spark Plugs

Lubricants

Wiper Blades

Relays

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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 4601.82 crore rupees in December
2008. Also the profit before interest and tax has grown from 542.57 crore in 2005
to 865.31 crore rupees in 2008. When come to Profit after Tax, we see that the
company has grown from 343.07 in Dec 2005 to 633.87 crore rupees in Dec 2008. The
company has shown tremendous improvement in terms of sales and PAT in the period
between Dec 2005-Dec 2006. Then the company showed a consistent growth from Dec
2006 to Dec 2008.
5000 4601.82 4500 4000 3500 3000 3781.16 4325.27

2977.48
NET SALES PBIT PAT

2500
2000 1500 1000 500 0 Jan-05 Jan-06 Jan-07 Jan-08 542.57 343.07 804.72 547.99
859.72 609.21 865.31 633.87

Fig 1. GROWTH RATE OF BOSCH IN TERMS OF SALES PBIT AND PAT(in Rs. Crore)

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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 serves 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

MAJOR CLIENTS

MARUTI

HONDA

GENERAL MOTORS CHEVROLET

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SUSTAINABLE COMPETITIVE ADVANTAGE
1) SUSTAINABLE MOBILITY AT MICO BOSCH- OVERVIEW Individual mobility is increasing
worldwide, particularly in Asia and Eastern Europe. This is because greater
individual mobility means more pollutants and CO 2 emissions, greater consumption
of resources, and more accidents. That’s why MICO Bosch is striving to achieve a
form of sustainable mobility which is low in pollutants and independent of fossil
fuels. Working in tandem with its customers, it is researching the potential for
powering vehicles by combining an internal-combustion engine with an electric
motor or by using an electric motor on its own. The path adopted by MICO Bosch is:


Engineers are unlocking the energy-saving potential of the internal-combustion

engine. With smart technology along the full length of the drive train and with
hybrid solutions, it helps the car and the internal-combustion engine become
increasingly clean and efficient.

It is adapting the internal-combustion engine to work with alternative fuels

produced either synthetically or from renewable raw materials.

It has found niche segments for electric drives that use a fuel cell as an energy
converter to replace the internal combustion engine.

MICO Bosch is working on the next phase of technical developments to meet the
stricter emission limits soon to be introduced in Europe, the U.S., and the
emerging markets in Asia.

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2) COMBINING TECHNOLOGIES So far, the necessity to cut fuel consumption and
CO2emissions has led to increased demand for MICO’s injection systems in
particular. Customers are now turning their attention to other technologies,
including thermal and vehicle electrical system management, more efficient
alternators, and the start/stop system.

These components can each help improve the energy efficiency of vehicles by
several percentage points

3) INCREASING SAFETY The ELECTRONIC STABILITY PROGRAM launched by Bosch in 1995

plays a key role in improving road safety. ESP also forms a fundamental basis for
new functions currently being developed by our engineers. One example is the
Combined Active and Passive Safety (CAPS) system, which aims to further improve
accident prevention

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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
entire 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.

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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.

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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.

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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.

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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 (e-
tendering)  Order Processing  Kick off strategy - Planners of manufacturing
unit interact - Warehouse - Distribution

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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 has 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 – o “Revival – The Current Progress in Reviving The
Global Automotive Industry & Positioning The Indian Automotive Industry in The
Future” o “Restructuring - Build A Viable Industry Model: Challenges Facing The
Commercial Vehicle Industry” o “Sustainability – Role of Collaborative Working” o
“Sustainable Mobility - Connecting India: Making a Paradigm Shift” o “Leadership
in The Two Wheeler Industry”

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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. The 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
understandability. 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.

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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.

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PEOPLE AND PROCESSES
The Marketing department at Bosch is headed by the sales and automotive after
market division and sales original equipment. Sales and Automotive After Market
has the following departments.        Marketing and Advertising (SMA)
Customer Business Development. (CBD) Sales Planning and Distribution (SPD) Sales
Export (SXP) Corporate Advertising and Publicity (CAP) Sales Services (SEE) Sales
House Administration (SSA)

National Sales Manager

Regional Manager North

Regional Manager East

Regional Manager West

Regional Manager South

Area Managers

Area Managers

Area Managers

Area Managers

Territory Executives (Specific area Objectives)

Territory Executives (Specific area Objectives)

Territory Executives (Specific area Objectives)

Territory Executives (Specific area Objectives)

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Functions of the departments
SMA
    Product Management. Advertising and sales promotion. Packaging Marketing
services and market research.

SPD
    Warehouse activities Orders fulfillment and insuring collection Business
with government departments Procurement of trade goods

SXP
    Sales, promotion activities in foreign countries. Orders planning and
export dispatch Technical support and service training Export statistics

SSE
   Customer Service Investigation in Field companies Actualization of
studies.

Development programs for Mico-Bosch means continuous competence development for

all associates. The company ensures career advancement for associates showing
potential for tasks involving greater responsibilities. They support job rotation
to avoid functional silos and also support transfers within the Bosch group. It
has various development programs like the Robert Bosch Kolleg/Carnegie Bosch
Institute – Platform for international exchange of experience and transfer of
academic expertise for managers and executives. They also have various instruments
related to associate development like Leadership Development, Specialist Education
and Development program,
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seminars and executive training for managers for their professional advancement
e.g. seminars aligned to Robert Bosch competency model, etc.

PROJECT SPECTRA

This project was undertaken to make the MICO facility SAP-enabled country-wide.

MISSION Achieve business advantage by aligning MICO's business processes with

standardized best practices of Bosch through an integrated, scalable solution
responsive to dynamic business needs.

ENTERPRISE RESOURCE PLANNING AT MICO

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CHANGES DUE TO SAP
Purchase order formats. Control the purchasing of products. The Purchase Order
Form helps the customer in identifying the purchase details and requested delivery
date, delivery details for the items purchased, billing and supplier information,
quantity and unit price of each item, total price of the purchase. Material with
Supplier (MWS) reconciliation procedure- it helps in inventory management. It is a
process to measure the efficiency of use of material. eg:-Process scrap and End
bit scrap accounting. Packing material numbers will be changed to Bosch numbers.
WEB Electronic Data Interchange (EDI). It is applicable only for direct material
area. Web EDI is a cost-effective solution that allows the company to interact
with its suppliers in the regions without the worrying of implementing a complex
EDI infrastructure. In its simplest form, webEDI enables the company to receive,
turn around, create and manage electronic documents using just a web browser. This
service seamlessly transforms data into EDI format and transmits it to the trading
partner.

EMPLOYEE BENEFITS

This is a summary of the employee benefits available at MICO, Inc.

MEDICAL & DENTAL INSURANCE No premium participation for regular full-time

employees. The cost to cover eligible family members is $150.00 a month. Effective
on the first day of the calendar month following 30 days of employment.

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VISION REIMBURSEMENT A $400 allotment per family, per year, for glasses, contacts,
and examination. Paid at 80%. Effective on the first day of the calendar month
following 30 days of employment. LIFE INSURANCE MICO provides regular full-time
employees with a life insurance policy equal to the employees’ annual salary (not
to exceed $50,000). Effective on the first day of the calendar month following 30
days of employment. SUPPLEMENTAL LIFE & AD & D Optional additional life insurance
is offered to the employee, spouse and dependent children. Premiums are paid by
the employee. Effective on the first day of the calendar month following 30 days
of employment. PROFIT SHARING PROGRAM After 24 months of continuous employment at
MICO, employees are fully vested and eligible to participate in the MICO Profit
Sharing Plan. This benefit is 100% funded by MICO and based on company
profitability. 401K Voluntary employee retirement program which provides the
employees with the opportunity to invest in their future retirement by using “pre-
tax dollars”. All new employees are enrolled automatically at a 2% employee
contribution UNLESS THE EMPLOYEE CHOOSES NOT TO PARTICIPATE. Effective on the
first day of the calendar month following 30 days of employment. VACATION Vacation
time is on an accrual system in which your initial accrual is 3.67 hours per pay
period. The accrual rate equals two weeks of paid vacation per year and increases
with longevity of service

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SICK Sick time is on an accrual system in which you can earn up to five sick days
a year or forty hours. Sick time can be used for you or a dependent. EDUCATIONAL
ASSISTANCE MICO supports and recognizes the value of continuous learning. Upon
manager approval, MICO will reimburse employees for books and tuition up to 100%
with proof of course completion and a passing grade of a “C” or higher. This
benefit normally requires a reimbursement agreement should the employee
voluntarily terminate their employment within 2-3 years of receiving the
Educational Assistance. Effective on the first day of the calendar month following
30 days of employment. DIRECT DEPOSIT MICO will electronically deposit (bi-weekly)
your payroll earnings into your checking or savings account of your choice. MICO
CREDIT UNION As a MICO employee, you and your immediate family members are
eligible to join the MICO Credit Union. The MICO Credit Union offers low interest
loans and savings accounts. EMPLOYEE ASSISTANCE PROGRAM (EAP) The MICO Employee
Assistance program is available to all employees and anyone residing in their
household. The EAP is a confidential and free service offered to those who are
having problems and need assistance finding the resources they need.
NURSE/WELLNESS LINE MICO provides access to a free / confidential nurse line 24
hours a day 7 days a week. The nurse line is available to all MICO employees and
individuals residing or visiting the employees’ home. The nurse line is staffed
with professional registered nurses.

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SHORT TERM DISABILITY MICO provides all regular full-time employees with a no
premium short-term disability policy. The short-term disability will pay 60% of
your gross earnings up to 26 weeks for nonwork related illness or injury LONG TERM
DISABILITY In the event that you become disabled, MICO offers voluntary long-term
disability benefits. Premiums are based on two factors; the employees annual
salary and employees age. Premiums are paid by the employee.

RESEARCH AND DEVELOPMENT

MICO has a strong focus on R&D, and spends about 2-3 per cent of its turnover in
this area. The company is responsible for developing certain products like Single
Cylinder Pumps, Multi-Cylinder Pumps and mechanical Distributor Pumps for the
entire Bosch group globally.

Besides the R&D expenditure incurred by Bosch, the company spends a significant
part of its revenue in developing new products for domestic and international
markets. With Bosch, MICO has developed excellent R&D and manufacturing
capabilities, which has helped build a strong customer base and establish market
leadership through the high quality of its technology and products. “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 entire Bosch Group.
It is the first of its kind in India and Bosch Group’s first outside Europe.” MICO
is a global development centre for Bosch, and carries out the following
activities: • Design & development of new products, from concept to manufacturing
• Manufacture and testing of proto samples
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• Reliability testing • Product quality improvements and rationalisation •
Technical co-ordination with other manufacturing locations, in respect of quality
and warranty It also offers solutions to vehicle and engine manufacturers in the
application of Electronic Diesel Control and Petrol Injection Systems. It has the
global responsibility of developing certain products like single cylinder pumps,
multi-cylinder pumps and mechanical distributor pumps for the entire Bosch group.
The R&D centre is located in Bangalore and is managed by 200 engineers and 40
support staff. The company invested nearly US$ 8 million in R&D, constituting
about 2.3 per cent of total turnover during the year 2001. Facilities in R&D
    

Engine Test Cells for emission, performance and endurance High Precision
Calibration Test Benches Injector Testing Reliability and Metallurgical Testing
Computer Aided Design

Developments in the Application Centre As a step towards meeting customer needs

with the change in the emission scenario, a fullfledged application test facility,
for electronic diesel control, petrol injection, spark plug and auto electrical
products, is housed in the new Application Centre. Set up primarily to cater to
the requirements of the Indian auto manufacturers, this new setup is a perfect
test bed for manufacturers looking to upgrade their products with great attention
to detail. Facilities include –


Engine Testing dynamometer

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        

Chassis Dynamometer (vehicle testing) High-precision calibration test benches

Spark plug testing Starter motor testing Alternator testing Vibration testing Glow
plug testing Climatic testing Instrumentation lab

REWARD SYSTEMS

MICO Bosch follows a department based reward system where targets are set
department wise and if the department is able to achieve the set targets then they
are rewarded bonus or something. For example, if production department is able to
produce more parts than the target in lesser time they are rewarded. Similarly,
for other departments like research department, quality control department.

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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.

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Opportunities   

Continuous innovation of products. Produce innovative products The Indian

automotive segment is growing in excess of 40% annually and is being flushed with
a 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.

Launch of TATA Nano – Bosch has an opportunity with the launch of the TATA Nano
car as Bosch is the supplier of the engine and the braking system of the car. If
the car is a hit in the market it would help Bosch to develop and to improve
similar type products.

 

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.

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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.

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