ESMT Case Study

ESMT Case Study-
 AMAN SINGH
 ARVIND KUMAR PATEL
 ABHISHEK ANAND
 AMAR RAJ
 MANISHANKAR PANDEY
The five stages of Marketing Strategy Process of Bosch Lpv are -
Step 1 - Marketing Research & Analysis

Step 2 - Segmentation, Targeting & Positioning Decisions
Step 3 - Marketing Plan
Step 4 - Designing a Marketing Mix using 4Ps - Product, Price, Place & Promotion
Step 5 - Sustaining Value through Post Purchase Services
Step 1 - Marketing Research and Analysis
The 5C Marketing Analysis framework comprises –

Customers Needs– What are the needs that Bosch Lpv seek to satisfy. Who are the present customers
and who are the potential customers for the new product or service.
Company – What are the resources and special skills that Bosch Lpv needs to possess to create
products that can fulfil the needs of the prospective customers. Check out the detailed SWOT Analysis
for Bosch Lpv on the following page.
Competitors – Who are the competitors in the target market and what value proposition they are
offering in the market place. Do they possess enough financial and knowledge resources to develop
new products to compete with Bosch Lpv.
Collaborators – What sort of supply chain and value chain partners Bosch Lpv needs to develop and
deliver new product to final consumer. What are the respective bargaining powers of value chain
partners.
Context – What are the macro and micro environment factors that impacts the business environment
in which Bosch Lpv operates in. You can check out PESTEL analysis of Bosch Lpv in greater detail on
the following page.
Step 2- Selecting Target Customer Segment
It requires three steps –

Segmentation
Market segmentation is the process through which marketing managers at Bosch Lpv can divide the
large market into smaller segments based on distinct needs, characteristics, or consumer behaviour.
Bosch Lpv can do segmentation based on following criteria – geographic, demographic, usage, user
status, income, lifestyle, value proposition priorities, benefits sought, loyalty status, gender, social
class, self-perception, psychographic factors, and other attitudes.
One of the most widely used multivariate segmentation system is – PRIZM, developed by Caritas. It is
widely used by various marketing and advertising agencies. It comprises 68 customer segments based
on the US Household Purchasing Preferences data.
Targeting
Once the overall market is divided into various segments then Bosch Lpv needs to choose a target
segment or few target segments. The key is not to be everything to everybody as the products can
only deliver specific value proposition.
Conducting a Segment Attractiveness Analysis
First step in the targeting process is to conduct a Segment Attractiveness Analysis. Under the Segment
Attractiveness Analysis all the segments are evaluated based on the following criteria –
Mode of competition and business models – Sometimes the way competitors compete shape the
whole landscape of an industry. For example email can easily be - paid product- , but organizations
chose to make it free products to increase customer base and lure in advertisers. So if Bosch Lpv is
trying to enter a segment where revenue from other division is financing the core service then it has
to build a requisite business model where revenue is driven by an adjacent or related product and
service.
Profitability in various segments – Some segments often have higher margins compare to another
as explained in the automobile industry example above.
Customer behaviour and loyalty analysis – How customers are behaving in each segment and are
there opportunities of over lapping. Loyalty behaviour analysis is also a critical factor in analyzing the
conversion rate if the Bosch Lpv core strategy is based on attracting existing players’ customers.
Differentiation & Positioning

Differentiation process involves how Bosch Lpv is differentiating its products and services in the
market place compare to its competitors. Positioning is the position of the brand or Bosch Lpv
products in minds of target customers – based on distinctive features, qualities and functions.
The differentiation and positioning task at Bosch Lpv require marketing managers to do -
Identify competitive advantage or unique value proposition on which position the brand in the mind
of the consumers.
Choose competitive advantages that are most compatible with Bosch Lpv marketing strategy.
Marketing managers at Bosch Lpv can make perceptual maps to better understand competitive
positioning of various brands in the market place.
Finally Positioning the brand as a deliverer of superior value to the target segment and effectively
communicating that position to consumers using marketing mix and promotion mix.
Step 3- Making a Marketing Plan
1. Objectives of the Marketing Plan : There are various objectives for which Bosch Lpv marketing
managers can make marketing plan – New product launch, repositioning of existing brand, targeting
new customer segment, entering international markets etc.
2. Marketing and financial goals and objectives: The second step is to correctly assess how much
financial resources will be required to execute the marketing plan. It involves resources spent from
product development to building a communication strategy mix.
3. Marketing mix: Building a marketing mix based on the marketing plan objectives and limitations
imposed upon it by the financial resources.
4. Marketing budget: Budget each prospective activity that will be under taken under marketing mix
strategy.
5. Monitoring and evaluating performance: Carefully monitor each marketing mix activity and analyze
the target performance with the actual performance. Which media vehicles are performing better
compare to others etc. This will help in making changes and adaptation as we go along.
Step 4 – 4P’
Bosch Lpv should closely adopt the Four Ps of Marketing mix in accordance with trends and forces in
Bosch Lpv ’s marketing environment.
Product - Understand the deep-seated drivers of perceptions and behaviour of consumers and
develop a product that appeal to those drivers.
Place – Evaluate the buying behaviour and distribution channel costs to make a channel decision.
Promotion - Engage with customers through use cases and benefits instead of functionalities and
features. Communication should be focused on experience rather than product features.
Price – Price is often determined by marketing strategy, cost structure of the company, competitive
positioning of firm, brand positioning, and various other factors. If the business model is built on
conversion of existing customers then Bosch Lpv needs to arrive at a price through research at which
the present customers are willing to switch to a new brand.
Step 5 - Post Purchase Services – Sustaining Value
. Post purchase services are critical to foster loyalty among the customers. Various ways in which
Bosch Lpv can improve the post purchase experience of the existing customers –
 Providing product care tips.

 Providing regular maintenance services and spare parts, if the customer needs them.
 Providing installation and other related services.
 Taking regular feedback from customers and asking them how certain features can be
enhanced.
 Building communities where customers can share experience and help other customers.
 Post purchase services are critical not only to foster loyalty among the customers but also to
get continuous feedback and improve the products.

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ESMT Case Study-

The five stages of Marketing Strategy Process of Bosch Lpv are -

Step 1 - Marketing Research & Analysis

Step 1 - Marketing Research and Analysis

The 5C Marketing Analysis framework comprises –

Step 2- Selecting Target Customer Segment

It requires three steps –

Conducting a Segment Attractiveness Analysis

Differentiation & Positioning

Step 3- Making a Marketing Plan

Step 5 - Post Purchase Services – Sustaining Value

 Providing product care tips.

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