Вы находитесь на странице: 1из 13


Marketing is "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." For business to consumer marketing it is "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return". For business to business marketing it is creating value, solutions, and relationships either short term or long term with a company or brand. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.


The customer is the measure of all things at the Schaeffler Group We see our own success in the success of our customers. This means that our sales activities are shaped by the idea of partnership with our customers. We focus on providing the highest possible level of customer service, and above all, comprehensive technical and commercial support. Finding contacts wherever you are in the world Our worldwide presence, be it as a national company, regional office, or technical representatives ensures constant communication with our customers and therefore the basis for processing their requests without delay. Partnership is firmly rooted throughout the organization We believe that by being engineering and service partners, we can help our customers be successful. We want to achieve the best possible results together with our customers. Last but not least, this is reflected in the internal organization. Our structure, which includes our Automotive, Industrial and Distribution divisions as well as further subdivision into sectors is our response to market requirements for speed and flexibility. Questions, information, requirements and requests from our customers quickly reach those persons who can deal with the issues raised as quickly as possible and make the necessary decisions.

We are proud of our role as a system and engineering partner and that we are constantly able to inspire our customers with new ideas and outstanding products. One guarantee of success are suppliers who share our views. We work together, continuously optimizing our products and modules, taking on board innovative ideas, testing our cost structure and thereby jointly securing our outstanding position on the market. With our suppliers, we strive for top class performance on behalf of our customers Our efforts are fuelled by our superb customer orientation and our aim to optimize both product quality and supply performance for our customers in the automotive industry. International purchasing within our company group takes into account the stringent demands our customers make of us. It is ultimately responsible for the excellent quality of our international relationships. Partnership as a basis for a dynamic relationship with our suppliers We select suppliers according to objective and sustainable criteria and continually evaluate supply performance on the basis of transparent criteria. The willingness of our partners to innovate means ongoing product optimization. This both secures and expands our competitiveness in terms of function, quality and price. We are a fair, high performing partner to our customers - we expect the same commitment from our partners in the procurement market around the world.

Major Customers
Bajaj Maruti Suzuki TATA Honda Ford General Motors Yamaha Ashok Leyland Sail Reliance Indian Railways Essar Ambuja cement GEB Jindal TRUMAC

Market Strategy
Carrying out strategy analysis and preparation of alternative strategies. Development of future sceneries and alternative strategies. FAG forecasts the future view of the industry and always tries to work out with the new technology to achieve the organizational goals. Implementing proper suitable methods and process and training them with Indian craftsmanship is the way how FAG works. Employees are also provided special training programme, to get equipped with new technology. Workshops and seminars are also conducted for the same.

Marketing Research
Environment analysis (customers,competitors,boundary conditions) Overlapping potential analysis Providing market data and information for segment specific marketing concepts Developing forecasts Creating an enterprise wide common market view through market report.

Market Segmentation
FAG India has divided the market for its bearing into seven key segments on the basis for the division is the size of the market in terms of value, the nature of the bearings required and whether the bearings are directly imported of manufactured in Baroda. OEM (original equipment manufacturer): An OEM can be defined as the maker of equipment marketed by another vendor, usually under the name of the reseller. The OEM may make only certain components or complete devices; FAG becomes an OEM by virtue of supplying bearings to various industries. This segment consists of 125 customers, out of whom about 100 are regular and the remaining is recurring or irregular customers.

Trade: This segment is also called the aftermarket segment. It caters to the final customer through the wide network of dealers and distributers across the country and the world. The trade segment also includes the market for replacement of bearings, especially in the automobile sector. This is the 2 nd largest segment of FAG India.

Railways: On account of the huge value of turnover that comes from the railways. It has been assigned a separate segment at FAG. The railways are provided with bearings that are manufactured domestically or locally in Baroda. These are termed self manufactured products or SMP, the rest are imported from Germany.

FOR: This segment is for those customers to whom FAG supplies bearings manufactured in Germany and not in Baroda. A warehouse in Bajwa in Gujarat has been specially to hold these imported bearings. FAG India merely trades in these bearings, it does not manufacture them.

FOB: Some bearings are directly shipped from Germany to the customers, under the brand FAG India. This fall under the segment of FOB. Such direct dispatch occurs because of customized and highly specialized customer requirements and transportation and storage problems. Exports: FAG does not export to customers, rather its export consists of selling the bearings manufactured in Baroda to FAG worldwide especially Germany.

Others: This is the miscellaneous segment and consists of customers who do not fall in the six categories mentioned above.

all those

FAG does not have heavy focus on advertisement, it does not advertise its products by electronic media, nor through newspapers as it is not consumer goods manufacturing firm. But it is surely making its presence felt in the bearings industry. It is one of the leading companies in the bearings industry. FAG has been sponsoring sign boards for Baroda. It displays its products through technological fairs. Distribution of pens and booklets Posters, calendars etc.

However the advertisement expenditure of FAG is almost NIL.

Packaging at FAG differs from the type of customers. Trade customers The goods needed is small in quantity. So the bearings are first packed in individual pouches, which are sealed at the plant. The individual pouches, are then packed into individual cartons. These cartons are then packed into a small box called as a B-pack which can hold a specific no. of goods. The final order is transported through corrugated boxes, which may contain three or four of Bpacks.

OEM customers These customers require a large quantity of bearings. They are supplied bearings in big corrugated boxes that can hold around 200 bearings. These boxes can hold a minimum of four bearings and a maximum of 288-295 bearings, depending upon the size and weight.

Sales procedure
In the bearings industry as in every other market for industrial products, the customer first comes with the enquiry for the products. The application engineering department personnel is sent to study the requirements of the customer. If the customer requires a standard product for which the costing is already in place. As the costs are already known, the negotiations for the final price start. FAG initially starts at a higher price and then after the negotiations it arrives at a lower price, by mutual agreement. If it is customized product costing has to be carried out first. The costing personnel determines the cost first keeping in mind the need for any additional tooling or competency or machinery that is required to manufacture the customized product. The final cost is determined by adding all the overheads that will be incurred for manufacturing to the customized product. Thereafter, the offer is sent to the customer after, which negotiations start, to arrive at a final price. Brands INA, FAG and LuK have stood over decades for innovative strength, quality and reliability. At more than 180 locations, approximately 70,000 employees achieve annual sales of over 9.5 billion Euros worldwide (2010).

Company strategies to cope with competition

FAG sets standards for performance delivery FAG systematically observes all relevant demands and technological trends. IT enters into development, sales and logistics partnerships with key customers. Consistent customer orientation, innovative energy and competence in problem solving secure FAGs market position. It improves its own market attractiveness, market supply and cost structure through global sourcing and a systematic supplier development. In order to strengthen its competitive position, FAG complements its investment program with selected acquisitions and strategic partnership; it continuously improves the value added process and consistently directs its business process to the customer. FAG concentrates in selected business areas on expansion and on achieving a leading position in the field of competition.

Channels of distribution

The company has its reserve pool-sellers who are also the regular buyers of the ball bearings directly from the company. These companies are given the required bearings only if they are in position to buy the bearings in bulk. The company sells its products directly from the company, only if the buyer company is able to buy the products up to the amount limit as decided by the company. These wholesalers then distribute the products to retailers who sell them to the local users. The company sells its product to the wholesalers, who sell these products to the retailers. The company recognizes these retailers all over the country and certifies them. These retailers sell the different types of bearings to the end users through the local buyers i.e. mechanics, machine repairs etc. These bearings from the retailers who use them in the machines of vehicles, machines used in cement industries, machines in mining and cost station etc. and in this way the products reach the end users i.e. the public. Hence, one can say that the channel of distribution of FAG is simple. The company does not have large no. of wholesalers because the customers of the company are already predicted, at present the company has about 130 recognized wholesalers. Thus, the company does not have to produce too much for the wholesalers.

Pricing policy at FAG comes under two categories on the basis of its segments. 1. Pricing for the after-market segmentthe bearings in the trade segment are priced on the basis of the going rate for the same type of bearings by a price leader at that point of time. FAG follows price set bt SKF 2. Pricing for OEM segmentHere the prices are kept keeping in mind 3 key factors namely, o Customer demand o Type of products o competition

The following is the price list of a few products.

Bearing No. 16007 61902ZR 6302 QJ309C2 6308RO NU309EN 509043

MRP(Rs) 153.00 109.00 119.00 699.00 434.00 586.00 429.00