Bosch – home appliance Case Study in International Segmentation and Brand Positioning Strategy1
Ing. Markéta Lhotáková Ph.D. PRAGUE UNIVERSITY OF ECONOMICS
Faculty of International Relationships
Introduction Bosch und Siemens Hausgeräte (BSHG) is an international company, which manages large portfolio of brands of home appliances. Majority of them are regional and national brands, but there are 4 major brands with international presence – Bosch, Siemens, Neff, and Gaggenau. BSHG belongs to the most successful producers on the market. Its long-termstrategy is based on technical and technological improvements and on multi-brand strategy, which targets different groups of consumers with different brands and through them different products. Two major traditional German producers Siemens AG and Robert Bosch GmbH have founded the company in 1967 as a joint venture, each of them owning 50% share in the company. At that time the company had three production locations in Germany, producing 3 brands of home appliances – Bosch, Siemens and Constructa. Majority of the business was focused on its home market with some export activities around Europe and total yearly turnover of 0,51 Billion Euro. Since then, the company has gone a long way in development, enlargement and internationalisation and it become one of the leading world manufacturers of home appliances. The international expansion of the company has started in 1976 with its entry into Greek home appliances company Pitsos, which included an acquisition of the production site in Greece. In 1982, BSH took over a German competition brand Neff. In 1988, BSH expanded to the Spanish market by acquiring a local producer Balay and gained three local brands Balay, LYNX and Superset at once. The last decade of the 20th century was the time of a major international expansion of the company. In 1990 BSH had 13 manufacturing sites in 3 countries in which home appliances of 5 brands were produced and yearly turnover of 3,3 billion EUR was achieved. In 2002 had BSH already 40 factories in 15 countries around the world and achieving 6,1 billion EUR turnover This case was prepared by Ing. Markéta Lhotáková Ph.D. as the basis for class discussion rather than to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Copyright ©2009, University of Economics, Prague, Faculty of International Relationships. To order copies or request permission to reprodukce material, email to email@example.com. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the permission of the University of Economics, Prague, Faculty of Intetnational Relationships 1
Bosch is a traditional German brand of technical products ranging from home appliances through automobile parts to industrial electronic systems. In the home appliance market it is one of the leading brands globally and the market leader in Europe. Despite this relative strength, its absolute market position on global home appliance market is not particularly strong. Value market share of 9,3% Europe wide indicates that the market is quite fragmented and there is still large potential for market share and sales growth. But significant changes on long established markets are only possible with solid plans and sound strategies, based on brand equity building. This was one of the reasons why global brand manager was assigned a task to develop new brand strategy for Bosch home appliance. The target was to analyze current market situation of Bosch and other competitors and develop a new strategic brand plan aiming at improving the brand image and market share growth across Western Europe and, if successful, in other European as well as nonEuropean countries. One of the major pillars of such strategy is clear positioning of the brand...
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