volvo penta -industrial marketing

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Introduction: Volvo Group

Volvo Group Swedish supplier of commercial vehicles

Founded in : 1927 by SK F

Headquarters : Gothenburg, Sweden

Key people : Finn Johnsson (Chairman of the board), Leif 

Johansson (President and CEO)

Revenue: SEK 303,667 million (2008) {Rs.21 lacs mn} Profit : SEK 9,942 million (2008) {Rs.70k million}

Employees : 101,400 (2008)

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 MUNCHEN INTERNATIONAL BUSINESS SCHOOL 

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About Volvo Penta

Founded in : 1907

Subsidiary of Volvo Group

Provides engines and complete power systems to leisure

 boats, workboats, power-generating equipment and similar industrial applications

Has written marine history through a number of pioneering

innovations, such as :

i) Sterndriveii) Counter rotating propellers

iii) Duoprop

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Supplier of industrial engines for stationary and

off-road applications and engines for the electrical

 power generation

Key factors of choosing Penta: Technical quality,

reliability and worldwide support

 Network of qualified and skilled service dealers

Nature of Industrial Marketing

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Industrial MarketsAnd Environment

Volvo Penta is a µcommercial enterprise¶ which

mainly has institutional customers

Products majorly includes Capital items, i.e. heavy

machinery, engines, etc

Services provided by Volvo Penta

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Industrial MarketsAnd Environment

It has production plants around the world

Wholly owned plants in Vara, Sweden for production of 3to 5

litre diesel engines

Has plants in Lexington, Tennessee, USA, for production of 

all gasoline engines

A major part diesel engines are manufactured at Volvo´s

common engine plant in Skövde, Sweden

Final assembling of diesel engines done in China

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6 - 16 litres Industrial Range

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Commercial Engines:

Aker Aukra, Norway

Anytec Marine, Sweden Armon Shipyard, Spain

Cantiere Navale di Pesaro, Italy

Codecasadue Spa, Italy

Dockstavarvet, Sweden

Factorias Vulcano, Spain

Customers

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Leisure Engines:

Astondoa, Spain

Bavaria, Germany

Bella-Veneet, Finland

Beneteau, France

Botnia Marine, Finland

Chantiers Jeanneau, France Cranchi, Italy

Dufour Yachts, France

Customers

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Industrial Customers:

CVS, Italy

F

antuzzi,I

taly Kalmar Industries,Sweden

Svetruck, Sweden

Terberg, Netherlands

VTA, Tekniikka Finland

Customers

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Power Generators:

Allam Marine, UK 

Atlas Copco, Sweden

Ausonia, Italy

CTM, Italy

Electra Molins, Spain

Hitzinger, Austria Onis Visa, Italy

Pramac, Italy

Customers

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Environmental Commitment

State-of-the-art engines that deliver more

 performance and less environmental impact.

Revolutionary propulsion systems that offer a better 

 boating experience and a dramatic cut in CO2

emissions.

Smart accessories that enable eco-driving.

Manufacturing in environmentally certified (ISO14001) world-class production facilities

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Buyer Seller Relationship

Seller direct relationship

Buyer direct relationship

Consolidator relationship

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Seller direct relationship

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Consolidator relationship

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On a Macro level, the segmentation is based on

marine applications and industrial application

The valve guides utilize corrosion resistant

construction

The water pumps are intended for a marine

operating environment (seals and bearings)

The overall duty cycle of a marine engine is verydifferent than that of an industry application

Industrial Market Segmentation

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On a Micro level, segmentation is based on :

Customer Interaction needs

Purchasing Policies

Personal Characteristics

Industrial Market Segmentation

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27/10/09- Supplier to 22 passenger ferries being

 built for the World Expo in Shanghai

4/11/09 - Formula 1 with Volvo Penta diesel power 

19/11/09 -Whale watchers choose Volvo Penta

Product StrategyAnd Product Development

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EU Stage 3B and EPA Tier 4 Interim emission

regulations : effective across the power range 130-

515 kW

Emission regulations demand a reduction of 90%

 particulate matter (PM) and 45% nitrogen oxides

(NOx)

Ready for 2011

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Industrial Distribution Channels

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Sales

(Rs.47586)

(Rs.18718)

(Rs.1918)

(Rs.11368)(Rs.2443)

(Rs.82033)

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This includes :

Advertising through print media, trade journals,etc

Sales Promotion

Direct Marketing

Relationship Marketing

Industrial Communication

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Skimming Strategy

Geographical Pricing

Industrial Pricing Strategy

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Prices of Different Items

$90

(Rs.4230)

$76

(Rs.3572)

$159

(Rs.7473)

$1900

(Rs.89300)

$944

(Rs.44368)

$697

(Rs.32759)

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www.volvo.com

www.anachron.com

http://europa.eu.int/eur-lex

http://cebp.nacha.org

http://www.nea.nu

www.opinion.sifo.se

Industrial Marketing-Krishna K Havaldar 

Bibliography

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