Published by MBA Skool Team, Last Updated: December 07, 2016
Marketing Strategy of ArcelorMittal analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on ArcelorMittal marketing mix, help the brand succeed.
ArcelorMittal marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the ArcelorMittal Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
ArcelorMittal Product Strategy:
The product strategy and mix in ArcelorMittal marketing strategy can be explained as follows:
ArcelorMittal produces a broad range of high-quality semi-finished, finished stainless steel and carbon steel products. The products in the marketing mix can be understood by studying the following sectors:
Construction- ArcelorMittal produces construction solutions including, beams, flooring bridge girders, rebar, roofing, steel fibres, cladding and walling, as well as creative façades Coques MD, Ecaille Gascogne, Caiman and Arguin. ArcelorMittal also supplies complete construction solutions, such as Styltech® residential Light Steel Frames, Angelina™ cellular beams and GlobalFloor® flooring
Shipping and logistics- Provides competitive shipping solutions and excellent customer service. ArcelorMittal not only provides freight and cargo services to customers but also offers legal and contractual knowledge of the maritime industry, cargo and port handling expertise, and makes sure that the supply chain from sea to land is as efficient as possible.
Automotive- ArcelorMittal is a technology leader in advanced high-strength, galvanized and coated steel products that are used in the manufacturing of trucks, cars and vans.
Domestic appliances - produces a specific range of flat steel products such as steel strips, plates and sheets for use in a wide variety of appliances, including ovens and refrigerators to optimize technical performance.
Steel for energy- ArcelorMittal supplies the energy sector with a wide range of high-performance steel products & services in a variety of industries, including gas and oil exploration and transport, storage, refining, and production, as well as in the renewable, nuclear and thermal energy industries.
Transport- provides steel for a range of industries within transport industry, from cable cars, to rails, to shipbuilding.
Maritime- ArcelorMittal supplies steel plates used to build all varieties of ships, like general cargo carriers, container ships, offshore drilling platforms, large tank ships and cruise ships enabling transportation of liquefied natural gas (LNG).
Rail- produces steel products for both railway tracks and trains
Packaging- ArcelorMittal in the steel for packaging market serves customers worldwide with a wide range of products for food, aerosol, drink and decorative or industrial cans, along with easy to open ends and caps.
By-product sales- Uses and resale the by-products generated during the steelmaking process.
Image: company website
ArcelorMittal Price/Pricing Strategy:
Below is the pricing strategy in ArcelorMittal marketing strategy:
ArcelorMittal runs a “management gains program” to optimize the cost in which annual savings has been targeted, where both variable and fixed costs are controlled and it has also rationalized the capital expenditure by focusing more on maintaining the existing plants rather than on expansions.
The marketing mix pricing strategy for ArcelorMittal is dependent on various factors like sector, competition, demand, global policies of governments etc. Being a conglomerate, the brand is a market leader in some sectors and follows competitor pricing in some sectors.
Following is the distribution strategy in the ArcelorMittal marketing mix:
ArcelorMittal has steel-making operations in 20 countries on 4 continents, including 65, mini-mill and mini-mill steel-making facilities. Approximately 35% of its steel is produced in the America, approximately 46% is produced in Europe and approximately 19% is produced in countries like Algeria, Morocco, Kazakhstan, Ukraine and South Africa.
• operates own fleet of ships, time charter, leased ships, spot fixtures and contracts to transport raw materials and finished products to steel plants and customers.
• ArcelorMittal developed distribution network in selected geographic regions to have better market intelligence to accordingly manage inventories in the supply chain and reduce volatility and improve working capital management.
• expand production in developing markets, leveraging off experience in developed markets.
• Shared service centers to provide business support system across the company.
Using standardized business processes for high-volume, low-value transactions, the centers’ work benefits both internal and external stakeholders
• ArcelorMittal’s shared service centers form a worldwide network for providing back-office transaction services incorporating procurement, legal, financial and payroll services.
ArcelorMittal Promotion & Advertising Strategy:
The promotional and advertising strategy in the ArcelorMittal marketing strategy is as follows:
Arcelor, the French steel manufacturer and Mittal steel, the Indian giant merged to form ArcelorMittal, the present market leader in industrial steel production. However, post the merger also, the product offerings of the group have been like the earlier portfolio. Moreover, the promotion strategy has also been quite unchanged. The organization uses its extensive client base to promote its range of products. It has long term business relationships with major manufacturing units across the globe including ThyssunKrup etc. such relationships help to promote the product and improve overall sales. Hence, this concludes the marketing mix for ArcelorMittal.
ArcelorMittal (successor to Mittal Steel) was founded in 1976 by Mr. LN Mittal, the CEO and chairman of the board of directors.
It is the world’s largest steel manufacturer with industrial presence in 22 countries spread across four continents and 119 million tons of annual capacity. At present the ArcelorMittal company operates globally with market capitalization of $24 billion, though it started with very modest operations.
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