Marketing Strategy of Honeywell analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Honeywell marketing mix, help the brand succeed in the market. Let us start the Honeywell Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Honeywell marketing strategy can be explained as follows:
Honeywell serves customers all over the world. It offers aerospace products and services, automotive products, electronic products, personal safety, consumer home, turbochargers, advanced materials and specialty chemicals, which are part of its marketing mix product strategy. It also offers process technology for refining and petrochemicals and energy efficient products. The company has three main business segments: aerospace; automation and control solutions; and performance materials and technologies (PMT). The aerospace segment manufactures aircraft engines, integrated avionics, systems and service solutions, and related products and services which are used for commercial aircraft manufacturers and operators as well as by defence and space contractors.
Turbochargers are produced by this segment which increase the efficiency of commercial and passenger cars.
The aerospace products and services of Honeywell include: auxiliary power units, propulsion engines, environmental control systems, electric power systems, engine controls, flight safety, communications, navigation and much more
The automation and control solutions: environmental and combustion controls, sensing controls, security and life safety products, scanning and mobility devices, building solutions and services for homes, buildings and industrial facilities and much more. Honeywell also offers automation and control solutions to industry.
The PMT segment of Honeywell develops advanced materials, process technologies and automation solutions. PMT's business segment provides products and solutions for production of gasoline, diesel, jet fuel, petrochemicals and renewable fuels. PMT's process solutions business is involved in automation control, instrumentation and services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals andpetrochemicals, biofuels, etc
Honeywell Price/Pricing Strategy:
Below is the pricing strategy in Honeywell marketing strategy:
Honeywell follows competitive pricing as a part of its marketing mix strategy. Operational profit has increased in all segments which is driven by favourable pricing and productivity.
The company competes on different factors and one of them is price. There is considerable price competition with General Electric and 3M. Costs of Honeywell products are sensitive to raw material price fluctuations but the company but the impact is not passed on through to consumers. The company achieves this through long-term supply agreements, price increases and hedging activities where feasible.
Following is the distribution strategy in the Honeywell marketing mix:
Honeywell manufactures and sells products in the the US, Europe, Canada, Asia, and Latin America. Honeywell produces consumers and commercial products therefore they are sold in retail and directly through the company dealerships. Honeywell has partnered with many distribution partners improve its distribution all over the world. These distributors enhance the distribution system and increase sales and customer satisfaction. For example, Pro-Lab Laboratory Teknolojileri distributes high-purity solvents in Turkey. In 2011 Honeywell company signed a distribution agreement with aerospace services supplier, Global Aerospace Logistics (GAL) to provide Honeywell's UAE defense customers with spares and technical support.
Honeywell provides a lot of training, support and marketing material to its residential and commercial Distributors.
Honeywell Promotion & Advertising Strategy:
The promotional and advertising strategy in the Honeywell marketing strategy is as follows:
Honeywell has both consumer and business customers hence it has B2B and B2C marketing strategies. To improve the B2B marketing Honeywell launched the Honeywell User Experience. The system examines the pathway of the product including user experience. The marketing teams analyse market trends and find out the needs and specific wants of customers. Honeywell engages in observational research to see how customers perceive their products. Honeywell User Experience seeks to enhance user experience as well as reduce costs. Honeywell provides its distributors a lot of training and support. Marketing material such as ads, presentations and other marketing tools are provided. Honeywell the Honeywell Academy in which the employees are taught marketing. The service team also has to be competent in marketing has all sales after the first sale are made by them. For B2C marketing Honeywell advertises on tv and magazines. Many of its brands are well known. Hence, this completes the Honeywell marketing mix.
Honeywell International Inc. is an American multinational conglomerate. It produces a diverse range of commercial and consumer products. The company offers aerospace products, consumer home, personal safety and vehicle products among many others. The Honeywell company is headquartered in Morris, New Jersey. it operates in about 70 countries with 1300 sites and more than 129000 employees. It is a fortune 100 company. It was ranked 75th in Fortune 500 in 2016. The company earned revenues of $38,581 million in 2015.
Honeywell has a diverse portfolio and earns balanced revenues. It invests heavily in research and development.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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