Saint Gobain Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: December 07, 2016
Marketing Strategy of Saint Gobain 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 Saint Gobain marketing mix, help the brand succeed.
Saint Gobain marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Saint Gobain Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Saint Gobain Product Strategy:
The product strategy and mix in Saint Gobain marketing strategy can be explained as follows:
Saint Gobain has three major business units Construction products, Building distribution and Innovative materials, which are covered in the marketing mix products strategy of the company. The construction products of the company include: acoustic and thermal insulation products, pipes, industrial and construction mortars, interior and exterior building solutions. The company's has many brands in the construction unit such as Saint Gobain Isover, Saint Gobain Ecophon, Weber, Artex, Saint Gobain PAM ,British Gypsum and Formula, Gyproc.
There are two product categories in the Innovative materials unit these are flat glass and high performance materials. The flat glass division produces, processes and supplies glass. The glass is used in building, automotive and transport industry. The high performance materials division provides high tech products required in construction, health and transport industry. Brands in the materials units are include Saint Gobain glass solutions, Saint Gobain Abrasives and Saint Gobain Adfors. Some of the brands in the company’s building distribution businesses are George Boyd, International Decorative Surfaces, Calders and Grandidge, Frazer.
Image: company website
Saint Gobain Price/Pricing Strategy:
Below is the pricing strategy in Saint Gobain marketing strategy:
Most of the company’s products are for business to business marketing (B2B) as they are directly used by businesses.
Pricing strategy in the marketing mix is therefore decided on individual contracts with negotiations between the company and buyers. Since most of Saint Gobain’s product offers are commodities the price is very sensitive to raw materials and market conditions. Price and therefore depend on the rise and fall in prices of raw materials and market conditions. Saint Gobain glass however focuses on superior quality and is therefore high end. In India Saint Gobain has utilixed the strategy of scale using latest technology and high capacity to reduce prices. In the Building Distribution Sector the company uses the best approaches to offer the best products at competitive prices. The best suppliers are chosen to provide high quality products at good prices.
Saint Gobain Place & Distribution Strategy:
Following is the distribution strategy in the Saint Gobain marketing mix:
In the building distribution unit, the company has a network of 1,000 sites which include specialist and general builders' merchants and distributors. In the Construction Products unit the company has almost 450 production and distribution sites. Saint Gobain is developing an integrated strategy of using ecommerce services. These services are supported by state-of-the-art logistics. The strategy incorporates real-time inventory checks by customers, the organization of logistics networks, and high speed of product delivery.
Saint Gobain’s network of distribution teams and supply services fully integrate the digital transformation.
Saint Gobain Promotion & Advertising Strategy:
The promotional and advertising strategy in the Saint Gobain marketing strategy is as follows:
Saint Gobain is one of the most visible brand in this market. Saint Gobain has a unique promotion strategy. Despite being in the B2B market the company has directly marketed itself to consumers and has heavily invested in brand building. Brand building has been done through a series of advertisement which made Saint Gobain a household name. with such a strategy the company has target the key decision makers that is the end users directly. The brand visibility has therefore increased resulting in better margins and higher market share. The campaigns has established Saint Gobain as a leader and highlighted its superior quality thereby to de commodizing the market to some extent. Saint Gobain has a large sales team which makes aggressive sales and customer calls. The company is increasing the amount spent on marketing and sales. This concludes the marketing mix of Saint Gobain.
About Saint Gobain:
Saint Gobain is a 350 years old a French multinational company. It is well known as a glass manufacturing company but also produces construction and high-performance materials. It employees nearly 190,000 and has operations in 64 countries. In 2013 the company reached sales of €42 billion. It is a very innovative company filing about 400 patents every year. The company has three major business units Construction products, Building distribution and Innovative materials. In Innovative materials it stands number one number 1 in Europe and number 2 worldwide and. It is number 1 in Building distribution in Europe. It is number one worldwide in Construction products and high performance materials.
The company is a component of the Euro Stoxx 50 stock market index. Top competitors of the company include Grafton Group plc, Travis Perkins plc, SIG plc and CRH plc.
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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