Marketing Strategy of Berkshire Hathaway analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Berkshire Hathaway marketing mix, help the brand succeed in the market. Let us start the Berkshire Hathaway Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Berkshire Hathaway marketing strategy can be explained as follows:
Berkshire Hathaway is a holding company. All its subsidiaries offer a wide range of products. The company owns Net Jets, BNSF, GEICO, Dairy Queen, Fruit of the Loom, Lubrizol and Flight Safety. Government Employees Insurance Company(GEICO) offers vehicle insurance, property insurance, business insurance and additional insurance to the customers. It is most important part of the owning company Berkshire Hathaway. GEICO has subsidiaries working for insurance of government employees- Insurance, Indemnity, casualty, Marine and Advantage. Also, they offer automobile insurance in US. General Re Corporation- offers insurance and reinsurance coverage worldwide.
They offer products through individual product division and group and specialty division. The company is also offering services in railway and logistics. Mc Lane, another subsidiary of the company; offers groceries and non-food items in US to customer through stores, retailers and wholesalers. Mc Lane offers its services to Walmart through grocery, food service and beverage distribution. The company also offer service business to aviation programs, media related and logistic business. Integrated manufacturing housing and finance, furniture leasing, leasing of transportation equipment are also offered by company under the Financial products range. Berkshire Hathaway offers wide range of products in its marketing mix strategy by understanding what the customer wants.
Image: company website
Berkshire Hathaway Price/Pricing Strategy:
Below is the pricing strategy in Berkshire Hathaway marketing strategy:
Berkshire Hathaway is one of the leading financial institutions of the world, catering to the needs of millions of people. Price is one of most important marketing mix strategy as it directly affects organization ability to compete.
The existing and potential competition in market pushes the company to select a price strategy as the pricing decision provides new opportunities and brings new possibilities. Berkshire offers wide range of products in a dynamic market, thus price policies changes as per the market requirement. The net worth of Berkshire during 2015 was $15.4 Billion. The company chooses low price policy to meet the requirement of 14 million policyholders at GEICO. Berkshire Hathaway claims to have $84.80 billion of cash at the end of third quarter of 2016. The company has successfully acquired many subsidiaries and is exponentially growing.
Following is the distribution strategy in the Berkshire Hathaway marketing mix:
Berkshire Hathaway aims to reach its customers at affordable price. The company’s headquarters are situated in in Omaha, Nebraska, United States. They serve worldwide through its huge number of fully owned subsidiary Acme Brick, Boat US, Dairy Queen, Fruit of the Loom, GEICO, Forest River and many more.
The company serves in the insurance industry mainly in America.
The promotional and advertising strategy in the Berkshire Hathaway marketing strategy is as follows:
Berkshire Hathaway uses numerous promotional activities for the wide range of product they offer under its brand name. Company actively uses social media platforms to offer discounts on consumer goods, furniture, Jewelry and other product and services. They also use print media, TV commercials – Home services and Moving (2016) to advertise their offerings to reach the target customer. The company is a leader in embracing social responsibility. The Corporate Social Responsibility (CSR) program of Berkshire Hathaway includes many initiatives. For example, McLane’s ‘green advantage’ initiative to reduce environmental impact. This gives an overview on the marketing mix of Berkshire Hathaway.
About Berkshire Hathaway:
Berkshire Hathaway also formally known as Valley Falls Company, is an American multinational company. It was founded in 1839. The brand serves its customers worldwide through there diversified portfolio in property, insurance, utilities, aerospace, railroad and logistic, Insurance and finance, media, food processing, consumer products, capital goods, sporting goods, confectionery, retail, encyclopaedia, Jewelry sales, newspaper publishing, school uniforms, electric and gas utilities. Berkshire Hathaway is one of the largest public company in the world and is led by one of the richest man in the world, Warren Buffett. The company is headquartered in Omaha USA.
The company owns Net Jets, BNSF, GEICO, Dairy Queen, Fruit of the Loom, Lubrizol and Flight Safety. Also, Berkshire Hathaway has minority holdings in Restaurants, Apple, Mars, Kraft Heinz, American express, Johnson and Johnson, Goldman Sachs, DaVita, The Coca-Cola Company, US Bancorp, Visa Inc., Wells Fargo and IBM.
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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