Continental Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: January 03, 2017

Marketing Strategy of Continental 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 Continental marketing mix, help the brand succeed.

Continental marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Continental Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Continental Product Strategy:

The product strategy and mix in Continental marketing strategy can be explained as follows:

The Continental group is a diversified business entity, which manufactures automobile tyres and other electronic components. The company primarily involves in the following areas of production: Tyres, Interior, Powertrain, Chassis and Safety, ContiTech

The company manufactures and sells tyres for cars, commercial vehicles and bicycles under the Continental brand name. Apart from this, it has various regional brands which are used to increase sales in concerned territories. This explains the product strategy in the marketing mix of Continental tyres. Being a German manufacturer, Continental becomes the most reliable choice of tyres to majority of the automobile manufacturers in Germany. Daimler AG, Volvo, Volkswagen, BMW, Porsche and Renault are some of the major customers for Continental in the European market. Apart from these, renowned manufacturers like Toyota, Honda and General Motors also use Continental tyres in their vehicles.

Apart from tyres, Continental offers various types of infotainment and safety systems which are supplied to commercial vehicle manufacturers. Driver information systems, Intelligent Braking Systems, Body Security components and Connectivity devices are also manufactured by Continental based on requirements from regional clients. This equipment is used for commercial vehicles majorly. Recently, Continental has also entered manufacture of low-cost, high fuel-efficient components, keeping in mind the changing market trends.



Image: Wikimedia


Continental Price/Pricing Strategy:

Below is the pricing strategy in Continental marketing strategy:

Continental is considered a premium product with high quality standards across the globe.

Studying the price for Continental marketing mix needs to be analysed from a global perspective & understanding the product range. Owing to this, the company offers its products at a slight premium as compared to other manufacturers. Surprisingly, manufacturing facilities have been limited to a few places over the world. This indicates that Continental is projecting the image of being a premium product.

Overall pricing of the components is aimed at only business customers. Individual selling of products is minimum, which is quite evident from the pricing. Interior components follow a more competitive pricing as these are of higher demand in emerging markets for Continental. Manufacturers in countries like India, China and South American countries have widely accepted these components and therefore the company looks to promote the products in these areas with revised pricing strategies.


Continental Place & Distribution Strategy:

Following is the distribution strategy in the Continental marketing mix:

The company clearly offers a difference in the products offered. Although tyres have been the area of primary focus, Continental has also started investing in the interior components business. Manufacturing facilities for tyres were earlier concentrated only to certain cities across the globe. However, owing to the recent trends in sales of various products, Continental has setup research and manufacturing facilities across different parts of the world. Countries like India, Singapore and China have also become manufacturing bases for the company.

In-line with many of the major manufacturing companies of the world, Continental has also entered upcoming markets in Asia, Africa and South America. Each of these parts of the world have multiple manufacturing units, which cater to specific individual demands. Continental looks to push sales of interior components based on these revised strategies, which have attracted heavy investments.

Hence, the place strategy in the marketing mix of Continent covers manufacturing places and the extensive global distribution network.


Continental Promotion & Advertising Strategy:

The promotional and advertising strategy in the Continental marketing strategy is as follows:

Continental AG has been a significant player in the segment of automotive components and parts. Like many other vehicle manufacturers, Continental directly engages in promotional events like rally racing and other track events. Along with many of its renowned clients, Continental co-sponsor events around the world. The promotional strategy in marketing mix of Continental focuses on 360 branding and uses print, TV, online ads, billboards etc to create brand awareness.

Electronic components have become more popular in the industrial markets because of the reliability and quality on offer. Continental AG enjoys a strong level of connect with reputed manufacturers, which make the promotions of their products less essential. The company relies on essential parameters like quality, reliability and values. Hence, this completes the Continental marketing mix.


About Continental:

Continental, or Continental AG, is a world-renowned automobile component manufacturer. The company specializes in tyres, braking systems and interior electronic components. Originally, the continental group started as an exclusive rubber manufacturer in 1871. The first manufacturing facility was in Hanover, Germany, which is the current headquarters for the company.

Over the years, the company has diversified into various automobile components, ranging from safety equipment to high strength chassis components.

The diversity has resulted in Continental AG becoming world’s fourth-largest tyre and third-largest component manufacturer. Currently, the Continental group is owned and controlled by the Schaeffler AG group, which also specializes in bearing and automotive component manufacturing.

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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