Coal India Marketing Strategy & Marketing Mix (4Ps)

Published in Products category by MBA Skool Team

Marketing Strategy of Coal India analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Coal India marketing mix, help the brand succeed in the market. Let us start the Coal India Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Coal India Product Strategy:

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

Coal India is one the leading coal mining and extraction companies in India. Though the core product of Coal India is coal, the different kinds of coal it produces that are used in industries like power generation, steel, glass, ceramic, paper, chemical, cement and various other industries makes Coal India a powerful organization in the world. Its products in its marketing mix are varied like: Coking Coal, Non – Coking, semi-coking coal, washed & beneficiated coal, Rejects, CIL/ LTC Coke, Middling, coal/coke fines, tar, heavy / light oil and soft pitch. These are used in pharma, oil and dye manufacturing companies also.

In Coking coal category, it produces different variants that differ in ash content and graded as Steel and washery. Also in the non-coking coal category, Coal India produces several variants that are differed in gross calorific value, the range for this GCV is from 2200 – 7000+ Kcal/Kg. Similarly, semi coking coke is graded on the basis of ash and moist content in the coal.

Image: company website

Coal India Price/Pricing Strategy:

Below is the pricing strategy in Coal India marketing strategy:

Coal India used to charge based on useful heat value pricing mechanism, but in an attempt to rejig its strategies it changed to a much profitable gross calorific value based coal pricing. And on an average the price of one tonne of coal is at 1,100+ rupees.

Coal India also uses differential pricing strategy. Here it charges a different price to regulated and unregulated sectors in India. As part of this strategy Coal India charges nearly 20% more to the unregulated sector than what it charges to the regulated sectors. All the prices it charges include FOB. It also keeps in mind the price that is offered by the Chinese players who are offering at a lower price. Even though Coal India is a public sector company it takes very tough calls in regard to price and have no apprehensions in increasing the price. Hence, this gives an insight in the Coal India marketing mix pricing strategy.

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    Coal India Place & Distribution Strategy:

    Following is the distribution strategy in the Coal India marketing mix:

    Coal India being the largest producer in the world runs in nearly 81 mining areas. These are spread across the country in eight states. These 81 mining areas have nearly 430 coal mines. Coal India operates in different places through its seven subsidiaries. Coal India also has a joint venture with International coal venture Pvt Ltd. To procure coal outside the country. It sells all its products through e-auction for high degree of transparency. It also provides Coal India the ability to sell to customers at any place in India from any of its production sites.

    It has different types of e-auction facilities to cater to the consumers of all kinds like, spot e-auction and forward e-auction.

    Coal India Promotion & Advertising Strategy:

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

    Coal India mainly does B2B promotions and rightly so as its customer base is industries across various domains. It gives advertisements in print and online platforms to reach out to its customer base. As a part of its PR activities Coal India involves in many CSR activities also. Recently it is sponsoring the Hockey India League as a title sponsor. It is spending nearly 13 crores for this. Though they consider it a CSR activity to help sports it is an exercise to reach more customers. Also its subsidiaries also involve in individual promotional activities like, South Eastern Coal Fields Ltd. Also, Coal India sponsored world hockey league. Coal India also received recognition and awards like Rashtriya Khel Protsahan Puraskar (2015) for its contribution to developing sports at grass roots level in India. Hence, this completes the Coal India marketing mix.

    About Coal India:

    In 1975 for more effectiveness in operations and more productivity to meet the growing requirements for the nation’s energy needs, Government of India formed a public sector company by combining all the coking and non-coking coal mines giving rise to Coal India Limited (CIL). Headquartered in Kolkata Coal India is now working under the central government of India through its coal ministry. Coal India is a Maharatna statured company with a market cap of nearly rupees 2.11 trillion.

    This is now considered as the largest coal producer in the world with nearly 535 million tonne produced in the year 2015-16. It has 7 subsidiaries operating from 8 different states in India along with another fully owned subsidiary in Mozambique.

    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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