Published by MBA Skool Team, Last Updated: March 25, 2017
Marketing Strategy of Larsen & Toubro 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 Larsen & Toubro marketing mix, help the brand succeed in the market.
Larsen & Toubro marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Larsen & Toubro Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Larsen & Toubro marketing strategy can be explained as follows:
Larsen & Toubro or L&T is one of the largest Indian conglomerates serving across industries like heavy engineering, power, shipbuilding etc. Larsen & Toubro also gives services like financial services, IT consulting etc under its product mix. An insight in the offerings in its marketing mix are as follows:
L&T Realty is a real estate development company and undertakes various projects including the construction of residential, corporate office, retail, leisure and entertainment spaces. The major projects include Crescent Bay, Emerald Isle, Sea woods Grand Central, Eden Park.
L&T Technology provides engineering services offering design, development and testing services for the industrial products, medical devices, aerospace, and telecom industries.
L&T Solar undertakes solar energy projects. L&T commissioned India's largest solar photovoltaic power plant (40 MWp) in 2012.
L&T manufactures electrical and electronic products and systems. Larsen & Toubro manufactures custom-engineered switchboards for industrial sectors like power, petrochemicals, refineries and cement. Larsen & Toubro Infotech Limited offers information technology services with a focus on manufacturing, BFSI and communications and embedded systems. In Machinery and industrial products segment the company manufactures, and provides service support for construction and mining machinery, including surface miners, aggregate crushers, supplies rubber processing machinery hydraulic excavators and manufactures industrial valves and allied products along with application-engineered welding alloys.
Image: company website
Larsen & Toubro Price/Pricing Strategy:
Below is the pricing strategy in Larsen & Toubro marketing strategy:
Larsen & Toubro has ventured into diverse product portfolio and it has estimated a revenue of 100,000+ crores at end of financial year 2015-16.
L&T has used penetration-pricing strategy to enter the market and hence bids for tenders as per market conditions. Larsen & Toubro has taken up several government projects that includes construction of bridges, dams and canals. The pricing decisions are affected by environmental factors and the economy. The fall in commodity prices has a negative impact on the economy in terms of reduced profitability leading to financial distress in business. This gives an insight how Larsen & Toubro prices’ its products & services in its marketing mix.
Following is the distribution strategy in the Larsen & Toubro marketing mix:
Larsen & Toubro has a significant global presence through its offerings. For real estate development, company operates in Southern and Western India for constructing residential, retail, leisure corporate office, and entertainment properties. L&T Technology Services operates in 30 locations across the world, which includes India, USA, Canada, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Sweden, United Kingdom, Japan, South Korea, Singapore and UAE. Larsen & Toubro InfoTech has 39 registered offices in 23 countries. Machinery and industrial products from L&T can be purchased from various distributors across the country. For procuring government projects, it goes through the tender process and bids for tenders.
Larsen & Toubro is one of the largest growing companies in India involved in construction and real estate.
Larsen & Toubro Promotion & Advertising Strategy:
The promotional and advertising strategy in the Larsen & Toubro marketing strategy is as follows:
Larsen & Toubro has always been a company which has focused on advertising and marketing for creating brand awareness. The promotion and marketing activities in its marketing mix is done by 360 branding ie using commercials, sponsorship of events, using all media etc. L&T has received several awards for its services, which include Rajiv Gandhi National Quality Award given to Bengaluru division and Golden Peacock National Quality Award in 2012 to L&T power. L&T was ranked among the top companies by Newsweek in its global list of industrial sector for being a green company. Larsen & Toubro advertises its campaigns through electronic and print media, social media and billboards. It mentions that its business is driven by focus on sustainable practices that has commitment to the communities. In 2017 it has won FICCI Quality Systems Excellence Awards for Industry - Platinum Prize in Construction Sector’ in the Large Size Organisations category. L&T has released several advertisements on tv and social media promoting its brand. Hence the marketing mix of Larsen & Toubro (L&T) is completed.
About Larsen & Toubro:
Larsen & Toubro is an Indian multinational company headquartered in Mumbai founded by two Danish engineers Henning Holck-Larsen and Soren Kristian Toubro. Its operating divisions include Technology services, Solar, Electrical and automation, IT services, Machinery and Industrial products, engineering and construction services. It is considered among the largest five fabrication companies in the world. The company has over 130 subsidiaries and 15 associate companies. The noteworthy construction projects undertaken by L&T includes Lotus Temple, New Delhi Airport, Cyber Towers, Hyderabad, Wankehde Stadium, Mumbai and many more.
It has won numerous awards like FICCI Quality Systems Excellence Awards for Industry 2017, L&T Technology Services Limited IACC ‘Company of the year’ in 2016. The equity shares of Larsen & Toubro are listed on the BSE and NSE and financial institutions held major part of the shareholding.
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