BHEL Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: March 26, 2017

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

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

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

BHEL Product Strategy:

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

Bharat Heavy Electricals Limited (BHEL) is one of the top heavy electrical manufacturing companies in India. BHEL manufactures a variety of industry systems and products in its marketing mix. Its major areas of operations include captive power projects, transmission, transportation, Renewables, water, Industrial products and defense. BHEL make industrial products for Fertilizer, Paper, Refining, Steel and Sugar industries.

BHEL have a range of electrical and mechanical industrial products like oil rigs, wellheads and Xmas tree valves, fabricated equipment and boiler feeds pumps, compressors and AC machines. They manufacture seamless steel tubes with varying diameter of 19 to 133 mm. They build piping systems for nuclear power stations, Combined Cycle Power Plants and Industrial boiler in process industry.

BHEL supplies various strategic equipment such as Thermo pressed components, Super Rapid Gun Mount & Integrated Platform Management System for naval Ships, Heat exchangers for LCA etc. to Indian defense forces. BHEL provides solutions for water treatment systems and manufactures IGBT based propulsion equipment, EMU coaches and diesel electric locos up to 1400 HP.

BHEL sets generate power which is supplied to 3 out of 5 houses in India. BHEL’s solar panels are equipped in all Indian satellites launched by ISRO. BHEL has executed world’s largest multi terminal HVDC NE Agra transmission project. All the states in India have power generated equipment installed by BHEL.


Image: company website


BHEL Price/Pricing Strategy:

Below is the pricing strategy in BHEL marketing strategy:

BHEL faces competition from Chinese imports which try and cut prices to capture the market.

According to a cost comparison study a BHEL would charge 2.6 crore per MW in comparison to 1.6 crore demanded by a Chinese manufacturer. But BHEL provides high quality equipment unlike its Chinese competitors. BHEL has tried to reduce material cost by integrating operations and increasing efficiency. It is expanding its vendor base to reduce risk and cost.

BHEL secured orders worth Rs. 43,000+ crores during 2015-16 in which Rs. 38,000+ crore came from the power sector. It spent over 800 crore in R&D in the same year. Recognition of sales revenue is done on technical estimates in respect of long production cycle items. Income from project management services is recognized on work done based on percentage of completion. This gives an insight in the pricing strategy in its marketing strategy.


BHEL Place & Distribution Strategy:

Following is the distribution strategy in the BHEL marketing mix:

BHEL’s valuable contribution can be seen from the 55% share in India’s total installed capacity and dominating share (58%) in India’s total generation from thermal utility sets. BHEL is one of the largest manufacturing and engineering companies in India with a widespread network comprising of 17 manufacturing units and 2 repair units. BHEL employees 42,000+ people and it has 4 regional offices, 8 service centres, 1 subsidiary, 6 joint ventures and 15 regional marketing centres. BHEL has overseas presence in 78 countries which includes Malaysia, Egypt, New Zealand, Oman, Iraq, Bhutan, the UAE. It has 6 overseas offices. BHEL manufactured power plants’ overseas have a cumulative capacity of 10,000 MW. BHEL has 5 research institutes and 14 centers of excellence.

It also has in house R&D centers in 12 manufacturing divisions recognized by DSIR.


BHEL Promotion & Advertising Strategy:

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

BHEL has performed exceeding well over the years. BHEL uses various media to create brand awareness in its marketing mix. BHEL has bagged many awards like CBIP award for Best power equipment manufacturing organization; Best Overall performance award at the governance now PSU award 2015. BHEL doesn’t do any outright promotions but it does give some print ads and participate in events and social activities. It has a press releases section in their website where all the latest news related to BHEL is published. It distributes e newsletter ‘Disha’ to create awareness about relevant policies, rules and procedures, etc., to spread information and share best practices and case studies. BHEL also organized a ‘Vigilance Awareness Week’ to promote its theme for that specific year “Preventive Vigilance as a tool of Good Governance”. It also holds free camps for the underprivileged. It has adopted many villages and schools to develop them. It does a lot CSR campaigns. Hence, the above summarizes the marketing mix of BHEL ((Bharat Heavy Electricals Limited).


About BHEL (Bharat Heavy Electricals Limited):

Bharat Heavy Electricals Limited (BHEL) was incorporated in 1964 and has been the backbone of India’s heavy equipment industry ever since. It is one of India’s largest engineering and manufacturing company. Its 180 products offering meet the needs of several sectors of the economy such as Power, Oil and Gas, Water and Defense, Renewable Energy. BHEL provides with high quality products due to adherence to international standards. It acquires best practices from the world’s leading companies like General Electric company, Siemens AG. It also has its own R&D centres. BHEL focuses on developing new products and improving the existing product portfolio. With its mission to provide sustainable business solutions in the field of Energy, Industry and Infrastructure it holds values like integrity, commitment, respect and excellence.

Tough global economy, geopolitical disturbances in the export market and an overall subdued business environment is posing a threat to the industry as a whole. Despite this BHEL commands 74% market share in the Indian Power sector.

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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