Published by MBA Skool Team, Last Updated: October 01, 2017
Marketing Strategy of Baker Hughes 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 Baker Hughes marketing mix, help the brand succeed.
Baker Hughes marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Baker Hughes Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Baker Hughes Product Strategy:
The product strategy and mix in Baker Hughes marketing strategy can be explained as follows:
Baker Hughes is a leading company in the oil & gas sector services. Baker Hughes mainly concentrate on clients who are involved in energy sector of oil and gas operations. It offers various kinds of solutions for different oil and gas companies in terms of its premium products and services which is carried out by its expertise talents employed in the company. The list of services and products offered by Baker Hughes in its marketing mix include:
1. Integrated Operations: Baker Hughes includes one point services for well construction, well intervention and production optimization. There are array of technology services provided for improving the efficiency of operations
2. Reservoir Services: It includes series of services like reservoir consulting, remote operations services, geoscience services and field management services
3. Drilling and Evaluation : This is one of the major expertise of Baker Hughes where it provides the clients with differentiated services including products and consulting services required for drilling and allied operations
4. Completions and Production : Baker Hughes includes set of products and services involved in project completions, well interventions, production of different equipment, pressure pumping, tubular services and technical software
Baker Hughes Price/Pricing Strategy:
Below is the pricing strategy in Baker Hughes marketing strategy:
Baker Hughes services are offered at lower cost compared to other oil and gas filed service organizations to meet the rising competition.
However this has severely hit its profitability margin, for instance the company is facing losses in its operations in North America, Latin America and other regions. Baker Hughes’ profitability also depends on the ever fluctuating oil prices. The oil and gas exploration companies select service companies based on their past experience, expertise and pricing models adopted by the service companies
Following is the distribution strategy in the Baker Hughes marketing mix:
Baker Hughes as huge presence in oil and gas exploration countries wherein it provides different kinds of services and products. It has classified into different regional zones like Africa, Canada, Asia Pacific, Europe, Middle East, Gulf of Mexico, Latin America, Russia Caspian and USA. Baker Hughes has tie ups with and alliances with oil upstream and midstream companies wherein larger number of products are utilized. This gives the company a wide presence globally as a part of its marketing mix place strategy. The acquiring of various companies involved in oil and gas field services have also helped in reaching large number of customers.
Some of the employees are stationed at client site to provide different services and installation of the products.
Baker Hughes Promotion & Advertising Strategy:
The promotional and advertising strategy in the Baker Hughes marketing strategy is as follows:
Being a specialised oil and gas service company Baker Hughes mainly involves in direct marketing of its products and services. In such kind of marketing scenario the technology and expertise of the company is considered as the main factor for selection by the clients. Baker Hughes mainly highlights the technology expert, quality of the product, cost benefits and value addition it offers in promotional campaigns. Majority of the promotions are being done through printed advertisement in some of the esteemed energy and oil gas magazines. Also the online website provides detailed information about Baker Hughes and various offerings in terms of technology, consultancy and products installation. This gives an insight about Baker Hughes marketing mix.
About Baker Hughes:
Baker Hughes is one of the major company providing products and services in the oil and gas sector with presence in more than 120 countries. Baker Hughes is primarily owned by GE which has more than 60% of the shares. The company based in Houston, Texas has more than 30 thousand employees all over the world involved in manufacturing and services. The company mainly targets oil and gas production companies by rendering them different kinds of services in forms of product and consultation services. It has acquired various companies through to its operations to render different kinds of services to its consumers in forms of various divisions like drilling and evaluation group, completion and production group and business units.
Baker Hughes was started as Hughes Tool Company in the year 1912 and was later acquired by Baker International in the year 1987. Baker Hughes later merger with GE in the late 2016 thereby it became part of GE group.
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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