Published by MBA Skool Team, Last Updated: November 19, 2017
Marketing Strategy of AkzoNobel 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 AkzoNobel marketing mix, help the brand succeed.
AkzoNobel marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the AkzoNobel Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
AkzoNobel Product Strategy:
The product strategy and mix in AkzoNobel marketing strategy can be explained as follows:
AkzoNobel is a leading chemicals company with focus on paints, industrial products etc. AkzoNobel products are sold under various brand names, to name a few, Astral, Chemcraft, Coral, Marshall, Dulux, Butanox, Chartek, International, Luxol and many more. There are a total of more than 120 plus brands under all the product categories in its marketing mix. AkzoNobel caters to some of the basic home products, and the majority of the brands cater to the specialized industrial products. These industrial products cover maintenance, metalcare, coil coatings, haptics, antifouling/fouling control and many more core sectors. The Corrosion environment comprises various types of products such as fire protection, generic match, immersed conditions, tank lining and many more. AkzoNobel products bear the AkzoNobel imprints, quality certified, high of aesthetics and performance in terms of anti-color fading, stain resistance, washability, water proofing, faster drying times, ease of application, low VOC and odor. The company implicitly shows its care for environment by making paints that are free from any added mercury, chromium and lead compounds. They have selected color of 2018 as Heartwood, with their diverse team at Global Aesthetics Centre and the group of International design and team experts.
AkzoNobel Price/Pricing Strategy:
Below is the pricing strategy in AkzoNobel marketing strategy:
The pricing of AkzoNobel products vary from place to place.
They have categorized their consumers into high income group, middle class group and urban market group. Considering Indian market AkzoNobel paints stand fourth after Asian Paints, Kansai Nerolac and Berger Paints. The price difference amongst each product is not of huge magnitude. It is a competitive market; people choose the products with the lower price range. The prices are determined on the volumetric basis. AkzoNobel also provides components required by the painting job at the market price. The price of the chemicals supplied to the companies are negotiated and set a particular range.
Following is the distribution strategy in the AkzoNobel marketing mix:
With such a wide product variants AkzoNobel aims at building a strong distribution network across the countries. For instance, in Germany it operated 70+ stores that sold paints and third party products, and employed around 950 people. In total the Chemical specialty business had 3000+ employees, along with 17 manufacturing plants and 8 offices. Realizing the potential to improve efficiency the company sold all its decorative paint shops to independent wholesale distributors. AkzoNobel aimed to improve the distribution strategy in its marketing mix by allowing distributors to operate rather operating their own stores. For new Double Dulux product along with other products, AkzoNobel has different branches globally, although the rules and regulations are different and designed according to the location. Despite present across the globe, Germany is the prime market for AkzoNobel. The company has acquisitions such as Schramm (2011), Lindgens Metal Decorating Coatings (2010), Dow Chemicals' Rohm & Haas business (2010) and LII Europe (2009).
To establish a strong distribution network in India, there are about 8500 dealers and 75 warehouses spread across states.
AkzoNobel Promotion & Advertising Strategy:
The promotional and advertising strategy in the AkzoNobel marketing strategy is as follows:
AkzoNobel applies special promotion for its older clients i.e. B2B clients. They provide follow up services to Business clients which give them an edge over its competitors. Along with Business clients it takes up the sources like Print media, Outdoor media, and Mobile media Broadcast media to approach its targeted general customers. The promotional channels include both digital and print media ways. Broadly these include newspapers, big boards, magazines and leaflets. AkzoNobel also aim at targeting customers on the personal level explaining them about their new product. On the distributors end, they provide heavy discounts to bulk buyers compared to moderate buyers. This helps AkzoNobel to build an integrated distribution channel. They mark their presence in media by updating releases, innovation, new technologies and sustainable practices periodically. They proudly boast their presence on architectures around the globe. Their start performer in digital media is the Visualizer App which has been downloaded more than eight million times. This application helps to visualize the walls, interiors of our homes with their products on it. Also it can be shared on social media platforms which make an impact in the digital space. Hence this completes the marketing mix of AkzoNobel.
AkzoNobel is a global brand which specializes in paints and coating technologies, chemicals, adhesives and industrial products. AkzoNobel is a global leader in decorative paints and the largest manufacturer of performance coatings. Drilling down to the broad categories it can further be classified into various organizational units viz.
decorative paints, specialty chemicals, performance coatings and protective coatings. They create everyday essentials to make people’s lives more livable and inspiring.
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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