Published by MBA Skool Team, Last Updated: April 01, 2017
Marketing Strategy of Essar 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 Essar marketing mix, help the brand succeed.
Essar marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Essar Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Essar Product Strategy:
The product strategy and mix in Essar marketing strategy can be explained as follows:
Essar Group is a large conglomerate based out of India. Essar group has a wide array of services and products in its marketing mix, which are spread across sectors. The Essar group structure is divided into the following categories:
• Energy Sector – oil and gas, power
• Steel – mining, metals
• Infrastructure – projects, ports
• Services – Shipping, BPO, Real Estate, Telecom Services
• Retail- The MobileStore and Essar Hypermart
Essar Oil deals with providing high quality petrol, crude oil, diesel and their by-products. It was the first Indian company which marketed refined products, apart from delivering high quality petrol and high speed diesel. It also deals with CNG and auto LPG nozzles. Essar Oil has also entered non fuel retail business which caters some mutual benefits to people by collaborating with organisations like CCD, Castrol, Servo, etc. These tie up helps in providing and marketing terminal products. Essar Steel focuses on producing high quality iron and steel products. The MobileStore is an exclusive retail brand from Essar Group which sells and services mobile handsets, accessories.
Image: company website
Essar Price/Pricing Strategy:
Below is the pricing strategy in Essar marketing strategy:
Essar Group is one of the largest companies in India, with a strong revenue and profit across its subsidiaries.
The recent takeover of Essar Oil by Rosneft might improve its financial condition more and increase its profits. The prices of the consumer products in India are set by the government and the companies have to abide by them. There is hardly any difference in the price margins between various competing organisation because of this standard regulation by government of India. For the retail brands, the prices are kept competitive to fight against existing competitor retailers and ecommerce platforms.
Essar Place & Distribution Strategy:
Following is the distribution strategy in the Essar marketing mix:
Essar Group has a wide geographic presence. The MobileStore retail shops are located at more than 1000 places across India. Essar Oil has its own petrol stations throughout the country at various locations. Apart from that, the various production units are located in Mehsana Oil Block, Cambay; Raniganj, West Bengal and Offshore Mumbai. Various exploration sites are located in Jharkhand, Orissa, Madhya Pradesh, and Assam. The Essar Oil Refinery is in Vadinar, Gujrat. Essar Steel has presence in India, US, Canada.
The Essar Hypermart has more than 500+ stores across geographies.
Essar Promotion & Advertising Strategy:
The promotional and advertising strategy in the Essar marketing strategy is as follows:
Essar group has a strong workforce and it provides the best high quality services. Essar is highly dedicated towards maintain a high customer base by participating actively in promotions through social media both digital and through means of advertisements in newspapers, magazines, hoardings, etc. This active participation of the Essar group helps them in promoting the brand in a positive manner and portrays their continuous dedication and efforts towards maintain the best image before the customers. Essar group also believes in giving back to the society through its CSR activities and environment friendly operations. Safety and environment are its top most priorities and the company meets all the standards in achieving those.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Essar.
Essar group, being such a massive conglomerate focuses on people management. Currently Mr Ravi Ruia & Shashi Ruia is the chairman of the company. Essar Oil has refineries and extraction ports in different locations. In order to make the employee experience better with growing needs and to enhance their productivity the company has to provide benefits and perks to the stakeholders. In lieu of the same, Essar’s primary focus is customer satisfaction, by providing best in house facilities, social services and use of modern techniques to enhance the expertise and experience of people.
The process followed by Essar is very simple and of the belief that maximum profits should to recover by the company along with maintain the image in the industry in which it is operating. For this purpose Essar has always invested highly in the latest technology to ease the work of its employees and to increase employee satisfaction.
Essar’s biggest physical evidence are its petrol pumps, oil tankers, consumer end products, retail stores etc. In order to make its presence feel amongst the community and employees, the company provides printed material to its employees as a token of appreciation and benefits they are getting as an employee of this organisation. Hence, this concludes the Essar marketing mix.
About Essar Group:
Essar group is a large Indian company focused on sectors like oil, energy, steel, shipping, retail etc. Essar Oil is an Indian oil and gas company which extracts, refines, and market its products. The company has achieved various milestones till date, in 2009 it acquired half a stake in the Kenya based petroleum company (KPR Ltd.) and in 2016 Roseneft bought Essar Oil with 98% stakes. Its parent company is Essar Energy PLC. Essar group has its headquarters in Mumbai, India and Essar Oil deals with petroleum, fuel, natural gas and other petrochemical products. It has reserves and resources equivalent to 1.7 billion barrels and its deals with offshore and onshore gas and oil blocks. Its refinery is located in Vadinar, Gujrat and its capacity led this organisation to become India’s second largest single site refinery.
Essar Steel is among the top steel companies in India, exporting its products worldwide. In retail, Essar Hypermart and MobileStore are few very popular brands.
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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