Published by MBA Skool Team, Last Updated: April 08, 2017
Marketing Strategy of GAIL 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 GAIL marketing mix, help the brand succeed.
GAIL marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the GAIL Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
GAIL Product Strategy:
The product strategy and mix in GAIL marketing strategy can be explained as follows:
GAIL is the largest state owned company in India which has a business in distribution and process of gas fuels. Gas Authority of India Ltd. has the following business verticals:
• Natural gas
• Liquid Hydrocarbons
• LPG Transmission
• City Gas Distribution
Natural gas segment in its marketing mix has forms of Natural gas: Liquefied Natural Gas (LNG), Regasified Liquefied Natural Gas (RLNG), Compressed Natural gas (CNG) and Piped Natural gas (PNG). These are distributed to Fertilizer Industry, Industrial, Domestic and commercial, Automotive and Petrochemicals. Gas Authority of India produces propane, naphtha, hydrogenated C4 mix, pentane, MFO and propylene in the liquid hydrocarbons segment. GAIL pioneered in owning pipelines in India. It has pipelines in Madhya Pradesh, Uttar Pradesh, Maharashtra, Gujarat and Assam. Under city distribution CNG for vehicles and PNG for cooking purposes.
Image: company website
GAIL Price/Pricing Strategy:
Below is the pricing strategy in GAIL marketing strategy:
GAIL being one of the leaders in its industry enjoys a high market share.
Still due to competitors like Oil India Ltd., Hindustan Oil Exploration Company Ltd., Duke Offshore Ltd., Aban Offshore Ltd., etc. it follows a competitive pricing strategy. Most customers are B2B and city distribution to direct customers which employs competitive pricing. The price of crude oil in global context has been falling because of which GAIL has to tighten its rivalry in terms of pricing and crude oil forms as raw material for CNG and LPG.
GAIL Place & Distribution Strategy:
Following is the distribution strategy in the GAIL marketing mix:
GAIL has six Gas Processing Units set at Auraiya, Vijaipur, Usar & Gandhar plant for LPG and one for polymer production. GAIL sells LPG to public sector Oil Marketing Companies and other products to retail directly. Under the mandate of Petroleum and Natural Gas Regulatory Board, GAIL has set up its city distribution in Meerut, Vadodara, Dewas and Kota. These cities range from MP to Gujarat and UP to Haryana. GAIL has a strong presence in these states.
In the future we can see Gas Authority of India setting up around two hundred city gas distribution projects in a stepwise manner.
GAIL Promotion & Advertising Strategy:
The promotional and advertising strategy in the GAIL marketing strategy is as follows:
GAIL launched a CSR initiative called GAIL-Indian Speedster, an athletics program. The goal of this promotional activity is to nurture young talent. Through this campaign GAIL positioned itself as a common man’s ally and increased its reach in 55 districts. Eventually 9 athletics out of 850 participants were selected to be given world class training so that they are well equipped to represent India in Olympics. Other than this programme, GAIL has won multiple accolades like:
• BSC, UK conferred GAIL with ‘International Safety Award’
• Wealth Creator in Manufacturing Sector
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of GAIL.
GAIL has a strong sense of responsibility towards its people ie employees as well as its customers. The company has over 3500 employees in India. GAIL’s also has global operations and offices and hence people abroad are a part of the organization as well. The company focuses well towards its employees be in terms of trade unions, health, safety, remuneration, incentives etc.
GAIL has several processes in place for ease of doing business and ensuring timely and efficient services to its end users. The exploration services use state of the art equipment and technology for its extraction and distribution processes. Several GAIL pipelines hence in efficient distribution of gases from refineries and help them to reach the customers.
GAIL has got very limited physical evidence as the product and services offered are largely not visible to customers. The offices and refineries of GAIL are the main areas of physical presence of the brand. Offices offer merchandize like pens, diaries, calendars etc of the company, which add to the physical evidence of the brand. Hence, this gives an insight in the marketing mix of GAIL.
Gas Authority of India (GAIL) Limited:
GAIL is a state owned public company which deals in energy and petrochemicals. The head office of GAIL is located in New Delhi. It was found in 1984. GAIL received the title of “Maharatna” which of six other public sector enterprises got. It was given the responsibility of creating and upholding gas infrastructure in the country. Gas Authority of India is also the largest gas processing and distributing enterprise which is owned by the state.
GAIL has been performing well as a result of which it declared in third quarter of financial year 2016-17 a bonus issue and preference dividend. Gail has diversified in multiple frontiers, across products line, across geographic boundaries and scope.
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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