Halliburton Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Halliburton analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Halliburton marketing mix, help the brand succeed in the market. Let us start the Halliburton Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Halliburton Product Strategy:
The product strategy and mix in Halliburton marketing strategy can be explained as follows:
Halliburton has 14 Product Service Lines (PSLs). It usually operates in two categories that are drilling and evaluation, and completion and productions. These two departments of PSLs are the pioneer in the company’s integrated services strategy. Its financial results are included in drilling and evaluation division. PSLs have the primary responsibility for policy in technology development, people development, process development, and fund allocation. The company has divided its products and services offerings in its marketing mix into three categories that are by challenge, by capability, and by brand.
In by challenge category, the company offers various products and services related to clean energy, deep water, heavy oil, high pressure/temperature, mature fields and unconventional resources. In by capability category, the company offers varieties of products and services some of them are artificial lifts, pipeline and process facilities, drilling, fluid services, etc. In by brand category, Halliburton offers products and services such as Baroid, landmark, multi-chem, Pinnacle and Sperry drilling. These products and services provide an end to end customer satisfaction.
Image: Wikimedia
Halliburton Price/Pricing Strategy:
Below is the pricing strategy in Halliburton marketing strategy:
Halliburton (HAL) is the second largest oilfield services company by sales, next to Schlumberger. The company always has competitive pricing strategy because of the competitors like Schlumberger and Baker Hughes.
Halliburton has a plan for setting the price of products and services below the competition, at the competition or above the competition. During the year 2014-16, the company suffered a massive loss because of the fall of the rate of crude oil from over $100 to $30. In 2014, the overall sales declined to $16 billion from $33billion in 2013. During this period, the company restructured the pricing strategy according to the market condition and has written off around $7billion in restructuring costs and account equity. Today, Halliburton is well capitalized and positioned in the market to proliferate revenue and profits.
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Halliburton Place & Distribution Strategy:
Following is the distribution strategy in the Halliburton marketing mix:
The headquarter of Halliburton is in Northern Houston, Texas, and Dubai. It has been in operation for nearly one century, and now it provides services in more than 80 countries. The reach of this company is almost everywhere in the world. Recently, Halliburton created a secure network of cross-docks in four centers: Singapore, Houston, Dubai, and Rotterdam. This strategic system has improved the supply chain management of the company which enables better movement of supply from the manufacturer to the end-customers. The company uses the advancement of technology in the improvement of logistics. As Halliburton deals with the complex logistics system, technology like Electronic Data Interchange, Internet of Things, etc.
help in the betterment of the supply chain management.
Halliburton Promotion & Advertising Strategy:
The promotional and advertising strategy in the Halliburton marketing strategy is as follows:
Halliburton has very well versed marketing strategies that deal with both online and offline marketing. Halliburton organizes various campaigns and events to promote its services and innovation in the field of oilfield services and energy. It conducts many offline events such as conferences, tradeshows, and industry events to keep the current technology intact with the innovation of the company. It partners in many international conferences like ADIPEC (Abu Dhabi International Petroleum Exhibition & Conferences), OTC (Offshore Technology Conference), etc. to enlighten the industry with the innovative products and services provided by them.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Halliburton.
People:
Halliburton is the second largest producers of oilfield products and services. Since people are the most critical part of any organization, it is associated with many grounds of people that includes employees, customers, and investors. The company has around 80,000 employees all over the world which itself is a huge number. Halliburton provides a very healthy work environment to their employees working in all departments of it so that employees can give their hundred percent while working. Apart from employees, customers are the sole reason for the existence of this company. The company assists the customer with all sorts of oilfield services ranging from locating hydrocarbons to generation and production of reservoirs.
Process:
Halliburton has a sophisticated method to deliver the products and services to its end customers with no compromisation. It uses all sort of advanced technology to fulfill the customer needs. It has its specifically designed software which drives the network of cross-docks that helps in moving the consumer goods quickly with reliability and economic advantages. This software help the company to consolidate and de-consolidate around the system by keeping the track for each leg of the journey. So, advancement of technology and innovations play the significant role in the improvement of the customer service.
Physical Evidence:
The intangible services that are given to end customers are nothing but physical evidence. In this case, Halliburton provides its employees to set up the whole products in the way the customer demands. They have proper disciplines for the workers who work in the manufacturing unit of the company or client location to wear the safety jackets and boots to avoid the dangers and give the client a clear indication of professionalism in the service they provide. Hence this concludes the marketing mix of Halliburton.
About Halliburton:
Halliburton is an American oilfield service Multinational company founded in 1919 and currently headquartered in Northern Houston, Texas. It is the second largest providers of products and services in the energy industry. It mainly focuses on oilfield products and services and has operations in approximately 70 countries with around 80,000 employees. The company is popularly known as HAL, and it owns hundreds of branches, brands, subsidiaries, and divisions worldwide. Halliburton has global technology centers in many countries like Oklahoma, Texas, India, and Singapore.
The principal business of this company is the Energy Service Group(ESG), which provides all sort of products and services for natural gas exploration, petroleum, and production. Halliburton delivers end to end services to its customers.
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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