Larsen & Toubro is one of the largest and most reputed companies in the Indian private sector. It is engaged in high-impact sectors of the economy and its capabilities span the entire spectrum of ‘design to deliver’. Sustainability is embedded in their long-term strategy which is also reflected in their marketing. L&T capitalizes on popular trends while promoting its services.
In this blog, we’ll discuss the Marketing strategy of Larsen and Toubro company, their marketing strategies, and competitor analyses of the brand.
Before starting with this, let’s see what Larsen & Toubro is:
About Larsen and Toubro
Larsen & Toubro (also known as L&T) is a multi-industry company engaged in technology, engineering, financial services, construction, and manufacturing. It was established in 1938 by two Danish engineers in partnership between Henning Holck-Larsen and Soren Kristian Toubro. Its headquarter is located in Mumbai, Maharashtra.
The company addresses the need in key sectors which are mentioned below:
- Process Industries,
L&T holds 130 subsidiaries and 15 associate companies under its brand. The company is known for its world-class quality and customer-focused approach, which has helped them expand around the globe. Leading to several international offices today and a strong supply chain. L&T is ranked among the top 30 contractors of the world for its construction.
Few projects by Larsen & Toubro that are known to the world are as follows
- The Lotus Temple,
- New Delhi Airport,
- Hyderabad Cyber Towers,
- Wankhede Stadium in Mumbai,
- Mumbai – Ahmedabad Bullet Train Project.
Now, after knowing about L&T, let’s look at how the company uses the process of segmentation and targeting process while positioning itself
Segmentation, targeting, and positioning
Let’s understand each topic and learn how Larsen and Toubro uses it for their benefit
Segmentation Larsen and Toubro
Segmentation is dividing people based on the following
- Income etc.
This works in trying to advertise our product to potential consumers. The segmentation of L&T is based on its various business types respectively and its geographical presence that is India and in the other countries it serves.
This helps them to narrow down their target audience and can advertise their product only to the one who can buy and can save their cost by not advertising and random person.
Targeting of Larsen and Toubro
Targeting means to target the potential segment of audience (selected from different segments created while the segmentation process) for advertising the product.
The target audience here is mainly Indian technological, engineering, construction, and manufacturing-related projects.
Positioning of Larsen and Toubro
Positioning is creating a good image of our product in the mind of customers by providing the best quality at a reasonable price, companies do this by different psychological tricks which help them to position themselves as Best in the market.
L&T has positioned itself as a brand that focuses on technology leadership.
Now after the STP process, L&T needs to check whether their price kept is worth paying for the product and can the customers at that place afford that? For that, they need to go through the 4Ps of the marketing mix.
Before we dive into the marketing mix of L&T, let us understand what a marketing mix exactly means. A marketing mix is a different 4 different aspects that a company prepare for achieving its goal, those 4 aspects are as follows
Let us talk about each one of them in detail
Product Mix of L&T
L&T provides numerous offerings and is a leader in almost every business across the industries it operates in. Following are its products and services:
L&T Construction encompasses multiple businesses which includes
- Buildings & Factories,
- Transport Infrastructure
- Heavy Civil Infrastructure
- Smart World & Communication
- Water & Renewable Energy
L&T offers solutions to industries like the oil and gas sector, defense spectrum, real estate, warships and global IT services and solutions to the companies spread geographically.
Place Mix of L&T
Larsen & Toubro is a respected and well-known company. It has its presence across the globe. The company operates in Southern and Western India for constructing commercial and residential properties. Its InfoTech company has around 39 registered offices in 23 countries.
L&T provides its Technology Services in the following different countries:
- Denmark and 25 other locations
The company has an intensive supply chain that manages its projects in India as well as in other countries. It has distributors across India which makes its machinery and industrial products available and accessible. L&T’s IT services company has 32 delivery centres worldwide, the business is expanding into new geographies even as it consolidates its client-facing organization in North America and Europe.
Price Mix of L&T
L&T uses a penetration-pricing strategy(in this a company lowers the price in the initial stage to attract more customers) to expand in new markets. It bids for tenders as per market conditions. The company also follows a fair pricing policy and a competitive pricing strategy to maintain its customer loyalty which would result in keeping a strong customer base worldwide and keeping competitors away. The economy and the environmental factors also play a major role in its decisions related to price.
Promotion Mix of L&T
Larsen and Toubro create brand awareness through their comprehensive marketing strategy. The company advertises using a different mode of advertisement like:
- Social media
This gives us an insight as to how Larsen & Toubro prices its products & services in its marketing mix.
L&T follows a 360-degree marketing strategy and branding approach which means that the brand is visible to the customers at all times and its brand identity is showcased holistically. The company focuses on sustainability in its advertisements and has been moving towards environmentally friendly management and a green portfolio. In the year 2012, it was ranked fourth for being a green company by Newsweek in its global list of the industrial sector.
Now, After all the process of STP and analysis of 4Ps when L&T launches their product they need to see what their competitors are up to so that they can give good competition to them too. we’ll look at the major threat the company faces in the form of competitors.
Competitors of Larsen & Toubro
Whenever a company establishes itself launch their product, they need to check what their competitors are up to, they can check this by competitor analyses
Though L&T has a strong position in the market, it has many competitors in different segments.TCS is one of the biggest competitors of L&T as it has surpassed IBM as the first Indian IT firm to reach a market capitalization of $100 billion. Over the last decade, the company has consistently been India’s largest IT recruiter. It is thus L&T’s major competition in the infotech services space.
some of the other major competitors of the company are as follows
- SPCL (Shapoorji Pallonji Group)
- Mahindra are L&T Infotech’s top competitors.
To increase brand awareness and maintain an edge over its competitors, L&T indulges in various marketing campaigns. Let us look at them below.
Marketing campaigns of Larsen & Toubro
Marketing Campaigns are the projects run by different companies in creative ways to advertise their products to their audience
There are different types of Campaigns like
- Social media campaigns
- Television commercials
- email campaigns etc
Let’s see some of the marketing campaigns that were implemented by L&T
Late Lateef 2021
L&T Mutual Fund recently launched an integrated digital campaign called ‘Late Lateef 2021’. The essential theme of the campaign was to reiterate the importance of investing early in the Equity Linked Saving Scheme (ELSS) for tax saving. They plan to reach out to a larger pool of users which is millennials. They would be running this campaign on social media platforms such as:
- LinkedIn etc.
A catchy audio rap is being promoted as L&T’s marketing strategy, on audio apps like Spotify and Gaana to increase its market share.
The campaign will also be promoted with Digital Ads viz Display Ads, Google Ads, and push notifications on business and financial portals for creating higher awareness.
L&T hops onto current trends and posts related content to market its services. For example, the recent ‘Pawri ho rahi hai’ trend, which was very popular on social media sites. L&T Mutual Finance capitalized on this trend and created a similar post on LinkedIn, asking users to check out their investing services.
Another amazing marketing campaign by L&T Financial Services was a television commercial that promoted the brand in the rural markets. The commercial revolves around capturing the sentiment of joy and satisfaction of a farmer buying his first tractor. It showcases a common man buying the tractor and the happiness that is strongly felt by everyone in the family. This could be achieved with the help of L&T’s loan. And hence the company talks about understanding their customers’ needs and wanting to assist them in reaching the same. Thus, the name “Khankhengi Khushiyaan.”
L&T has a strong brand name in India due which helps the brand win customer loyalty and clients’ trust. We also saw the 4P’s of the Marketing mix and how L&T uses them and at the end, we saw some of the marketing strategies of L&T The company’s technical expertise and manufacturing facilities provide a competitive advantage to the company.
Hope you’ve got a good idea about the marketing mix, competitors, and marketing strategies of Larsen & Toubro company.
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