BASF Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of BASF through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
BASF Product Strategy:
BASF has diversified business operations across the globe. This enables BASF to offer a wide variety of products in its marketing mix product strategy. The entire portfolio can be classified into the following categories-
BASF Chemicals: comprising of Petrochemicals, Monomers and Intermediates
Performance Products: comprising of Pigments, Care Chemicals, Nutrition and Health products and Performance chemicals.
Functional Material & Solutions: comprising of construction chemicals, coatings, catalysts and performance materials.
Agricultural Solutions: mainly focused on crop protection.
Oil & Gas: which includes exploration, production and trading of oil and natural gas.
Other BASF Products: consisting of smaller shares of paper/pulp products, leather and textile products and packaging material.
Image: pixabay
This concludes the product strategy in BASF marketing mix & strategy.
BASF Price/Pricing Strategy:
Below is the pricing strategy in BASF marketing mix strategy:
BASF follows ‘Verbund’ principle of efficient use of resources which enables it to add value. It deals with intelligent interlinking of Infrastructure, energy flows and production plants.
Also, through this, technological know-how and customers can be intelligently connected to each other and the by-products of one plant can be used in another as a starting material. Under this system, chemical processes produce higher product yields, consume less energy and conserve resources which in turn allows BASF to save on raw materials & energy, cut logistics costs, exploit synergies and minimize emissions enabling BASF to sustain competitiveness while making customers more successful.
BASF makes use of an Agro Interaction Portal, which send suggestions to farmers regarding appropriate crop protection measures via e-mail. Using the portal farmers can view maps showing the extent and severity of pest infestations and can also upload photos of infested plants. After analysing these pictures, BASF experts provides solution. In this way, the customer receives quick and cost-effective support, and the company gains a better insight into customer problems, which in turn benefits the innovation process for products and services. This explains the marketing mix pricing strategy of BASF.
Read more about BASF
BASF Place & Distribution Strategy:
Following is the distribution strategy in the BASF marketing mix:
BASF, being an organization with diverse products serving various business entities across the globe, has a strong presence across the world. It has production facilities in over 80 countries. BASF has strong presence in Europe, owing 52% of the overall sales revenue to the continent. Apart from this, North America and Asia generate 22% and 18% of the revenue respectively. Oil and Gas revenues also follow the same trend, with Europe contributing 42% of the sales, followed by North America (27%) and Asia (22%).
The chemical and industrial material vertical of the company derives its maximum revenues from these developed markets. Owing to this, BASF continues to carry out majority of its production job based out of the European continent. However, with recent trends, the company has started investing across the globe in manufacturing facilities, primarily focussing Asia.
The company now also has a facility at Mangalore, India alongside the existing units at Hong Kong and Shanghai, China.
BASF offers web shop for businesses which provides them product information, allows them to place orders and order information is also available.
BASF Promotion & Advertising Strategy:
The promotional and advertising strategy in the BASF marketing mix is as follows:
BASF started by giving the audience a sense of diversity and breadth of its product range through a thoughtfully different tag line “We don’t make a lot of the products you buy. We make a lot of the products you buy better.” to be used in TV adds. Next brilliant move is the use of a female voice to deliver the line instead of “voice of God” narrators as per the standard practice.
Such campaigns put promotional emphasis to virtually all the value-added services and products, the sales department targeted while maintaining the same focused and creative approach. Thus, the marketing mix of BASF is explained as above.
About BASF:
BASF (Baden Aniline and Soda Factory) is a chemical manufacturing company founded in 1865 with its headquarters in Ludwigshafen (Germany). Initially the prime objective of BASF was to produce street lights and chemicals. The company, however, utilized the bye product, Tar, to manufacture dyes and chemicals as well. Presently, the company is involved in a variety of products including chemicals, dyes, paints and pigments, pharmaceuticals, agricultural products, personal care products etc.
The company has gradually become the world’s largest producer of industrial chemicals with more than 350 manufacturing facilities. The operations and sales of the company are spread over 80 countries.
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