Power Finance Corporation Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Power Finance Corporation through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Power Finance Corporation Product Strategy:
Power Finance Corporation is one the leading companies in India. Power Finance Corporation provides various financial products and services in its marketing mix to the power sector and other allied infrastructure companies and depending on the policy/product there are several guidelines laid out by the company and once these guidelines are satisfied PFC provides its products and/ or services to its clients. Its Fund based products/ policies include: Takeout Financing, Asset acquisition, Bridge Loan, Buyers Line of Credit, Corporate Loan, Credit Facility for purchase of power through power exchange, debt refinancing policy, energy saving projects, Financing of Fuel Supply Projects and Equipment Manufacturers, Lease Financing for Wind Power Projects, Line of Credit for Import of Coal, Project Term Loans, Short Term Loan, Solar PV Policy to Private Sector, Rupee (STL) to Geno’s / Transco’s against Identified Receivables from Discoms, Policy for Investment in equity of Power Projects, Financial Assistance to Distribution Franchisee. Its Non-Fund Based products include: Guarantee, Letter of Comfort, Policy for Guarantee for Credit Enhancement. Power Finance Corporation also provides Non-Fund Based technical, advisory and Consultancy Services like Overview of Consultancy Services being provided by PFC Consulting Limited, Overview of Capital Advisory Services being provided by PFC CAS Limited.
Image: company website
This concludes the product strategy in Power Finance Corporation marketing mix & strategy.
Power Finance Corporation Price/Pricing Strategy:
Below is the pricing strategy in Power Finance Corporation marketing mix strategy:
Power Finance Corporation provides the aforementioned products and services to different clients across categories and the rate at which PFC provides them with the loan is differential. Any organization that needs a loan from Power Finance Corporation needs to give some security like, Escrow Account/Letter of Credit or State/Central Govt.
guarantee/Bank Guarantee/Charge on Assets. The interests it charges for the same category client also varies with the kind of project it is financing. It divides organizations into categories like - State Sector Borrowers: Category 'A+, A'; Central Sector Borrowers; Identified CPSUs; AAA rated Companies. PFC divides Private Sector Borrowers into: Gen. Projects with IR-1, IR-2, IR-3, IR-4, IR-5 and Entity Grade: E I & E II; E III & E IV; E V and Discom: Grade A, Grade B, Non graded. Depending on the category the rates vary from as low as 9.75 percent to 13.15 percent. All these clients should pay the interest regularly till the capital amount is finally paid. If interest is not paid by due date they are required to paid additional 2%.
Power Finance Corporation Place & Distribution Strategy:
Following is the distribution strategy in the Power Finance Corporation marketing mix:
PFC is having its registered office at Delhi and along with this it has its regional offices at Mumbai and Chennai also. Interested companies can apply loan through its website also. Power Finance Corporation also has its subsidiaries in places like Karnataka, Tamil Nadu Power, Maharashtra, Orissa and Jharkhand. Its clients are located in nearly all the states of India as it identifies and finances various projects in different phases like power generation transmission and distribution across India.
All these show the strong place strategy in its marketing mix.
Power Finance Corporation Promotion & Advertising Strategy:
The promotional and advertising strategy in the Power Finance Corporation marketing mix is as follows:
Power Finance Corporation is currently having a prominent market share of more than 20% and this is because of its efficiency and highly competitive product offerings. PFC does promotional activities like print advertisements. It does these activities to give information about various policies and services it is offering and its lending rates. It uses its website also very efficiently by publishing every detail of the operations and process, its products and services. This will help as a gateway to the potential client organizations. It does investor presentations also to promote and gain good will amongst the industry peers. Its media releases are also a major contributor for its promotion.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Power Finance Corporation.
People:
PFC currently employed 340+ individuals in managerial capacity including whole time Chairman and Managing Director and Directors, and nearly 110 individuals in non-managerial capacity So the total human resource strength of PFC is 450+. Power Finance Corporation empowers its employees through delegation of power. Delegation of power flows in a hierarchy from top to down with Board of Directors being the highest decision making authority. It provides various benefits to employees being a government of India undertaking and it also provides stocks of the company to its employees. It also has beneficiary plans for retired employees.
Process:
PFC has carved itself a reputation for most preferred Financial Institution. This is made possible by providing products and services that both affordable and highly competitive. Power Finance Corporation provides these services with efficient sourcing and servicing that are internationally integrated. PFC associates with the reforms in the Indian Power Sector and doing so it enhances the value to its stakeholders. It promotes efficient investments in India and other foreign countries also. The culture and process followed by PFC can be termed as dynamic, flexible, forward looking, trustworthy and a socially responsible one that is concerned with the interests of stakeholders. PFC’s process are designed and implemented in such way that they result in profitable and sustainable business. its major concern in designing and implementing its process are transparency and integrity in all operations.
Physical Evidence:
PFC is having its Registered Office at Power Finance Corporation Ltd., 'Urjanidhi', Connaught Place, New Delhi. It is a publicly traded company listed in both Bombay Stock Exchange and National Stock Exchange. It publishes all its information’s in the official website. Power Finance Corporation also releases its latest happenings in press releases. It regularly publishes annual reports and investor presentations which give information on company’s performance and future plans. Its logo is a blue colour oval with words PFC written in English and Devanagari script. It has a flash symbol in its logo indicating that it is related to power. It also has a red colour ring around the oval shaped frame. All these complete the marketing mix of Power Finance Corporation.
About Power Finance Corporation:
Power Finance Corporation Ltd. Is established in 1986 and is a leading Indian financial institution and a cornerstone institute for the Indian power sector in financial matters. PFC has started as wholly owned organization by government of India but later issued IPO and went public in 2007. Having oversubscribed by nearly 76 times this is known to be the largest IPO for an Indian company in the recent past.
PFC’s vision is to be the foremost partner for the power sector and also its allied infra sectors across the value chain. PFC is awarded with ‘Navaratna Status’ by Government of India.
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