The Marketing mix of Hitachi analyses the 4Ps of Hitachi, which includes the Product, Price, Place, and Promotions. Hitachi Ltd. is a conglomerate brand founded in Japan. Hitachi Ltd. is the parent company of Hitachi Group and is a decisive member of GKB Group of Companies. The term Conglomerate represents the varied business interests of Hitachi; it is like one single brand operating in varied entrepreneurial verticals.
Enterprises like Blue Star, Lloyd Electric and Engineering, and Samsung are the pioneers that keep Hitachi on the toe by threatening to win over its consumer base.
The conglomerate nature of Hitachi Ltd. can only be understood by listing the 11 varied verticals, which include of
- Telecommunication systems
- Power System
- Social Infrastructure
- Financial Services
- Automotive Systems
- High Functional Materials and Components
- Digital Media and Consumer Products
Hitachi Ltd. is a public enterprise listed on the Tokyo Stock Exchange, and it ranks 38th in the Fortune Global 500. A study in January 2014 found that hard disks from Hitachi were the most reliable. Hitachi’s promise of delivering quality products and services under all constraints makes it one of the most loved brands.
About Hitachi
- Type: Multinational conglomerate corporation
- Industry: Electronics, energy, construction, information & communication technology, transportation
- Founded: 1910
- Founders: Namihei Odaira
- Headquarters: Chiyoda City, Tokyo, Japan
- Area served: Worldwide
- Current CEO: Keiji Kojima
- Number of employees: 350,000+
- Major products: Electronics, power systems, construction machinery, railway systems, information & communication technology solutions, transportation systems
Table of Contents
Hitachi Product Strategy
Hitachi Ltd. deals in various products and services, including financial services, digital media, and consumer products. The ever-expanding product line caters to a wide range of audiences and tries to fulfill every requirement of a valued customer.
An Electrical Engineer named Namihei Odaira started Hitachi, and the first product was an Electric Induction Motor, which happened to be Japan’s first 5-horsepower motor. The Hitachi brand has come a long way from manufacturing motors to catering to people with financial services.
One can choose from many variants in almost every Hitachi product line sector. Hitachi is helping people make better choices by providing them with sumptuous options.
Hitachi Ltd., a large conglomerate, operates in various sectors, reflecting the competitive advantage in its diverse product mix.
The new Product Mix of Hitachi in 2023 is as follows (Source).
- Information Technology: Hitachi offers various IT services and products, including data storage solutions, cloud services, and advanced IT infrastructure.
- Energy: They are involved in the energy sector, providing solutions for power generation, transmission, and distribution. This includes renewable energy technologies like wind and solar power systems.
- Industrial Systems and Equipment: Hitachi manufactures industrial machinery and equipment, including construction machinery, high-functional materials, and components.
- Mobility: In the mobility sector, Hitachi provides various products such as railway vehicles, automotive systems, and transportation infrastructure.
- Smart Life: This segment includes consumer electronics, smart home technologies, and healthcare solutions. They are known for their advancements in medical imaging and diagnostic equipment.
- Financial Services: Hitachi also has a financial services segment offering various financial products and services.
- Electronic Systems and Equipment: Semiconductors, display devices, and other electronic components.
These target market categories showcase Hitachi’s broad reach across different industries, from technology and infrastructure to finance and automotive sectors.
Hitachi Pricing Strategy
Be it Aircraft Engines, Automotive Products, Construction Machinery, or Defense Systems, Hitachi has always tried to maintain balanced pricing while keeping competitors in mind. Defense products and construction machinery are sectors where sales depend on quality, not pricing, which plays a vital role in shaping Hitachi’s marketing mix under the pricing vertical.
Hitachi’s approach in the telecommunication system sector and Power System will enamor customers by luring them with attractive pricing. The enterprises have successfully catered to more than 50 Nations with affordable prices and quality products and continue to expand their outreach daily.
The fact that Hitachi Ltd. is growing daily and has significantly fewer setbacks proves that the enterprise has put money and ideas in the right direction. When moving ahead with the right strategy and marketing objectives, you can always cut out prices and provide your customers with heavy discounts. Hitachi has hit the bull’s eye with marketing strategy and price-cutting.
Hitachi’s pricing strategy is characterized by its sector-specific approach and focus on quality.
- Sector-Specific Pricing: Hitachi adopts different pricing strategies for each sector in which it operates. This flexibility allows them to tailor prices to each market’s demands and dynamics.
- Demand and Product Type Consideration: The pricing is influenced by factors such as demand, the type of product, and the solutions companies require. This indicates a market-oriented approach, aligning prices with market conditions and customer needs.
- Competitive Pricing in Key Sectors: In sectors like defense systems, aircraft engines, and construction machinery, Hitachi employs a competitive pricing strategy. This suggests that they price their products competitively in markets facing significant competition to maintain market position.
- Quality over Price: Despite the competitive pricing in specific sectors, Hitachi emphasizes quality more than price. This approach indicates their commitment to delivering high-value products, even if it means not competing on price alone.
- Resilience in Pricing Strategy: Hitachi’s focus on quality has led to fewer setbacks, demonstrating the strength of their pricing strategy. It underlines their long-term perspective in pricing, prioritizing sustainable quality over short-term pricing advantages.
This pricing and distribution strategy reflects Hitachi’s understanding of diverse market needs and commitment to delivering high-quality products while remaining competitive in key sectors.
Hitachi Place Strategy
Founded in 1910, Hitachi is headquartered in Chiyoda, Tokyo, Japan. Listed as a public stock company on the Japan Stock Exchange, Hitachi has an impressive global outreach.
Including countries from South America, North America, Asia, Europe, and the Middle East, the company operates in more than 50 Nations. Hitachi’s outreach signals towards the core business values founders, marketing management, and board members have passed to the next generation over time. A simple expansion model, quality services, and affordable pricing have helped Hitachi to grow as a brand.
The diverse portfolio, including 11 business verticals, allows Hitachi to sell different products in varied countries; for example, Hitachi’s defense products are pretty popular in the Middle East, whereas countries like India, Japan, and Bangladesh enjoy access to telecommunication systems.
Hitachi’s place strategy can be summarized in the following points:
- Targeted Business Enhancement: Hitachi High-Tech is focused on enhancing its core businesses, particularly in healthcare and nanotechnology (semiconductor field), adapting to the changing social environment. This involves creating solutions to address customer issues and contributing to social problem-solving.
- Deepening Customer Integration: They aim to strengthen their main businesses by integrating more deeply with digital capabilities and fostering co-creation with customers. This approach suggests a shift towards more customer-centric, technology-driven solutions.
- New Business Creation for Sustainability: Hitachi is committed to contributing to a sustainable society by creating new businesses. This involves leveraging their core technologies and business acumen, utilizing global business expansion capabilities, and customer co-creation, with a significant emphasis on their digital platform, Lumada.
- Enhanced Supply Chain Resilience: By integrating global procurement functions cultivated from their experience as a trading company with manufacturing procurement functions, Hitachi aims to bolster their supply chain resilience, allowing for better risk control throughout the supply chain.
- Digital Transformation (DX) for Management Efficiency: Hitachi is advancing digital transformation to respond promptly to changes in the business environment and customer challenges. This includes simplifying business processes, global standardization, and digitalizing management, enhancing the speed and efficiency of their management operations.
Hitachi Promotion Strategy
Hitachi has always relied on its quality product and customer experience for its marketing strategies as an enterprise. In contrast, promotional ads have always been a part of the plan, but enrolling a superstar celebrity is not the Hitachi way.
Hitachi has left the world impressed and head over heels in awe by publishing some generic and funny ads. The enterprise aims to sweep over the target audience with their wit and intelligence. Hitachi’s quality puts it ahead of many of its contemporaries, increasing its popularity and sales.
Hitachi has actively contributed to Corporal Social Responsibility across the world. They have done some awe-inspiring work in the Sub-Continent.
Hitachi- Inspire the Next is the motto that will continue to inspire excellent technology and help people lead a simple yet overwhelming life.
Some Recent Video ads and Print ads of Hitachi are:
https://youtu.be/fcmgt6KAdaM
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