Marketing Mix of Larsen And Toubro and 7Ps (Updated 2024)

The Marketing mix of Larsen and Toubro analyses the 7Ps of Larsen and Toubro, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Larsen and Toubro. Larsen and Toubro are commonly referred to as L & T and are of Indian origins. It is a conglomerate associated with several industries like construction, real estate, electrical equipment, heavy equipment, power, shipbuilding, and financial services. The company was founded in 1938 by refugee Danish engineers Soren Kristian Toubro, Henning Holck-Larsen, and an Indian financier. Some of its competitors are as follows-

• Lanco Infratech
• Gammon India
• Sundaram Fasteners
• Hindalco
• Bechtel
• ABB Ltd

About Larsen And Toubro

• Type: Multinational conglomerate
• Industry: Engineering, manufacturing, construction, information technology, financial services
• Founded: 7 February 1946
• Founders: Henning Holck-Larsen and Svend Toubro
• Headquarters: Mumbai, India
• Area served: Worldwide
• Key people: A. M. Naik (Chairman) and S. N. Subrahmanyan (CEO)
• Number of employees: 160,000 (2022)

Larsen And Toubro Product Strategy

Larsen and Toubro are two of India’s most respected and most prominent companies related to the industrial sector in the private sector. It has maintained its leadership in most business entities because of its quest for qualitative industrial products and impeccable services.

The product mix of Larsen And Toubro in 2024 is as follows (Source).

1. Engineering & Construction: L&T is renowned for its heavy engineering projects, which include the construction of roads, bridges, airports, and buildings. They also specialize in turnkey projects and have a significant presence in the Middle East and other countries.
2. Heavy Engineering: The company manufactures heavy engineering equipment and machinery for industrial sectors. This includes equipment used in defense, aerospace, and nuclear power industries.
3. Electrical & Automation: L&T produces various electrical products and systems for industries and utilities, including switchgear, control, and automation.
4. Hydrocarbon: This segment of L&T deals with the oil & gas sector, providing engineering, procurement, and construction services for onshore and offshore projects.
5. Information Technology & Technology Services: Through its subsidiaries like L&T Infotech and L&T Technology Services, the company offers IT solutions and services, including software development, maintenance, and digital solutions.
6. Financial Services: L&T provides a range of financial products and services, including infrastructure finance, general insurance, and mutual funds, through its subsidiary L&T Finance Holdings.
7. Real Estate Development: L&T Realty, the real estate arm of L&T, is involved in developing residential, commercial, and retail properties.
8. Defence Engineering: They are also engaged in the defense sector, manufacturing naval ships, submarines, and defense equipment.
9. Power: L&T’s power segment involves the construction of power plants and manufacturing critical power equipment like boilers, turbines, and generators.
10. Railway Projects: The company is constructing and modernizing railway infrastructure.
11. Smart World & Communication: This segment includes creating innovative solutions in security, surveillance, communication networks, and smart cities.

This diverse portfolio allows L&T to serve a wide range of industries and sectors, both domestically and internationally.

Larsen And Toubro Pricing Strategy

A diversified and diverse product portfolio has helped the company garner better profit margins. At the end of the financial year 2015-16, Larsen and Toubro declared its estimated revenues at 102,631.69 crores with a profit margin of 5,537.99 crore rupees. It has several business interests, and the company has assumed a fair pricing policy.

Larsen & Toubro (L&T) employs a nuanced pricing strategy that aligns its penetration pricing strategy with its engineering and construction leader position and diverse portfolio across various industries. Here’s an outline of their pricing strategy:

1. Value-Based Pricing: L&T adopts a value-based pricing approach, particularly in specialized segments like heavy engineering and defense. Prices are set based on the perceived value delivered to the client, including factors like the project’s complexity, technological sophistication, and customization.
2. Competitive Pricing: In highly competitive segments like construction and real estate, L&T often employs competitive pricing. This involves setting prices in line with the market conditions or slightly above competitors, leveraging its brand reputation and superior service quality to justify the premium.
3. Cost-Plus Pricing: For large-scale projects with variable costs, such as infrastructure development or turnkey projects, L&T tends to use cost-plus pricing. This strategy ensures that all expenses incurred in the project are covered, along with a profit margin, making it a safe bet for projects with uncertain or fluctuating costs.
4. Dynamic Pricing: In IT and technology services, L&T might use dynamic pricing, adjusting rates based on demand, project complexity, and client requirements. This flexibility allows them to remain competitive while catering to a diverse client base.
5. Bundled Pricing: For clients requiring a combination of services, like engineering, procurement, and construction (EPC), L&T often offers bundled pricing. This gives clients a cost advantage and enhances customer loyalty and long-term partnerships.

In summary, L&T’s competitive pricing strategy is multifaceted and tailored to the unique demands of each market segment it serves. This flexibility is critical to maintaining its market leadership and meeting the diverse needs of its global clientele.

Larsen And Toubro Place Strategy

Larsen and Toubro is a multinational company headquartered in Mumbai, Maharashtra. After Independence, the company started operations in Bombay and set up offices in Kolkata, New Delhi, and Chennai. Larsen and Toubro have expanded their horizons to Australia, Bhutan, Jordan, Maldives, Iraq, Kenya, Germany, Algeria, Sudan, West Indies, and Nepal.

It has worksites in twenty areas in Southeast Asia, the Middle East, Russia, East Asia, and CIS countries. It has also joint ventures with companies in Japan and Malaysia. Larsen and Toubro have an intensive supply chain that supports its global operations by managing new construction projects, factory construction equipment, and offices in India and abroad. Additional offices have been set up in the UAE and China. The company’s manufacturing facilities are located all over the world.

Larsen And Toubro Place’s Strategy is as follows:

1. Global Presence: Larsen & Toubro has a widespread global presence, with operations in over 30 countries across various continents, including the Middle East, Africa, Europe, and the Americas, allowing it to tap into diverse markets and leverage international growth opportunities.
2. Extensive Domestic Network: In India, L&T has established a strong network of offices and manufacturing facilities, enabling efficient distribution and execution of projects across the country, which is critical for its construction and engineering services.
3. Strategic Alliances and Joint Ventures: L&T forms strategic alliances and joint ventures with local and international companies to enhance its market reach and capability in various regions, particularly defense, nuclear energy, and infrastructure.
4. Diversified Sectoral Presence: By operating in multiple sectors such as construction, IT, financial services, and defense, L&T mitigates geographical risks and capitalizes on the growth of different industries in various regions.
5. Investment in Innovation Centers: L&T invests in innovation and research centers globally, especially in regions with a solid technological and engineering base, to stay ahead in technology and cater to the evolving needs of a global clientele.

Larsen And Toubro Promotion Strategy

Larsen and Toubro have received several awards in recognition of their services. In 1997, the Rajiv Gandhi National Quality Award was given to its Bengaluru Works Division, and in 2013, the Golden Peacock National Quality Award 2012 was given to the marketing mix of Larsen & T Power. L&T was ranked fourth in 2012 by Newsweek in its global list of industrial sectors for being a green company. The company has adopted an intensive marketing strategy because it realizes the advertising power of the consumer mindset. Its ad campaigns are advertised via television, magazines, newspapers, billboards, and social media to garner maximum exposure and brand exposure.

Larsen & Toubro’s promotion and marketing strategy focuses on building solid corporate branding through industry events and trade shows, leveraging digital platforms for global outreach, and maintaining robust public relations and media engagement to highlight their project successes and technological advancements. This multifaceted marketing approach helps L&T reinforce its position as a global technology, engineering, and construction services leader.

Some Recent Video ads and Print ads of Larsen And Toubro are:

Larsen And Toubro People Strategy

The “People” aspect of the service marketing mix for Larsen & Toubro (L&T) can be highlighted through several key points:

1. Skilled Workforce: L&T employs a highly skilled and specialized workforce crucial for delivering complex engineering, construction, and manufacturing projects. The talent pool includes engineers, project managers, construction workers, and specialists in various domains.
2. Training and Development: L&T invests significantly in the training and development of its employees. This includes on-the-job training, leadership development programs, and skill enhancement workshops to ensure their workforce remains at the cutting edge of technology and management practices.
3. Customer-Centric Approach: The employees at L&T are trained to adopt a customer-centric approach, focusing on understanding and meeting the needs of their clients. This approach helps build strong relationships and ensure customer satisfaction.
4. Innovation Culture: L&T encourages a culture of innovation among its people. Employees are motivated to think creatively and develop innovative solutions to improve project execution, enhance efficiency, and deliver client value.
5. Diversity and Inclusion: L&T is committed to diversity and inclusion, ensuring a workplace that respects and values differences. This diversity fosters a rich exchange of ideas, perspectives, and experiences that contribute to the innovative solutions for which L&T is known.
6. Safety and Health: The health and safety of its workforce are paramount for L&T. The company adheres to strict safety protocols and conducts regular health and safety training for its employees, aiming to minimize risks and ensure a safe working environment.
7. Leadership and Governance: Strong leadership and governance are key aspects of L&T’s people strategy. The company’s leadership is focused on ethical practices, transparency, and accountability, which guide the actions of all employees.
8. Community Engagement: Beyond its workforce, L&T also engages with the broader community through CSR initiatives. These programs are often employee-led, emphasizing the company’s commitment to societal well-being.
9. Employee Satisfaction and Retention: L&T focuses on employee satisfaction and retention through competitive compensation, benefits, career growth opportunities, and a positive work environment. This helps in maintaining a motivated and committed workforce.
10. Global Talent Pool: As a global conglomerate, L&T leverages a diverse global talent pool, employing individuals from various cultural and geographical backgrounds. This global perspective enhances its capability to manage and execute international projects effectively.

Larsen And Toubro Process Strategy

The “Process” aspect of the service marketing mix for Larsen & Toubro (L&T) involves several key points that highlight the company’s operational and service delivery methodologies:

1. Project Management Excellence: L&T employs advanced project management techniques to ensure timely and efficient delivery of projects. The company systematically plans, executes, and monitors projects, ensuring they meet the agreed-upon specifications, budget, and timelines.
2. Quality Assurance and Control: Quality is critical to L&T’s process. The company adheres to international standards and practices for quality assurance and control, ensuring that all projects and services meet the highest quality benchmarks.
3. Supply Chain Management: L&T has a robust supply chain management system that ensures the timely availability of materials and resources. This includes strategic sourcing, procurement, logistics, and inventory management, facilitating smooth project execution.
4. Customer Engagement and Feedback: The process at L&T involves continuous engagement with customers through feedback loops and communication channels. This ensures that customer expectations are met and any issues are promptly addressed.
5. Innovation and Continuous Improvement: L&T is committed to innovation and continuous improvement in its processes. The company invests in research and development to improve efficiency, reduce costs, and enhance service delivery.
6. Sustainability and Environmental Compliance: L&T’s processes are designed to minimize environmental impact. The company follows sustainable practices and adheres to environmental regulations and standards across all its operations.
7. Risk Management: L&T has a comprehensive risk management framework to identify, assess, and mitigate risks associated with projects and operations. This ensures that potential challenges are managed proactively.
8. Technology Integration: The company leverages the latest technologies and digital tools to enhance its processes. This includes using Building Information Modeling (BIM), digital platforms for project management, and automation technologies.
9. Health and Safety Protocols: Health and safety are paramount in L&T’s processes. The company implements strict health and safety protocols to protect its workforce and ensure compliance with regulatory requirements.
10. Customization and Flexibility: L&T’s processes are designed to be flexible and customizable to meet clients’ specific needs. This allows the company to deliver tailored solutions across its diverse portfolio.

Larsen And Toubro Physical Evidence Strategy

The “Physical Evidence” aspect of the service marketing mix for Larsen & Toubro (L&T) reflects the tangible and intangible elements that the company operates to help customers form their perceptions about its services. Here are key points highlighting the physical evidence of L&T:

1. Corporate Offices and Facilities: L&T’s corporate offices, including its headquarters and regional offices, showcase its brand and professionalism. The modern, well-maintained buildings and facilities reflect the company’s commitment to quality and excellence.
2. Project Sites: The appearance and organization of L&T’s project sites are physical evidence of the company’s operational efficiency, safety standards, and technological capabilities.
3. Equipment and Machinery: L&T’s investment in state-of-the-art equipment and machinery shows its commitment to delivering high-quality services. This includes everything from construction machinery to advanced manufacturing and engineering tools.
4. Branding and Signage: The consistent use of L&T’s logo and branding across project sites, equipment, uniforms, and promotional materials helps create a strong visual identity and reassures clients of the company’s professionalism and reliability.
5. Digital Presence: L&T’s website, social media profiles, and digital platforms provide tangible evidence of its services, expertise, and projects. This digital footprint is crucial for engaging with modern customers and stakeholders.
6. Marketing Collaterals: Brochures, case studies, annual reports, and presentation materials are essential forms of physical evidence that communicate L&T’s capabilities, achievements, and value proposition to clients and partners.
7. Awards and Recognitions: Certificates, trophies, and accolades received by L&T serve as physical proof of its excellence and leadership in the industry. These recognitions are often highlighted in corporate communications and on digital platforms.
8. Client Testimonials and Case Studies: Published testimonials and detailed case studies provide tangible evidence of L&T’s successful projects and client satisfaction. They serve as powerful tools for building trust with prospective clients.
9. Safety Standards and Certifications: Visible adherence to safety protocols on project sites and certifications from recognized standards organizations (like ISO) are physical evidence of L&T’s commitment to quality and safety.
10. Corporate Social Responsibility (CSR) Initiatives: Physical evidence of L&T’s CSR initiatives, such as community development projects, environmental conservation efforts, and educational programs, reinforces the company’s brand values and commitment to societal welfare.

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