Marketing Mix of NTPC and 7Ps (Updated 2024)

The Marketing mix of NTPC analyses the 7Ps of NTPC, which include the Product, Price, Place, Promotion, People, Physical Evidence, and Process of NTPC. National Thermal Power Corporation Limited is known as NTPC and is of Indian origins. It is associated with the energy and power industry and deals in electric utilities. NTPC is a publicly traded company that was founded in 1975. It was incorporated under the Companies Act and is a fully-owned subsidiary of the Government of India. NTPC was ranked at 424th position in 2014 by Forbes Global 2000. It is ranked sixth as the world’s largest company for generating thermal power. It faces competition from the following companies-

• Tata Power
• Reliance Energy

About NTPC

• Type: State-owned enterprise
• Industry: Electric Utility
• Founded: 7 November 1975
• Founders: Government of India
• Headquarters: New Delhi, India
• Area served: India
• Current CEO: Gurdeep Singh
• Number of employees: 250,000+
• Major products: Electricity, coal, and renewable energy

NTPC Product Strategy

NTPC is an undertaking of the Central Government and works under the Ministry of Power to hasten the power development process in India. Its presence has spread to its entire value chain. It has ventured into electricity generation from fossil fuels via coal-based nuclear, hydro, and renewable energy sources.

Its primary business is selling and generating electricity to the Indian State Electricity Board and power distribution companies owned by the state government policy. It is also involved in turnkey contracts and consultancy works involving project management, engineering, construction operation, and management of power plants.

NTPC has diversified its business interests and ventured into gas and oil exploration and coal-mining activities. It has the distinction of being India’s most prominent power company and generating an installed capacity of nearly 45,548 MW. It has this installed capacity and higher efficiency levels, contributing 25% power generation. Per month, its electricity production amounts to 25 billion units.

NTPC Limited, formerly known as National Thermal Power Corporation Limited, is an Indian public sector undertaking engaged primarily in power generation and allied activities.

The product mix of NTPC in 2024 is as follows (Source).

1. Thermal Power Generation: This is the core business of NTPC, involving generating electricity through coal-based thermal power plants. NTPC operates several such plants across India, making it one of the largest power producers in the country.
2. Renewable Energy: In recent years, NTPC has diversified into renewable energy sources. This includes power generation through solar, wind, and small hydro plants. The company has been actively investing in solar power projects as part of its commitment to sustainable energy.
3. Hydro Power Generation: NTPC operates a few hydroelectric power plants. Though smaller than its thermal power generation, this segment contributes to the company’s diversified energy mix.
4. Nuclear Power: Through joint ventures, NTPC is involved in the generation of nuclear power as well. This is a relatively new but growing segment of their business.
5. Consultancy and Project Management Services: NTPC provides consultancy services for power plant projects, including engineering, project management, and operation and maintenance services. This leverages their vast experience in setting up and running power plants.
6. Electricity Trading: NTPC is involved in the trading of electricity. The company sells power to various state utilities and other customers in the open market.
7. Coal Mining and Fuel Security: NTPC has ventured into coal mining to secure its fuel supply. This ensures a steady supply of coal for its thermal power plants.
8. Research and Development: NTPC invests in research and development, focusing on areas like energy efficiency, pollution control, and new technology for power generation.
9. International Business: NTPC has also expanded its operations overseas, offering consultancy and project management services for power projects in other countries.

The product mix of NTPC reflects its strategy of diversification and sustainable growth, balancing traditional thermal power generation with renewable energy sources while also expanding into new business areas related to the energy sector.

NTPC Pricing Strategy

By the end of the fiscal year 2015-16, the estimated revenues of NTPC were 71696.07 crore rupees, and its net income was 10242.91 crore rupees. The aim of the Government of India is Power for All. It has adopted cost-effective ways to enhance power supply. NTPC has set benchmarks in the power industry via the operations and construction of power plants. It offers the cheapest and minimum average tariff for power supply electricity anywhere in India.

NTPC is committed to generating power sustainably at competitive prices by putting its onus on using eco-friendly and innovative technology. It has adopted a reasonable and economical pricing policy as it is a government undertaking and union government that works for the welfare of its country and its people.

NTPC’s pricing” marketing strategy and distribution strategy, crafted with a keen understanding of the energy market dynamics, can be encapsulated as follows:

1. Competitive Pricing: NTPC employs a competitive pricing strategy to maintain its stronghold in the power sector. Given the scale of operations and cost efficiencies, it can offer electricity at prices often lower than private competitors, thereby ensuring a strong market presence.
2. Cost-Plus Tariff Model: The company typically follows a cost-plus tariff model, where the pricing is based on the cost of production plus a reasonable profit margin. This model is transparent and regulated, aligning with government policies and ensuring fair pricing for consumers.
3. Dynamic Pricing for Renewable Energy: NTPC adopts a more dynamic pricing strategy in the renewable energy sector. This considers the varying production costs for solar and wind energy, subsidies, and incentives provided by the various government bodies, ensuring the pricing remains attractive to encourage the adoption of green energy.
4. Long-term Power Purchase Agreements (PPAs): NTPC’s pricing strategy is also driven by long-term PPAs with state electricity boards and industrial consumers. These agreements provide price stability and predictability for NTPC and its customers, allowing for strategic financial planning.
5. Differential Pricing Based on Demand and Supply: The company adapts its pricing based on the demand-supply dynamics in different regions and during different times of the year. This approach helps manage peak loads and ensures optimum utilization of its power generation capacity.
6. Innovation in Pricing for New Ventures: As NTPC diversifies into new areas like electric vehicle charging infrastructure and international projects, innovative marketing mix pricing strategies are being explored to create competitive advantages and tap into new revenue streams.

In summary, NTPC’s pricing strategy balances regulatory compliance, market competitiveness, cost efficiency, and strategic foresight. This approach fortifies its position in the power sector and aligns its pricing decisions with its long-term objectives of sustainable growth and diversification strategies.

NTPC Place Strategy

NTPC is an Indian company with operations spread over fifty-five locations in the country, with overseas operations in one location in Sri Lanka and two locations in Bangladesh. Its headquarters base is in New Delhi. It has eighteen power stations for electricity generation. It is coal-based, and some of them are located at Singrauli, Unchahar, Tanda and Rihand in Uttar Pradesh, Korba and Sipat in Chhattisgarh, Farakka in West Bengal, Ramagundam and Simhadri in Andhra Pradesh, Kahalgaon in Bihar, Vindhyachal in Madhya Pradesh and Talcher in Orissa.

Its seven power stations based on gas/liquid are at Faridabad in Haryana, Kayamkulam in Kerala, Jhanor-Gandhar and Kawas in Gujarat, Dadri and Auraiya in Uttar Pradesh and Anta in Rajasthan. NTPC has set up power plants in joint ventures at RGPPL in Maharashtra, Bhilai in Chhattisgarh, Rourkela in Orissa, and Durgapur in West Bengal. It has a widespread distribution network that includes a competent workforce of 21,633 employees.

NTPC’s place strategy is as follows:

1. Strategic Location of Power Plants: NTPC’s thermal power plants are located near coal and water sources to minimize transportation costs and ensure a steady supply of raw materials and electricity.
2. Pan-India Presence: With a network of power plants spread across various regions of India, NTPC ensures a balanced and widespread geographical presence, catering to the energy needs of diverse states.
3. Renewable Energy Projects: NTPC has been focusing on renewable energy projects, situating solar and wind farms in areas with high potential for these resources, such as sunny and windy regions.
4. International Ventures: The company has extended its expertise globally, offering consultancy and project management services for power and projects undertaken in other countries, thereby marking its international presence.
5. Integration with National Grid: NTPC’s power plants are well integrated with the national grid, ensuring efficient electricity distribution nationwide, minimizing losses, and enhancing accessibility to remote areas.

NTPC Promotion Strategy

NTPC has received awards for companies like Maharatna in 2010 by the Union Government of India, in 2009 ICSI National Award for Excellence in Corporate Governance, and in 2016 Dun and Bradstreet Corporate Award. The company realizes the importance of resource conservation and environmental protection and has implemented several policies in its favor.

It has adopted a comprehensive resettlement and rehabilitation process along with several CSR activities for improving conditions in society via the country’s economic development. NTPC has tried to lower its carbon footprint by minimizing greenhouse gas emissions and maximizing energy efficiency. It has put its onus on reducing, recycling, and reusing to conserve resources. It has launched ad and marketing campaigns via television, newspapers, and YouTube to increase its brand visibility.

NTPC’s promotion and marketing strategy is as follows:

1. Corporate Social Responsibility (CSR) Initiatives: NTPC actively promotes its brand through various CSR activities, highlighting its commitment to sustainable development and community welfare, which enhances its corporate image.
2. Digital and Traditional Media Presence: The company leverages both digital platforms and traditional media for promotions and marketing, using a mix of social media, advertising campaigns, and public relations to reach a broad audience.
3. Partnerships and Sponsorships: NTPC engages in strategic partnerships and sponsorships, particularly in energy, environment, and education, to enhance its visibility and brand reputation.

Some Recent Video ads and Print ads of NTPC are:

NTPC People Strategy

The “People” element of the Service Marketing Mix is crucial in service-oriented sectors like energy, where NTPC (National Thermal Power Corporation Limited) operates. This aspect focuses on the employees who deliver the service and the customers who receive it. Here’s a detailed look into the “People” aspect of NTPC:

1. Skilled Workforce: NTPC invests in recruiting, training, and retaining a highly skilled workforce to efficiently operate its thermal and renewable energy plants. This includes engineers, technicians, and support staff proficient in their respective fields.
2. Training and Development: Continuous training and development programs are a cornerstone of NTPC’s strategy to ensure its employees are up-to-date with the latest technologies and practices in energy production, safety standards, and environmental protection.
3. Customer-Centric Approach: NTPC focuses on understanding and meeting the needs of its diverse customer base, which includes industrial, commercial, and residential consumers. Their approach to customer service includes clear communication, reliability, and responsiveness to customer feedback and complaints.
4. Employee Engagement and Satisfaction: NTPC places a high value on employee satisfaction and engagement, understanding that a motivated workforce is essential for high-quality service delivery. This includes providing competitive salaries and benefits and creating a positive work environment.
5. Safety and Health Policies: Emphasizing the safety and health of its employees and the communities around its facilities, NTPC adheres to strict safety protocols and health guidelines to prevent accidents and mitigate risks.
6. Community Engagement: NTPC actively engages with the communities around its plants, understanding that community support is crucial for its operations. This includes corporate social responsibility (CSR) initiatives, local development programs, and addressing environmental concerns.
7. Leadership and Management: Effective leadership and management practices are essential to NTPC’s success, ensuring teams are led by experienced professionals who can inspire and guide their employees toward achieving the company’s goals.
8. Diversity and Inclusion: NTPC is committed to promoting diversity and inclusion within its workforce, recognizing the value of diverse perspectives and experiences in driving innovation and improving service delivery.

NTPC Process Strategy

The “Process” element of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For NTPC (National Thermal Power Corporation Limited), a leading power generation company in India, the process aspect is critical to ensuring efficient service delivery and customer satisfaction. Here are vital points detailing the “Process” aspect of the NTPC distribution strategy:

1. Project Planning and Development: NTPC follows a structured process for planning and developing new power projects, including feasibility studies, environmental impact assessments, and securing necessary approvals and land acquisitions.
2. Energy Generation: The core process of NTPC involves the generation of electricity through various sources, including thermal (coal, gas), hydro, and renewable energy (solar, wind). This process includes stringent operational protocols to ensure efficiency, reliability, and sustainability.
3. Transmission and Distribution: Although NTPC’s primary focus is on power generation, the company also engages in the transmission and distribution process through collaborations with state and national grid entities to ensure the smooth delivery of power across regions.
4. Customer Service and Support: NTPC has established processes for customer service and support, including query handling, complaint resolution, and providing information on power availability and tariffs. These processes are designed to be customer-friendly and efficient.
5. Maintenance and Safety Procedures: Regular maintenance schedules and strict safety procedures are integral to NTPC’s operational processes. These ensure all equipment and facilities run safely and efficiently, minimizing downtime and preventing accidents.
6. Technology and Innovation: NTPC incorporates advanced technologies and innovative practices in its processes to enhance efficiency, reduce environmental impact, and support the national move towards cleaner energy sources.
7. Training and Development: Continuous training programs for employees ensure that they are skilled in the latest technologies and operational best practices. This includes technical training, safety protocols, and customer service standards.
8. Quality Control and Assurance: Quality control measures are embedded in NTPC’s processes to ensure power generation meets specified standards. This includes regular inspections, audits, and monitoring of performance indicators.
9. Environmental Management: NTPC’s process includes comprehensive ecological management practices, such as waste management, water conservation, and emission controls, to mitigate the environmental impact of its operations.
10. Regulatory Compliance: Adherence to national and international energy sector regulations is critical to NTPC’s operational process. This includes compliance with environmental standards, labor laws, and safety regulations.
11. Feedback and Continuous Improvement: NTPC has mechanisms to collect feedback from customers, employees, and other stakeholders. This feedback is used to improve processes and address issues continuously and proactively.

NTPC Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix refers to the tangible and intangible elements customers use to evaluate the service quality. For a company like NTPC (National Thermal Power Corporation Limited), which operates in the energy sector, physical evidence plays a crucial role in shaping perceptions of reliability, sustainability, and corporate responsibility. Here are key points detailing the “Physical Evidence” aspect of the marketing mix for NTPC:

1. Corporate Branding: NTPC’s logo, brand imagery, and corporate colors are consistently used across all physical and digital platforms. This visual identity helps reinforce the company’s image as a reliable and leading power provider.
2. Facilities and Infrastructure: The power plants, renewable energy installations, and associated infrastructure like substations and transmission lines serve as physical proof of NTPC’s operational capacity and technological prowess.
3. Corporate Office and Customer Service Centers: The design and maintenance of NTPC’s corporate offices and customer service centers also serve as physical evidence. Well-maintained, accessible facilities reflect the company’s professionalism and commitment to service quality.
4. Safety Measures and Signage: Visible safety measures, signage, and instructions at NTPC facilities reinforce the company’s commitment to safety and environmental standards.
5. Corporate Social Responsibility (CSR) Initiatives: Tangible outcomes of CSR activities, such as community development projects, educational programs, and environmental conservation efforts, demonstrate NTPC’s commitment to sustainable and socially responsible business practices.
6. Digital Presence: NTPC’s website, mobile apps, and social media channels serve as digital physical evidence. These platforms provide comprehensive information about the company’s services, projects, and achievements, enhancing transparency and trust.
7. Annual Reports and Publications: Published reports, newsletters, and brochures highlighting NTPC’s achievements, financial performance, and plans are critical forms of physical evidence that communicate the company’s stability and growth prospects to stakeholders.
8. Awards and Certifications: NTPC’s recognition for operational excellence, sustainability, and corporate governance is evidence of the company’s quality and reliability.
9. Customer Testimonials and Case Studies: Documented experiences of industrial, commercial, and residential customers endorse NTPC’s service quality and customer satisfaction.
10. Employee Uniforms and Identification: Uniforms, badges, and other forms of employee identification make the service personnel easily recognizable, adding to the professional image and enhancing security within NTPC facilities.
11. Environmental Compliance and Performance Indicators: Displaying environmental performance indicators, such as carbon emissions reductions and waste management advancements, provides tangible evidence of NTPC’s commitment to environmental sustainability.
12. Visibility in the Community: The physical presence of NTPC in the communities it serves, through local offices, community engagement activities, and support in emergencies, reinforces its role as a vital and responsible community member.

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