The Marketing mix of Siemens analyses the 4Ps of Siemens, including the Product, Price, Place, and Promotions. Siemens is a conglomerate that was founded in 1847 by Werner von Siemens. It is of German origins and headquartered in Munich and Berlin in Germany. Siemens is the largest European company related to engineering works, and its major divisions are infrastructure, health, energy, and industry. Siemens is a well-known equipment manufacturer of medical diagnostics, and its industrial automation and healthcare segments are the top two most profitable units, respectively. The company is traded in the European stock market and has numerous subsidiaries. Its primary competitors in the world are as follows.
- General Electric
- Philips
- Skoda
- ABB Ltd
About Siemens
- Type: Public
- Industry: Conglomerate
- Founded: October 1, 1847
- Founder: Werner von Siemens
- Headquarters: Munich and Berlin, Germany
- Area served: Worldwide
- Key people: Jim Hagemann Snabe (Chairman), Roland Busch (CEO)
- Number of employees: 311,000
Table of Contents
Siemens Product Strategy
In 1847, Siemens started its workings in electronic equipment with a telegraph that used a needle for pointing letter sequences instead of Morse code. Next year, it built the first telegraph line for long-distance usage in Europe, and in the 1850s, it was involved in building a telegraph network throughout Russia. The company later diversified into electric trains and, from there, manufacturing light bulbs, radios, electron microscopes, and television sets. In the 1920s, it constructed the hydro-power station Ardnacrusha on River Shannon.
The new Product Mix of Siemens in 2023 is as follows (Source).
- Industrial Automation: Products and solutions for automating industrial processes.
- Energy Technology: Solutions for energy generation, transmission, and distribution.
- Building Technology: Advanced systems for building management and automation.
- Mobility Solutions: Technologies for transportation and logistics.
- Healthcare Technology: Cutting-edge medical devices and healthcare solutions.
- Digital Services: Solutions leveraging digital technologies for various industries.
Siemens Place Strategy
Siemens is a multinational company that serves its target market worldwide with the help of numerous branch offices located in various cities in different parts of the world. As a parent company and its multiple subsidiaries, Siemens employs nearly 362,000 employees who are integral to the company to provide better services to its clients. Siemens operates in one hundred and ninety countries with two hundred eighty-five manufacturing and production facilities. In 2011, the company had 53,300 patents and invested Euro 3.925 billion in research and development projects. It has an efficient distribution network that works with its suppliers and distributors to provide the best possible results.
One of the best and most important factors contributing to the success of Siemens is its service. It has service dealers and engineers appointed worldwide and wherever it has a presence. Siemens knows that its product switching systems will sell better if the service is world-class. Hence, Siemens has gained so much equity over the years because Siemens’s products and services are fantastic.
Its global reach and strategic presence across various markets characterize Siemens’ place strategy. Here are five key points:
- Global Operations: Siemens operates worldwide, with a presence in numerous countries, allowing them to serve a global customer base.
- Localized Solutions: Despite its global footprint, Siemens offers localized solutions tailored to meet the specific needs of different regions and markets.
- Extensive Distribution Network: The company has an extensive distribution network, including partnerships with local distributors and suppliers, to ensure the wide availability of its products and services.
- Direct Sales and Online Platforms: Siemens employs a combination of direct sales and online platforms, facilitating easy access to its diverse product range for customers.
- Service and Maintenance Centers: They maintain service and maintenance centers globally, ensuring customers receive timely support and service for their products.
Siemens Pricing Strategy
Siemens AG’s revenue for the twelve months ending December 31, 2022, was $77.618B, a 1.42% increase year-over-year. The company has projected its products as advanced offerings for developed economies. It has marketed them at premium prices and adopted a pricing and marketing strategy. To tap untapped and emerging markets of developing countries like China, India, and Brazil, it has adopted a penetration policy and has kept its pricing policy competitive and reasonable.
It has decided to follow a policy of maximum value at minimum cost in such countries. Siemens has offered reliable, qualitative, and affordable products for quality-conscious and price-sensitive customers. As these products are made locally, raw materials costs are also less, providing the company ample revenues in emerging markets.
Siemens’ sophisticated pricing strategy aligns with its position as a leader in technological innovation and industrial solutions. Here’s an overview of pricing here:
- Value-Based Pricing: Siemens often employs value-based pricing, setting prices based on the perceived value of its products and services, especially for its high-tech and innovative offerings.
- Competitive Pricing: In highly competitive markets, Siemens adopts a competitive pricing strategy to match or undercut competitors, ensuring market share and relevance.
- Segmented Pricing: Siemens’ diverse product range allows for segmented pricing, catering to different market segments with varying pricing strategies based on customer needs and willingness to pay.
- Dynamic Pricing: The company uses dynamic pricing models for services and solutions, especially in sectors like energy and healthcare, where prices can fluctuate based on demand, regulatory changes, and technological advancements.
- Contract-Based and Project-Based Pricing: For large-scale industrial projects, Siemens often adopts contract-based or project-based pricing, considering the scope, duration, and complexity of the project.
This multi-faceted pricing approach enables Siemens to maintain its status as a premium brand while staying competitive in various markets.
Siemens Promotions Strategy
Sales promotional activities are integral to every organization, and Siemens has reaped its benefits through a thorough and detailed marketing plan. Siemens has used various activities and approaches to further brand loyalty and market their services and products to customers. It has tapped traditional media like hoardings, radio, and television to create a positive brand image.
Creative advertising, personal selling, and providing relevant information are vital parts of Siemens’s marketing and promotional activities. It also brings changes periodically so that a customer is not bored with its commercials. Siemens has adopted events about trade exhibitions and marketing collaterals as an integrated campaigning activity. The company has made online marketing its focal point and has started a campaign, Siemens Answers, on its micro-site.
Some Recent Video ads and Print ads for Siemens are:
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