The Marketing mix of Schneider Electric analyses the 4Ps of Schneider Electric, including Product, Price, Place, and Promotions. Schneider Electric SE is a publicly-traded company of French origins. It is a multinational corporation associated with the Energy automation and management industry and deals in hardware and software. Schneider Electric was founded in 1836 by its founder, Eugene Schneider. The company has the distinction of occupying a Fortune Global 500 list position. It has several subsidiaries under its umbrella, like APC, Zicom, Telvent, and Federal Pioneer. Schneider Electric faces competition from the following companies:
- Emerson Electric
- Siemens
- ABB Limited
About Schneider Electric
- Type: Multinational company
- Industry: Energy management and automation
- Founded: 1836
- Founder: Eugene Schneider
- Headquarters: Rueil-Malmaison, France
- Area served: Worldwide
- Key people: Jean-Pascal Tricoire (Chairman) and Peter Herweck (CEO)
- Number of employees: Over 138,000
Table of Contents
Schneider Electric Product Strategy
Schneider Electric has nearly 20,000 patents to its name by the year 2016. Its business includes both B2B and B2C operations.
The new Product Mix of Schneider Electric in 2023 is as follows (Source).
- TeSys Solutions: Schneider Electric offers innovative and connected solutions for motor starters, including ready-to-use components for building specific motor starters (circuit breakers, contactors, overload relays, and accessories). The TeSys product line is notable for its comprehensive motor control and protection offerings.
- eMobility Solutions: The company focuses on eMobility solutions, which are crucial in the growing field of electric mobility. This includes a range of products and services dedicated to eMobility infrastructure, highlighting Schneider Electric’s commitment to sustainable energy solutions.
- Software and Digital Services: Schneider Electric provides various software solutions and digital services. These include energy management, industrial automation, and data center software, underlining the company’s focus on digital transformation and intelligent energy management.
- Field and Digital Services: The company offers a range of field and digital services, ensuring customers receive comprehensive support for their Schneider Electric products and solutions. This aspect of their offering emphasizes their commitment to customer service and product maintenance.
- Sector-Specific Solutions: Schneider Electric caters to various sectors, including automotive and mobility, cloud and service providers, commercial real estate, data centers, energies and chemicals, food and beverage, healthcare, hotels, and more. This diversity in sector-specific solutions demonstrates the company’s versatility and ability to meet industry requirements.
Schneider Electric Place Strategy
Schneider Electric has spread internationally in countries like France, the United States, Canada, Germany, Japan, Australia, Brazil, New Zealand, Sweden, Italy, Denmark, the United Kingdom, Spain, and India. It has 31 manufacturing facilities spread across several countries to provide the best possible results. Schneider Electric’s headquarters is at Rueil-Malmaison in France.
The company has superior R&D facilities to meet customer needs and requirements. Schneider Electric has a widespread distribution channel, including regional offices in several parts of the world for residential and small businesses. Its product distribution network includes the services of consultants, purchasing advisors, system integrators, installers, and distributors. The supply of Schneider Electric includes large distributors, electric equipment wholesalers, local distributors, and international groups like Raxel and Gyabar & Grainger. In the residential sector, it uses Kingfisher for the market in the United Kingdom, Home Depot for the market in the United States, and Saint-Gobain in France.
Schneider Electric’s place strategy is focused on expanding its global reach and enhancing accessibility to its products and services. Here are the critical aspects of this strategy:
- Global Operational Footprint: Schneider Electric operates globally in numerous countries. This allows them to cater to diverse markets and meet customer needs across regions.
- Extensive Distribution Network: The company has established a distribution network, including direct sales channels and partnerships with distributors and resellers. This network ensures their products are readily accessible to customers worldwide.
- Online and Digital Platforms: Schneider Electric leverages online platforms for product information, downloads, and support. This digital approach facilitates easy access to their offerings and enhances customer engagement.
- Local and Regional Support: They provide localized support through customer service centers and field services. This localized approach is crucial for understanding regional market needs and providing tailored solutions.
- Focus on Sustainable and Smart Solutions: Schneider Electric’s emphasis on energy-efficient solutions aligns with the increasing global focus on sustainability. This is evident in their product offerings and solutions, which cater to a growing demand for green and intelligent energy solutions.
Schneider Electric Pricing Strategy
At the end of the financial year 2015, the estimated revenues of Schneider Electric were 26.64 billion Euros and its profit was 1.41 billion Euros. It has positioned itself as a global specialist in the energy management sector based on green technology. Schneider Electric is a powerful brand that has adopted a premium pricing policy because its customers are aware of the company’s high-quality products. It also follows a value-based pricing system that ensures customers’ willingness towards the product’s perceived value. Its marketing strategy is an ultimate blend and a perfect balance between innovative products and customer expectations.
Schneider Electric’s pricing strategy is designed to align with its position as a leader in industry automation, energy management, and automation solutions. Here’s an analysis:
- Value-Based Pricing: Schneider Electric likely employs value-based pricing for its advanced technology solutions. This approach sets prices based on the perceived value these solutions provide customers, especially regarding energy efficiency, sustainability, and automation capabilities.
- Tiered Pricing for Diverse Product Range: Given the range of products, from essential electrical components to sophisticated automation systems, Schneider Electric probably uses a tiered pricing structure. This allows them to cater to different customer segments, from individual consumers to large enterprises.
- Competitive Pricing in Key Market Segments: In highly competitive segments like electrical components and standard automation products, Schneider Electric is expected to adopt competitive pricing strategies to align with market standards and stay competitive.
- Premium Pricing for Specialized Solutions: For more specialized and advanced solutions, such as innovative grid technologies and custom automation systems, Schneider Electric may use premium pricing, reflecting the higher value and specialized nature of these products.
- Dynamic and Flexible Pricing Models: Given the evolving nature of technology and the global market dynamics, Schneider Electric might adopt dynamic pricing models for specific products or services. This flexibility allows them to adapt effectively to market changes and customer demand patterns.
Schneider Electric Promotion Strategy
Schneider Electric has launched ad campaigns via television, magazines, YouTube, and Facebook as part of its marketing efforts to gain maximum brand visibility. It is aware of its responsibility towards the environment.
It has taken several steps, such as promoting green attributes, leveraging waste, deploying resource strategies and low-carbon dioxide, and building a green supply chain. It has numerous awards and recognition for its endeavors. One of the World’s Most Ethical Companies in 2016 for the sixth time, the CEO Leadership Award for promoting gender equality, and the Most Sustainable Company of the CAC 40. It has a descriptive and apt tagline: The global specialist in energy management/Makes the most of your energy.
Some Recent Video ads and Print ads for Schneider Electric are:
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