Marketing Mix of SoftBank and 7Ps (Updated 2024)

The Marketing mix of SoftBank analyses the 7Ps of SoftBank, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of SoftBank. SoftBank is a public company of Japanese origin that deals in the telecom industry. In terms of market value, assets, profits, and sales, it is ranked at 62nd position as the most significant global company. At the onset of the year 2015, it was the third-largest Corporation in Japan, and its corporate profile comprises other companies like SoftBank BB, a broadband company; IDC Frontier, a broadband company related to a data center; GungHo Online Entertainment, which is a gaming company, and SB Creative, a publishing company. It also partners with foreign companies like E-Trade, Morningstar, and Ustream.tv. All these are Japanese subsidiaries. Some of its major competitors are as follows.

• Toyota
• Mitsubishi UF J Financial

SoftBank Product Strategy

SoftBank Group, a multinational conglomerate based in Japan, has a diverse business product mix that extends beyond traditional telecommunications services.

The new Product Mix of SoftBank in 2024 is as follows (Source).

1. Telecommunications Services: SoftBank provides various telecommunications services, including mobile and broadband internet. They are one of the major mobile network operators in Japan.
2. Technology Investments: The company has significantly invested in various technology companies worldwide through the SoftBank Vision Fund. These investments cover many industries, including artificial intelligence, robotics, IoT, and clean energy.
3. Robotics: SoftBank Robotics is known for creating robots like Pepper and NAO, which are used in various sectors for customer service, education, and companionship.
4. Internet Services: SoftBank offers various internet-based services, including e-commerce, digital advertising, and web hosting, through its subsidiaries and investment portfolios.
5. Energy: SoftBank is involved in the energy sector, particularly in renewable energy projects. They have initiatives and investments in solar and wind energy projects.
6. Financial Services: The company has extended its reach into financial services, including investments in fintech companies and other financial ventures.
7. Data Analytics and AI Services: SoftBank provides advanced analytics and AI-driven services to various businesses and sectors, leveraging its investments in AI and big data.
8. Real Estate and Infrastructure: SoftBank has also expanded into real estate and infrastructure, investing in projects and companies that align with its broader technology and telecommunications interests.

SoftBank Pricing Strategy

SoftBank’s pricing, marketing, and sales strategy reflects its position as a multifaceted technology conglomerate with a strong focus on innovation, value creation, and market penetration. Here’s a breakdown of their approach to the target market here:

1. Competitive Pricing in Telecommunications: In its core telecom business, SoftBank employs competitive pricing strategies to attract and retain customers in a highly competitive market. They offer various pricing plans to meet consumer needs, balancing affordability with value-added services.
2. Value-Based Pricing for Innovative Products: SoftBank adopts a value-based pricing strategy for its advanced technology products, like robotics and AI services. This involves setting prices that reflect these products’ perceived value, innovation, and uniqueness, catering to niche markets willing to pay a premium for cutting-edge technology.
3. Dynamic Pricing for Investment Ventures: SoftBank employs a dynamic pricing strategy in its investment operations through the Vision Fund. Investment decisions are based on the potential value creation and growth prospects of the startups or tech companies they invest in, reflecting a strategic approach to pricing in venture capital.
4. Tiered Pricing Models: SoftBank often uses tiered pricing for services targeting a broad consumer base, such as internet and cloud services. This strategy involves offering different service levels at different price points, catering to a wide range of customers, from individual consumers to large enterprises.
5. Promotional and Bundled Pricing: To attract new customers and retain existing ones, SoftBank frequently employs promotional and bundled pricing strategies. This includes offering discounts, bundle deals, and special promotions, particularly in consumer-facing businesses like mobile and broadband.

SoftBank’s pricing strategy is a sophisticated blend of competitive, value-based, and dynamic pricing models tailored to the diverse nature of its businesses. This multifaceted approach allows SoftBank to remain competitive in traditional markets, like telecommunications and social media advertising and marketing, while capitalizing on its investments in innovative technologies and startups. The strategy reflects a keen understanding of market dynamics and consumer segments, ensuring sustained profit growth and market presence.

SoftBank Place Strategy

SoftBank is a multinational company founded in 1981 and is headquartered in Tokyo, Japan. A multinational company often yields the best revenues and profits when it is run competently, and employees are an essential part of any organization as they are the bridge between consumers and the company. The company has 69,154 employees, which helps successfully handle customers. Its distribution policy is also very intricate and organized. It consists of dealers and retail showrooms. Shareablee is an essential SoftBank app and a competitive social data platform that helps track 30,000 brands daily to provide insight into marketing growth, brand loyalty, and performance.

Here’s the place strategy of SoftBank.

1. Global Investment Footprint: SoftBank strategically focuses on expanding its global presence through investments in various tech companies worldwide. Through the SoftBank Vision Fund, the conglomerate has a significant footprint in multiple markets, including the United States, Asia, and Europe.
2. Physical Retail Presence in Japan: In its home market of Japan, SoftBank maintains a strong physical presence with numerous retail stores. These stores offer telecommunications services, mobile devices, and customer support, serving as direct touchpoints for consumers.
3. Online Platforms and Digital Services: SoftBank leverages online platforms to offer and manage its services, including mobile plans and internet services. This digital approach caters to the growing demand for online accessibility and convenience in service management.
4. Partnerships with Key Industry Players: SoftBank strategically collaborates with major tech companies and startups globally. These partnerships enhance its service offerings and expand its market reach through its partners’ networks and customer bases.
5. Diverse Sector Engagement: Beyond technology and telecommunications, SoftBank’s place strategy involves engaging in various sectors like energy, AI, and robotics through its investments. This diversification allows SoftBank to have a presence in multiple industries, broadening its market influence and opportunities.

SoftBank Promotion Strategy

SoftBank has adopted a high-profile marketing strategy as it recognizes the value of the advertisement for marketing its products. It has offered its customers lucrative deals and discounts that have helped the company rope in new clients and maintain its earlier client base. Its advertisements highlight its latest offers, like the usage of the iPhone and iPad, which will result in users receiving special offers, and they are time-based so that users see that deals are cracked quickly.

SoftBank provides free access to its Wi-Fi in numerous restaurants, cafes, and train stations. Its network location continuously expands so that a maximum number of people can reach it. Most of SoftBank’s consumer products come with a user manual that helps show product features and guide a consumer through any difficulties. Advertisement and advertising: its direct marketing policy is focused on its commercials, which are broadcast on television, hoardings, and online sites. As part of its marketing policy, the company offers its employees baby bonuses for children.

Some Recent Video ads and Print ads for SoftBank are:

SoftBank People Strategy

The “People” component of the Service Marketing Mix is crucial, especially for a service-oriented company like SoftBank, which operates in various sectors, including telecommunications, technology services, and investment. This aspect of social media marketing focuses on the employees, culture, and customer service that collectively define the customer experience. Here are some key points regarding the “People” aspect of SoftBank:

1. Diverse Global Team: SoftBank boasts a diverse and global workforce that brings many skills, perspectives, and cultural insights. This diversity fuels innovation and enables SoftBank to operate effectively in various global markets.
2. Highly Skilled Professionals: The company employs highly skilled professionals in finance, technology, telecommunications, and investment. These employees are key to SoftBank’s success, especially in identifying and investing in promising technology startups.
3. Customer-Centric Approach: SoftBank emphasizes a customer-centric approach in its services. Employees are trained to prioritize customer satisfaction, ensuring that all interactions and solutions offered meet the high standards expected by customers.
4. Innovative Culture: The culture at SoftBank encourages innovation, experimentation, and a forward-thinking mindset. This is critical for staying competitive in the fast-evolving tech and telecom sectors.
5. Leadership and Vision: SoftBank’s leadership, mainly its founder Masayoshi Son, is crucial in shaping its direction and culture. Son’s vision for technology’s future and investment strategy have been central to SoftBank’s growth and influence.
6. Training and Development: SoftBank invests in the training and development of its employees to ensure they remain at the forefront of their respective fields. This includes technical and soft skills, such as customer service and communication.
7. Employee Engagement and Satisfaction: SoftBank strives to maintain high employee engagement and satisfaction levels. This is believed to impact the company’s quality of service and innovation directly.
8. Commitment to Ethical Standards and Corporate Social Responsibility: The people at SoftBank are expected to adhere to high ethical standards and contribute to the company’s corporate social responsibility (CSR) initiatives. This commitment is essential for maintaining trust and integrity in SoftBank’s business dealings.

SoftBank Process Strategy

The “Process” component of the Service Marketing Mix is pivotal for companies like SoftBank, as it encompasses the procedures, mechanisms, and flow of activities by which services are consumed. This is particularly relevant for gaming company SoftBank, given its diverse telecommunications, internet services, AI, intelligent robotics, IoT portfolio, and its significant role in venture capital through the Vision Fund. Here are some key points regarding the “Process” aspect of SoftBank:

1. Customer Onboarding: SoftBank has streamlined processes for onboarding customers, whether it’s for mobile services, broadband, or investment partnerships. These processes are designed to be customer-friendly, ensuring a smooth transition and clear communication from the outset.
2. Service Delivery: SoftBank employs state-of-the-art technology and infrastructure to deliver its services. This includes everything from its telecommunications network to its cloud computing services. The focus is on reliability, speed, and accessibility to ensure customer satisfaction.
3. Investment Process: Through its Vision Fund, SoftBank has a unique process for identifying, evaluating, and investing in promising technology startups. This involves rigorous due diligence, forecasting, and strategic evaluation to ensure investments align with SoftBank’s vision for the future of technology.
4. Customer Service and Support: SoftBank provides comprehensive customer service and support through multiple channels, including online portals, call centers, and physical stores. The process is designed to be responsive, focusing on resolving issues quickly and efficiently.
5. Feedback Loops: The company has established processes for collecting and analyzing customer feedback. This feedback is then used to improve service delivery, address gaps in customer expectations, and innovate new solutions.
6. Technology Integration: SoftBank’s processes heavily rely on integrating advanced technologies. This includes AI and machine learning for better decision-making, customer service automation, and operational efficiencies.
7. Project Management and Development: SoftBank follows a structured project management and development process for its tech projects. This ensures that projects are completed on time, within budget, and meet the company’s high standards.
8. Compliance and Risk Management: Given its involvement in various sectors and markets, SoftBank has comprehensive processes in place for compliance and risk management. This is crucial for navigating the complex regulatory environments in which it operates.
9. Continuous Improvement: SoftBank commits to continuously improving its processes through innovation, learning from past experiences, and adapting to market changes. This agility is critical to maintaining its competitive edge in rapidly evolving industries.
10. Partnership and Collaboration Process: SoftBank has a collaborative approach to partnerships, whether it’s with startups, tech giants, or governments. The process involves mutual goal setting, resource sharing, and leveraging synergies to achieve common objectives.

SoftBank Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix is about the tangible or intangible proof that a service has been performed. It also includes the environment in which consumers see the service is delivered. For a conglomerate like SoftBank, which operates across various sectors, including telecommunications, technology, and investment, physical evidence plays a critical role in shaping customer perceptions and experiences. Here are key points regarding the “Physical Evidence” aspect of SoftBank:

1. Brand Identity: SoftBank’s brand identity, including its logo, color scheme, and marketing materials, serves as immediate physical evidence of the company. These elements help create a recognizable and consistent image across all customer touchpoints.
2. Corporate Website and Digital Platforms: SoftBank’s corporate website and digital platforms are crucial forms of physical evidence. They provide information about the company’s services and initiatives and serve as interfaces for customer interaction.
3. Retail and Service Outlets: For its telecommunications business, SoftBank operates retail stores that are designed to be modern, welcoming, and reflective of the brand’s commitment to technology and customer service. These physical locations provide a tangible experience of SoftBank’s services.
4. Office Buildings and Headquarters: SoftBank’s headquarters and its various office buildings worldwide are physical evidence of the company’s scale, professionalism, and presence in the global market.
5. Technological Infrastructure: The physical infrastructure of SoftBank, such as its data centers, telecommunications towers, and network equipment, is a vital part of its service delivery. This infrastructure supports the company’s capabilities in providing high-quality telecommunications and internet services.
6. Product Packaging and Branding: For physical products such as mobile devices sold by SoftBank, the packaging and branding are physical evidence of the quality and reliability of the SoftBank name.
7. Investment Portfolio: The success and prominence of SoftBank’s investment portfolio, including its Vision Fund’s investments in leading technology companies, serve as intangible physical evidence of SoftBank’s expertise and influence in the technology sector.
8. Customer Testimonials and Case Studies: Published testimonials, reviews, and case studies from satisfied customers and successful investments are forms of physical evidence that demonstrate SoftBank’s ability to deliver value and innovation.
9. Annual Reports and Financial Statements: SoftBank’s annual reports and financial statements provide tangible evidence of the company’s financial health, operational success, and strategic direction.
10. Media Coverage and Public Relations: Media reports, press releases, and public relations activities contribute to the physical evidence of SoftBank’s activities, achievements, and contributions to the technology and investment communities.

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