The Marketing mix of Mitsubishi analyses the 4Ps of Mitsubishi which includes the Product, Price, Place, and Promotion of Mitsubishi. Mitsubishi is a group of companies that is associated with numerous industries. It is a private company of Japanese origin and serves a worldwide area. The company is descended from a unified company, Mitsubishi Zaibatsu, that existed from 1870 till 1947.
It is a conglomerate whose leading companies are Mitsubishi Heavy Industries, which deals in diversified manufacturing; Mitsubishi Corporation, which deals in general trading; and Bank of Tokyo-Mitsubishi UF J, which deals in banking. All its companies share Mitsubishi’s legacy, trademark, and brand but are independent and not under each other’s control. Some competitors of Mitsubishi are as follows.
- Mitsui & Co Ltd
- Itochu Corporation
- Marubeni Corporation
About Mitsubishi
- Type: Multinational conglomerate
- Industry: Diversified
- Founded: 1870
- Founder: Yatar? Iwasaki
- Headquarters: Tokyo, Japan
- Area served: Worldwide
- Key people:Haruki Mitarai (Chairman) and Takaya Kondo (CEO)
- Number of employees: 370,000
Table of Contents
Mitsubishi Product Strategy
Mitsubishi started its shipping operations as its core business and diversified in related fields. It entered coal mining for its ships’ fuel and bought a shipyard. Later, it purchased an iron mill to supply iron and stepped into the marine insurance business to provide for its vessels. All these resources were later expanded and utilized in manufacturing aircraft and related equipment. Overseas experience resulted in entering the global market for the trading business. The company diversified in banking, warehousing, insurance, and further segments like real estate, oil, aircraft, electric equipment, steel glass, and paper.
Mitsubishi is acknowledged as a multinational company with a significant hand in modernizing Japanese industry. It is also associated with the automobile industry, manufacturing, nuclear power, chemicals raw materials, and power generation. The company specializes in imaging and optics and has stepped into new ventures like computers, semiconductors, data communications, ocean development, aviation, and space development. In the resources segment, Mitsubishi has decided to focus its investments in natural gas, copper, and metallurgical coal. In contrast, the Non-resources department has agreed to increase the size of its current portfolio.
The product mix of Mitsubishi in 2023 is as follows (Source)
- Automotive: Mitsubishi is renowned for its automotive division, Mitsubishi Motors, which produces a range of vehicles, including sedans, SUVs, and electric cars. Notable models include the Outlander, Eclipse Cross, and the Pajero.
- Electric and Electronic Equipment: Air conditioning, elevators, escalators, and factory automation systems. Mitsubishi Electric is a key player in this sector, providing various consumer electronics and industrial equipment.
- Heavy Industries: Mitsubishi Heavy Industries manufactures ships, aircraft, and space launch vehicles. They also produce energy systems, including thermal power generation and wind turbines.
- Banking and Financial Services: The Mitsubishi UFJ Financial Group is one of the largest banking groups in the world, offering services such as banking, asset management, and trust banking.
- Chemicals: Mitsubishi Chemical Corporation produces various chemicals, plastics, and performance products for various industrial and consumer applications.
- Real Estate: Mitsubishi Estate Co., Ltd. is a primary real estate developer in Japan, involved in the development, leasing, and sale of residential and commercial properties.
- Metals: Mitsubishi Materials Corporation produces metals such as copper, aluminum, and cement and is also involved in metal recycling.
- Machinery and Infrastructure: This includes machinery production for construction, mining, and infrastructure development projects.
Mitsubishi Place Strategy
Mitsubishi Group consists of forty companies with individual identities without a parent company. Each of these companies has substantial shares of other companies but does not have interference in its running. Twenty-nine members participate in a traditional Friday Conference meeting to discuss various policies and problems. Mitsubishi is a global giant with operations in numerous countries, and it has set up manufacturing plants and proper marketing strategy and distribution policies worldwide.
The company has placed particular emphasis on its distribution channels and car dealerships as it realizes the impact of fast and efficient services on product sales. Its policy process is continuously under scrutiny to meet consumer demands successfully. Technology plays an essential role in its distribution policy of consumer products, which comprises manufacturers, wholesalers, retailers, and proper warehouses and transportation facilities.
- Global Network: Mitsubishi has established a vast global presence, with operations and subsidiaries in major markets worldwide, enabling them to cater to diverse regional demands and leverage local market insights.
- Strategic Partnerships and Alliances: Mitsubishi often forms strategic partnerships and alliances with local and international companies to enhance its market penetration and operational efficiency, particularly in the automotive and technology sectors.
- Manufacturing Hubs in Key Markets: The company has strategically located manufacturing plants in significant markets, such as Japan, the United States, and Europe, allowing for efficient distribution and reduced transportation costs.
- Diversified Sales Channels: Mitsubishi utilizes a mix of direct sales, dealerships, and online platforms to reach its customers, ensuring broad accessibility to its wide range of products and services.
- Focus on Emerging Markets: Mitsubishi actively invests in and targets emerging markets, recognizing their potential for growth, especially in sectors like automotive, infrastructure, and energy.
Mitsubishi Pricing Strategy
The economic condition of a place and its market share trends are essential factors that influence Mitsubishi’s pricing policies. It has management teams that monitor its competitors’ prices and products and customers’ capability of spending a fixed amount. It has numerous products in its portfolio and has kept different pricing strategies for them. Consumer products have a competitive pricing policy as their prices depend on base prices set by competitors. Some of their products, like luxury vehicles, have premium pricing, and products like semiconductors and computers have value-added pricing policies for competitive advantage.
Mitsubishi has always kept its options open, so its pricing policies are flexible. For example, it offers discounts, promotions, and schemes to generate revenues in less demand and lower product sales.
Mitsubishi’s price strategy reflects its diverse range of products and services and is tailored to meet the distinct needs of consumers in each target market segment. Here’s an expert analysis of their approach:
- Value-Based Pricing: Mitsubishi often employs a value-based pricing strategy, particularly in its technology and automotive sectors. This means setting prices based on the perceived value to the customer rather than solely on production costs. For instance, their advanced electric vehicles and high-tech consumer electronics are priced to reflect their innovative features and benefits.
- Competitive Pricing: In highly competitive markets, such as automotive and electronics, Mitsubishi sets prices in line with competitors. They keenly observe market trends and competitor pricing to ensure their products remain attractive to cost-conscious consumers without compromising quality.
- Premium Pricing for Specialty Products: Mitsubishi adopts a premium pricing strategy for specialty products, particularly in their heavy industries and high-end electronics. This is evident in sectors like aerospace and high-performance machinery, where the combination of advanced technology and brand reputation justifies higher prices.
- Dynamic Pricing in Financial Services: Mitsubishi employs dynamic pricing in its banking and financial services sector. Interest rates, fees, and service charges are adjusted based on market conditions, customer profile, and product type, ensuring competitiveness and profitability in a fluctuating financial market.
- Geographical Pricing Variations: Mitsubishi tailors its pricing strategies to different geographical regions. Prices vary based on local market conditions, consumer purchasing power, and regional competition. This approach ensures market relevance and optimizes profitability across diverse global markets.
Mitsubishi Promotion Strategy
Mitsubishi has launched its products with proper promotional activities to create better brand awareness. As the company is a conglomerate with a varied product portfolio, its marketing strategy for different products may vary. One common thing related to all its companies is that they realize the importance of their marketing and advertising strategies. It keeps a monitoring system on a quarterly and sometimes monthly basis that ensures effective operations and upgrading of activities according to demands. Mitsubishi uses numerous advertising techniques and tools to promote its products.
Commercials are telecast on television and are broadcast on radio. The company also uses print media through newspapers, magazines, and hoardings. As people prefer online marketing, commercial activities, discounts, and other promotional schemes are projected at online shopping sites and the company website’s official sites. The company also provides opportunities and incentives to its employees as they are an essential part of its organization.
Mitsubishi’s promotion strategy involves:
- Integrated Marketing Campaigns: Utilizing a mix of traditional and digital marketing tools, including TV ads, social media, and sponsorships, to reach a broad audience.
- Brand Positioning and Reputation Management: Focusing on building a strong brand image through quality, reliability, and innovation in its diverse product ranges.
- Customer Engagement and Loyalty Programs: Implementing loyalty programs and engagement initiatives to retain existing customers and attract new ones, particularly in their automotive and electronics divisions.
Some Recent Video ads and Print ads of Mitsubishi are:
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