Founded in 1910 by Namihei Odaira Hitachi is highly diversified conglomerate operating in eleven businesses namely Digital Media, Consumer Products, Information and Telecommunication Systems, Electronic Systems and Equipment, Power Systems, Social Infrastructure & industrial systems, Construction, High Functional Materials and Components, Transportation and Industrial Systems, Automotive systems and Financial Services.
Segmentation, targeting, positioning in the Marketing strategy of Hitachi –
Segmentation helps in identifying the market characteristics and profiling/grouping them accordingly. Hitachi uses different segmentation strategies for a different set of its businesses; majorly it uses a mix of demographic & geographic segmentation strategy.
Differentiated targeting strategy is used by the company in order to the serve different segment of customers accordingly.
With its vision and mission to socially connect and solve the different challenges that the communities face across the globe, it uses value-based positioning strategy.
Marketing mix – Here is the Marketing mix of Hitachi.
Mission- “Contribute to society through the development of superior, original technology and product”
Vision- “To deliver innovations that answer society’s challenges, with the talented team has proven experience in global market”
Tagline-“Inspire the next”.
Competitive advantage in the Marketing strategy of Hitachi –
Internet of things: The conglomerate deals in a diversified set of businesses and integrate it various processes with the help of its technological advancement and state of the art Artificial intelligence (AI) technology.
Using internet of things (IoT) has helped the company in integrating manufacturing facilities and IT industries resulting into optimisation of value delivery system.
Global Reach: Hitachi group operates worldwide with its large number of companies and subsidiaries in different business generating revenue of 10,000,000 millions of yen. Although it operates globally its major share of revenue comes from Japan-52% and Asian markets-21 % (FY2016 data).
Talent Pool: Strengthening front-end sales team, research & development and IT team to the scale to 3, 40,000 employees have helped the company to bring in expertise.
BCG Matrix in the Marketing strategy of Hitachi –
Hitachi group operates in eleven strategic business units (SBU’s). It businesses such as Information and Telecommunication Systems (19% share of total revenues), High Functional Materials and Components (14%), Electronic Systems and Equipment (10%) and Social Infrastructure & industrial system (21%) is Stars in the BCG matrix.
Its other businesses such as digital Media, Consumer Products, Power Systems, Construction, Transportation and Industrial Systems, Automotive systems and Financial Services.
Distribution strategy in the Marketing strategy of Hitachi –
For its Digital Media, Consumer Products, Information and Telecommunication Systems, Electronic Systems and Equipment, Power Systems, Automotive systems and Financial Service; it uses a mix of a different channel of distribution i.e. in-house sales team, resellers, and various other intermediaries.
For Power Systems, Social Infrastructure & industrial systems, Construction, High Functional Materials and Components, Transportation and Industrial Systems; it closely works with its customers for providing make to order products (MTO) exclusively as per their requirement.
Brand equity in the strategy of Hitachi –
Hitachi is known for its strong presence in construction & machinery equipment and electronic appliances have high visibility in the market.
It has been ranked 178 on the Forbes list of 2000 brands with a market capitalization of $ 23.3 billion (as of May 2016).
Competitive analysis in the Marketing strategy of Hitachi –
Hitachi group has built a protective ecosystem to build and operate its SBU’s with the help of its experience in operating diversified businesses and technological integration across its businesses.
It competes with companies like General Electric, 3M, Honeywell, LG, Samsung, caterpillar etc, in respective product categories.
Market analysis in the Marketing strategy of Hitachi –
Supply-side dominance, increasing the bargaining power of the retail customer due to increase in competition and alternatives, Rising labour cost, changing the lifestyle of people, automation in the industry, digital awareness, rise of developing nations and increasing purchasing power parity, decreasing margins are some of the factors affecting Hitachi across different SBU’s. The market is overcrowded with a vast number of companies small and big MNC’s which are eating up each other’s market share.
Customer analysis in the Marketing strategy of Hitachi –
Customers of Hitachi are resellers, distributors, corporate companies and government organisations dealing in a particular industry. It has broad product & services portfolio meant for satisfying the needs of customers from government organisations, MNCs, Private firms and small & medium enterprises.
It has been ranked 178 on the Forbes list of 2000 brands with a market capitalization of $ 23.3 billion (as of May 2016).
Competitive analysis in the Marketing strategy of Hitachi –
Hitachi group has built a protective ecosystem to build and operate its SBU’s with the help of its experience in operating diversified businesses and technological integration across its businesses.
It competes with companies like General Electric, 3M, Honeywell, LG, Samsung, caterpillar etc, in respective product categories.
Market analysis in the Marketing strategy of Hitachi –
Supply-side dominance, increasing the bargaining power of the retail customer due to increase in competition and alternatives, Rising labour cost, changing the lifestyle of people, automation in the industry, digital awareness, rise of developing nations and increasing purchasing power parity, decreasing margins are some of the factors affecting Hitachi across different SBU’s. The market is overcrowded with a vast number of companies small and big MNC’s which are eating up each other’s market share.
Customer analysis in the Marketing strategy of Hitachi –
Customers of Hitachi are resellers, distributors, corporate companies and government organisations dealing in a particular industry. It has broad product & services portfolio meant for satisfying the needs of customers from government organisations, MNCs, Private firms and small & medium enterprises.
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