Siemens Marketing Strategy – Marketing Strategy of Siemens: Siemens Limited is a technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power.
The company has been a leader in most of its markets for over 190 years. It was founded in 1847 by Johann Georg Halske and Werner von Siemens. The company is headquartered in Munich, Germany. It has more than 3,51, 000 employees worldwide.
Siemens At A Glance – Marketing Strategy of Siemens
Company : Siemens AG
CEO: Roland Busch
Founder: Werner von Siemens | Johann Georg Halske
Year founded: 1 October 1847, Berlin, Germany
Headquarters: Munich, Germany
Annual Revenue: Euro€ 62 billion
Profit | Net income: Euro€ 2.5 billion
Number of employees : 293,000
Products & Services: Electrical installation systems | Switches and socket outlets | Building control | Home automation | Home appliances | Investment funds | Home security
Competitors: Philips | GE Digital | Nokia | General Electric | Johnson Controls | Hitachi | Honeywell | Mitsubishi Electric | Toshiba | Bosch | Schneider Electric | ABB | BHEL
Siemens Fun Facts: The first cardiac pacemaker was founded and manufactured by Siemens and was inserted in a patient with severe cardiac arrhythmia on October 8th, 1958. Today, nearly a million pacemakers are installed worldwide.
Marketing Strategy of Siemens
Siemens’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Siemens? Let us discuss.
Segmentation, Targeting, Positioning – Siemens Marketing Strategy
Segmentation plays a key role in identifying different sets/groups of customers and their requirements. Siemens employs demographic and geographic segmentation strategies to create products for B2B businesses, while retail customers use demographic and psychographic segmentation strategies.
It distinguishes targeting strategy from target NNCs and government organizations in order to bundle its products with other offerings.
The company is known as a brand with a global presence. It is also a leader in electrical engineering and automation processes. It employs a user benefit positioning strategy to achieve the same.
Siemens Mission Statement
“To make real what matters”
Siemens Vision Statement
“To consistently occupy attractive growth, sustainably strengthen core businesses and outpacing competitors in efficiency and performance parameters”
“Ingenuity of Life”.
Competitive Advantage – Marketing Strategy of Siemens
Research & Development: Siemens increased its R &D investment to 4.7 billion euros in 2016, compared to 4.5 million euros in 2015. The ratio density, which measures the ratio of R & D expenses to revenue, is 5.9% the same as in 2015. It has more than 60000 patents worldwide registered and a dedicated workforce numbering 33000+ as of the financial year 2016.
Wide industry presence: Company is active in many sectors, including technology service, renewable energy, power & gas, and health. This allowed the company to gain expertise in the area of maximizing synergies across processes.
BCG Matrix – Siemens Marketing Strategy
The company is involved in several businesses, including Digital Factory, Energy Management, and Financial Services.
Its Strategic Business Units like electronics & electrical engineering and process automation are stars in the BCG matrix. These businesses have a stronghold across Europe, while other businesses in the company are questionable in the BCG matrix.
Distribution Strategy – Marketing Strategy of Siemens
The company was able to deliver its products and services to its end customers by working collaboratively with its suppliers and customers through the integration of its supply chains and processes.
The company has also been able to reduce its operations costs by optimizing the use of resources.
Brand equity – Siemens Marketing Strategy
The brand was ranked 51 on the Forbes international 2000 companies list and 55 among the world’s top brands. Based on market capitalization, the company was valued at $ 91.8 million. (As per May 2016
Competitive Analysis – Siemens Marketing Strategy
Emerging markets represent the fastest-growing markets that companies look to for business opportunities. It competes in one or more global segments with companies such as Philips and General Electric.
Market Analysis – Marketing Strategy of Siemens
Siemens is a well-known company in a saturated market. There are many companies operating in different industries and service categories.
Technological disruption, increasing labor costs, fluctuating oil prices, changing the lifestyle in the communities, rising buying power parity, and rising infrastructure cost are just some of the factors that affect the company’s businesses.
Customer Analysis – Siemens Marketing Strategy
Siemens customers include both small and large retail businesses, Multinational Corporations, government agencies from diverse sectors/industries, as well as Multinational Corporations.
Customers of the Siemens retail segment are households, car owners, and tech-savvy young people.
This is the Marketing Strategy of Siemens. Please let us know if you have additional suggestions to add.
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