Marketing strategy of Vedanta Resources

Introduction:

Vedanta Resources Limited is a multinational natural resources firm with a diverse portfolio. We work with over 65,000 employees and contractors in India, Africa, Ireland, and Australia to extract and process minerals, oil, and gas.

For more than two decades, Vedanta has been a part of India’s growth story. According to the IFC report, Vedanta’s operations contribute 1% to India’s GDP.

In this blog, we’re going to analyze the marketing strategies for Vedanta Resources and their strength and weakness. By the time you’re done, you’ll have a better understanding of how Vedanta Resources’ marketing strategies have been so good.

Let’s begin!

About Company:

Vedanta resources are India’s largest natural resources company. It was founded in 1976 in Mumbai, Maharashtra by Mr. Anil Agrawal. In the year 2003, Vedanta Resources became the first Indian company to be listed on the London Stock Exchange.

The company’s headquarters are in India, but it has properties and operations in other countries such as Australia and Zambia.

Vedanta resources majorly focused on the copper, zinc, and aluminum industries. 

The brand is also expanding its portfolio in the generation sector and commercial power.

Overall, Vedanta resources limited is a diversified natural resources firm that is dedicated to delivering long-term growth and responsible growth that benefits both our shareholders and stakeholders. Also, they provide sustainability in mining activities, energy conservation, recycling, proper waste management, and disposal, health and safety practices, employee well-being, and community growth.

Vedanta Resources

Marketing Budget Of Vedanta Resources:

Over the next three years, Vedanta Resources plc expects to increase sales by 60-70 percent. In the previous fiscal year, the company spent Rs 10,000 on capital expenditures.

For the next three years, the company has a CAPEX program of Rs 55,000 crore. A total of Rs 25,000 crore will be invested in zinc expansion, Rs 20,000 crore on the oil and gas market, and Rs 10,000 crore on aluminum.

Vedanta Resources produced revenue of Rs 93,373 crore in the financial year 2019, with a margin of 31% at Rs 24,961 crore, resulting in a free cash flow of Rs 11,553 crore, up 47 percent from the previous year.

Vedanta Resources is growing its digital marketing budget to about $10 billion over the next 2-3 years.

Vedanta Marketing Strategy (4Ps):

There are numerous ways of marketing but when it’s come to Vedanta resources they focus on 4ps of marketing i.e ( Product, Price, Place, Promotion)

  • PRODUCT: 

In the diversified natural resource sector, Vedanta Resources is a world pioneer. Copper, zinc, aluminum, lead, silver, iron ore, oil and gas, and commercial energy are all provided by Vedanta. This is all part of the marketing mix for the brand

The product strategy of Vedanta resources always works on customers’ needs. Due to high competition in the market, they develop unique product designs, names, and different features

Vedanta Prodcut

  • Price:

Vedanta Resources has to examine global prices to determine if the company’s operations are viable. To hold supply in line with demand, a lot of focus is placed on cost reductions and productivity gains

The product’s price is determined by production costs, global market prices, export duties, procurement costs, and other commercial functions

The pricing is considered to be very important for the brand therefore Vedanta resources   focus on a lower price, more discounts, payment terms, and credit terms

  • Place/distribution:

Vedanta currently operates in India, Australia, London, and Zambia. Basically in India, it operates lead-zinc mines and has smelting facilities. Vedanta produces its energy to run its operations

They have around 2.2 billion barrels of oil equivalent in total hydrocarbons. Vedanta owns and operates power plants in Odisha, Chhattisgarh, Tamil Nadu, and other parts of India. It also has wind turbines and independent power plants

  • Promotion:

Vedanta resources have good presences on advertising and social media platforms. They run different campaigns on Facebook, Instagram, and Youtube. They majorly focus on awareness ads on TV commercials, radio, hoardings, and digital advertisements.

Vedanta Resources limited has also launched different campaigns for awareness.

Vedanta Resources campaign

As a result, the Vedanta Resources marketing mix is complete. Now move on to understand how companies place their product in the market.

Company STP Marketing Model:

Every brand works on the STP model i.e Segmentation, Targeting, Positioning. The STP model is used to create the best strategy for marketing. Vedanta Resources works on both offline and online marketing to understand the needs and demand of customers.

Vedanta resources stp model

  • Segmentation:

 Segmentation is depended on many factors such as gender, age, lifestyle, income, and values. Vedanta Resources creates different surveys to analyze customer behavior and target them accordingly

They also focus on geographical segmentation which is to target customers in the form of cities, countries, and regions

  • Targeting:

Vedanta Resources can wisely select the target segments whose needs and aspirations fit the company’s resources and capabilities after splitting the broadly diversified consumer market into smaller groups with homogeneous characteristics.

After segmenting the various characteristics Vedanta Resources focuses on targeting those who match company capabilities and resources. 

  • Positioning:

To establish an effective positioning strategy, Vedanta Resources has taken the following steps:

  1. Figuring out their competitors’
  2. Strengths and weaknesses of companies 
  3. Find out different analytical data, and A/B testing

From these questions, they can easily identify how to position their product in the market.

After discussing the STP model of Vedanta Resources, let us now discuss the marketing analysis and their competitors.

Vedanta Resources Marketing Analysis And Their Competitors:

The market survey data will assist Vedanta Resources management in finding new opportunities, exposing possible risks, and understanding how they contribute to the company’s major strengths and weaknesses.

Marketing analysis focuses on different factors for Vedanta Resources such as market size, growth, trends, profitability, and cost structured.

Vedanta Resources limited SWOT reviews and examines the company’s strengths, weaknesses, opportunities, and threats. 

Strength Weakness Opportunities Threats
  1. Good financial standing
  1. Name linked to suspected illegal mining activities
  1. Globally, expansion through London headquarters
  1. Regulatory dangers
 2. Wide range of     products and services 2. Government intervention leads to increased operational efficiency 2. Development to nearest locations for brand awareness among people 2.  Natural resources are depleting
      3.   Strong            assets 3.Less success outside core business       3.   New environmental  policies 3. Competitor’s brand value is better

The competitive analysis is carried out to assess the company’s direct and indirect competitors’ relative positions and market share.

Vedanta Resources has many competitors such as,

  1. Aditya Birla Minerals limited
  2. Tata steel
  3. GMR group
  4. BHP Billiton group
  5. Eurasian Natural Resources Corporation.

Vedanta Resources plc works on different strategies to analyze their competitors. For example, the company performs Google analysis, attends trade shows, browse public records, asks consumers, uses the hidden shopper technique, and taps vendors to collect information about competitors.

This is how Vedanta Resources stands different from other companies. After all the analysis Vedanta Resources works on different marketing campaigns to engage their customers. Let us discuss the successful marketing campaigns done by Vedanta Resources

Marketing Campaigns By Vedanta Resources:

To create more & more awareness towards the customers Vedanta Resources has launched two campaigns to attract their target audience i.e

  • #NandGhar E-learning Initiative: 

Nand Ghars are transforming the lives of 8.5 million children and 2 million women across India’s 13.7 lakh Anganwadis, enabling the Hon. Prime Minister to fulfill his promise to Swacch Bharat, Beti Bachao Beti Padhao, and Startup India by providing televisions for e-learning, solar panels for reliable electricity, safe drinking water, and clean toilets.

Nand Ghar Vedanat

  • #KabhiSochaHaiKya:

Here Vedanta Resources wanted to create awareness towards metal’s role in our daily lives. In this campaign, one child is getting confused about where the metal comes from?

The entire campaign is designed in such a way that creates curiosity in everyone’s mind.

advertising: Vedanta launches new TVC #KabhiSochaHaiKya, Marketing & Advertising News, ET BrandEquity

When it comes to campaign design, understanding is key. The more appealing your ad is, the higher the return on investment you will get.

Digital Marketing Presence Of Vedanta Resources:

Vedanta Resources limited is more focused on digital marketing presence such as websites, Facebook, Youtube, and LinkedIn.

  • Website:

Vedanta Resources website is designed well and also performs well with speed and security. The organic monthly traffic is around 27,500 per month and getting good ranking with high competition keywords

Vedanta Website

  • Facebook:

Vedanta Resources are optimizing their Facebook with quality of written content, video content, and running different campaigns using Facebook Ads. They had around 62,000 followers on Facebook

Vedanta Facebook post

  • Youtube:

Vedanta Resources are now focusing on more video content and creating awareness towards their target audience. Video content is likely to share more than written content. They have 4.16k subscribers on Youtube

Vedanta youtube channel

  • LinkedIn:

In LinkedIn, Vedanta Resources focuses on B2B business to capitalize on its aluminum and power businesses

Vedanta LinkedIn

To understand better Vedanta Resources’ marketing strategy. We have done a pain points analysis based on our research.

Vedanta Resources Pain Points:

Vedanta posted a record loss of Rs 17,132 crore in the third quarter, owing to asset impairments in oil and gas, copper, and iron ore businesses. To summarize what the company has suffered from, we have done a pain point analysis.

  • Vedanta Resources should make a strong distinction between existing and future customers. In which they can easily segment their audience
  • Focus on more Digital and TV commercial ads for better engagement
  • Work on analytics part to target right kind of audience
  • Focus on LinkedIn ads to get B2B customers.

Vedanta Resources is undoubtedly working on the best market strategies but they should pump their more budget into digital marketing to create awareness and interest for customers.

Conclusion:

The above analysis clearly demonstrates Vedanta Resources’ performance in the mining industry is really great. This success can be attributed in large part to the company’s corporate strategy. 

There are, however, several shortcomings in the plan. Vedanta hasn’t given adequate attention to the challenge faced by its rivals. Vedanta would not be able to survive if any of its rivals entered India to mine. Furthermore, their corporate social responsibility has been missing, negatively impacting their brand image, which is a critical factor in today’s industry.

As a result, improvements to their current business strategy are expected.

With its marketing strategy, Vedanta Resources has worked great on every aspect of marketing whether it is offline or online and generated great ROI.

Finally, based on sales and their marketing strategy, Vedanta Resources limited is India’s largest non-ferrous metal and mining company. 

Thank you for taking the time to read this blog; we hope you find it informative.

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