HAL lacks marketing strategy

The fact that the majority of the company’s revenues has historically come from government contracts has led to a dispirited and apathetic attitude towards customer satisfaction. As a result of HAL’s inability to respond to fast-changing market trends and customer tastes, the company’s sales and market share have decreased. Firm

HAL lacks marketing strategy
Hindustan Aeronautics Limited (File)

By Girish Linganna

Recently, Malaysia decided that the South Korean KF-50 would be better suited to its requirement of a light fighter jet than the Indian-manufactured Tejas. And this, despite the fact that Malaysia, has not made much of a concerted effort to develop an aggressive marketing strategy.

Hindustan Aeronautics Limited (HAL)—an Indian aerospace and defence firm controlled by the government that has been in business for almost 80 years and has a worldwide reputation for creating aircraft and ancillaries of the most superior quality—developed the low-cost, high-quality aircraft, Tejas, while ensuring they are affordable and suit their target market. But sadly, HAL still needs to pitch its products to a sufficiently successful extent against relatively new entrants in the market. Despite its enduring reputation, HAL’s ineffectual marketing strategies have stunted its growth and profitability.

The failure of HAL’s marketing strategy to give priority to customers’ requirements is one of the most basic issues that it faces. But the most significant hurdle HAL must overcome is its tendency to avoid looking beyond Indian shores. It must promote its products in countries other than India. A product’s market viability depends upon several factors. The most important of them are its quality, competitive pricing, appropriate positioning, and advertising for international eyeballs. Several companies in the defence sector—including Lockheed Martin, Boeing, Saab and Dassault Aviation—put in a significant amount of effort into marketing their goods. They routinely take part in military air shows to flaunt their fighter jets’ capabilities.

The limited range of HAL’s marketing plan is one more factor contributing to the difficult situation. The organisation has yet to make substantial investments in digital marketing and social media, both of which are essential for communicating with a bigger audience. These innovations have been promptly adopted by HAL’s competitors, which have provided them with a significant advantage in brand awareness and consumer engagement.

While marketing products abroad, it is essential to visually showcase the product’s features through the use of high-quality photographs and videos. Additionally, it is necessary to involve government officials, organizations conducting research in the field of defence—and especially the media—to garner support for a product. It is common for MNCs to form alliances with specific states to increase sales.

In comparison to other public sector organizations (PSUs), HAL is yet to launch any significant marketing blitz to expand its customer base. ISRO founded Antrix Corporation Limited to market, and commercialize space services, provide technical consulting services, and transfer technologies. HAL must forthwith set-up its marketing machinery to promote its goods. Without a proactive marketing strategy, HAL’s creation of new weaponry may not result in a viable business model.

The solution

HAL will need to create a client-centric marketing strategy that emphasizes meeting customers’ requirements to overcome these challenges successfully. This can be performed by researching the market to ascertain the preferences of customers and designing products to meet the requirements uncovered by that study. HAL must also allocate resources to digital marketing and social media to broaden its audience and cultivate a closer, more personal connection with its clientele.

To broaden its product offerings and break into new markets, a further possibility is to forge strategic partnerships with other companies operating in the same industry. By forming strategic alliances with other companies, HAL can leverage its expertise and resources to develop innovative products and services that satisfy a wider range of the requirements expressed by its clientele.

HAL will be in a better position to compete favourably if it implements a marketing strategy centred on the consumer and participates in digital marketing and social media. Second, it will assist the company in acquiring a more in-depth understanding of its customers and in creating products that meet the requirements of those customers. This will result in a rise in revenue, market share, satisfied customers, and loyalty to the brand.

As a result of its relationships with other companies, HAL will get access to new markets and customers, which will ultimately lead to an increase in both revenue and profitability. Businesses that work together can pool their resources and knowledge, which leads to innovative products and services that can appeal to a wider range of customers.

To conclude, to successfully overcome these challenges, the organisation must devise a client-centric marketing strategy that primarily emphasizes satisfying customer requirements. Doing market research, investing in digital marketing and social media, and building strategic relationships with other companies operating in the same industry are all viable options for achieving this goal. HAL can enhance its revenue, market share, customer happiness, and profitability.

The author is Defence and Aerospace Analyst.

Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.

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First published on: 14-03-2023 at 18:46 IST
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