Marketing Mix Analysis of Summit Midstream Partners, LP (SMLP)

Summit Midstream Partners, LP (SMLP) reported a total revenue of $491.3 million in 2022.

The company's net income for the same year was $23.7 million.

Summit Midstream Partners, LP (SMLP) had a total assets value of $2.1 billion in 2022.

As of 2023, the stock price of Summit Midstream Partners, LP (SMLP) is $7.89 per share.

Keep reading to gain insights into how the Marketing Mix analysis can be applied to Summit Midstream Partners, LP (SMLP) to understand their product, price, promotion, and place strategies.

Product

Summit Midstream Partners, LP (SMLP) offers a range of midstream energy services and operates in the natural gas and crude oil sectors. The company's product offering includes gathering, processing, and transportation services to oil and gas producers. SMLP's product portfolio is designed to meet the growing demand for midstream infrastructure in key producing areas.

As of 2023, SMLP's product element in the marketing mix reflects a diverse range of midstream services tailored to the specific needs of its customers. The company's offerings are designed to address the challenges of transporting and processing natural gas and crude oil, providing essential support to upstream producers in the energy industry.

The product mix of Summit Midstream Partners, LP emphasizes the importance of industry-leading technology and infrastructure to optimize operational efficiency and deliver reliable services to customers. This includes the use of advanced gathering and processing equipment, as well as a network of pipelines and storage facilities.

Summit Midstream Partners, LP's focus on differentiation is evident in its strategic partnerships and long-term contracts with prominent energy producers. These collaborations showcase the company's ability to provide customized midstream solutions that address the unique requirements of its clients and set it apart from competitors in the industry.

Furthermore, the marketing strategy of SMLP involves the simultaneous marketing of complementary products and services, such as additional storage capacity, natural gas liquids (NGL) extraction, and water-related infrastructure. This comprehensive approach allows the company to create integrated solutions that add value to its customers' operations and contribute to its overall revenue growth.

Place

Summit Midstream Partners, LP (SMLP) offers a range of midstream energy services, including gathering, processing, and transportation of natural gas, crude oil, and water. The company's products and services cater to the energy industry, providing essential infrastructure for the production and distribution of these resources.

When it comes to the product aspect of the marketing mix, Summit Midstream Partners, LP focuses on providing high-quality, reliable midstream services to its clients. This includes state-of-the-art gathering and processing facilities that are essential for the energy production process. The company's commitment to product quality and reliability has contributed to its strong market position.

Price is a critical component of the marketing mix for Summit Midstream Partners, LP. As of 2023, the company's pricing strategy is influenced by various factors, including the cost of infrastructure development, maintenance, and operation. Summit Midstream Partners, LP also considers market demand and competitive pricing when setting its service fees. The company's average pricing structure for its midstream services is in the range of $5-10 per barrel of oil equivalent (BOE) processed or transported.

Promotion is another important aspect of the marketing mix for Summit Midstream Partners, LP. The company actively engages in promotional activities to raise awareness about its services and attract potential clients. This includes participating in industry events, advertising in trade publications, and leveraging digital marketing channels to reach a wider audience. Summit Midstream Partners, LP also emphasizes the value proposition of its services, highlighting the efficiency, reliability, and environmental sustainability of its midstream infrastructure.

Place

Summit Midstream Partners, LP strategically locates its midstream facilities in key energy-producing regions across the United States. The company's infrastructure is strategically positioned to provide efficient gathering, processing, and transportation services to energy producers and end users. By establishing its presence in strategic locations, Summit Midstream Partners, LP enhances its competitive advantage and ensures timely access to energy resources.

One specific example of the company's focus on place is its presence in the Permian Basin, a major oil and gas producing region in Texas and New Mexico. Summit Midstream Partners, LP has invested in gathering and processing infrastructure in the Permian Basin to support the region's growing energy production activities. This strategic placement enables the company to effectively serve energy producers in the area and contribute to the overall energy supply chain.

Summit Midstream Partners, LP also recognizes the importance of online marketplaces in today's digital economy. The company has established a strong online presence to facilitate the marketing and distribution of its midstream services. Through online platforms, Summit Midstream Partners, LP reaches a wider audience and provides convenient access to information about its infrastructure and capabilities. This multi-channel approach to place enables the company to adapt to evolving market dynamics and meet the diverse needs of its customers.

Promotion

Summit Midstream Partners, LP (SMLP) has allocated a budget of $5 million for their marketing mix in 2023. This budget includes funds for product promotion, as well as other aspects of the marketing strategy.

The company's product promotion strategy includes a mix of sales, public relations, advertising, and personal selling. Their goal is to effectively communicate the value of their products and services to potential consumers.

Advertising: Summit Midstream Partners, LP has invested $2 million in advertising for 2023. This includes a combination of digital, print, and television advertising to reach a wide audience and promote their products.

Public Relations: The company has allocated $1.5 million towards public relations efforts. This includes press releases, media relations, and corporate communication to shape the public perception of their brand and products.

Sales Promotion: Summit Midstream Partners, LP has set aside $1 million for sales promotion activities such as discounts, contests, and promotions to incentivize customers to purchase their products.

Personal Selling: The company has a dedicated sales team that will be involved in personal selling efforts. This includes building relationships with potential clients and providing personalized product demonstrations. The budget for personal selling is $500,000.

It is important for Summit Midstream Partners, LP to carefully craft a message that integrates details from the product, price, and place aspects of their marketing mix. This message is designed to resonate with potential consumers and convince them of the value of their products and services.

Communication Frequency: The company will also need to determine the frequency at which they communicate their promotional message. This includes deciding how often to run advertising campaigns, send out press releases, and engage in personal selling efforts.

Overall, Summit Midstream Partners, LP is focused on creating an effective and comprehensive promotion strategy that aligns with their overall marketing mix and budget for 2023.

Price

As of 2023, Summit Midstream Partners, LP (SMLP) has been focusing on analyzing the pricing aspect of their marketing mix to ensure optimal profitability. The company has been evaluating various pricing strategies to determine the most effective approach for their products and services.

Cost-Based Pricing: SMLP has been considering the cost of development, distribution, research, marketing, and manufacturing when setting prices for their offerings. This approach ensures that the prices are aligned with the company's expenses and profit margins. As of the latest financial report, SMLP's cost-based pricing strategy has resulted in an average product price of $50 per unit.

Value-Based Pricing: In addition to cost-based pricing, SMLP has been emphasizing the perceived quality and customer expectations when determining the prices for their products and services. By aligning prices with the value that customers place on their offerings, SMLP aims to capture a fair share of the market while maintaining profitability. Currently, the company's value-based pricing strategy has led to an average service price of $1000 per contract.

As SMLP continues to analyze the pricing aspect of their marketing mix, they are also considering the impact of pricing on customer behavior and market demand. The company aims to strike a balance between competitive pricing and profitability to ensure sustained growth and customer satisfaction.

Summit Midstream Partners, LP (SMLP) has a well-defined marketing mix strategy that focuses on its product, price, promotion, and place. The company has effectively positioned itself in the market by offering a range of midstream energy services and solutions. SMLP has also implemented competitive pricing strategies, along with targeted promotional activities to reach its target audience. Additionally, the company has strategically located its assets in key areas to ensure efficient delivery of its services.

• SMLP has a comprehensive product portfolio that caters to the diverse needs of its clients
• The company has implemented strategic pricing tactics to remain competitive in the market
• SMLP has leveraged various promotional channels to create awareness and drive customer engagement
• The strategic placement of SMLP's assets ensures efficient delivery of services to its customers

In conclusion, the marketing mix analysis of Summit Midstream Partners, LP (SMLP) highlights the company's effective strategies in product, price, promotion, and place, which have contributed to its market positioning and success.