CATERPILLAR –

Caterpillar Inc., is an American corporation which designs, manufactures, markets and sells machinery, engines, financial products and insurance to customers via a worldwide dealer network.

Caterpillar is the world's leading manufacturer of construction and mining equipment, engines, industrial gas turbines and diesel-electric locomotives. With more than US$89 billion in assets, Caterpillar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500.

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Construction Equipment Manufacturers2013 Rankings

Image Source: forconstructionpros.com

CATERPILLAR –

Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, creating a new entity, the California-based Caterpillar Tractor Company.

In 1986, the company re-organized itself as a Delaware corporation under the current name, Caterpillar Inc. Caterpillar's headquarters are located in Peoria, Illinois, United States.

Caterpillar machinery is recognizable by its trademark "Caterpillar Yellow" livery and the "CAT" logo.

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• Caterpillar’s product range is immense. It has over 300 machines ranging from a 47 hP skid steer to a 850 hP Tractor to a massive 3370 hP Mining Truck.

• It ranks No.1 or No.2 in every industry it serves. A testimony to its quality.

4 Image Source: cat.com

CATERPILLAR

Parts EQUIPMENT

New Rental Used

Apparel

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• Feeling Local is important considering that 56% of CATERPILLAR’s Business comes from the overseas.

• It has been a leader in building roads, bridges, highways etc. all over the world giving it a local presence globally.

• In developing countries like Peru, it helps clear roads, clean up spills etc. while its purpose there is to dig copper.

All this shows how much Caterpillar values the Local feeling.

6 Image Source: cat.com

• “CAT:BUILT FOR IT | Trials”

Very successful campaign for Caterpillar run by Ogilvy and Mather, a leading advertising agency.

It consisted of a set of 3 videos(which went viral) showcasing three different products:

1) Gravity – CAT Phone

2) Stack – CAT Machines including Excavators and Telehandlers

3) Lantern Festival – CAT Generator

• “CATERPILLAR PAYS YOU BACK”

7 Images Source: Youtube Cat® Products

CAT

8 Images Source: Pinterest

CAT

Showing customers exactly what they want to know in crisp, entertaining

trials using CATERPILLAR Products.

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Caterpillar’s sales hit $51 billion in 2008

and dropped to $32 billion in 2009 due to

the recession.

Although it was forced to lay off a good

chunk of its workforce, it belonged to a

select group of companies which escaped

relatively unscathed in the recession.

And rightfully, it bounced back strongly

once the recession was over.

Image Source: Zero Hedge

The Customer Value Hierarchy

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

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The Product Hierarchy

Need Family

Product Family

Product Class

Product Line

Product Type

Item

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CATERPILLAR

1.What were some of the key steps that led to Caterpillar’s becoming the industry leader in earth moving machinery?

2.Discuss Caterpillar’s future. What should it do next with it’s product line? Where is the future growth for this company?

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What did CAT do right?

• Restructuring their Organisation

• Braving the United Auto Workers for over 7 years

• Automation of its Manufacturing Process

• Strong focus on Innovation with a $2 Billion annual R&D Budget.

14 Image Source: cat.com

One very big reason for Caterpillar’s dominance is its business model.

Caterpillar sells it all:

• Machines

• Services

• Support

53% of its sales comes from Machines and the rest from integrated services.

Providing services and support on a local basis gives the company a personal feel.

15 Images Source: cat.com

CATERPILLAR –

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• Remains focussed on reducing greenhouse emissions in its machinery

• Innovation focussing on greener technologies

• Maintaining its strong brand

• Investing in emerging countries like India and China.• In China for example, It has divided its product strategy into three segments:

• World Class

• Mid-Tier

• Low-EndCaterpillar is currently focussed on the growing World class segment leaving the Low-End segment to local competitors. But it should consolidate its position in the Low-End Segment once it has the World class segment in hand.

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1 • Caterpillar – Company Overview and History

2 • Product Mix

3 • Marketing by Caterpillar | Print and TV Ads | Campaigns

4 • Customer Value Hierarchy

5 • Product Hierarchy

6 • Marketing Excellence | Questions

7 • Business Model

8 • The Way Forward | Vision 2020

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1) A South Asian Perspective: Marketing Management 14th Edition by Kotler and others.

2) Youtube | Cat® Products | “Built for it” Trials .

3) www.cat.com | Caterpillar Inc.

4) New York Times | “A New Heavy-weight Among Hybrids”

5) Washington Post | “After Caterpillar’s Turnaround, A chance to reinvent globalisation. “

6) News Week | Green Rankings, The 2009 List.

7) adage.com/article/btob/caterpillar-rolls-video-built-campaign/297278/

8) Wikipedia | Caterpillar Inc.

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This presentation was created by ARAVIND.M, IIT Madras, under the guidance of Professor Sameer Mathur, IIM Lucknow, during his Marketing Management Internship. ( Jun-July’2016 )