Professional Documents
Culture Documents
Caterpilar PPT g42
Caterpilar PPT g42
Puneet Chetan
Jain Sharma
(043039) (043017)
Irshad Ali
(043027)
Every customer is diff erent,
but one thing is absolutely
the same, they all want
the worlds best products,
readily available and ready to
work every day,Caterpillar
Chairman and CEO
Doug Oberhelman
2006
Total sales exceed $41 bn.
300 diferent model starting from 5 HP to 2000
22,000 HP.
1951
First overseas manufacturing facility in U.K.
C. L. Best Tractor Co. and the Holt 1925
Manufacturing company merged to form
Caterpillar.
Benjamin Holt tested the frst track type 1904
tractor.
Introduction
4
Customers
3
Dealers
Marketing Proft 2
Centre
1
Corporation
Distribution Structure
Customer Segmentation
Products
Product
and
Support
Industries
Do it
Large
myself
Work
Small with
me
Do it
for me
Find out the products
customers want. Design
and build them. Keep them
Running. Rebuild and recycle.
Do it better than anybody else
Shift in Focus
This is because:-
1. Increased Competition.
2. Threat of substitutes in form of cheaper products.
3. Loss of huge amount of revenue in the after sales ma
Competitors
Type Service Strengths Weakness
Offered
Third Party Management Dealer Less
Service of Caterpillar network in Sophisticated
Providers like and Non- Latin America
Fluor Caterpillar Successful
Products. relationship
Aftermarket Will ft parts. Lower Costs Quality
Suppliers
Customers Repairs of Customize Not able to
having own parts. oferings keep up with
mechanics. technical
prowess of
Caterpillar
Local Repairs of More Financial
Workshop parts. acceptance Reserves
(mainly
previous
caterpillar
dealers)
Competitive Almost Dealer Not
Porters fve forces
models.
1. High Product 1. Poor Segmentation
Quality 2. No after sale service
2. Good dealer 3. Less control over distribution
relationship. network.
3. Holds large portion 4. CSA agreement not promoted
of market properly
share(53%)
Interaction
b/w
Management & Customer
No Segmentation
Identifying the benefts and
attributes that customer
expects
Structured Generalizabl
Requirements
Brainstormin e across
Research
g Industries
Dual
Beneft-
Better than Market
compliant Research
solicitation Tool and
Short list of Customer
questions Service
Capture
informati
on about
key
service
Relationship and SERVQUAL surveys
Segment:
Customer Spend more
having Less cost to maintain
Customer +ve word to mouth
Service
Agreeme
nt
(CSA)
for years
Segment:
Cost More-Efort, Money
Less Return
Do It Do It For
Change
Myself Me
Importance/Performance Matrix
High Responsiveness
Relationship
Opportunity Strength
Reliability
Assurance
Importance
plan Regional
Dealers
Distribution
Services Divisions
Mining
Customer
care
Quarry
and
waste Servicemen
EN Excavati
on
D Earthmovin
g
To
Building
EN Construction
Products
DClient would need to call the central toll free number, SMS or
open a ticket online
This central number would then link and connect the client to
the nearest/best service distributor
Responsiveness
Customer requirement is maximum up-time
for equipment and timely delivery of service
Reminder call to customers before expiry of
CSA
Service number availability with consumer.
Taking feedback from the customer after
every service.
The time taken by company to act on the
complaint.
Empathy
Customization of service
Conduct of the people
Assurance
The technical know how of the people who are
involved in service process
Ability to instill confdence in the customer.
Reliability
Representative should be able to correctly
identify and delegate the issue.
Service men should be able to report to the site
within the promised time(quantifable).
Tangibles
The tools and servicing equipments used
Technology used
Market Research
Product
Product support
Questionna
ire Questionna
ire
Product Questionnaire(semi-annual)
(At the time of purchase)
What are the purpose of
purchasing this machine?
Does he/she had experience in
related areas?
Does he have other similar
machines?
What are the attributes he/she is
looking in the machine?
AHP model
Factor Analysis
Product Support Questionnaire(Quarter)
(After sale of product)
Improper Segmentation
Company segmented based on do it
myself, do it with me, do it for me but
some of the general construction
companies were large enough to qualify
for Do it for me segment.
Diferent CSAs to the diferent
segments?
General Construction Companies
Large Medium Small
Do it for me
)
Service Design & Standard Gaps
Few CSAs
Poor CSAs were not branded
GAP Service CSAs were created in an
Design
2 ad hoc manner
The
Servic Promised but
Customer
e expectations not met
Driven
Operationally focused
design Standards
not customer driven
s and
standa
Inadequate Customer Interact with
rds physical sales people
gap evidence and what to ofer and what to
service deliver
escape Contries: Culture, law,
structure
Issues brought ahead
Creation of CSAs was in ad hoc manner as it did not
mostly considered timing, peace of mind, risk
reduction etc of customers. Also customers were often
located far of (so standard setting gets difficult)
They varied across dealerships.
Difficulties in keeping track of what had been
promised. (This gives rise to service non performance
and consequently service recovery)
Sales ppl were not the employees who delivered on
CSA. They were unsure of what to ofer.
Performance standards were operationally focused
and not customer focused.
Cultural issues
Silos
Setting the standards
Implementati
on
Get everyone learn and deliver about them
SERVICE
DELIVERY
Gaps Identifed
Lack of qualifed mechanics
Fewer resources to fnd them
No proper attention on interaction and
communication skills
Lack of team work: silo based approach
Formal ways to communicate did not exist
Reliable system not available to dealers
Scheduling process was complex
Customers contributed to gap: moderately
Supply demand mismatch
Unattractive presentation of CSA to customers
Service Performance Gap
Lack of qualified mechanics
Fewer resources to find them
Defciencies No proper attention on
in HR Policies interaction and communication
skills
Lack of team work
External
Internal marketing
marketing
(Enabling the
(making the
promise)
promise)
Company
(caterpillar)
Improving customer roles
Define Customer
Roles
Effective
Customer
participat
Educate and reward ion
customers
Lack of
integrated service
mkt communication
GAP
Inefficient
4
management of
customer
expectation
Over promising
Inadequate
External horizontal
Communication communication
to customers
Gaps Identifed
Promotion was focused on product not
on service
Absence of brochures or
advertisement describing CSAs.
Tangibility issues
No clear defnition of diferent CSAs
Absence of clearly defned service
features led to over-promising.
Lack of written communication led to
confusion in verbal communication
Problem ftting to gap
model
Promotion was
focused on
product not on Lack of
service integrated
service mkt
Absence of communicati
brochures or on
advertisement
describing CSAs.
Tangibility
issues
No clear
definition of
different CSAs Over
promising
Absence of
clearly Inefficeint
defined management
service of customer
features. expectation
Lack of
written
communicatio
n
Internal and external
material to communicate and
operate CSAs
1. Specialized training programs for
salesperson.
2. Brochures
3. Training Modules regular training sessions
on and of line. Dealers(successful) may be
involved.
4. Dedicated self service websites.
5. Service camps.
6. Monthly Customer meets.
7. Organization of exhibition fairs to educate
the customer about new features and
If we stay focused on making
sure we have a great value
equation for the customer, we
can go through cycles and still
compete and be successful.