Marketing Strategy of Caterpillar analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Caterpillar marketing mix, help the brand succeed in the market. Let us start the Caterpillar Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Caterpillar marketing strategy can be explained as follows:
Caterpillar is a leading manufacturing company for mining equipment & construction, diesel electric-locomotive and large rated industrial gas turbines. The products in the marketing mix can be explained on the vast product line which it has. Though its primary product line is industry-based, they have a premium range of clothing and shoe brand that has been popularly demanded all across the world. Caterpillar has also been manufacturing defense products through its subsidiary. It has also been manufacturing on-road, off-road vehicles, and agricultural products.
It is the leading manufacturer in wheel loaders. Caterpillar manufactures technologically advanced defense vehicles and weapons. A new venture of the company has been manufacturing of on-road truck manufacturing.
Caterpillar Price/Pricing Strategy:
Below is the pricing strategy in Caterpillar marketing strategy:
Caterpillar has been pricing at premium rates owing to its high quality products. The pricing in the marketing mix of Caterpillar can be studied on the basis of the technology used,product range & competition. Despite of pricing much higher than other manufacturers pricing has never caused a problem for the company.
Customers have been enthusiastic about the CAT (Caterpillar) products although they are priced higher only because the company has been successful in communicating that it delivers much higher quality for the price that is tagged. There is a positive perception created that the company adds 20% extra value to the products it prices premium. So, though the products are priced higher, the price is lesser for the high-tech quality that Caterpillar delivers.
Following is the distribution strategy in the Caterpillar marketing mix:
Caterpillar has a strong dealer network across the world. Owing to its strong dealer network, the company has been successfully spread across multiple nations. Caterpillar has been the number 1 company with maximum assets since it has chosen to spread to countries other than US. Dealers are an important source of distribution for the company since they operate independently in a restricted geographical area. Caterpillar are also responsible for sales, repairs, and maintainance services, rent equipment and parts distribution. All the dealers are connected through a system called DBS.
The clothing and shoe brands are available in upmarket malls and premium locations.
Caterpillar Promotion & Advertising Strategy:
The promotional and advertising strategy in the Caterpillar marketing strategy is as follows:
Digital platform has been an important source for Caterpillar to promote itself. Its promotion in true sense lies in the quality of products that they deliver. Most customers therefore buy Caterpillar products since they know the brand gives them quality products. Caterpillar therefore follows more of a pull marketing strategy. The company brands itself as global service resort, thereby creating positive branding for itself. All its promotions mention – global leadership giving, high-end services and group task. The company displays its best in class services through its promotions. This completes the Caterpillar marketing mix.
Caterpillar INC which was incorporated as Caterpillar Tractor.INC in 1925. Owing to its previous name, the company is primarily involved in designing, manufacturing, developing, and selling of heavy machinery. Later, it has been selling Financial products and insurance across the world through a strong network of distribution. Caterpillar was ranked in Fortune 500 companies.
The company has a commendable feature wherein they have sustainable re-manufacturing policy and thus return a new product to the customer in exchange of the product after the after-life of the product at a fraction cost of the new product. The Caterpillar company has also helped in widening of Panama canal.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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