Marketing Techniques for Caterpillar Brand - Report Example

and Section # of EXECUTIVE SUMMARY The report talks about the fact that global marketingstrategy is very important these days in order to develop the whole world as the customer base. The world is becoming a global village and marketing is the tool that helps the organization put forwards its products with the same voice all across the world. A brand is a set of promises that the product makes with its customers and in order to increase brand equity, the promises need to be fulfilled. Therefore, the marketing mix is used to market the product in the world according to the marketing strategy. The company under discussion is caterpillar. After scrutinizing the product of the company through the marketing mix it has been concluded that the company has been able to keep its brand promise and enjoys brand equity through the world as well as in the UK. No. Topic Page Number 1 Introduction 4 2 Marketing globally 4 3 Branding 5 4 Brand logo 6 5 Marketing and Marketing Mix 7 6 Product and marketing mix 7 7 Conclusion 9 Table of Contents INTRODUCTION: This is a research report discussing the brand caterpillar and the various marketing techniques and concepts that are applied to the product to market it in a global environment. Marketing has become a crucial factor in the product development and success of a product. Marketing in a global world, void of boundaries becomes more challenging day by day. The report discusses the implications of the information and technological age on marketing and how it is evolving keeping caterpillar’s marketing strategy in focus. Caterpillar is a global company with its presence across the world, working as the infrastructure of the world. It was founded in 1925 (Company website). The report starts with a brief discussion on marketing in a global world; the various aspects that influence the marketing mix and strategy of any organization. Market segmentation and its importance to target the appropriate market will also be discussed. Branding and its peripherals are then explained, followed by the brand logo. A detailed comparison between the brand logo and a competitive brand logo is done. Towards the end of the report the marketing mix of one of the products from caterpillars is scrutinized and analyzed. The report ends with a conclusion. MARKETING IN A GLOBAL WORLD: Marketing has taken newer domains and dimensions which were not considered as options just 10 years ago even. Internet and viral marketing is taking products to places; tweets are now being strategically introduced in order to create the buzz for the product. For a product to become successful in its true sense today it needs to have global appeal and its presence should be felt across borders. Marketing has become a global initiative now; it is no longer confined to countries. Organizations, in order to take advantage of selling their product to the whole world, turn to marketing initiative to create the right atmosphere and attitude for a product, all under global marketing initiatives. Closed loop marketing, where the result of marketing initiatives is constantly monitored to realize the impact, is a great tool that is used to gauge the impact of marketing initiatives. Challenges that marketers face while marketing a product internationally are difference in opinions and cultural differences in different communities; these adjustments are made in the marketing mix according to need. All in all, when a company pursues global marketing, it strives to speak to the whole world in one voice, facing countless challenges while addressing the multicultural world. The differences in culture is not the only challenges, the technology and infrastructure of the particular area, the acceptance of the product etc all pose as great challenges to the marketer. ALL ABOUT A BRAND: A brand is a set of promises, promises that are needed to be fulfilled in order for the brand equity to thrive. According to the marketing guru Philip Kotler and Gary Armstrong, a brand is defined as a name, term, sign, symbol or any combination of these, that helps in the identification of the maker or the seller of the product. Branding is used all across the world in order to differentiate one’s product from the competitor. Brand adds various other dimensions to the feel of the product, gives the product personality and makes it connect to the consumer in such a way that it becomes hard for the consumer to let go of a product; A successful branding initiative would connect to the customer on such a level (Kotler, 2010). For example, for a Television company to differentiate itself from its competitors, it is important that the company differentiates itself from its competitors using marketing and branding strategies. Branding a product would mean giving the product a personality. For the brand to work, it is important that the set of promises that are made with the brand work too (Randall, 2000). Another example to be noted is that for some people, even if there are alternatives present, they would prefer one brand over another because the brand has been able to keep the promises it kept. Apple provides exceptional voice quality for its product iPod; even though there are alternatives present for the music player, the promise of providing exceptional voice quality has made Apple iPod a phenomena. It is on its way to become a generic product for music players. In today’s times, Apple can be considered as the epitome of using branding initiatives to drive the product forward. When it comes to caterpillar, it is considered a well branded product, that people trust and use all over the world. It is known for its reliability and functionality. In 2009, it was ranked 66th in the most current global brands list which was compiled by the world’s largest brand consultancy firm, Interbrand (News Release Caterpillar, 2009). BRAND LOGO AND COMPETITIVE BRAND LOGO A brand logo is an emblem of a figure, a picture that connects the brand with the customer. in order to recognize public recognition, logos are used as visuals are better communicator to the human mind than any other tools. A logo represents an organization by more than visuals; logos are made today keeping in mind the philosophy of the organization. The logo of caterpillar is pretty straightforward. The name is used some places, other places the word “cat” is used to signify the product. Most of the products that the company produces are painted in yellow and black; these are the colours in which the logo is painted as well. This is done so that the customers can make the connection as soon as they see the logo. The brand logo is present on all its products to remind the customer about the brand. In order to communicate to the customer globally, a single logo is used in order to define the brand in terms of a logo. The simple logo becomes the brand logo and represents the brand across boundaries. The major aim of branding a product is to help in cross-language/cross-cultural marketing. This is the reason that Coca-Cola is known across the world due to its colors and the wave pattern even though people may not know English to realize that the logo itself says Coca Cola in English. Similarly, the logo of Caterpillar is marked with yellow and black-symbolic colours for the company, in order to help customers make the connection with the brand. MARKETING AND MARKETING MIX Marketing is considered as a tool for satisfying needs and wants through an exchange process, according to Philip Kotler (Kotler, 2010). According to Kotler, this exchange between the customer and the seller will only occur if the customer feels that the product is fulfilling the needs. The value of money exchanged will take place only if the value of the product is worth it in the eyes of the customer. The greater the benefit that an organization provides to its customers, the higher the organization can charge in exchange of the value. (Armstrong, 2010) According to the Chartered Institute of Marketing, marketing is a management process that is responsible for identification, anticipation and satisfaction of customer requirements profitability. In order to market a product, all dimensions of the product should communicate the same message to the customer. for this purpose, a marketing mix is used. Marketing mix or the 4 P’s of marketing are the tactical components of a marketing plan that guide the marketing strategy forward. A marketing strategy will just outline where the end result should be, the marketing tools (4Ps) guide the product in the right direction. These four components are price, product, promotion and place. The key to successful marketing is to design the marketing plan in such a way that communicates the right message to the customer. PRODUCT AND ITS MARKETING MIX Broadly, Caterpillar divides its product mix into eleven different categories; Machines, engines, turbines, electronics, OEM solutions to name a few. 300 kinds of machines are present under this umbrella that caterpillar has to offer. Caterpillar is the most known for the different kinds of tractors that it has been producing over the last 35 years and they fall under machines; therefore, the product that is chosen to be scrutinized under the marketing mix is machines. Product Caterpillar machines have been developing since the past 35 years. They have about 300 products under their umbrella which have been considered as reliable and cutting edge by customers. When the company boasts of being the industry trend setter and bench marker, they are not wrong. From lift trucks, to compactors, to trucks and tractors; all products are leaders in their domain. The machines that the company produces are mainly heavy machinery and they provide excellent after sales services to their customers. Price: The price is an important factor in this case. Caterpillar is providing extra value to its customers due to its exceptional after sales service and the spare part services. The price of their products is in line with the industry; for some products they do charge a premium but against the quality they provide, it is not of a concern for the customers. Again, for customer who cannot afford the high prices, caterpillar also has another product line where it sells used caterpillar machinery after replenishing it again at a lower price. The products which are cutting edge and new in the industry, caterpillar uses them as a cash cow product to help increase revenues. Place The distribution system of the company is one of its best. Since the company has been here for more than 85 years, it has been developing its distribution network. From online internet selling to distribution centre, the distribution network is immaculate. Their products are easily available at the time when the customer needs them, near the customer as well. Promotion Since the company markets heavy machinery, below the line marketing strategies are used more than above the line marketing tools. Still a significant mix of both the types is used to attract customers. Trade promotions, trade shows, buyer rebates, exclusive offers are made to corporations and people alike to market their products; the brand promise does the rest. The company has been able to brand itself in such a way that any product from caterpillar extracts trust in the machinery and its functionality. Public relations are its top priority these days. The marketing strategy today is focusing on making the people of the company feel proud of the fact that they work for one of the top organizations in the world. CONCLUSION After analyzing the product and its marketing mix, the branding of the company as well as its impact on the marketing mix of the product, it has been realized that caterpillar has been able to keep its promise of providing service to its customers and hence enjoys immaculate brand equity amongst its segment of the market. BIBLIOGRAPHY Armstrong, G., Kotler, P. (2010) Principles of Marketing. Pearson Brassington, F. (2006) Principles of marketing. Prentice Hall. Randall, G. (2000) Branding: a practical guide to planning your strategy. Kogan Page Publishers. Caterpillar company website. Available from http://www.uk.cat.com/ [8th November 2010] Caterpillar news release. (2009) Caterpillar advances in Latest global brand ranking. Available from http://india.cat.com/cda/files/1853213/7/100209%20Caterpillar%20advances%20in%20latest%20global%20brand%20ranking.pdf [7th November 2010] Caterpillar news release (2010) Caterpillar announces updated strategy. Available from http://www.cat.com/cda/files/2234310/7/060810%20Caterpillar%20Announces%20Updated%20Strategy.pdf [9th November 2010] Read More