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A report submitted to the Department of Marketing, AIUB, in part-fulfillment of the requirements of the final examination in
Business to Business marketing, Fall-Semester 2011.
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December 1, 2011
Khan, Tahsina NimmiDepartment of MarketingAmerican International University-BangladeshBanani, Dhaka
Dear Tahsina Nimmi Khan,
In compliance with the fulfillment of the requirements on the subject “Business to Business Marketing”, the students of our group would like to present the proposal entitled “Marketing Plan for BANGLA CAT”, in accordance with your instructions.
The main purpose of the document is to have a full proof business to business plan for Bangla CAT. This will help a lot of Business to Business Marketing students and businesses.
We hope that this proposal will meet your approval.
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Very truly yours,
Shadowplay Group
Acknowledgement:The Information that have been presented in this term paper regarding the company’s products and service are all based on the information provided generally on the company’s personal website and more general information of Caterpillar Inc. in its mother company website. We greatly thank the “CAT Inc.” and “Bangla CAT” respectively, for putting up a comprehensive navigating website and information for its customers and consumers. We would also like to thank our most knowledgeable Business to Business marketing course teacher, Tahsina Khan. She has provided us with a wide and valuable lecture on B2B marketing, expanding our knowledge on the business to business format. An internal source came in from an employee of Bangla CAT, Ziaur Rahman Galib and he is a senior electrical engineer in Bangla CAT, majority of the important and internal information were passed on to us by him, which he collected from different departments of his company. Last but not the least we would like to thank ourselves, all the group members who worked day and night to bring out this well-attired term paper.
Summary:
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The term paper consists of a brief introduction on “Bangla CAT” and general introductory overview information and its missions, visions and values of the company. It starts with discussing the general situation analysis of the company in the international perspective and also discussing the micro and macro environmental factors in the country. There is a brief aspect of rationale for the study, its organizational background and the history of the company here in Bangladesh. The products and services of this company are analyzed and discussed in this term paper including brief information and pictures of the different types of products that are offered to the Business customers in the country specifically the government, classifying their products on the basis of product & services of the organization with different sizes, Product Line Length, Line Width and Line Depth mixes. It even conveys the marketing objectives of the company and how we can complete the positioning strategy, marketing mix, pricing, distribution, promotion – advertising, sales strategy & sales promotion, customer service etc. The term paper additionally includes the target Market – market demographics, behavioral factors, and the market needs, the trends & growths of “Bangla CAT”. We have done some analysis of this company such as the SWOT analysis, the competitor analysis. We even have put up marketing controls such as marketing organizations, contingency planning & future marketing plans like product/service offering.
Table of contents
Rationale of the Study.....................................................................................6
Organization Overview or Profile of the Organization:.........................................................................................................................6
Mission, Vision and Values:...........................................................................7
Development Infrastructure sector of Bangladesh is growing at a very increased pace. Roads, highways, bridges and buildings are being constructed rapidly. So, we are going to make a business plan of Caterpillar Incorporated, which is an American company to establish itself here. It is established in Bangladesh named as “Bangla CAT” which delivers all sorts of machinery to support the operations of building top class engineered infrastructure in the country.
Organization Overview or Profile of the Organization
Caterpillar Inc., also known as "CAT", designs, manufactures, markets and sells machinery and engines. It also sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. With more than US$70 billion in
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assets, Caterpillar was ranked number one in its industry. Caterpillar stock is a component of the Dow Jones Industrial Average.
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.
Company History in Bangladesh
Bangla Trac Limited (concluding business under the name ‘Bangla CAT’) was appointed the dealership for Caterpillar engines and equipments in the People’s Republic of Bangladesh on the 11th of October 2004. Bangla CAT’s management brings with it over thirty years of experience in marketing Caterpillar products in Bangladesh. Bangla CAT also brings with it the commitment to improve the already high level of service and coverage that Caterpillar customers receive. With a corporate Office located in the heart of Dhaka in 4, Mohakhali Commercial Area and a Service Centre in the highly industrialized region of Vulta on the easily accessible Dhaka-Narshingdi highway, Bangla CAT will provide unparalleled nationwide customer access. Starting with an impressive fleet of dedicated servicing vehicles, Bangla CAT also aims to expand its facilitates to a fleet of servicing vehicles capable of providing round the clock support, a regional office in the Chittagong region and a fully-equipped Service Workshop north of Dhaka by mid-2005. This expansion will result in unparalleled service coverage, access and most importantly, customer satisfaction
Mission, Vision and Values
Our Mission:
We add value to our stakeholders by Using our expertise to understand their needs Providing innovative solutions Actively encouraging a culture of continuous improvement Developing and utilizing our people, technology and capital efficiently and effectively.
Our Vision
We make progress possible through excellence in technology, integrity & best in class customer services.
Our Values
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Customer Service First Teamwork Integrity Innovation Leadership Through Excellence Quality Ownership Mentality
Situation analysis
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas
engines, and industrial gas turbines worldwide. Its Machinery business engages in the design,
manufacture, marketing, and sale of construction, mining, and forestry machinery, such as track
and wheel tractors, track and wheel loaders, pipe layers, motor graders, wheel tractor-scrapers,
articulated trucks, paving products, skid steer loaders, and related parts. This business also
involves in the design, manufacture, remanufacture, maintenance, and services of rail-related
products, as well as offers logistics services. The company’s Engines business designs,
manufactures, markets, and sells engines for its machinery; electric power generation systems;
on-highway vehicles and locomotives; marine, petroleum, construction, industrial, agricultural,
and other applications; and related parts. This business also remanufactures engines, and various 8 | P a g e
machine and engine components, as well as provides remanufacturing services for other
companies. Its Financial Products business provides various financing alternatives to customers
and dealers for the company’s machinery and engines, solar gas turbines, and other equipment
and marine vessels, as well as offers loans to customers and dealers. This business also provides
various forms of insurance to customers and dealers to support the purchase and lease of its
equipment; and invests in independent power projects using Caterpillar’s power generation
equipment and services. Caterpillar markets its products through distribution centers. It has a
joint venture with Navistar International Corp. to manufacture and distribute commercial trucks.
Bangla Trac Limited (conducting business under the name ‘Bangla CAT’) was appointed the
dealership for Caterpillar engines and equipments in the People’s Republic of Bangladesh on the
11th of October 2004. Bangla CAT’s management brings with it over thirty years of experience
in marketing Caterpillar products in Bangladesh.
Locally
Largest Electric Power Generation (EPG) Dealer for Caterpillar in Asia Pacific
Among the Top 5 Caterpillar EPG Dealers Globally
Largest Gas Engine Dealer
Macro and Micro Environmental Factors:
The Company’s Macro environment
The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. There are six major forces (outlined below) in the company’s macro environment.
Demographic Economic
Natural
Technological
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Political
Cultural
Demographic: Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. Demographic trends are constantly changing. What can be noticed from the Bangladeshi market demography is that the population is increasing and there is a huge need for development infrastructure as the country is developing rapidly. Bangla CAT sees this factor as an opportunity.
Economic: The economic environment includes those factors that affect consumer purchasing power and spending patterns. Since, this country is developing at a very high pace; the GDP is at one of the highest pace in the history of economics, the country’s development in its economy is yet another huge advantage for us.
Natural: The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. None of the natural environmental is going to have a great influence us in the near future but it might in the long run as the conditions of our planet is deteriorating at a great pace.
Technological: The technological environment includes forces that create new technologies, creating new product and market opportunities. There are both threats and opportunities in the technological factor as people are getting for dependent on technology it is yet an opportunity for our company to step in. But it also increases the competition for our company as there are going to technological advancements in our industry and there is also which is improving and might catch up with us very soon if we do not run faster.
Political: The political environment includes laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. The political environment is a typical third world country situation, laws and government agencies are favorable at times and even unfavorable at times. We should make out the best of us at the favorable times, there is always going to be good times and bad times, the fact is how much we can achieve when it is favorable.
Cultural: The cultural environment is made up of institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors. For now, our company has no threat and we do not seem to nudge or regulate the culture and we do not think it will have to do anything with our company.
The Company’s Micro environment
The microenvironment consists of five components. The first is the organization’s internal environment—its several departments and management levels—as it affects marketing management's decision making. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing intermediaries (middlemen, physical
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distribution firms, marketing-service agencies, financial intermediaries). The third component consists of the five types of markets in which the organization can sell: the consumer, producer, reseller, government, and international markets. The fourth component consists of the competitors facing the organization. The fifth component consists of all the publics that have an actual or potential interest in or impact on the organization’s ability to achieve its objectives: financial, media, government, citizen action, and local, general, and internal publics. So the microenvironment consists of six forces close to the company that affect its ability to serve its customers:
The company itself (including departments) Suppliers
Marketing channel firms (intermediaries)
Customer markets
Competitors
Publics
The company itself: The first force is the company itself and the role it plays in the microenvironment. This could be deemed the internal environment.
i. Top management is responsible for setting the company’s mission, objectives, broad strategies, and policies and it has been managed by the officials neatly.
ii. Marketing managers must make decisions within the parameters established by top management, since a greater products are all business to business our marketing managers always to focus on strategies on how to continuously innovate in marketing strategies to pull the potential customers out there and as well as build up customers for the near future.
iii. Marketing managers must also work closely with other company departments. Areas such as finance, R & D, purchasing, manufacturing, and accounting all produce better results when aligned by common objectives and goals, most of the R&D work is done by the parent company Caterpillar Inc. so that loosens our tension to bring in new products for our customers, yet the marketing manager has to work with the other departments to bring out one standardized quality of both product and service which the customer feels that the whole company is working as one unit and they can enjoy their time with the company.
iv. All departments must “think consumer” if the firm is to be successful. The goal is to provide superior customer value and satisfaction.
Suppliers: We ourselves are the suppliers for the products to our customers, but there are some loose end customers who supply spare parts and other handy products from our company.
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Marketing channel firms: That is handled by our set of channels fixed at different locations throughout the nations different developing and potential states of the nation.
Customer Markets: Customers buy goods and services for further processing or for use in their production process and even some of them supply in the need of some other business functions and government agencies also work the same way for us.
Competitors: Every company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies. Although, we do not have a great deal of competition in Bangladesh, yet, we keep on looking to stay ahead of the game.
Publics: A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. We are very concerned about it and much of the positive influence and thoughts from the public come from the great deal of brand image and goodwill which Caterpillar Inc. has in store for us. Nevertheless, we still influence on having good relationships with the public and enhance them over time with different sponsorships, promotions and CSR activities that brings our company in the positive spotlight to increase and give a positive link to the public.
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Target Market
Market Description:Country Total Mines Under Process Equipment
Pakistan 28 22 Traditional
India 54 33 Traditional
Iran 16 5 Traditional
Afghanistan 7 3 Traditional
Total 105 63 Efficiency 19 %
In Bangladesh, Bangla CAT basically does the same business as rest of the world and it is also
engaged in to some other categories such as the power plant business. Bangladesh does not have
any mining projects undertaken by Bangla CAT at the moment but Bangla CAT is looking
forward to the opportunity to work for the government on the basis of a mining project if there
are any in the near future.
Market Segmentation:1. Geographic Segmentation
2. Psychographic Segmentation
Realizing the market opportunity the Caterpillar Inc. and Bangla CAT in general, aims to
identify the discussed geographical area as its potential segment and it also acts on the science of
using psychology and demographics to better understand consumers. Psychographic
segmentation is the means in which consumers are divided according to their lifestyle,
personality, values. The trend in converting to cheaper CNG for generators and using Natural
Gas for producing electricity concluded to psychographic segmentation.
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Market Needs:
Few years ago, after Bangladesh shifted towards using Carbonated Nitrogen Gas (CNG) as their
primary natural gas a lot of vehicles and personal generators of organizations too were switched
to CNG generators and Bangla CAT acted at that instance they had a huge market need out there
a lot of industrial and commercial need for generators were created and Bangla CAT took full
advantage of it.
Market Share (United States):
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Market Growth:
Once established, caterpillar projects attain to a very high growth in this market, particularly In
the developing countries, recently a lot of development work have been undergoing in our
country. In general, a developing country usually goes through a lot of rebuilding and new
construction of many new infrastructures by the government. But the purchases made were on
contractual basis with large real estate builders and developers and real estate groups, and all
these purchases were from the product line of cranes, dumpers and big movers and bulldozers.
SWOT Analysis:
Strengths:1. Goodwill, High Brand Image.2. High Quality products3. Global reach. Distributors all around the world.4. The only producers of Mining equipment in the world.5. Huge Product base.6. Financing their own equipment7. World-wide production (Europe, Australia, North & south America)
Weaknesses:1. Expensive Shipment 2. Difficult to mobilize the equipment3. Operational Cost4. Expensive equipment
Opportunities:1. Asian markets2. Monopoly in mining equipment 3. Changing trends (petroleum fuels to Coal and Gas energy)
Threats:1. Global recession2. Rising operational cost 3. Law & order situation4. Global security issues5. Political instability
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Competitor Review:
Although Caterpillar Inc. has been the only innovating firm in the industry of heavy machinery
and vehicles development, but a lot of other national and international companies have been
plunging in to the same business and offering a competition to CAT.
One of the largest competitors to Caterpillar is Hitachi, Yamaha & Honda, though these firms
give caterpillar tough time in the cranes, generators, Motor turbines and engine, but if we look at
the specialization these firms in to the Mining Equipment production Caterpillar has no match.
So Caterpillar is practically the only firm in the world to specialize in the production of the
mining equipment. There are many other local companies from the United Kingdom, United
States, Europe and some from Asia but they aren’t as efficient and as huge as Caterpillar’s
transactions are. Specifically, there are a lot of competitors of the generator business in
Marketing Strategy:Caterpillar even in the times of economic hardship is trying its level best to expand the customer base and go globally. Analyzing the position of the target market caterpillar sees the great opportunity for the future. Considering the launch of its mining line of products caterpillar aims to get the FIRST MOVER ADVANTAGE in this virgin market of mining. Caterpillar sets its objective in the following manners.
Objectives: First year Objective: To launch the caterpillar & to exploit the first movers advantage in
the mining equipment industry in south Asian countries.
Second year Objective: To attain the targeted sales and expand the distribution
networks.
Third Year Objectives: To sustain the sales and achieve the growth in the third year of
operations.
Target Markets:i. Pakistan
ii. Afghanistan
iii. India
iv. Bangladesh
v. Iran
Market Segmentation:
Geographic SegmentationThe market is segmented on the basis of Geographic location, as we are well aware that
Caterpillar is a multi-national. It has its distribution centers globally and reaching almost every
market, therefore this marketing plan aims to market its special line of mining equipment to the
countries and region where mining is still practiced in a very traditional and risky way. The
position strategy will definitely be to offer the same product line to several markets of mining
and modern construction equipment used to make construction much more effective and time
efficient along with that the deficiency of electricity supply in the South Asian regions and
comes the need of generators which Caterpillar aims to full fill in these regions.
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Modern Coal Mine in USA
Traditional coal mining in the eastern part of India
(Product) Mining Equipment OF Caterpillar
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Bangla CAT Products
Gas Generators:
Caterpillar Gas Generator sets deliver low emissions with power ratings from 80 kWe and the
fuel flexibility to burn biomass, pipeline natural gas, LPG, LNG and CBM. Robust design
provides life-long and simplified operation.
Diesel Generators:
Caterpillar is the world’s largest manufacturer of high-speed diesel generator sets and engines,
offering the largest range ratings from 12 kWe to 17,463 kWe of specifications available.