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Frances Edwards

on 12 April 2013

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Using Services Marketing to Develop and Deliver Integrated Solutions at Caterpillar in Latin America.

By: Giancarlo Guerrero
Frances Edwards
Kenny Summers
Justin Grant Introduction Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
Majority of the Caterpillar products are used for excavating land, loading and carrying heavy materials. On November 24, 1904, Benjamin Holt
tested the first track-type tractor. In April 1925, C.L. Best Tractor Co. and the Holt Manufacturing Co. merged forming the Caterpillar Tractor Co. Caterpillar's main issue: By the 1930's, the Illinois plant was one of America's major industrial complexes. Caterpillar had to develop a plan that would allow them to move into services rather than just products. The tractor company assumed they would achieve the same customers but realized they could lose them to companies that outsourced management internationally. This would lead to the development of the enterprise's strategy known as, Vision 2020 CASE BACKGROUND . In 2006 Jose Brousset realized that the company's five year growth targets can't be met. Upon noticing that Caterpillar was in danger of not meeting its five year growth targets, Jose Broussset called a meeting in the spring of 2006. He insisted that the company's five year growth targets could not be met unless caterpillar switched from product centered company to a customer oriented company. The LACD would be the first to attempt a new program that would offer customers additional services through CSAs with their equipment purchases. CSAs stems from their enterprise strategy known as Vision 2020 Vision 2020 had two goals; increase profits and eliminate growing competition Using the GAPS Model Jose Brousset was able to identify the services that their customers wanted. Service Quality Gaps Model . Listening Gap Responsiveness vs. Tangibles Customer Surveys only used sporadically Customers with CSA's vs customers without Reaching out to "General Construction Customers" Competitors do maintenance on any product Service Design and Standards Gap CSA's never standardized Salespeople not comfortable selling CSA's Performance standards not customer driven Dealerships divided into silos Some customers lived far out Service Performance Gap Not enough of qualified mechanics Lack of teamwork & communication Customers did not play part Supply and demand not matched Inspections presented poorly Communication Gap Externally Internally Recommendations Listening Gap More details on customer's expectations
-new surveys that are more in depth

What features to include in the CSA?
-speak with the customers that have them and those that don't.

Upward Communication Service Design
and Standards Gap CSA
- make them identical
- incentive to sale
-contract form

Standards in general
- Hard standards

Latin American Countries
- different country, different dealership Service Performance Gap Mechanics
- efficient schedules
- training in communication

- Information Management System

Customers' Role
- include it in the CSA

Inspection/Recommendation reports
- car dealer reports Communication Gap External
- brochures
- advertisement

- inform
- provide information and require employee signature/feedback
Full transcript