Professional Documents
Culture Documents
Presented By Sudhir Mishra (043055) Puneet Jain (043039) Irshad Ali (043027) Arpan Sengupta (043014) Chetan Sharma (043017)
Introduction
1904
C. L. Best Tractor Co. and the Holt Manufacturing company merged to form Caterpillar. 1925
1951
First overseas manufacturing facility in U.K. 300 different model starting from 5 HP to 22,000 HP. Total sales exceed $41 bn.
2000
2006
Distribution Structure
1 2 3 4
Customer Segmentation
Products and Industries Product Support
Large Small
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 market.
Competitors
Type Third Party Service Providers like Fluor Aftermarket Suppliers Service Offered Strengths Management of Caterpillar and Non- Caterpillar Products. Will fit parts. Dealer network in Latin America Successful relationship Lower Costs Customize offerings Weakness Less Sophisticated
Quality Not able to keep up with technical prowess of Caterpillar Financial Reserves
Repairs of parts.
More acceptance
Competitive Almost everything Dealer network Manufacturers like that Caterpillar in Latin America Komatsu, John offers. Deere,Volvo
Not established
1. High Product Quality 2. Good dealer relationship. 3. Holds large portion of market share(53%)
1. Poor Segmentation 2. No after sale service 3. Less control over distribution network. 4. CSA agreement not promoted properly
Huge untapped After sale market Expected expected to grow at 30% per year
Jim Owens
We are well-positioned for long-term success. And Team Caterpillar is hungry to make our company even better. By streamlining the organization and clarifying roles and responsibilities, we can refocus our efforts on those we are here to serve our customers
GAP 1
Listening Gap
Inadequate Research Lack of Upward Communication Insufficient Relationship Focus Inadequate Service Recovery
Partially Designed
Sporadically Performed
Structured Brainstorming
Requirements Research
Better than compliant solicitation Short list of questions Capture information about key service encounters
Determine the Average Score Gap Assess along the 5 dimensions Compare SERVQUAL score of Competitors Access the Internal service quality
Do It Myself
Change
Do It For Me
Importance/Performance Matrix
High
Responsiveness Relationship
Opportunity
Strength
Reliability Assurance
Importance
Limited Action
Maintain
Tangible
Low
Attribute Performance
High
Action plan
Dealers Mining
Segmentation Regional Distribution Services Divisions Customer care Quarry and waste Servicemen
EN Excavation D Earthmoving To Building Construction EN 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 Employee Empowerment
Assurance The technical know how of the people who are involved in service process Ability to instill confidence 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(quantifiable). Tangibles The tools and servicing equipments used Technology used
Market Research
Product Questionnaire Product support Questionnaire
Technology
Product support questionnaire to be floated through emails. y Data analysis through SPSS , SAP. y Online support centre. y CSA brochure to be made available in the website.
y
To be prepared separately for each division based on both the researches and to be sold by separate salesforce.. Option for purchasing along with the product. To be made available in website as brochures and forms. Product and service dealer Sales force to be specially trained for each segments and also given a general overview of all services. Hiring technicians and empowering them. Differentiations to be communicated in terms of quality, regular visits by technicians say after 200 hrs.
Other issues
y
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.
Do it for me
Highly Customized with little standard services
Do it with me
Less customized + Basic standard services
Do it myself
Less customized with more emphasis on consultation, information dissemination, diagnosis , READILY available service team and finance if required + Offer Inspection CSAs so that client can compare himself if he needs service.
GAP 2
The Service designs and standard s gap
y y
y y y y
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 off (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 offer. Performance standards were operationally focused and not customer focused. Cultural issues Silos
In soft measurement SERVQUAL and relationship and post service and trailer calls
Blueprint
Implementation
Separate training for product and service dealers. They have to be trained in understanding the customer requirements through his past records , empathy and customer research/background. This gives rise to 2 other factors that need to be built in:ERP/CRM/DB sharing across the entire Caterpillar. Employee empowerment in extending and offering the services.
y y y y y y y
Employee reward schemes/performance based bonus appraisals. Internal audits and checks Inventory control systems in place for both product and service dealers. E.g JIT, VMS Readily available brochures and informational guides for quick reference. Video that will give respondents the true sense of services and capabilities offered. Automated reminder about services. Manufacturing products with the important attributes as found out in the research.
GAP 3
SERVICE DELIVERY
Gaps Identified
y y y y y y y y y y
Lack of qualified mechanics Fewer resources to find 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
Customer Role
No proper details provided by customers No details about service interval provided
No reliable system to track services Scheduling process was cumbersome
Service Intermediaries
Supply demand mismatch Technical shortage During peak times Short notices
Employees role
Company (caterpillar)
Introduction of toll free numbers for customer complaints y A key change in the aligned structure is the creation of five end-to-end Machine Business Divisions: Mining, Quarry & Waste, Excavation, Earthmoving and Building Construction Products. y Online chat with customers.
y
Service Delivery
GAP 4
Gaps Identified
y y y y y y
Promotion was focused on product not on service Absence of brochures or advertisement describing CSAs. Tangibility issues No clear definition of different CSAs Absence of clearly defined service features led to over-promising. Lack of written communication led to confusion in verbal communication
No clear definition of different CSAs Absence of clearly defined service features. Lack of written communication
line. Dealers(successful) may be involved. Dedicated self service websites. Service camps. Monthly Customer meets. Organization of exhibition fairs to educate the customer about new features and products.
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.