1. CATERPILLAR CASE
Presented by
Sumant kumar
Akshansh saxena
Siddharth pateria
Arisha jain
Poorva ghosh
Rajeev sonee

2. Objective of Caterpillar
• To prevent its market share
• To acquire and retain its customers
• To keep the significant profit margin
• To avoid getting indulge in competition with
Komatsu
• To sale its desired number of Bulldozer i.e. 10k

3. SETTING THE PRICE
• Selecting the price objective
• Determining Demand
• Estimating Costs
• Analysing competitors’ costs, Prices, and offers
• Selecting a Pricing Method
• Selecting the Final Price
-

4. Creating long-lasting relationship with
customers without spoiling the image
• Best quality
• High technology
• Use the concept of EARLY ADOPTERS

5. 2 scenarios to deal with
1. High technology
2. Low margins to customers and high to company
In this situation, Caterpillar can use the combination of 80k & 20 k.
That means profit for caterpillar will be 50 k and that of customer 20 k.
STRATEGY FOR CATERPILLAR
Market skimming
80 K
50 K
35K

6. -selecting the price strategy price sensitivity
- estimating demand curves
BENEFIT TO CUSTOMERS
1. CLTV
determining demand -survival
2. added after sale service, - maximum current profit
3.High mechanisation in operation - maximum market share
- maximum market skimming
BENEFIT TO COMPANY
1. Retain its image in the mind of customer i.e. brand equity
2. Earn high margins
3. Create high entry barrier for Komatsu