Caterpillar brand story

PGXPM Batch IX – Name Suseendran.S.S 31-03-2014
1
Product and Brand Management Individual Assignment – “Caterpillar Brand story”
Table of Content
A. Evolution of Brand
B. Brand Prism / Identity
C. Brand Positioning / Portfolio
D. Cat Brand Personality
E. Brand Equity
F. Brand Communication
G. Brand Extension

2
“A brand is not just a logo or a product it is defined by the interactions it has with a person”.
Brand is a promise what a person can expect when they come into contact with the products, people & services. “Ultimately, it is public who define a brand”.
Brand Evolution – Caterpillar
About the company
“Caterpillar Tractor Company was created in 1925 by a merger of The Holt Manufacturing Company and C. L. Best Tractor”
Caterpillar Inc. for past 9 decades has been making possible sustainable progress and driving positive change in every continent by helping customers to develop natural resource, energy and infrastructure.
With cumulative revenue of US$ 55.656 Billion in 2013, caterpillar is the world largest & leading manufacturer of construction and mining equipment, Gas & diesel engines, desiel-electric locomotives, gas turbines. The Company operates through 3 main product segments, Resources Industries (Mining), Power system and Construction Industries with financial products to suite their customer needs.
The Cat brand is the cornerstone of the Caterpillar brand portfolio, representing products and services made & offered by Caterpillar. Caterpillar was established in 1925, but until 1949 brand “Cat” was not used as a trademark until it began appearing on trade dress of machines subsequently three years later it was registered. Over the time, the familiarity level made Cat Brand possible to rely on it as a primary public-facing brand name. Today, everything starting form trade dress, product and dealer identity leverage the powerful Cat name.

3
Starting 2010, as part of a reinvigorated effort to distinguish the Cat and Caterpillar brands, all marketing material and advertising for Cat branded products and services began to carry the Cat brand.
Business model of Cat is completely different form the other leading competitors, the brand revolves around total life cycle value promises. Cat products are designed with unsurpassed reliability, durability, superior quality that allows for multiple rebuilds, ease of serviceability, reparability and outstanding support, provided almost exclusively by Cat dealers.
Cat products are usually put in use in demanding applications where reliability of the machines with unmatched product support capability and quick repair is demanded due to the requirement of higher machine availability with less loss of production hours.
Customers are at the heart of the Cat brand. The Cat brand’s role is to provide the key mechanisms by which progress can be delivered. Equipment, services, technologies, relationships – these are the tools used to help customers succeed. The communication platform for the Cat brand is based on products and services that are "Built for It" ...whatever the customer needs for enduring success.
Caterpillars 6 Brand attributes
 PRIDE OF OWNERSHIP
 INDUSTRY LEARDERSHIP
 DEALER CAPABILITY
 DURABILITY
 RELAIBILTY
 QUALITY

4
Brand Prism / Identity
Cat Brand Prism
Physical – Construction, Mining & Energy
Personality – High Quality
Relationship – Reliable & Durable
Culture – Customer centric (customers are heart of Cat brand)
Reflection – Life Cycle Value product (highly dependable)
Self Image – Tough “Built for it”

5
The elements of communicating a brand
 Brand Promise Internal Acts as an internal compass for decisions and actions.
 Brand Tagline External How we express who we are and what we deliver to the world.
 Brand Personality Emotional Connection
The voice and tone we use to connect emotionally with our customers.
Caterpillar Brand Identity

6
Cat Brand Personality
 Hardworking
 Tough
 Resilient
 Determined
 Bold, Rugged
 Independent
 Good Friend
LIFE CYCLE VALUE PROPOSITION
The leading provider of total life cycle value, offering sustainable products, engines, components, services, and solutions of exceptional quality and performance, unmatched reliability, and unparalleled support.
Cat branded products and services are the core experience of the brand.
Cat branded dealerships are our most common public face.
Strategic sub-brands allow the Cat brand to be leveraged in new markets
UTILITY VALUE PROPOSITION -
A leading provider of quality ready-to-run products, engines and components offering initial affordability, high reliability, simplicity of use and maintenance, and responsive support.

7
Brand Positioning / Portfolio
Vision Statement “Be the global leader in customer value”.
Mission Statement
 Caterpillar will be the leader in providing the best value in machines, engines and support services for customers dedicated to building the world's infrastructure and developing and transporting its resources. We provide the best value to customers.
 Caterpillar people will increase shareholder value by aggressively pursuing growth and profit opportunities that leverage our engineering, manufacturing, distribution, information management and financial services expertise. We grow profitably.
 Caterpillar will provide its worldwide workforce with an environment that stimulates diversity, innovation, teamwork, continuous learning and improvement and rewards individual performance. We develop and reward people.
 Caterpillar is dedicated to improving the quality of life while sustaining the quality of our earth. We encourage social responsibility.
Source: http://www.caterpillar.com/en/company

8
Source: http://www.caterpillar.com/en/company

9
Brand Relationship Spectrum Classification
House OF Brands: The house of brands strategy clearly positions brands on functional benefits without compromising the positioning of a given brand to accommodate its use in other product-market contexts. The brand connects directly to the customers with a targeted value proposition.
Example: Procter & Gamble (P&G) operating over 80 major brands
Endorsed Brands: Endorsed brands are independent with endorsement from an brand normally an organizational brand, an endorsement by an established brand provides credibility and substance to the offering of the brand and playing only a minor driver role.
Example: Marriott’s endorsement on Courtyard means that the Marriott as a brand affirms that Courtyard will deliver as per Marriott Standards
Sub Brands: Sub brands are brands connected to a parent / master brand which modifies or augments the associations of that parent / master brand. The primary face of the brand would be the master brand which is stretched by the Sub Brands that add attribute associations
Example: Microsoft Office, Apple I Pod, Tata Nano, Nike Force etc.
Branded House: A branded house uses a single master brand to span a set of offerings that operate with only descriptive subbrands. The branded house option puts lot of eggs in one basket, limiting the company’s ability to target specific groups, by compromising. However, the branded house enhances clarity, synergy, making a default brand architecture option.
Example: Caterpillar, Virgin, Sony etc.

10
Caterpillar Brand
Caterpillar Inc. owns a complex portfolio of brands whose roles and relationships support the growth to achieve our enterprise goals. The Caterpillar brand is used in communication which represents the corporation with the employees, investment community, Key stake Holders and public policy makers.
The Caterpillar brand is the umbrella that shelters all other brands in the portfolio.

11
Cat
The Cat brand is the cornerstone of the Caterpillar brand portfolio, representing products and services made by Caterpillar.
The heart of the Cat brand is a devotion to the customer, every employee that supports the Cat brand is a champion for our customers, devoted to delivering both short term rewards and long term benefits. In short, our success is their success.
Cat Financial
A captive finance company, no other financial institution knows Cat customers and dealers better than Cat Financial. We offer quality service throughout the life cycle of equipment including purchase, protect, manage and resell.
Cat Reman
Cat Reman is positioned as a high technology, low cost, global brand focused on salvage capabilities. Over-the-counter availability of a broad portfolio of Cat Reman parts through Cat dealers gives customers more options at repair and overhaul time. In addition to offering Cat Reman parts for Cat machines and engines.

12
Cat Rental Store
The Cat Rental Store business model is positioned to deliver rental as one of many solutions the Cat dealer offers. The Cat Rental Store delivers a consistent, convenient, one-stop-shopping experience. By offering targeted customers great service and a complete selection of Cat products, work tools and complementary allied equipment from premium manufacturers, dealers strengthen relationships and engender lifelong loyalty. Each rental store offers short- and long-term rentals, while many also offer the sale and service of new and used equipment.
Anchor Coupling
Anchor, with a history dating back to 1938, is a key internal supplier to Caterpillar. Anchor specializes in high quality hydraulic hose and couplings for both the OEM and General Market business sectors. Anchor continues to expand its operations throughout the world with the aim of strengthening its position as a leading manufacturer of hydraulic hose, steel couplings, and complete assemblies.
AsiaTrak
AsiaTrak is a leading producer of high quality undercarriage. Products and services are customized to meet individual customer needs. AsiaTrak’s ability to have the right products coupled with industry leading support and on time delivery are the foundation of the work we do every day.
AsiaTrak produces undercarriage components for hydraulic excavators and track type tractors for Caterpillar and outside OEMs.

13
FG Wilson
Unlike other generator set suppliers, the FG Wilson brand isn't just a product. From initial assessment of your power needs, through to implementation of your power system and round the clock support, FG Wilson Global Dealer Network provides a complete end-to-end service throughout the product life cycle.
Halco Rock Tools
Produced for more than 60 years, Halco products continue to be regarded as the most reliable and durable available today. Halco Rock Tools is a world class manufacturer of Down-The-Hole (DTH) drilling equipment, located in Halifax, UK. Halco pioneered the development and distribution of DTH hammers in the 1950’s.
Hindustan
The Hindustan brand, recognized within India for over 30 years, is a regional product positioned to compete with other locally built machines. The Hindustan brand is found on wheel loaders and off-highway trucks sold exclusively in India. The Hindustan brand has broad awareness due to its heritage and association with Caterpillar and Hindustan Motors Earthmoving Equipment Division. The product is sold through Cat dealers in India to customers in a wide variety of industry segments. Warranty service is done by Cat dealers, while most other service is typically done by customers or local repair shops.

14
Hypac
Hypac provides mining equipment spares and components for electric drive off-highway Komatsu and Euclid Dump Trucks, General Electric Wheel Motors, parts and components, Ingersoll Rand/ Atlas Copco drill parts, LeTourneau loader spares, and more. Hypac is also the current Unit Rig truck parts distributor in Mexico. Hypac does business directly with mines overseas and in the USA, brokers, agents, overseas OEMs and OEM dealers.
MaK
The MaK line of heavy fuel oil, marine diesel, gas and dual fuel engines is used in a wide variety of marine applications. The MaK product line offers main propulsion engines from 1,020 kW to 16,000 kW, and generator sets from 970 kWe to 15,360 kWe. Because of these factors, the MaK brand holds significant importance for customers in the cruise, ferry, cargo, inland waterway, offshore, tug and salvage, fishing, governmental, and dredge segments.
MWM
MWM has more than 140 years of experience in the development and optimization of products, services and technologies for decentralized energy supply. The portfolio covers gas engines, which run on a wide range of gaseous fuels, both natural and non-natural gas (such as biogas / landfill and sewage gas), and have power outputs between 400 and 4,300 KW.
Through our highly efficient and environmentally friendly natural gas and biogas engine power plants, MWM is helping to power the world of today and tomorrow.

15
Olympian
Prime power or standby service, Olympian diesel fuel generator sets deliver dependable, clean, economical power – even in the most demanding conditions. Olympian gensets are available in a wide range of configurations with optional equipment. These complete, ready-to-run packages have another distinct advantage: They all come with the comprehensive service and support of Cat® dealers – beginning with prompt delivery and ongoing support throughout the life of the generator set.
Olympian is positioned as a “value brand” with customers. It gives dealers an option to offer a lower priced, more simple, yet quality product for price sensitive markets and applications. Main differentiation to the Cat brand is the parts and service support. While the Cat branded product is supported by the Cat parts system, the Olympian product uses an different, lower cost, independent parts logistics system.
Perkins
Perkins is one of the world’s leading suppliers of gas and diesel engines in the 4-2000 kW/5-2800 hp range, with the capacity to produce up to 800,000 units per year. The largest single customer for these engines is Caterpillar, which comprises around 30% of sales volume. This percentage includes Perkins branded engines going into FG Wilson™ and Olympian™ products. The largest portion of sales is into the European market although sales in the Asian market are rapidly increasing. In these markets products are sold direct to OEMs and distributors.
Backed by 80 years of manufacturing experience, the Perkins brand has always been committed to fulfilling its customer needs.

16
Prentice
Since 1945, Prentice has been manufacturing logging equipment with a commitment to quality products that are dependable and productive. The Prentice brand is a full line of trailer, stationary and truck mount knuckle-boom loaders, wheel and track feller bunchers, wheel and track harvesters, harvester heads, high speed saws, forwarders, A-frame self loaders, site prep tractors and attachments.
The Prentice brand was created in 1945, and has held a market leading position in North America since that time, in particular in the U.S. South, where the majority of timber harvesting in North America occurs. Prentice is a globally recognized brand and has a strong reputation for providing extremely reliable, durable, no-frills, high-performing products.
Progress Rail
Progress Rail and Electro-Motive deliver a full range of cost-effective solutions to a broad spectrum of railway customers through two key business units: Locomotive and Railcar Services (LRS) and Engineering and Track Services (ETS).
As part of Progress Rail’s LRS division, Electro-Motive (also known as EMD) designs, builds, maintains and services a full range of locomotives, including freight, passenger, mining, and switching locomotives. EMD’s locomotives carry the Electro-Motive brand and are branded separately from Cat offerings, having a direct sales relationship to customers.

17
Pyroban
Pyroban provides customized components, kits, consultancy, and solutions to gas or diesel engines operating in the Oil & Gas, Industrial, Mining, and various other markets where hazardous locations exist. They are complementary to Caterpillar offerings in that Pyroban's products and solutions are often used to "explosion proof" Cat engines when used in areas deemed as hazardous.Protecting people, their investment and our environment.
SEM
SEM is a brand of compact, small and mid-sized wheel loaders, 18- to 22-ton soil compactors, mid-sized motor graders, track-type tractors, and landfill compactors for Chinese domestic and select growth markets around the world. SEM products are targeted at Utility customers and are perceived as best-in-class in reliability, durability, and parts availability.
Siwei
Caterpillar (Zhengzhou) Ltd. designs, manufactures, sells and supports mining equipment used in underground coal longwall mining and has become one of China’s market leaders in roof support systems, which are the major component of the longwall mining system by size, weight and value.

18
Solar Turbines
Solar Turbines manufactures mid-size industrial gas turbines for use in electric power generation, gas compression, and pumping systems. Products from Solar Turbines include six families of gas turbine engines, Saturn®, Centaur®, Mercury™, Taurus™, Mars®, Titan™ rated from 1590 to 30,000 horsepower.
Turbomach
Turbomach is a market leader in purchasing, packaging, distributing and supporting gas turbine generator sets. It sells energy solutions to Power Generation customers located in EAME, Far East and Latin America. Turbomach has been packaging Solar turbines for over 20 years. In addition, Turbomach’s scope of supply includes developing major power projects which include site construction, balance of plant design and installation and coordination of project financing.
Turbomach offers the most extensive line of industrial gas turbine models and can supply any additional equipment required to construct a complete power plant. To learn more about Turbomach, please visit turbomach.cat.com.
Turner Powertrain Systems
Turner Powertrain Systems is the world market leader in the design, development, manufacture, sales and support of off-highway transmissions (50 kW / 67 hp to 135 kW / 181 hp) for Backhoe Loaders, Telescopic Material Handlers and 4 - 9 ton Site Dumpers. Turner provides mechanical transmissions for backhoes, telehandlers and wheel loaders. Turner Powertrain Systems customers consist of an

19
unparalleled group of OEMs that service industries as varied as material handling, construction, agriculture and forestry – as well as other market niches worldwide.
Unit Rig
The Unit Rig brand was purchased as part of the Caterpillar acquisition of Bucyrus in 2011. Unit Rig mining trucks are electric drive and are among the industry leaders in their market. They are tough, reliable performers specifically designed for high-volume surface mines. They deliver high productivity, impressive uptime, ease of service and a safe, productive operator environment for a low cost of ownership.
The five trucks in the product line cover the 136 tonnes (150 Ton) to 363 tonnes (400 ton) classes and are sold worldwide to a broad range of mining customers.
The brand is managed separately but compliments the Cat line of large mining trucks.

20
Brand Equity
Brand equity of a brand is the derived power from the goodwill and name recognition that the brand has earned over time, which translates into higher volume and profitable sales against competing brands
Seven Components of Brand Equity:
Brand Permeation: Advertising awareness and availability
Brand Distinctiveness: Brand superiority or differentiation
Brand Quality: The quality of product or service “Reputation the brand carries”
Brand Value: “price-value” the brand delivers to the buyers pay for
Brand Personality: The image of the brand corresponding to its character the buyer wants to associate with
Brand Potential: The Premium buyers are willing to pay for its product or services compared to competition.
Competitive Inoculation: Consumer loyalty in times of adversity or competitiveness. The Brand Equity Pyramid

21
Caterpillar Brand Value
 Price premium that the name can support
 Impact of name on customer preferences
 Stock value less tangible assets
 Earning power of the brand
Cat is most powerful industrial brand in the world.

22
Brand Communication
What is said about the customers
 Emphasizing success, not the challenge
 Introduce benefits that appeal to customers’ short and long-term interests
 Let customers do the talking whenever possible
 Go beyond speaking of success—inspire customers to strive for it
What is said about Caterpillar
 We love what we do—and it shows
 Our people are greater than our products
 We work as one on behalf of customers
 If others can claim it, we don’t
What is said about the products and solutions.
 Test everything with, “What does this mean for a customer?”
 Connect product groups with a shared benefit
One of the primary ways Cat voice is established through word choice. Some words and concepts need special consideration to make sure that customers understand our true differentiators.
Lifetime of value
The ideas of a lifetime of value—the result of our long-lasting products and customer relationships—are unique to Cat brand.

23
Champion
“Champion” captures our role in working on behalf of our customers as well as our proven leadership.
Best-built
Quality, reliability and durability are clearly linked to the Cat brand.
Additional Themes
 Quality – High standards, worth, excellence
 Durability – Lasting, built for a second life, ready for tomorrow
 Reliability – Partnership, side by side, advocate
On-the-ground
Dealer network is a core competitive advantage, but the opportunity to speak to the idea in a more emotive, more impactful manner by focusing on the nature
Generations Ahead: Communication
Generations Ahead Communication Platform
Caterpillar has developed a comprehensive strategy for communicating the Cat® brand and its strategic sub-brands to audiences around the world. The complete strategy is explained in Cat Communication Strategy & Application Guide, found at https://brand.cat.com/ communication. The document describes two communication platforms for the Cat brand and strategic sub-brands:

24
Commitment, Quality and Success is Relational Communication Platform. It is used with audiences who are unaware of or less familiar with the brand. This includes customers in emerging markets or target customers of brand extensions. The goal of relational communications is to build knowledge of a brand in a manner that will encourage the formation or strengthening of a relationship.
Generations Ahead is the Transactional Communication Platform. It is used with audiences who are more familiar with the Cat brand and Cat products and services. Transactional communications emphasize specific product or service differentiators with the objective of influencing buying behavior.

25
Brand Extension
A very bold brand extension was taken by Caterpillar. Its move from a brand solely used for manufacturing on specialist construction and mining equipment into footwear market was highly perceived as a big mistake. However, it has been a big success.
Cat Footwear is one of the largest youth non athletic footwear brands in the world. The perception tried to transfer from the parent brand to footwear clearly demonstrate the strengths and outdoor equipment.
Caterpillar’s website mentions “At Caterpillar, we build the machines that help our customers build a better world. The boots and shoes we build are made with the same commitment".
“Caterpillar Clothes and Shares were able to express the exact values for which the Caterpillar was known: tough work, reliability, security and so on”

Caterpillar brand story

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (15)

Similar to Caterpillar brand story

Similar to Caterpillar brand story (20)

Recently uploaded

Recently uploaded (20)

Caterpillar brand story