caterpillar brand story

PGXPM Batch IX – Name Suseendran.S.S 31-03-2014

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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


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“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.


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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


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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”


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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


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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.


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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


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


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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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.


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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


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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.


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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


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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.


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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.


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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:

https://brand.cat.com/


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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.


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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”

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