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solutions at Caterpillar
Group 2
Harish Deepak
Shiv Shankar Mahto
Kirity Kumar
IIM RANCHI
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
What else do you need to learn in the Listening Gap (Gap 1) about
customer needs and expectations? LACD had general information
from the customer value surveys, but this information did not tell
them what service features customers expected in the CSAs. What
were they and how could they find out? In particular, how could
they find out what they needed to know to established standards in
the Design and Standards Gap (Gap 2)?
Not knowing what customers expect is one of the root causes of not
delivering to customer expectations. Hence it is really important to learn and
understand customer expectations and gap between Company perceptions &
customer expectations. We need to learn about the
What customers think the company can and should do when problems
occur in service delivery
From the case, we came to know some of general attributes of CSA and their
respective importance with respect to customers expectations. But it is not
clear
Best practices should always be adopted and broad base throughout any
company. The case says that there are few customers at some dealers, who
are truly satisfied and loyal. This is the reason that CSA renewal is much
higher at these customers. Moreover, the dealers have also higher share of
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
1. Responsiveness :
2. Reliability:
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
3. Assurance:
4. Relationship :
5. Tangibles :
o Response in mail
Different segments may have different needs and buying power. Customer
service agreement CSA should be aligned to their needs, requirement and
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
Customer pay for CSA and repair services to achieve these goals
These customers do not value for uptime and productivity too much
Some customer also buy will fit component on the basis of lower cost
and ready to compromise on quality
Some customers have old and traditional fleet of equipment which can
be serviced through normal and general tools and techniques and
hence go for local workshop
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
Moreover the above information suggest that research should imply for
b. How can they be sub segmented further based on their needs and
requirements
GENERAL
CONSTRUCTION
ii. Do they just require service of oil and filter checking at required time
interval or detailed service whenever needed
OFFERINGS MARKET
CURRENT NEW CUSTOMERS
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
CUSTOMERS
MARKET PENETRATION MARKET DEVELOPMENT
Increase share of Customers going to 3rd
wallet party service providers
International Customers
EXISTING SERVICES
who require single
contact point
irrespective of
geography
SERVICE DEVELOPMENT DIVERSIFICATION
Customers using will Start providing
fit spares & general consulting business
services Provide guidance how a
Customer going for project can be
local workshop developed efficiently
Customer who do not and quickly
NEW SERVICES
value uptime &
productivity
Customer having low
budget
Customer having old
& traditional
equipment
e. Based on the above table, research, brain storming need to be
conducted to generate a new idea to cater to the needs of all
segments, expansion of existing services with modification and
development of new service model as well as probable ways to go
diversification
f. Based on the same Idea generated, it shall be regarded a good fit then
service concept need to be developed considering the point that what
concept is and what customer need it is filling through multiple
iterations and discussion. With proper concept definition, a description
of service that represents specific characteristics need to be prepared
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
The standards and measures which should be set in the design and
standards Gap to deliver to customer expectations are
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
Delivery
of
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
Formal training
Mentoring
Empowering technicians
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
How should the dealerships overcome all the Performance Gap (Gap 3)
issues that they faced in order to insure consistent delivery?
Services Delivery
Cat HR policy should be framed in connection with
a) training , learning and development of Dealers employees
b) training should stress on presentation, Soft skills, report writing and effective
communication
c) A formal forum for communication between parts, service and sales personnel needs
to be created where they can exchange their experience and best practices w.r.t
customers
d) Robust software technique should be devised which will tell, when the customers
equipment is in need of services
e) Timely logging of service call and reminder or intimation before this time
f) Tie up with technical institutes like ITI,
g) Cross training
h) Performance appraisals - mandatory training of soft skills, variable pays
i) Meetings of different HODs daily for better understanding of problems and
communication
j) CRM, Scheduling of resources should be done accordingly, daily reports which tell
about
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
The case says that there is absence of effective Sales tools in connection
with CSAs. CAT employees are segmented in such a way that Sales Personnel
does not sell CSAs neither they gain incentive with its sales. CSAs are very
customized and their offering differ from customer to customer. Hence due to
lack of proper knowledge of CSAs, employees and dealers used to do over
promise or under promise. The internal and external materials necessary are
as follows:
2. Service Manuals these contain the complete info about the machine
and how to operate or service it.
3. Brochures
6. Service camps.
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Case Study Assignment: Using Services Marketing to Develop and deliver Integrated
solutions at Caterpillar
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