Upload
puneet-jain
View
1.395
Download
15
Embed Size (px)
Citation preview
Using Services marketing to develop and deliver Integrated Solutions at
Caterpillar in Latin America
Presented By
Arpan Sengupt
a (043014)
Chetan Sharma
(043017)
Irshad Ali (043027)
Puneet Jain
(043039)
Sudhir Mishra
(043055)
“Every customer is diff erent, but one thing is absolutely the same, they all wantthe world’s best products, readily available and ready to work every day,”CaterpillarChairman and CEO Doug Oberhelman
Introduction
1904
•Benjamin Holt tested the first track type tractor.
1925
•C. L. Best Tractor Co. and the Holt Manufacturing company merged to form Caterpillar.
1951
•First overseas manufacturing facility in U.K.
2000
•300 different model starting from 5 HP to 22,000 HP.
2006
•Total sales exceed $41 bn.
Distribution Structure
1
•Corporation
2
•Marketing Profit Centre
3
•Dealers
4
•Customers
Customer SegmentationProducts
and Industries
Large
Small
Product Support
Do it myself
Work with me
Do it for me
Find out the products customers want. Design
and build them. Keep themRunning. Rebuild and recycle.Do it better than anybody else
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.
CompetitorsType Service
OfferedStrengths Weakness
Third Party Service Providers like Fluor
Management of Caterpillar and Non- Caterpillar Products.
Dealer network in Latin AmericaSuccessful relationship
Less Sophisticated
Aftermarket Suppliers
Will fit parts. Lower Costs Quality
Customers having own mechanics.
Repairs of parts.
Customize offerings
Not able to keep up with technical prowess of Caterpillar
Local Workshop(mainly previous caterpillar dealers)
Repairs of parts.
More acceptance
Financial Reserves
Competitive Manufacturers likeKomatsu, John Deere, Volvo
Almost everything that Caterpillar offers.
Dealer network in Latin America
Not established
Porter’s five forces models.
1. High Product Quality
2. Good dealer relationship.
3. Holds large portion of market share(53%)
1. Poor Segmentation2. No after sale service3. Less control over distribution network.4. CSA agreement not promoted properly
Huge untapped After sale marketExpected expected to grow at 30% per year
1. Threat of Competitors2. Threat of substitutes.
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
Jim Owens
GAP 1
Listening Gap
Company’s Understanding of Customer Expectation
Inadequate ResearchLack of Upward
CommunicationInsufficient Relationship
FocusInadequate Service Recovery
Partially DesignedSporadically Performed
No post interaction customer survey
Interaction b/w
Management & Customer
No Segmentation
Requirements Research
Identifying the benefits and attributes that customer expects
Generalizable across Industries
‘What’ customer wants?
Structured Brainstorming
Capture information about key service encounters
Short list of questions
Better than compliant solicitation
Dual Benefit- Market Research Tool and Customer Service
Trailer Call and Post Transaction Survey
Relationship and SERVQUAL surveys
Determine the Average Score GapAssess along the 5 dimensionsCompare SERVQUAL score of CompetitorsAccess the Internal service quality
Lost Customer Research
Similar to exit interviews
Open ended + In-depth Questions
Establish an early warning system
Future Expectation Research
Environment scanning and Querying of Customers
Asking Customers who are Opinion leaders/Innovators
Platinum
Gold
Iron
Lead
Segment:Spend moreLess cost to maintain+ve word to mouth
Segment:Cost More-Effort, MoneyLess Return
The Customer Pyramid
Customer having
Customer Service
Agreement
(CSA)for years
Do It Myself Change Do It For
Me
Opportunity Strength
Limited Action Maintain
Attribute Performance
Importance
High
LowHigh
Responsiveness
Tangible
Relationship
ReliabilityAssurance
Importance/Performance Matrix
Segmentation
Dealers
Mining
Quarry and
waste
Excavation
Earthmoving
Building Construction
Products
Regional Distribution
Services Divisions
Customer care
Servicemen
END To END
Client 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
Action plan
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 Questionna
ire
Product support
Questionnaire
Product Questionnaire(semi-annual)(At the time of purchase)
What are the purpose of purchasing this machine?
Does he/she had experience in related areas?
Does he have other similar machines?
What are the attributes he/she is looking in the machine?
AHP modelFactor Analysis
Product Support Questionnaire(Quarter)(After sale of product)
Referred to others or notService provide adequate or notService they would like to avail?Any frequently occurring
problem?Comparison with other
company’s services(if they are owning a different brand of tractors)
Customer Satisfaction
TechnologyProduct support questionnaire to
be floated through emails.Data analysis through SPSS , SAP.Online support centre.CSA brochure to be made
available in the website.
New CSA Documents and its salesforce 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
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.
Different CSA’s to the different segments?
General Construction CompaniesLarge Medium Small
Do it for me
Highly Customized with
little standard services
Flat Monthly/Yearly subscription
Do it with me
Less customized +
Basic standard services
Cost for the type of service performed or
Operating hours
Do it myself
Less customized with more emphasis on consultation, information dissemination,
diagnosis , READILY available service team and finance if required + Offer Inspection
CSA’s so that client can compare himself if he needs
service.
Service Charge at heavy discount.
)
Service Design & Standard Gaps
Poor Service Design
• Few CSAs• CSAs were not branded• CSAs were created in an
ad hoc manner
Customer Driven
Standards
• Promised but expectations not met
• Operationally focused not customer driven
Inadequate physical
evidence and service escape
• Customer Interact with sales people
• what to offer and what to deliver
• Contries: Culture, law, structure
GAP 2
The Servic
e designs and
standards gap
Issues brought ahead Creation of CSA’s 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
Setting the standards
To close GAP 2, standards set by the company must be based on customer requirements and expectations rather than just on internal company goals.
SO Customer defined standard Hard standards and Hard measurement
◦ 10 minutes response time from concerned Service centre◦ 4 hours for a service person to arrive◦ Call back to all missed calls◦ 99% calls served
Soft standard and soft measurement◦ Empathize
◦ Human Voice
◦ Etiquettes
In soft measurement – SERVQUAL and relationship and post service and trailer calls
Building a Service Blueprint It should be adhered to strictly.
Blueprint
Create and design new CSA’s
Implementation
Front end Planning
Get everyone learn and deliver about them
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.
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
CUSTOMER DRIVEN SERVICE DESIGNS AND STANDARD
SERVICE DELIVERY
Deficiency in human resource policies
Failure to match supply and demand
Customers not fulfilling roles
Problems with services intermediary
Gaps Identified Lack of qualified mechanicsFewer resources to find themNo proper attention on interaction and
communication skillsLack of team work: silo based approachFormal ways to communicate did not existReliable system not available to dealersScheduling process was complexCustomers contributed to gap: moderatelySupply demand mismatchUnattractive presentation of CSA to
customers
Service Performance Gap
Deficiencies in HR Policies
Customer Role
Service Intermediarie
s
Failure to match supply & Demand
Lack of qualified mechanicsFewer resources to find themNo proper attention on interaction and communication skillsLack of team work
No proper details provided by customersNo details about service interval provided No reliable system to track servicesScheduling process was cumbersome
Supply demand mismatchTechnical shortage During peak timesShort notices
Suggestion to fill gaps
Employees’ role
Providers Customers
Company(caterpillar)
Internal marketing(Enabling the promise)
External marketing(making the promise)
Interactive marketingDelivering the promise
Improving customer roles
Define Customer Roles
Educate and reward customers
Manage the customer Mix
Effective Customer participation
Introduction of toll free numbers for customer complaints
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.
Online chat with customers.
GAP 4
External Communication to customers
Service Delivery
Lack of integrated service mkt communication
Inefficient management of customer expectation
Over promising
Inadequate horizontal communication
Gaps IdentifiedPromotion was focused on product
not on service Absence of brochures or
advertisement describing CSAs.Tangibility issues No clear definition of different CSAsAbsence of clearly defined service
features led to over-promising.Lack of written communication led to
confusion in verbal communication
Problem fitting to gap model
Promotion was focused on product not on service
Absence of brochures or advertisement describing CSAs.
Tangibility issues
Lack of integrated service mkt communication
No clear definition of different CSAs
Absence of clearly defined service features.
Lack of written communication
Over promising
Inefficeint management of customer expectation
1. Specialized training programs for salesperson.
2. Brochures3. Training Modules – regular training sessions
on and off line. Dealers(successful) may be involved.
4. Dedicated self service websites.5. Service camps.6. Monthly Customer meets.7. Organization of exhibition fairs to educate
the customer about new features and products.
Internal and external material to communicate and operate CSA’s
If we stay focused on makingsure we have a great valueequation for the customer, wecan go through cycles and stillcompete and be successful.