Caterpillar Company Case Study

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Ecole Superieures Libre des Sciences Commerciales Appliquees Doctorate of Business Administration

Marketing Management
Using Services Marketing
to Develop and Deliver Integrated Solutions
at Caterpillar in Latin America
Case Study

Presented to:
-------------------------------------------------
Dr. Nadia Al-Aref
Presented By
Ahmed Mokhtar - Ashraf Tawfik - Ashraf Talaat
Yasser Ibrahim - Mohamed Antably
Novermber 2011 - Cairo, Egypt
Questions and Answers

1) What else did they need to learn in Gap 1 about customer needs and expectations?

Gap 1, the "Service Strategy", "Knowledge" or "Market Information" Gap is the difference between service customer expectations and service provider management understanding of customer perceptions; it is knowing what customers expect (and need.)

A failure of this gap means the provider does not have an agreed plan of action to meet customer expectations.

What Caterpillar team discovered from studying Gap 1 with its customers, was as follows:

* Service reliability, responsiveness, and relationship needed improvement. * Product differentiation and quality are not in balance with these issues. * Dealer product support operations and marketing capabilities played an equal role in addressing these critical customer requirements. * Customer surveys were sporadically performed and only partially designed for the purpose of service quality feedback. * The Latin America Commercial division service operation manager recognized that the customer value survey measures were inadequate for capturing and addressing customer satisfaction with individual interactions. * The customer value surveys fell into the category of relationship surveys and were conducted annually. * Dealers and Caterpillar employees in the regions lacked the tools to interpret the results of surveys and to translate them into specific strategies. * The team estimated that accelerated growth could be best achieved by developing and communicating attractive service packages to small customers. The following are other points, Caterpillar team needed to study: * Marketing research orientation:

* The exact service quality that satisfied Caterpillars customers and fulfill their needs. * Up-word communication:
* A clear and easy processes and procedures for interaction between management and customers. * Customer relationship:
* More segments should be tackled with new offers and loyalty programs. * Focusing on relationships rather than transactions. Using the CRM tools properly. * All the possible ways that guarantee the proper relationship with old and current customer rather than focusing only on new customers, taking the old customers for granted in such high competition market.

* Service recovery:
* Caterpillar team needs to know more about listening to customer complaints and following a clear system in order to solve these complaints as soon as possible. * The team should learn how to make the efficient amendments when things go wrong, learning how to do the right thing at that time is very essential, using the recovery mechanisms in place for service failures are the things Caterpillars team need to know by heart.

2) They had general information from the customer values surveys, but this information did not tell them what features customers expected in the CSAs (Customer Service Agreements).. 2/a What were they and how could they find out?

2/b In particular how could they find out what they needed to know to establish standards in Gap 2.

5) What standards and measures should be set in Gap 2 to deliver to customer expectations?

6) How formal should they be?

Gap 2, The "Service Design" or "Standards" Gap, is the difference between service provider management understanding of consumer perceptions and documented service quality specifications.

It may be a result of resource constraints, market...
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