CATERPILLAR Vs KOMATSU

PRESENTED BY:

ABHISHEK SINGH
DEVESH RANJAN
HIMANSHU SEJPAL
MAINSH BHATIA
RAVI MITTAL
SHOBHIT SAXENA
VIJAY AHIR
PRICING STRATERGY

CATERPILLAR WANTS TO DECIDE THE RIGHT

PRICING STRATERGY FOR THE LAUNCH OF NEW
PRODUCT – BULLDOZER. AS A VICE-PRESIDENT
OF CATERPILLAR MARKETING WHAT WOULD BE
YOUR PRICE STRATERGY????
Situation 1
If Komatsu can quickly copy the product and make an identical equivalent of
caterpillar product within a week after a launch of caterpillar ?

 Keeping the above scenario the strategy of caterpillar would be :

1. Low profit margin. i.e. keeping the price at $50k ( $30k +$ 20k).
2. Reveal the least features and wait for komatsu to play its game.
3. The profit margin earned should be continuously utilized in
innovating and upgrading the product.
4. If possible delay the launch of the product and incorporate new
technologies and patent the design & technology.
5. Keeping the fact that caterpillar has to produce only 100 units, it can
go for customization as per the preferences of the customer.
Situation 2
Komatsu will take at least 2 years to make an exactly equivalent
copy?
1. Caterpillar Should keep the highest profit margin with itself i.e. selling price
should be $80K ($30K+$50K).
2. The profit earned should be continuously spend on innovating the product
and providing high service and features ( comprising of superior technology
design)
3. After gaining the fair deal of market share , caterpillar should gradually
reduce the price and pass on the profit to the customers.
4. When the launch of komatsu is near , caterpillar should further reduce the
price and make it more competitive against komatsu so that komatsu cannot
withstand the competition.
THANK YOU