Marketing Management Case : caterpillar

Group members :

swati priya nikita debashish samrudhi

Few facts about the case Caterpillar is the American earth moving manufacturer who is the leader in the market. They recently developed a new Bulldozer for the first time and so they want to fix the price of the product.

Price can be between 30K to 100K.

Scenario 1
TCB Product benefit Service Benefit Personal Benefit Image benefit Caterpillar Rs.20,000 Rs.30,000 Rs.10,000 Rs.20,000 Rs.80,000 Caterpillar Rs.30,000 Rs.15,000 Rs.5,000 Rs.2,000 52,000 Kumetsu Rs.20,000 Rs.30,000 Rs.10,000 Rs.10,000 70,000 Kumetsu 20,000 20,000 5,000 1,000 46,000

Total customer benefit

TCC Monetary Costs Time cost Energy Cost Psychic cost

Total customer cost

CDV for Caterpillar= Rs. 27,000 CDV for Kumetsu = Rs. 24,000

Customer delivered value = total customer benefit+ total customer costs

Cdv= rs.(34,500 + 52,000) = rs.86,500

The price is a win- win situation for both seller & customer as the seller earns a profit of rs.56,500(86,000-30000) & customers earns a benefit of rs.13,500(1,00,000-86,500). So both of them will be satisfied.