John Deere Evc

1048 Words5 Pages
John Deere & Co Case Intro * New bulldozer, JD750, larest ever yet, worreid about price Industrial Equipment operations * 14% of total sales * Entered industrial field in 5 phases 1. Converted standard tractors to crawler tractors for orchard operators. As farmers went into logging, crawler tractors were used in forestry 2. Developed industrially oriented Attachments to supplement agriculture biz. Organized Industrial Equipment operations with line of crawler tractors 3. New crawler line and other product liens wth 2-3 modles met success, 20-30% share of N.american crawler tractor mkt share against many competitors 4. Intor’d JD350 ande JD450 and later JD550, taking 50-60% share of market for small crawler in N. amrica 5. JD750 kicke doff phase and JD 755 for larger units used in heavy construction. Tis segment ws dominated by CAT * Major success in crawler tractors. Cae had 50% share of light-wheeled industrial tactor. CAT dominated heavy construction and mining tractors. But Deered made good inroads into motor graders. 80% of Deere’s industrial sales were in Us vs only 43% for CAT * Segment distributed products through 433 dealers in 437 outlets. Not same as agriculture tractors dealers. Distribution network was second only to CAT. * Three different agreements with dealers: utility, construction, or forestry. Most dealers could sell tow and sometimes three lines * Deere granted 20% discoutns from list for sonstruction, 23% for utility, and 4.5% volume for most dealers. CAT offerd 20% discount. * CAT’s dealers avg higher parts sales b/c 1) large stock of installed ase, 2) intensive use, 3)more crawler tractors which required more replacement * Advertising and promotion fo JD75 was expected to be $300,000 Cralwer Tractor Line * JD750 was about to be introduced to
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