MARKETING STRATEGY OPTIMIZATION OF GROUND ENGAGING TOOLS FOR MINING SECTOR: A STUDY AT PT CATERPILLAR INDONESIA

• Main Author: Geraldy Yoseph, Andra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46574
• Institution: Institut Teknologi Bandung

Currently, Indonesia’s heavy equipment demand is showing strong figure as global demand for mining commodities drives it even further. As manufacturing companies look for ways to increase efficiency, lower operational costs and identify growth opportunities, an emerging area of focus for fueling a turnaround is after-sales service. PT Caterpillar Indonesia as one of the leading heavy equipment manufacturers in Indonesia, sees the after-sales service as one of the most essential elements to be pursued in their sales activity. Specifically, in the mining industry, Hydraulic Mining Shovel (HMS) spare parts such as blades, tips or edges, rippers or side cutters, which can be abbreviated as Ground Engaging Tools (GET) are an essential part for the machine with aim to reach optimum productivity level. The company have an aim to increase its GET market share from the overall market competition. The issue is they are still contemplating which are the most suitable segment to approach from the mining sector itself. The methodology of this research was conducted by from primary and secondary sources which sufficient to analyze the current condition of the company GET product in Indonesia. Conceptual framework was formulated to understand the strategies that have to be taken in order to improve competitive advantage including develop product and services marketing strategy. Data collection was completed through combination of literature study, internal company study, customer survey, external survey and interview with related customers to get actual facts. After the research, it was found that lack of promotion and generic marketing approach to all mining segment is becoming the root cause that leads into the issue faced by the company, which is low market share. The purpose of this study is to identify which segment from the overall mining sector that is suitable to be penetrated by the company’s product. Moreover, the study also has the objective to determine which product type, which marketing channel, and which communication strategy that is most suitable to serve those segments. Consequently, result from the discussion and research concluded that the company can do several sets of action related to strategic marketing approach, along with differentiation in services by serving copper and gold mining segment. With these research and recommendations, it is expected that the recommendations can be utilized as a guideline in conducting effective marketing approach, on regards to promoting company’s GET product inside Indonesia’s mining sector.