Case 1: Caterpillar Inc. Crawls over the Competition with Product Development
- Write the summary of the case, “Caterpillar Inc. Crawls over the Competition with Product Development” & explain the phases of product development they underwent.
Caterpillar Inc. is an international company that is known for the manufacture of heavy-duty equipment used in mining and construction purposes. Such machines include tractors, trucks, mining machines, and many others. Caterpillar does not always come up with new machines at all times. There are moments when it picks its own company machines and modifies them to fit the customer’s requirements. Additionally, the company has done its modification on its engine to make it eco-friendly. Caterpillar Inc. has undergone several phases of product development. First is the brainstorming session where the company managers discuss on modification ways for the existing products or the development of new products. This follows by concept testing, which is followed by business analysis. This stage involves the viability of the manager’s proposed ideas. Quality control comes as the fourth stage to ensure that the company releases quality products to its customers.
- Why is it important for Caterpillar to develop new products on a regular basis?
As a well-known company, all over the world, Caterpillar has to develop new products on a regular basis to ensure that it maintains its competitive edge globally. Presently, Caterpillar Inc. is the most popular company in terms of the modification and formation of heavy machines. The company must ensure that it spreads its awareness to its customers as well as its potential customers to stay on top of the competitors.
- Why is Caterpillar so careful to test-market its products prior to commercialization?
Test marketing is an important activity done by Caterpillar Inc. before it commercializes its products. Test marketing is done by the company, first releasing a limited scale of products to the customers. The importance of this activity is to prove whether the product is favorable to its customers. Secondly, test marketing is done to gauge whether the products are functional and without any faults on them. This does not only maintain the reputation of the company, but also ensures that quality standards of a product are maintained throughout.
- What are some of the benefits and risks of Caterpillar’s line extensions?
Caterpillar’s line extension includes the production of toys, apparels, watches, and jackets. This line extension has come with several benefits and risks. In terms of the benefits, Caterpillar has had its brand awareness increased. For instance, its toys are branded the name of the company on them. This has ensured that even the young children become aware of the brand. The company equally benefits from the loyalty of such clients. Caterpillar’s line extension has opened up the company to global awareness. The company has opened up stores all over the world, which are Cat-branded hence increasing its awareness.
Case 2: Wyndham Hotels Portfolio of Brands Satisfies Diverse Customer Needs
- Write the summary of the case, “Wyndham Hotels Portfolio of Brands Satisfies Diverse Customer Needs”.
Wyndham Worldwide is a hotel company that has registered success for several years. The company has different chain hotels that offer different packages depending on the needs of the particular visitors and location. Over the years, the company has offered both the budget conscious and the vacationers an opportunity to enjoy services offered in the hotels. The company, Wyndham Worldwide has maintained its competitive advantage by offering only one of its kind supplemental benefits to its customers. These include library lounges, free breakfast, reward programs, and various awards. The hotel product life cycle include various phases such as the introduction, growth, and maturity stages. The company, therefore, markets its hotels in relation to the stages of the hotels. The marketing strategy utilized by the company is adaptive to suit the different chains.
- How is Wyndham using symbolic and experiential benefits to target its hotels to certain groups of travelers?
Wyndham hotels receive different kinds of customers, mostly travelers. First, the hotels have been designed in such a way that the places to stay are all the same regardless of the hotel. However, the supplemental as well as the experiential benefits differ from one hotel to the other. Wyndham Worldwide has ensured that each of the chain hotels maintain their unique feel to the satisfaction of the specific group of travelers visiting it. The company has also allowed the hotels to offer unique and quality services to both the budget-conscious as well as the vacationer customers.
- How is Wyndham using supplemental features at its hotels to create a competitive advantage?
Wyndham offers a wide range of the supplemental goods to all its visitors regardless of whether they are budget conscious or vacationers. Hotel visitors benefit from the offer of discounted packages. Additionally, the company provides access to large conference rooms for company meetings. On the other hand, different hotel chains such as Wyndham Gardens have library lounges where their customers can enjoy some reading and quiet times. The Knight’s Inn visitors enjoy an offer for free continental breakfast. Wyndham Hotels equally offer reward programs for the regular visitors. Women on their business trips also benefit from free beneficial advice and special packages. All these offers have created a competitive advantage for the company.
- How should Wyndham market its hotels according to their stages in the product life cycle?
For those hotels that are in their introductory stage, Wyndham should use heavy levels of marketing to ensure increased awareness of the hotels. On the other hand, the company should make use of beneficial packages as a marketing strategy for the hotels that are in their maturity stage.