SRM consulting completes strategic plan development consulting for Zuw Diesel Service LLC. Please find consulting project details as below.
Enterprise situation at the beginning of the project
Zuw Diesel Services LLC is Caterpillar’s construction equipment maintenance, rentals and spare parts sales company. The company has been selling CTP spare parts under agreement with Costex corporation since 20XX. The company’s spare parts sales unit has growing fast in last 3 years and now its XX% of total sales income. Company directors aims to expand their spare parts sales unit as a separate, more individual business. Thus, the company needs support on developing strategic plan especially for spare parts sales.
Key project objectives set at the beginning of the project
In the beginning of the project consultant set up following goals with business owner to identify business strategy:
- Current product market capacity, who is main customer
- Current customer behavior and their common interest
- Who is leading in the market, market share and competitors?
- What is effective marketing strategy in the market
Аctions taken during the project implementation
- Interviewed with company owner and all employees find out their thoughts about company, their products and services, future perspective and their private purpose;
- Identified main consumers in the market and market capacity;
- Benchmarked with market leading companies and brands;
- Done spare parts sales analysis past 2 years data;
- Done inventory analysis;
Lessons learned and recommendations
Caterpillar and Komatsu construction equipment share more than 50% worldwide for their market. Here in Mongolia, there are 800 caterpillar construction equipment supplied to the mining companies since 1996. It is 70% of heavy machinery operating in coal mining sector.
Caterpillar equipment is high-end product in the industry, offers highest price for both equipment and spare parts. Despite CTP is aftermarket parts, which is XXX% lower price with the same standard.
Zuw Diesel Service LLC has potential to increase CTP and other parts sales by XX% in 2020-2021 and XX% in 2021-2022 by expanding its market. Now the company management has proper market analysis and strategy map to reach their goal.
#caterpillar #miningtechnology #heavyequipment #strategy #b2bsales #businessdevelopment #supplierdevelopment #supplychain
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