Marketing strategy of Komatsu Ltd Project G s Globalization

Posted by Zander Henry on Aug-22-2018

1. The vision of Komatsu Ltd Project G s Globalization

The vision of Komatsu Ltd Project G s Globalization is to be the leading quality service and product provider for customers. Being the best and the leading player means that Komatsu Ltd Project G s Globalization marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of Komatsu Ltd Project G s Globalization

Komatsu Ltd Project G s Globalization marketing strategy is grounded in its mission. The mission for Komatsu Ltd Project G s Globalization is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Komatsu Ltd Project G s Globalization as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of Komatsu Ltd Project G s Globalization

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of Komatsu Ltd Project G s Globalization. The knowledge of brand equity will help in shaping Komatsu Ltd Project G s Globalization marketing strategy effectively – thereby facilitating the growth of business for Komatsu Ltd Project G s Globalization.

3.1. Brand awareness

• Komatsu Ltd Project G s Globalization has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for Komatsu Ltd Project G s Globalization has modified marketing and strategic directives and plans

3.2. Brand association

• Komatsu Ltd Project G s Globalization is directly associated with the brand name and product category
• Komatsu Ltd Project G s Globalization has a broad product portfolio
• Komatsu Ltd Project G s Globalization is associated with promising and delivering quality and innovative products
• Komatsu Ltd Project G s Globalization is also associated with excellent customer service

3.3. Brand loyalty

• Komatsu Ltd Project G s Globalization has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• Komatsu Ltd Project G s Globalization has a global customer base
• Komatsu Ltd Project G s Globalization keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• Komatsu Ltd Project G s Globalization has a substantial brand value
• Komatsu Ltd Project G s Globalization also enjoys the high financial worth
• Komatsu Ltd Project G s Globalization focuses on building a reliable and robust employee base

3.5. Brand element

• Komatsu Ltd Project G s Globalization uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of Komatsu Ltd Project G s Globalization

The situational analysis will help in developing the marketing strategy of Komatsu Ltd Project G s Globalization by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of Komatsu Ltd Project G s Globalization.

4.1. SWOT

4.1.1. Strengths

Komatsu Ltd Project G s Globalization marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

Komatsu Ltd Project G s Globalization faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Komatsu Ltd Project G s Globalization has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Komatsu Ltd Project G s Globalization faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Komatsu Ltd Project G s Globalization operates I markets with political stability
• Komatsu Ltd Project G s Globalization has funding support from the government for small businesses

4.2.2. Economic

• Komatsu Ltd Project G s Globalization enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for Komatsu Ltd Project G s Globalization
• Low inflation strengthens the financial position of Komatsu Ltd Project G s Globalization

4.2.3. Social

• Higher education and awareness increases sales of Komatsu Ltd Project G s Globalization predict
• Komatsu Ltd Project G s Globalization focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Komatsu Ltd Project G s Globalization has an active CSR program
• Komatsu Ltd Project G s Globalization ensures environmental safety in all its operations

4.2.5. Legal

• Komatsu Ltd Project G s Globalization is aware of local and global laws of business and human resource management
• Komatsu Ltd Project G s Globalization abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for Komatsu Ltd Project G s Globalization: The Marketing Strategy of Komatsu Ltd Project G s Globalization

Komatsu Ltd Project G s Globalization marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Komatsu Ltd Project G s Globalization brand and products by 30%
• Increase sales for Komatsu Ltd Project G s Globalization by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of Komatsu Ltd Project G s Globalization during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of Komatsu Ltd Project G s Globalization

Komatsu Ltd Project G s Globalization marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Komatsu Ltd Project G s Globalization has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Komatsu Ltd Project G s Globalization has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Komatsu Ltd Project G s Globalization, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for Komatsu Ltd Project G s Globalization consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Komatsu Ltd Project G s Globalization focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Komatsu Ltd Project G s Globalization consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• Komatsu Ltd Project G s Globalization has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of Komatsu Ltd Project G s Globalization remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of Komatsu Ltd Project G s Globalization, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Komatsu Ltd Project G s Globalization are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of Komatsu Ltd Project G s Globalization Positioning of Komatsu Ltd Project G s Globalization

The marketing strategy of Komatsu Ltd Project G s Globalization targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Komatsu Ltd Project G s Globalization is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the Komatsu Ltd Project G s Globalization focuses on quality control

7.2. Mass marketing

• The marketing strategy of Komatsu Ltd Project G s Globalization focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• Komatsu Ltd Project G s Globalization makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• Komatsu Ltd Project G s Globalization does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Komatsu Ltd Project G s Globalization also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• Komatsu Ltd Project G s Globalization has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the Komatsu Ltd Project G s Globalization has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of Komatsu Ltd Project G s Globalization

The marketing strategy of Komatsu Ltd Project G s Globalization stands out from the clutter and competition. Komatsu Ltd Project G s Globalization has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that Komatsu Ltd Project G s Globalization has utilized:

8.1. Cost-effectiveness

• Komatsu Ltd Project G s Globalization focuses on reaching consumers effectively rather than grandeur
• Komatsu Ltd Project G s Globalization focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• Komatsu Ltd Project G s Globalization has in-house copywriters for marketing campaigns which also helps in controlling costs
• Komatsu Ltd Project G s Globalization also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• Komatsu Ltd Project G s Globalization has stayed updated with latest developments in marketing research and marketing knowledge
• Komatsu Ltd Project G s Globalization makes use of new and innovative tactics to reach its target consumers
• Komatsu Ltd Project G s Globalization also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by Komatsu Ltd Project G s Globalization is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• Komatsu Ltd Project G s Globalization marketing strategy is strongly grounded in consumer and market research
• Komatsu Ltd Project G s Globalization makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• Komatsu Ltd Project G s Globalization also incorporates consumer feedback in its marketing strategy
• Komatsu Ltd Project G s Globalization marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by Komatsu Ltd Project G s Globalization
• In addition to fulfilling functional needs, Komatsu Ltd Project G s Globalization also tries to fulfil the emotional and psychological needs of the consumer
• Komatsu Ltd Project G s Globalization tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of Komatsu Ltd Project G s Globalization

Komatsu Ltd Project G s Globalization marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Komatsu Ltd Project G s Globalization makes use of intensive distribution strategy because it is mass marketing
• Komatsu Ltd Project G s Globalization’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, Komatsu Ltd Project G s Globalization tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• Komatsu Ltd Project G s Globalization uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The Komatsu Ltd Project G s Globalization also makes use of modern retailing channels
• Also, Komatsu Ltd Project G s Globalization makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed Komatsu Ltd Project G s Globalization to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the Komatsu Ltd Project G s Globalization does not have a subsidiary
• In these offshore locations, Komatsu Ltd Project G s Globalization largely works through the export model
• This makes use of several intermediaries in between, before the product by Komatsu Ltd Project G s Globalization reaches the target consumers
• Intermediaries for Komatsu Ltd Project G s Globalization include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, Komatsu Ltd Project G s Globalization makes use of selective distribution channel
• Komatsu Ltd Project G s Globalization has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that Komatsu Ltd Project G s Globalization has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of Komatsu Ltd Project G s Globalization

The industry in which Komatsu Ltd Project G s Globalization operates is very responsive to market and consumer trends. Komatsu Ltd Project G s Globalization, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• Komatsu Ltd Project G s Globalization competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• Komatsu Ltd Project G s Globalization also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• Komatsu Ltd Project G s Globalization experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of Komatsu Ltd Project G s Globalization

The marketing mix for Komatsu Ltd Project G s Globalization as per the marketing strategy is the following:

11.1. Product

• Komatsu Ltd Project G s Globalization has a broad product portfolio
• Komatsu Ltd Project G s Globalization provides mass marketed products for all segments across the market undifferentiated
• Komatsu Ltd Project G s Globalization also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The Komatsu Ltd Project G s Globalization maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• Komatsu Ltd Project G s Globalization wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The Komatsu Ltd Project G s Globalization also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• Komatsu Ltd Project G s Globalization also makes use of e-commerce to increase penetration and sales

11.3. Price

• The Komatsu Ltd Project G s Globalization prices its products so that its target consumers can afford it easily
• Komatsu Ltd Project G s Globalization uses relative pricing strategy for its products
• The price of Komatsu Ltd Project G s Globalization’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The Komatsu Ltd Project G s Globalization has a high budget allocated towards marketing activities
• The Komatsu Ltd Project G s Globalization invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed Komatsu Ltd Project G s Globalization marketing strategy to cap costs and expenses
• Komatsu Ltd Project G s Globalization also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• Komatsu Ltd Project G s Globalization also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• Komatsu Ltd Project G s Globalization has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• Komatsu Ltd Project G s Globalization hires without discrimination
• Komatsu Ltd Project G s Globalization ensures that its employees remain motivated through building an inspirational and creative organizational culture
• Komatsu Ltd Project G s Globalization focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at Komatsu Ltd Project G s Globalization - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Komatsu Ltd Project G s Globalization are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the Komatsu Ltd Project G s Globalization

11.7. Physical evidence

• The physical evidence for Komatsu Ltd Project G s Globalization includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of Komatsu Ltd Project G s Globalization, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by Komatsu Ltd Project G s Globalization is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by Komatsu Ltd Project G s Globalization for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of Komatsu Ltd Project G s Globalization

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Komatsu Ltd Project G s Globalization interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• Komatsu Ltd Project G s Globalization also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the Komatsu Ltd Project G s Globalization brand

13. Monitoring and evaluation of the marketing strategy of Komatsu Ltd Project G s Globalization

13.1. Changes in sales

• Komatsu Ltd Project G s Globalization regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of Komatsu Ltd Project G s Globalization
• Sometimes, Komatsu Ltd Project G s Globalization experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• Komatsu Ltd Project G s Globalization frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow Komatsu Ltd Project G s Globalization to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Komatsu Ltd Project G s Globalization can also be seen through the revenue and profit growth
• Return on investment allows Komatsu Ltd Project G s Globalization to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by Komatsu Ltd Project G s Globalization are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of Komatsu Ltd Project G s Globalization