Caterpillar Inc. is a Fortune 500 company and is the world’s largest construction-equipment manufacturer. The company makes heavy equipment for industries such as construction, mining, and forestry.
Caterpillar has been around since the late 1800s, and they are a well-known brand in these industries. Caterpillar equipment is known for its quality, durability and reliability.
In this article, we will take a closer look at the Caterpillar target market and understand who and why purchases equipment and related products from Caterpillar.
Who is the Caterpillar Target Market?
To best understand the Caterpillar Target Market we need to understand why other companies need to buy equipment like the kind made by Caterpillar and when they need to buy it.
Understanding the buyer’s needs and motivations, we can divide the Caterpillar Target Market into the following segments:
- Companies in the Construction Industry
- Companies in Power Generation
- Companies in Oil and Gas
- Companies in Mining
- Companies in Agriculture
- Companies in Landscaping
- Companies in need of spare parts, replacement parts and maintenance
Let’s look closely at each of these segments of the Caterpillar Target Market.
#1. Companies in the Construction Industry
Caterpillar products like excavators, backhoes, and skid steer loaders are commonly used in the construction industry.
These machines help with tasks such as digging trenches, breaking up pavement, removing debris, and transporting materials.
Construction companies use Caterpillar products because they are durable and can withstand heavy use. Caterpillar excavators, in particular, are known for their operator comfort, fuel efficiency, and safety features.
Operators can work for long hours without feeling fatigued, and the machines have a good reputation for being easy to operate and maintain.
#2. Companies in Power Generation
Power generation refers to both Electric Power Generation and Industrial Power Generation.
Electric Power Generation is the process of generating electricity using fuel sources such as coal, natural gas, nuclear power, or renewable energy.
For Industrial Power Generation, Caterpillar has engines and generator sets that are used to provide power for factories, pumps, and other industrial applications.
#3. Companies in Oil and Gas
Oil and Gas companies use Caterpillar products for tasks such as drilling, well servicing, and production.
Caterpillar products are used in all stages of oil and gas production, from exploration and development to transportation and refining.
Caterpillar products are chosen for oil and gas applications because of their durability, performance, and safety features.
#4. Companies in Mining
Mining needs equipment for tasks such as drilling, excavating, and hauling.
Caterpillar products are used in both surface mining and underground mining operations.
Surface mining is a type of mining in which Caterpillar products are used to extract minerals and other materials that are close to the surface of the earth.
Underground mining is a type of mining in which Caterpillar products are used to extract minerals and other materials that are located deep underground.
Caterpillar products are chosen for mining applications because they are durable and can withstand the harsh conditions of the mine environment.
#5. Companies in Agriculture
Caterpillar products are used in a variety of agricultural tasks such as tilling, planting, and harvesting. It also includes moving bales, mucking a shed or mixing feed.
Farmers and agriculture companies use Caterpillar products because they are tough and can withstand long hours of use. This means farmers can sit (relatively) comfortably on a Caterpillar tractor all day long and get the job done quickly and efficiently. This makes agricultural companies and farmers a Caterpillar target market.
#6. Companies in Landscaping
Landscaping involves tasks such as mowing, trimming, and edging. It also includes tasks such as planting, watering, and fertilizing.
Caterpillar products used in landscaping include micro and mini excavators, skid steer loaders, and compact track loaders.
Micro and mini excavators are used for tasks such as digging holes, removing debris, and transporting materials. Skid steer loaders are used for tasks such as mowing, trimming, and edging. Compact track loaders are used for tasks such as planting, watering, and fertilizing.
#7. Companies in need of spare parts, replacement parts and maintenance
A captive segment of the Caterpillar target market includes companies that need spare and replacement parts for their Caterpillar products.
Many companies keep spare Caterpillar parts on hand in case of emergency, and some companies have full-time Caterpillar technicians on staff to perform maintenance and repairs.
Other companies only use Caterpillar parts for their Caterpillar products because they want to maintain the product’s warranty.
Caterpillar also offers planned maintenance and repair options for companies that want to keep their Caterpillar products in peak condition.
The main distribution channel for Caterpillar products is through Caterpillar dealerships.
Caterpillar dealerships are located in countries all over the world, and they offer sales, service, and parts support for Caterpillar products.
Caterpillar dealerships are a Caterpillar target market because they are the main source of Caterpillar product information and support for Caterpillar customers.
They are also the ones with ears to the ground and therefore are a source of market intelligence for Caterpillar. This makes the relationship between Caterpillar and its dealers a highly symbiotic one.
Caterpillar is the world’s largest construction-equipment manufacturer. The Caterpillar target market includes companies in Construction, Power Generation and Oil & Gas.
Companies in Mining, Agriculture and Landscaping are also a part of the Caterpillar target market.
Companies that buy Caterpillar equipment and machinery need spare parts, replacement parts, and maintenance which they will often get from Caterpillar. This brings them back to Caterpillar with repeat business.
Finally, dealers that stock, sell and support Caterpillar products are also a key segment of the Caterpillar target market.