This essay is a case on the Caterpillar company

Essay by danthonyUniversity, Master'sA, March 2003

download word file, 4 pages 2.1

Analysis of sales, profits, and market share

Caterpillar sold over 50 percent of its product in overseas countries. Caterpillar realized that there is an opportunity and the company continued focus outside of the U.S., particularly the developing countries. Because of economic conditions in the developing countries customers are not able to pay hard currency for the product. Caterpillar projected that sales will increase in these areas in the future and came up with any possible way of gaining customers in the developing areas.

In 1988 Caterpillar Inc. made record sales of over $10 billion dollars and realizes a profit of $616 million. But although the company sales continue to increase steadily over the next two years (1989 & 1990), the company's profit, however, took a different turn. Profit for 1989 and 1990 fell to $497 million and $210 million respectively. It is not rare that a company sale has increased and its profit continued to drop.

Needless to say, however, if things get worst in the industry and sales decline, then the company's net profit could turn into a net loss. In this case Caterpillar sale which was increasing steadily over a three year period from 1988 to 1990 went into a fallen slurp from over $11 billion in 1990 to under $10 billion in 199. As a result, the company saw a net loss of $404 million in 1991.

Analysis of marketing mix variables

Caterpillar's strategy is consistent with sound marketing principles. Caterpillar's marketing mix categories explained the selected strategy consist product, distribution/place, price, and promotion.


Caterpillar is a strong producer of very large equipment. The company offers a tangible and a non-tangible product to its customers. The company's physical products are engines for a wide variety of electrical power systems, such as generation system, and industrial machinery...