In this post, we will analyze the four Ps of marketing Mix for John Deere, a US based manufacturer of agricultural, forestry and construction equipment.
John Deere: An Introduction
John Deere manufactures heavy equipment for the construction, agriculture and forestry industries. The John Deere brand includes a family of more than 25 brands. The company was founded by John Deere, a blacksmith and the maker of the first commercially successful self-scouring steel plow. Founded in 1837, the company has seen several major changes and achieved a leadership position in its industry sector driven by its focus on innovation. Recognized worldwide by its leaping deer trademark, the corporate logo of John Deere is the longest used corporate logo of all the Fortune 500 companies.
The company has established a strong manufacturing network that includes 23 manufacturing facilities located in the United States and Canada. It also operates several more manufacturing facilities located outside the United States and Canada. The company experienced solid improvement in its financial performance in fiscal 2021 compared to the prior year. It has also made some important changes to its operating model in 2021 to drive superior performance.
Read about John Deere’s product, place, price and promotion mix in the next sections.
A DETAILED MARKETING MIX OF JOHN DEERE
The John Deere family includes more than 25 brands that produce equipment for several industries including construction, agriculture and forestry. The John Deere brand has been around for more than 100 years and has continued to diversify its product portfolio to cater to the diverse needs of its various customer segments.
Here is a brief list of the leading brands in the portfolio of John Deere:
- Wirtgen: The Wirtgen family includes the Wirtgen, Vogele, Hamm, Kleeman, and Benninghoven brands. The group offers mobile machine solutions for road construction and rehabilitation, plants for mining and processing minerals or recycling material, and for asphalt production. Together these five brands cover the entire road construction cycle from processing, mixing, paving and compacting to rehabilitating.
- Hazie: Hazie produces high clearance sprayers and detasselers.
- PLA: The PLA brand manufactures plants and sprayers.
- Mazzotti: Mazzotti is an Italian brand making self-propelled sprayers.
- Monosem: Monosem has been selling quality precision vacuum planters and cultivators to more than 80 countries worldwide for more than 75 years.
- A&I products: A&I products is a leading manufacturer of aftermarket replacement parts for the agricultural, turf, and industrial equipment markets.
- Blue River Technology: The focus of Blue River is to make products that improve agricultural production sustainably. It developed the See & Spray select technology which is available on John Deere 400 and 600 series sprayers and combines computer vision, machine learning and robotics.
- Harvest Profit: Harvest Profit has created a set of software tools for farmers to track farm costs, profits, grain marketing positions and inventory.
- Bear Flag Robotics: Bear Flag Robotics makes autonomous technology for agricultural tractor to increase profitability, reliability and safety.
- Kreisel: Kreisel has been around since 2014. It is a leading innovator focused on the development of immersion cooled electric battery modules and packs.
John Deere offers a large range of tractors and agricultural equipment utilized in harvesting, planting, seeding and other agricultural processes. It is also a leader in off highway engines and drive train. The company makes industrial diesel engines, drivetrain components, generator drive engines, and marine engines. It also makes and sells electronic products including telematics, power electronics, electronic controls, integrated displays, and sensing solutions.
SUGGESTED READING: JOHN DEERE FIVE FORCES ANALYSIS
John Deere is a global brand with international operations. Its manufacturing network is spread over several countries. The company has 23 production locations in the US and Canada. 21 of these production locations are owned by John Deere and 2 are leased by the company. The equipment operations of John Deere have 44 manufacturing facilities located outside the United States and Canada.
John Deere has the following factories in various countries outside the US and China:
- Agriculture and turf equipment factories in Argentina, Brazil, China, France, Germany, India, Israel, Italy, Mexico, the Netherlands, Russia, and Spain;
- Earthmoving equipment factories in Brazil and China;
- Engine, engine/power train, hydraulic, or electronic component factories in Argentina, France, India, and Mexico;
- Roadbuilding equipment factories in Brazil, China, Germany, and India;
- and forestry equipment factories in Finland and New Zealand.
John Deere has also established a strong sales and distribution network for the sales, distribution and marketing of its products in various corners of the globe.
The company has sales and administration offices located in the United states and Canada in the following locations to oversee the sales and distribution of equipment:
Two agriculture and turf equipment sales and administration offices located in Olathe, Kansas and Cary, North Carolina and one sales branch located in Grimsby, Ontario; one construction, earthmoving, material handling, and forestry equipment sales and administration office located in Moline, Illinois and one sales branch located in Grimsby, Ontario; and one roadbuilding equipment sales, service, and administration office located in Nashville, Tennessee.
There are also two centralized parts distribution warehouses operating in coordination with nine regional parts depots and distribution centers in the U.S. and Canada. The company distributes and markets its products to around 1,990 independent dealers through its facilities in the US and Canada. 1,545 of these dealers sell agricultural equipment and 445 sell construction, earthmoving, material handling, roadbuilding, and/or forestry equipment.
Outside the US and Canada, the company manages its distribution through sales and administrative offices located in various corners of the globe. It sells agriculture and turf equipment to dealers outside the US and Canada for resale in more than 100 countries. The company has its sales and administrative offices outside the Americas in the following countries:-
Argentina, Australia, Brazil, China, France, Germany, India, Italy, Mexico, the Netherlands, Poland, Russia, Singapore, South Africa, Spain, Sweden, Thailand, Ukraine, and the United Kingdom.
SUGGESTED READING: JOHN DEERE PESTEL ANALYSIS
John Deere is operating in an intensely competitive environment. There are a large number of players including the heavy equipment manufacturer Caterpillar that the company competes against. While pricing is an important factor affecting the sales of products, since the buyers of its products are a large number of businesses and governments from around the globe, quality rather than price takes the upper hand.
John Deere has always focused on quality and innovation. In the case of John Deere competition has a limited impact on price. The main factors that affect its pricing policy regarding various products include demand, market environment, costs of raw materials and other operating expenses as well as type of product. However, to maintain demand and sales, the company does price its products favorably for a large segment of customers.
John Deere is a more than 100 years old and influential brand enjoying a market leading position and a strong identity that is based on years of innovation. Known across various corners of the world as a manufacturer of John Deere tractors and other agricultural equipment, John Deere has expanded its product mix to address the different needs of various customer groups across several industry sectors.
Its products are distinguished from rivals based on quality, innovation and reliability. The company focuses on brand image, product quality, innovation and great customer relationships. Over the several years, its endeavors in maximizing customer productivity and satisfaction through innovation has continued to strengthen its popularity and competitive advantage across the globe.
The company uses a mix of digital and traditional channels for the promotion of its brand and products. While the company pulled out of several major tradeshows during the pandemic, which have been one of the leading marketing channels for the company in past, it is relying more on virtual tools like virtual showrooms for the demonstration of its products and their features to the interested customers. It also offers various types of offers and discounts on several of its products to customers. John Deere is also using social media channels for customer engagement, spreading brand awareness and promotions.
The company also invests in philanthropic efforts to maintain a strong social image. The John Deere foundation is responsible for overseeing its philanthropic activities. Education, food scarcity and education for less privileged communities are some of the main focus areas for John Deere.
A few last words:
John Deere has become one of the leading makers of agricultural and construction equipment. Based in the US, the company is a leader in its industry sector. Its growth has been driven mainly by its focus on innovation and quality. It has become a popular name in several corners of the world. while John Deere has been in existence for more than 100 years, it has continued to expand its product mix by adding new innovations and through acquisitions. Its brand family includes more than 25 brands that make and sell a diverse range of products and technologies.
The company has also managed a strong distribution mix that includes 23 production locations in the US and Canada and 44 outside. It sells its products worldwide through 1990 independent dealers. Globally, the company has managed a strong network of sales and administrative offices to manage the sales and distribution of its products.
As a leading equipment manufacturer, the company has maintained a strong brand image and focuses on maximizing customer satisfaction. It uses a mix of traditional and digital channels for marketing and promotions. The company also invests in innovation since technology has become the main differentiator in the industry sector and one of the leading drivers of growth. It also invests in sustainability and CSR to maintain a strong social image.
John Deere form 10K 2021.