The heavy equipment market is dominated by Caterpillar, Deere/Hitachi, and Komatsu, which together account for an 82% market share for excavators weighing at least eight metric tons. A new kid is trying break in to this market. Chinese construction equipment maker Luogong has signed up one of its first dealers in the U.S. with Syracuse, NY based Stephenson Equipment. See “China Treads on New Turf” (Wall Street Journal, August 16, 2011, non-subscribers may need to click here) to learn more.
Outline Luogong’s marketing strategy — target market, product, price, place, and promotion — as noted in the case. Do you think they will be successful? Can you think of other marketing strategy ideas that might help Luogong succeed in the U.S. market?