The Marketing mix of JCB analyses the 4Ps of JCB, which includes the Product, Price, Place, and Promotion of JCB. J.C. Bamford Excavators Limited is referred to as JCB. It is a private company of British origins associated with the Heavy Equipment industry. It is ranked at the third position in the world market in terms of manufacturing construction equipment. The company was founded in 1945 by its founder, Joseph Cyril Bamford, and the ownership continues to run in the family. In India and the UK, people use the term JCB as a generic description for excavators and mechanical diggers. Following are some of the competitors of JCB-
About General Electric
- Type: Multinational engineering company
- Industry: Construction equipment
- Founded: 23 October 1945
- Founder: Joseph Cyril Bamford
- Headquarters: Rocester, Staffordshire, United Kingdom
- Area served: Worldwide
- Key people: Lord Bamford (Chairman) and Graeme Macdonald (CEO)
- Number of employees: 54,000
Table of Contents
JCB Product Strategy
- Industry Applications: JCB manufactures equipment for agriculture, construction, demolition, solid-waste handling, irrigation, port operations, mining, real estate, railways, road construction, rentals, material handling solutions, and power generation.
- Wide Range of Machines: The company produces nearly 300 varieties of machines. Essential products include Tracked Excavators (e.g., JS205LC, JS120, JS140), Wheeled Loaders (e.g., 3DXL, 432ZX, 455ZX), Telescopic Handlers (e.g., 530-70, 540-170), Super Loaders are known for performance and versatility, Tractors designed for speed and efficiency on roads, Military Vehicles for excavation and load-handling (e.g., JCB HMEE)?.
- Diverse Product Portfolio: Additional products in JCB’s range include JCB Phones (smartphones and feature phones under JCB license), JCB Vibromax, a German subsidiary producing compaction equipment, JCB Dieselmax, a diesel-powered Land-Speed-Record vehicle, Various compactors like VMI 15 and VMT 860, Fuel-efficient Backhoe Loaders (e.g., 4DX, 3DX Super, 3DX Xtra, 3DX, 2DX), Generators for diverse power-generation needs, Skid-Steer Loaders used in landscaping and construction.
JCB Place Strategy
JCB is a multinational company with its headquarters base at Rocester in Staffordshire. It started its work in Uttoxeter in Staffordshire and later moved to Rochester. The company conducts its operations via a distribution system with twenty-two factories spread across continents including South America, North America, Europe, and Asia and one hundred and fifty countries like India, China, Germany, Brazil, the United Kingdom, and the United States.
Its factories in India are in Faridabad, Pune and Jaipur, US factories are in Georgia and Pooler, Brazilian in Sorocaba, Chinese in Pudong and UK factories in Cheadle, Rugeley, Uttoxeter, Foston and Wrexham. It has a strong distribution channel includes services of nearly fifteen hundred franchised dealers that serve the target market through innovative technology to meet industry-specific and local demands.
- Global Manufacturing and Distribution: JCB operates through 22 factories across continents, including Asia, Europe, North America, and South America. These factories enable JCB to meet global demand efficiently and effectively. Key markets include India, China, the United Kingdom, and the United States, with major manufacturing facilities in these countries?.
- Strong Distribution Network: The company’s distribution network is bolstered by the services of nearly 1,500 franchised dealers worldwide. This vast network ensures that JCB’s products and services are readily available to customers globally, catering to local industry demands.
- Historical Expansion into Export Markets: JCB’s growth trajectory included early forays into export markets, beginning in the 1950s. The company’s proactive approach to exploring international markets has been a cornerstone of its expansion strategy.
- Strategic Factory Locations: JCB has strategically located its factories to serve key markets more effectively. For example, its factories in India are in Faridabad, Pune, and Jaipur; in the US, they are in Georgia and Pooler; in Brazil, Sorocaba; and in China, Pudong. These locations cater to local markets and serve as export hubs?.
- Continued Investment in Key Markets: JCB has consistently invested in its facilities to expand its manufacturing capabilities. Notable investments include creating the world’s largest backhoe loader factory in India in 2009, expanding manufacturing in Brazil in 2012, and opening a new factory complex in Jaipur, India, in 2014. Such investments underscore JCB’s commitment to maintaining its position as a leading manufacturer in its key markets.
JCB Pricing Strategy
Operations in India account for 17.5% of the total revenues for UK-based JCB Company. It faces stiff competition from rival construction companies in terms of prices. JCB has adopted a competitive pricing strategy and kept its price range at the same levels as its rival companies. It does not want to lose its competitive advantage because its brand has a high recall and offers quality products compared to its competitors. JCB has adopted several policies that help the company to invest in assembly and manufacturing plants in other countries. It reduces costs to a very high margin, and thus, the company can now be competitive and earn high revenues.
- Competitive Pricing Strategy: JCB employs a competitive pricing strategy, setting its prices at levels similar to those of its rivals. This approach is designed to ensure that JCB remains a strong competitor in its segment, particularly given the stiff competition it faces from other companies in the industry?.
- Balancing Quality and Affordability: JCB’s pricing strategy aims to offer buyers better quality products at competitive prices. This balance allows JCB to maintain a strong value proposition in the market, appealing to customers looking for high-quality construction and agricultural equipment without overpaying?.
- High Brand Recall and Expansion Strategy: JCB’s high brand recall plays a significant role in its pricing strategy. The company’s established reputation allows it to maintain and expand its market presence globally. JCB can penetrate new markets more effectively by using a significant portion of its revenue for expansion and keeping prices competitive.
- Cost Reduction through Global Operations: JCB’s ability to offer competitive prices is also supported by its global manufacturing and distribution operations. By investing in assembly and manufacturing plants in various countries, JCB can substantially reduce costs and maintain competitive pricing while achieving high revenue margins.
- Profitability Through Lowered Logistic Costs: The company’s widespread global presence and strategic location of manufacturing units help reduce logistic costs. This cost reduction supports the competitive pricing strategy and contributes to higher profitability for the company.
JCB Promotion Strategy
JCB recognizes the worth of advertising and has organized several promotional activities and events to market its products, thus creating brand awareness. The company relies heavily on print media and has advertised via trade publications and business shows. The company has received several photography awards for its exclusive advertisements.
JCB has a display team that tours several agricultural and other shows. They display videos to make people understand various maneuvers for supporting vehicles. The company has a subsidiary that offers insurance to customers against purchases. These are all-risks policies with options like employer’s liability, public liability, and road-risk coverage. JCB Academy is an established company a secondary School sponsored by JCB.
Some Recent Video ads and Print ads for JCB are:
Liked this post? Check out the complete series on Marketing Mix