John Deere's integrated marketing communication strategy and positioning

Integrated Marketing Communication Plan

The objective of this work is to develop an Integrated Marketing Communication Plan. This work will choose a product or service in common usage and conduct an examination of the product or service to see if the company is online and if it is doing any online advertising the existing integrated marketing plan presently in use will be discussed. This work will describe the promotion mix and examine whether it appears to more mass selling or personal selling. This work will answer as to what target markets are the target audiences of the promotion mix and how the company positions its product or service. This work will provide an analysis of the company's IMC effort and answer as to whether anything could be done to improve the IMC from the view of the company's marketing manager. For the purpose of the present study, the company chosen will be that of the John Deere Company.

Marketing Report

It is reported that the financial position and marketing strategies of John Deere are strong and that "key opportunities exist to accelerate future growth on both immediate and long0term horizons through investment in new projects that will create incremental value for the organization." (Dolan, et al., 2009) It is reported that John Deere is a brand that represents "quality, innovation, integrity and commitment…" and as well is in possession of "a high level of brand loyalty." (Dolan, et al., 2009)

In the area of target market segmentation stated is "the riding lawn mower product category provides valuable insight into John Deere's approach to market segmentation." (Dolan, et al., 2009) It is reported that an evaluation reveals that the Agriculture and Turf Division targets three primary consumer segments including:

(1) Commercial Farmers;

(2) landscaping professionals and (3) do-it-yourselfers (DIY).

II. Segmentation and Positioning

This decision on segmentation is such that has enabled John Deer to build a product portfolio that "expands quality and functionality based on end user demands." (Dolan, et al., 2009) John Deere is stated to have a positioning statement that is famous and specifically "nothing runs like a Deere" which is stated to communicate "both differentiation from the competition and meaningfulness within the target segment." (Dolan, et al., 2009) This statement is reported to effectively reinforce "the key quality attributes inherent in John Deere's reputation and positions the brand as a source of value for the consumer." (Dolan, et al., 2009)

III. Use of Technology

John Deere is reported to have launched a website to preview new equipment. It is reported that the website is "innovative and interactive" and provides growers with "an early preview of the new John Deer 7R Tractor" as well as combines and other new 2011 equipment. The website is inclusive of "regularly updated webisodes depicting features of the new equipment" with the first webisode introducing the Guetterman farm family of eastern Kansas and the4 new features they look for I a new row-crop tractor." (John Deere, 2011)

One marketing strategy used by John Deere is through instilling their brand names with children in the form of toys, which are on the shelves at Wal-Mart along with other name brands including Match Box and Hot Wheels.

Yet another method of marketing being used is "one Brand Name signing up with another brand name" (Logo Design, 2011) which furthers both of the products. This method is yet to be understood by academics at the top American business schools" and it is reported, "the doers are doing it and the academia is talking about something they do not even understand." (Logo Design, 2011) Frazier (2005) writes that one might call John Deere's strategy in recent years "an aggressive global strategy aimed at markets as far-reaching as China and Brazil and the decision to go into mass channels, including Home Depot in 2003 and Lowes in 2004…the equivalent of a country-music crossover sing." The roots of John Deere are in the American farm but Frazier reports the fact that the "wealthy baby boomers living in the exurbs are the next generation of Deere loyalists." (2005) Frazier reports that the market of the future is the "large property owner with two to three acres to mow.

The John Deere company is presently promoting the 100 series tractor, which is a lawn mower designed "specifically for the Home Center channel. John Deere developed this product line to gain strategic distribution in the retail marketplace. Importantly, the 100 Series is not officially produced to John Deere specifications and is considered to be at the lower end of the product quality continuum. These tractors come with a two-year warranty and typically range between $1,500-$2,500 MSRP. This occupies a lower price point than the traditional assortment at John Deere Implement Dealers. This adjustment in quality helps John Deere achieve lower costs per unit, which translates into lower retail prices." (John Deere, 2011)

It is reported that John Deere uses two primary channels for distribution of products from the Agricultural and Turf division and specifically: (1) Home Center retailers and (2) Implement Dealers. (John Deere, 2011) It is reported that there are many differences between these segments and the channel strategy is such that makes a requirements of a 'delicate balance between product mix and pre- and post-sales service models." (John Deere, 2011) The customers are forced to visit the dealer for any repairs or other such issues as the Home Centers are not equipped to handle repairs stated to be a "significant opportunity for incremental revenue." (John Deere, 2011)

Analysis

John Deere Company's promotion mix is dependent upon mass selling of its products across various sectors and on a global basis. While the Deere company typically focuses on the agricultural market, it is also focusing on the average homeowner with its new mower line available in some retail stores including Home Depot and Lowes. There is a broad range of target audience for the John Deere company including agricultural, forestry, residential and even toys. The John Deere company positions its products through branding as well as expansion into the retail market most recently. There is a great deal of publicity about the John Deer Company and its products including television, magazine, billboard, and online internet and web marketing. In addition, the John Deere Company has partnered with other large brands for marketing purposes. The marketing mix is one that is evidencing how successful it is through revenue growth for the John Deere company. Deere is expanding worldwide and has a large and loyal base of customers.

Conclusion

The John Deere Company has a highly integrated and highly successful market mix that reaches many sectors of the economy and many customers in various industries and pursuits. The success is evidenced by the company's revenue increases and its global expansion.