Golf Course Clubs

• Golf course clubs are among the key target customers for the lawn mower industry. A typical golf course must be mowed frequently to maintain the recommended grass height. Normally, golf course grass is mowed daily and sometimes more than once in a day.
• On a usual morning, workers responsible for maintaining the golf course mow enough turf to cover over 25 football fields. Thus, they use lawn mowers to satisfy this demand according to the set standards. Considering that lawn mowing is a frequent exercise amid the growing number of golf courses, demand for lawn mowers among this consumer group remains high.
• Golf course clubs often purchase reel mowers. The mowers cut grass by trapping it between the reel edge and the bed knife, leaving a scissor-like cut. Reel mowers are preferred in the golf courses because they leave an even surface. The mowers can also adjust the cutting speed depending on the mowing conditions.
• Reel mowers are preferred because they are friendlier to the turf, since the grass is not injured during the mowing process. They also come with the option of installing a roller that neatly lays the grass flat during mowing. Depending on the model type, reel mowers have between three and seven blades.

Landscaping Companies

•  Increased focus on outdoor landscaping has turned landscaping companies into target customers for the lawn mowing industry. Landscaping companies offer a wide variety of services, including lawn maintenance. Thus, they need reliable lawn mowers considering that they deal with different customers with varying types of lawns and grass.
• Landscaping companies are also likely to use lawn mowers daily as part of their service delivery. In this regard, they need commercial lawn mowers that can work on all terrains. To ensure customer satisfaction, the mowers used must guarantee high performance.
• Thus, landscaping companies go for robotic lawn mowers because they are time-saving, particularly for firms affected by the labor shortage being experienced in the industry. Robotic mowers can also run at any time of the day and are waterproof.
• Robotic mowers can save anywhere from two to four man-hours per task, which helps landscaping companies to keep operating costs down. They also require less maintenance because they are battery-powered with brushless motors and lithium batteries.

Municipalities

• Municipalities are another key target consumer of the lawn mower industry. In most jurisdictions, municipalities are responsible for maintaining public facilities such as parks, schools, and sports fields. Research shows that lawn mowers’ use for this function is widespread, a situation likely to drive the market further.
• With numerous parks, boulevards, and green spaces, public spaces have a lot of grass that must be mowed based on necessity. The goal is to maintain the public facilities at a safe and aesthetically pleasing condition for the public. To achieve this, municipalities need lawn mowers.
• Municipalities often use electric lawn mowers because they are easier to use. They also require low purchase and maintenance costs. Municipalities also need flexible machines that can maintain different lawn formats depending on the surface needs.

Trend 1: Environmentally friendly lawn mowers

• Electric (battery operated) mowers are increasingly becoming common market items that are accessible for residential and commercial consumers.
• In 2018, the electric segment grew to have a market share of 29.86% and it is predicted to have a CAGR of 4%.
• According to Tony Marchese, a commercial business unit leader of Greenworks Commercial, all major product categories in the mower industry are trending toward being rechargeable.
• This trend is being driven by increased environmental and health awareness — particularly of the impact fuel emissions have on global warming.
• In addition, consumers have quickly embraced battery-powered products. Steve Hughes, managing director, Masport Ltd, believes that " a significant percentage of our sales in the future will be battery powered."
• Green roofs are becoming more common as well, and environmentally friendly mowers are well paired with them. Consumers see green roofs as beneficial for storm water management by reducing runoff, as conserving energy, and good for carbon sequestration. These roofs also provide spaces for urban agriculture and are aesthetically pleasing.
• Battery powered and robotic mowers are better suited for mowing in closed locations like green roofs, that are fenced in by wiring.
• In NY state mid last year, for example, legislators renewed the state's Green Roof Tax Abatement in order to encourage green roofs programs.
•  Graze has developed a mower that is electric, with a boosted run time from solar panels. The company says that in the long term, customers will save on energy and maintenance costs. The autonomous lawn mower is specifically designed "for the commercial landscaping industry to counter labor shortages and rising wages in the US."

Trend 2: High tech and intelligent lawn mowers

• Various types of high-tech mowers are emerging with the goal of making gardening easier. Consumers want equipment that is easy to track, monitor, and use. Such mowers include intelligent lawn mowers, remote-controlled ones, and GPS-equipped ones.
• The robotics segment within the lawn mower industry is expected to see the highest growth rate, at 10%. These mowers facilitate automatic mowing of landscapes, are safe, and their mobile base and docking station is convenient.
• These newer mowers require less maintenance, and manufacturers are building in ledge sensors, laser vision, smart navigation, garden mapping, memory, and self emptying features to improve their performance and efficiency.
• This trend is being driven by a "nesting" trend, with people spending more time in their home. There has also been a notable rise in consumer interest in the outdoors and in gardening activities like backyard beautification and outdoor cookouts.
• The trend is also part of a generalized gradual shift away from traditional manual tools to advanced and automated equipment.
• In addition, labor shortages in countries like the US are encouraging the development of efficient and smart landscaping mowers.
• iRobot Corporation, an American advanced technology company, created a Roomba lawn mower called Terra in January 2019. The contraption was developed based on Imprint smart mapping technology and it can be operated through an app — iRobot Home.

• In May last year, WORX, a brand owned by the Positec Tool Corporation, launched a landroid robotic mower. The product is programmed to mow for a full season, via a smart phone app.
• In October last year, Toro upgraded their series of Toro TimeCutter Zero-Turn Mowers - using smart speed tech to increase productivity by 40%.

Trend 3: Less noisy mowers

• Products in the lawn mower industry are becoming less and less noisy. A gas-powered mower typically operates at about 95-100dB — levels which can have serious negative health impacts.
• This trend is being driven by regulations, particularly in wealthier countries, that limit noise output. In the US, for example, there are now more than 500 towns or municipalities with some kind of "noise regulation or outright bans of gasoline products."
• In October last year, John Deere introduced its Series R commercial walk-behind mowers, which have high-torque, low-emission diesel engines aimed to withstand tough conditions with low vibration and noise levels.
• Mean Green's mowers are designed to reach a maximum of 80dBs. Note that decibels are exponential, meaning that 80 is significantly quieter than 95. The company claims to emit "noise levels similar to background conversation in a restaurant."
• Briggs & Stratton Corp. believes consumers are willing to pay US$40 to $50 extra for a quieter lawn mower. The Milwaukee-based company was a pack leader, introducing a mower engine that it said was 64% less noisy than standard machines, in 2014.

Research Strategy

Toro Co.

• In 2018, Toro Co. experienced a sales decline in its residential lawn mowers across North America and Europe.
• The company blames late winter storms and colder weather for the decline.
• The CEO stated, "customers are less likely to buy a lawn mower when they are shoveling sidewalks in April."
• Sales for the quarter fell short of expectations and represented only less than 1% growth over previous year's figures.

Husqvarna

•  Husqvarna, who makes garden power tools and robotic mowers, reported lower-than-expected earnings for Q2 2019.
• The company also blames the weather for not meeting margin expectations.
• Its peak sales season is the end of the first quarter and the beginning of the second, but cooler temperatures made customers reluctant to buy.
• Additionally, Husqvarna also blamed a "challenging retail market" and higher commodity prices in the US.
• Sales shrank by 3%, compared to the previous year.
• The company had already closed some divisions (related to gas-powered mowers) the year before.

Research Strategy

LawnStarter

• LawnStarter is an on-demand mowing and outdoor services startup that was founded in 2013.
• Already present in 120 U.S. markets, the company is expected to continue to grow and has recently secured a $10.5 million growth investment.
• LawnStarter is not only profitable, but it is growing 100% year-over-year.
• They are seeing an increase in sales because the lawn care industry is generally decentralized and caring for a home typically requires hiring several companies. Consumers like that they can get all their lawn care needs from a single company in LawnStarter.
• Additionally, LawnStarter's professionals are vetted and fully-insured, which gives customers peace of mind.
• There are shorter waits through LawnStarter because consumers have access to numerous professionals who provide quick quotes and time estimates.
• More growth is expected as more millennials become homeowners because "millennials are more likely to outsource this sort of work than perform it themselves."
• The company also plans to add additional services like pest control to its offerings, which will also spur growth.

MowMagic

• MowMagic is an on-demand lawn service app that connects lawn service providers with homeowners.
• Sales are growing for MowMagic, which is evidenced by the fact that between May 2018, when the company launched and June 2018, the number of lawns mowed through the app doubled each week.
• In April 2019, MowMagic expanded to 10 new cities and has plans to expand to 15 more cities in 2019. This expansion represents a growth in sales.
• Consumers are finding out that they would rather outsource lawn work than do it themselves, which is driving sales growth for MowMagic. Other customers are only using the service in emergencies, but are doing so with more frequency.

Robin Autopilot

• Robin Autopilot is a lawn care company that leases robotic lawn mowers to homeowners and sells them additional services like edging and weed-whacking that are done by human contractors.
• In 2017, Robin Autopilot had installed 36 robotic lawn mowers.
• By 2018, the company had installed 200 robotic lawn mowers and had signed on two more franchisees, signaling a growth in sales.
• By 2019, Robin Autopilot had 15 franchisees in 12 states and had installed more than 1,000 robotic lawn mowers. Since each robotic lawn mower represents a sale, it is clear this company is growing quickly.
• As further proof of growth, Robin Autopilot was purchased by the Fahey Group in July 2009 because it viewed Robin Autopilot as "a rapidly growing pioneer in robotic mowers for the U.S. market."
• One reason for the company's growth is that homeowners are realizing that robotic lawn mowers keep the grass healthier and reduce pollution.
• Since the robot lawn mowers tidy their lawns each day, some homeowners are willing to pay more for the fresh-cut look, especially when they do not have to do the work themselves.
• Homeowners also like the fact that robotic lawn mowers free up time that they can dedicate to other lawn care tasks, even if they decide to do those themselves rather than hiring Robin Autopilot.

Our Name Is Riding On It (2017)

• AriensCo launched a video featuring its residential zero-turn lawn mowers for its spring campaign in 2017.
• The video ad was entitled "Our Name Is Riding On It" and was intended to showcase Ariens' brand integrity as a manufacturer of lawn mowers and snow movers.
• The company stated, "This campaign explores the meaning behind that simple act and what it means to Ariens – ​a promise to always make the best lawnmowers and snow removal products."
• AriensCo ran the commercial ad in digital spaces including CNN, USA Today, Time, Fox Sports, HGTV, AccuWeather, The Weather Channel and others.
• The campaign video garnered over 5,500 views in 2017 on YouTube.
• AriensCo reprised the commercial in 2018, which received more than 1,000 views on YouTube.

Built To Mow The Distance (2017)

• AriensCo brand Gravely released a video commercial in 2017 as part of its spring campaign.
• The company said the "Built to Mow the Distance" TV spot was intended to showcase Gravely's professional zero-turn lawn mowers.
• Ariens Company Marketing Vice President Matt Medden said, "We have a lot of excitement for the things that we're doing with the Gravely brand".
• The brand also shared that the TV spot was inspired by landscapers who use the products.
• The commercial ad was shown in national programs including the NCAA basketball tournaments, SEC network, Fox News, CNN, in-game programs and other shows.
• The campaign video also garnered nearly 17,500 views on YouTube.

Mow The Distance (2018, 2019)

• Gravely also hosted its annual Spring event "Mow the Distance" campaign in 2018 and 2019.
• The campaign event ran from March 22-30, 2019 across the US and later in Canada.
• Customers who attended the campaign availed of 20% discount on commercial lawnmowers and other products.
• Dealers were also given 10% of dealer cost on each unit sold.
• Gravely's campaign used web ads, social media, static images, post cards, and a mini poster.
• The event was also promoted at the NCAA March Madness tournament, in ESPN, Fox News and Discovery Channel.
• Though no success metrics were published, AriensCo CEO Dan Ariens said of the event, "It was exciting to see the success and growth of the week-long sale this year, and we look forward to bringing it back next year."

Facebook Campaign

• Husqvarna developed a campaign that used videos on Facebook and Instagram to introduce its Automower robotic lawn mower.
• The goal of the campaign was to raise awareness of its new automatic lawn mower among its preferred consumer segment of men and women age 25 and older who are early adopters of new technology and are homeowners with an interest in home improvement.
• In partnership with MediaCom, a content agency, Husqvarna created a series of 15-to-30-second video ads that introduced the "battery-powered, robotic lawn mower called Automower" and emphasized its quiet operation by comparing it to cutting a lawn-like carpet.
• The videos also showed the Automower "navigating around objects and cutting grass perfectly on its own."
• Initially, the ads ran in Florida, Georgia and Alabama because spring comes early to those states, but eventually the ads were expanded to the rest of the U.S.
• Analysis shows that younger men in particular were more aware of Husqvarna lawn mowers, but there was a 19-point lift in brand awareness among both genders.
• In addition, there was a 30-point lift in ad recall and a 12-point lift in message association.

Lawn Calculator

• Husqvarna used banner ads to promote its automatic lawn mowers.
• In partnership with DigitalLbi Stockholm, Husqvarna created a Lawn Calculator that allowed consumers to enter their street address to calculate the approximate size of their lawn.
• Once the lawn size was calculated, the consumer would receive a recommendation for the proper model Husqvarna automatic lawn mower for their specific needs.
• The goal of this ad campaign was to target Swedish customers who were having trouble determining which model lawnmower they should buy.
• The banner was placed on the "largest real estate website in the country" since people who are interested in lawn mowers are usually homeowners or people who are looking to buy a home.
• There are no publicly available results for this campaign, but it did earn AdAge's Editor's Pick in March 2015.

Smarter Summer Job

• In summer of 2019, Husqvarna launched its Smarter Summer Job campaign, which was designed to illustrate how simple it is to get a "perfectly mowed lawn with Husqvarna’s Automower robotic lawn mower."
• Two college students were selected as "Masters of Chilling," and sat in a lawn chair at the Miami Zoo while the robotic lawn mower did all the work.
•  The students engaged with passersby at the zoo and on social media to explain the features and benefits of the Automower.
• This live commercial lasted for 10 days, during which the college students sat under umbrellas, with a glass of water and their smartphones as the mower finished their summer job.
• Four finalists were announced on the company's Facebook page and visitors were invited to vote for their favorite candidate on Husqvarna's website.
• The winners were paid $15 per hour to supervise the Automower and received a full day of training to be able to speak intelligently on the product.
• There are no publicly available results of this campaign yet due to its recency.

A Cut Above for Robomow

• Robomow, a leading manufacturer of robotic lawnmowers, intended to undergo an advertising and PR campaign in order to increase its brand recognition and raise "awareness of the robotic lawn mowing concept in the UK in general."

• With the marketing agency Eden, Robomow implemented a four-year long (2013-2017) PR and advertising campaign to promote the RC and RS ranges of robotic lawnmowers, along with launching its new RX model, wherein its strategy was to promote the products' affordability and durability as well as raise brand awareness.
• The company implemented a highly targeted media relations program during these years to secure national brand coverage in leading newspapers, such as The Sunday Telegraph, Daily Express and T3, along with securing reviews through multiple shopping pages to build brand recognition.

• As a result of the continous four year campaign, Robomow secured a brand image and frequent mentioning within the gardening sector along with securing total coverage on shopping pages for the new RX model over an eight-month period, ultimately reaching a total of over 42,627,000 people.
• The other notable highlights of the result of the campaign include the brand's mentioning in national newspapers, such as The Telegraph and The Independent along with other technology publications such as FinTech, T3 and UK PC Magazine, wherein 70% of all coverage referenced the Robomow website.

Norway’s Ugliest Lawn

• To beat the competition in the Scandinavia region and to create brand awareness during the peak sales period of May through July 2017, the company, along with its distributors support, launched a humoristic advertising campaign known as Norway’s Ugliest Lawn.
• The various elements utilized to implement the campaign included a Facebook competition page, Facebook posts and ads, Web banners and in-store posters.

• Through the Norway’s Ugliest Lawn campaign, the company asked the public to publish pictures or videos of their ugly lawn on Facebook or Instagram, along with an explanation as to the reason why their lawn should be awarded Norway’s Ugliest Lawn. The winners were to be awarded with a premium robotic lawn mower by Robomow.
• Additionally, a competition app was created on the Robomow distributor's Facebook page with ads aimed towards the selected target group in order to drive traffic to the campaign's page. In phase two of the campaign, a voting and sharing promotion was promoted by reposting selected entries on the distributor's Facebook page and encouraged visitors to vote on their favorite with the ultimate objective in sending the campaign viral and raise brand awareness.

• As a result of the advertising and branding campaign, the company and its distributors gained increased brand awareness during the peak sales period, and there was an increase in sales, albeit sales figured were not disclosed, along with 1.5 million impressions, 8,000 clicks, a reach of 300,00 persons in the target-group, and 500 votes for the 130 pictures uploaded.

A Man’s Best Robot

• During the period of 2013-2018, Robomow launched a campaign with a focus on brand strategy and visual identify intended to strengthen its positioning and refresh its brand in several European countries.

• The campaign's intent was to implement a brand character by building a human-robot relationship and attaching personality traits with the Robomow lawn mower product range to help with home chores.
• The campaign highlighted the features of the robotic mowers of the company stating it as stronger, faster, edging and friendly, along with raising brand awareness through various elements, such as "rewriting and redesigning marketing materials for 21 countries, to leading workshops with international and local partners, to reconstructing Robomow’s brand architecture, and enriching product design"
• As part of the campaign, a new website and Robomow App 2.0 app was developed.

• The campaign resulted in facilitating and raising a new level of faster growth in the home robotics industry, along with raising brand awareness, wherein the new brand image was embraced by partners in all markets.
• The new Robomow App has been downloaded by more than 10,000 users through the Google Play Store.
• The website robomow.com gained 53.74% traffic through internet searches and 8.82% through referrals.

Advertising Campaign 1: STIGA Czech Republic

• An advertising and marketing campaign was run by Market UP agency on behalf of the exclusive importer and distributor of Stiga products in the Czech Republic.
• The campaign included multiple online channels. 

• The aim of the campaign was to strengthen the Stiga brand name and to increase sales in the whole partner sales network in Czech Republic.
• This included increasing site traffic, clicks on partner sites, and search inquiries. 

• At the top of the campaign, STIGA sales reached their historical record in Czech Republic. 
•  Site traffic objectives, conversion rates, clicks objectives and search inquiries targets were largely exceeded.
• The site attracted 48,000 visitors resulting in a 50% rise in traffic.
• The conversion rate reached 12%. 

Advertising Campaign 2: STIGA Poland

• In Poland, an agency named Feb handles all sales and image campaigns of Stiga's local branch.
• A video in Polish posted on YouTube with 628,000 views was created as part of the campaign.
• The campaign run by Feb on behalf of Stiga Poland included both online and offline channels, as well as a variety of reach initiatives.

• The aim was to optimize the use of multiple channels in the campaign to reach sales targets.
• Specifically, the campaign was aimed at strengthening the image of the brand and boosting sales online.
• It also included the launch of an online blog on gardening. 

• In terms of results, the Polish campaign run by STIGA increased the conversion rate in the online store, as well as the number of online searches for local STIGA dealers.
• Most importantly, the advertising campaign resulted in a sales rise to the extent that some stocks were exhausted.

Advertising Campaign 3: STIGA UK "Test the Best"

• In the UK, Stiga ran a campaign in 2018 aimed at promoting their cordless range of garden equipment, including lawnmowers.
• During the campaign, customers would be able to ask their local Stiga dealers for a free trial of cordless lawnmowers, powered by an 80V battery that can also be used on a range of garden tools.

• The aim of the campaign was to promote a new range of cordless garden tools, and raise sales by letting customers try them before any purchase has to take place, and test the company's claim that they were as powerful as their petrol models. 

• A promotional video that was released when the cordless range was launched gathered 4,300 views on Vimeo in 2017.
• The video is published on the official promotional web page. 
• There were no publicly available results published online for this campaign.

Bosch 125 Years (2011)

• The company launched its 'Bosch 125 Years' campaign in 2011 to celebrate 125 years in business.
• The campaign invited consumers to purchase one of its Rotak LI lithium-powered lawn mowers and another garden tool to receive a commemorative cheque.
• The cheque is worth 125 euros to mirror Bosch's 125 years.
• Customers are required to fill up a coupon available in stores or in the website www.bosch-garden.es to qualify.
• There were no publicly available results from Bosch or its website www.bosch-garden.com/ regarding the campaign's results.
• The campaign featured the Rotak 34 LI, LI 43, and Rotak 37 LI lawn mowers which were equipped with the new "System Ergoflex" design.

Smart Living Roadshow (2017)

• In 2017, Bosch partnered with Event Marketing Solutions (EMS) to roll out the Smart Living Roadshow experiential campaign.
• The campaign brought the company's 4 business areas (Bosch Home Appliances, Power Tools, Worcester Bosch and Smart Homes) together to showcase Bosch's integrated products and services for sustainable lifestyle.
• Consumers were able to try the Bosch Indego robotic lawn mower on the experiential set.
• Bosch said it intended to let customers to "experience a smarter way of living" through the 4-month campaign tour.
• EMS reported that the campaign has engaged 89,189 visitors, with 81% saying they would like to invest in a Bosch product.
• The agency also reported that 95% of visitors said they were more likely to buy a Bosch product after experiencing the campaign.

Like a Bosch (2019)

• Bosch's unveiled its recent campaign "Like a Bosch" featuring its lawnmower among other products in 2019.
• The campaign intends to promote Bosch as the leading provider of connected products and services including its robotic lawn mower.
• The campaign features a hip hop video clip starring an IoT user enjoying his daily routine "like a Bosch" thanks to connected products including Bosch's robotic lawn mower.
• Bosch's video garnered over 20 million views on YouTube and Facebook across 8 nations in 2019.
• As of January 2020, the 'Like a Bosch' video has garnered over 23.3 million views on YouTube.

The Honda Buffalo Advertising Campaign

• In September 2018, American Honda Motor Co. launched an ad campaign to promote the new features of the Honda Buffalo lawnmower.
• The advertisement campaign was created and run by DPR & Co, an independent advertising agency based in Melbourne.
• The fully integrated ad campaign's theme was "Greatness From the Ground Up," and was aimed at promoting the new features of the Honda Buffalo lawnmower as one of the most important products ever introduced by Honda.
• The ad campaign featured "CAD style animation that highlights the innovative new features of the Honda Buffalo" and was launched on free-to-air and subscription TV, social media, outdoors, digital channels, and point-of-sale.
• According to the marketing manager at Honda, Susan Barca, the campaign was the first iteration of the Honda Power Equipment's latest marketing strategy and the company's critical HRU range of product lines in a compelling manner.
• According to Richard Ralphsmith, DPR&Co co-founder, the new Honda Buffalo lives up to Honda mowers' reputation of being reliable and durable, and hence their advertising campaign focused on the "design philosophy of the Buffalo and Honda’s technology leadership.”
• While the success metrics for this campaign may not be publicly available, DPR&Co considered the campaign a success and even went ahead to launch another campaign for Honda.

Honda Promotes Its Full Range of Lawn and Garden Mowers

• In September 2016, Honda "launched an integrated spring campaign for Honda’s lawn and garden range" through DPR & Co.
• The campaign was a parody of the movie "Field of Dreams" and was supported by a series of social activations whose main aim was to "connect with the pride that Honda lawn mower owners have for their gardens."
• The campaign, dubbed 'Satisfy the Toughest Critics' aired throughout Australia on free-to-air TV and other digital channels. 
• According to Susan Barca, marketing manager at Honda, the campaign purposely used the protagonist to connect with garden owners and their love for the garden.

Greatness in Your Garden Campaign

• With the success of the Honda Buffalo campaign, Honda launched another campaign dubbed 'Greatness in Your Garden,' taking Honda’s best of breed technology and deploying it back into a garden."
• The commercial features passers-by looking over the fence to have a glimpse of the greatest garden in the street.
• The intention of the campaign was to tap into the pride that Aussie gardeners get when they achieve the highest results on their garden using Honda's garden equipment and end up having the greatest garden in the street.
• The campaign was run on TV, digital, and social channels. 

Cub Cadet Launch of Pro Z Series

• Cub Cadet was a respected brand in the residential lawn mowers market, however, the brand struggled in the commercial market.
• The challenge of launching Cub Cadet's new Pro Z Series was taken up by the agency Colle McVoy.
• The new Pro Z Series claimed to have used the thickest cutting deck in the industry. Colle McVoy's strategy to launch the new series of lawnmowers was to use the industry professionals who visited the Cub Cadet factory to test the product on the job.
• The industry professionals who visited the Cub Cadet factory were also influencers in the industry and surely, their positive sentiment about the product could prove to be of great assistance in launching the product.
• Colle McVoy decided to create press releases on boards made of triple-7-gauge steel.
• The agency created testimonials and Go Pro videos of the real landscapers using Cub Cadet's new Pro Z Series lawnmowers. Real landscapers also appeared on retail posters and product brochures endorsing technical details of the product with comments and photos from the field.
• Thanks to the campaign, the new series of lawnmowers from Cub Cadet "saw enthusiastic buy-in" and the brand's commercial category experienced a 50% growth in sales.

Troy-Bilt's Won't Let You Down

• Troy-Bilt created the 'Won't Let You Down' guarantee with the agency Marcus Thomas.
• The aim of the campaign was to live up to customer expectations and offer 100% dependability.
• The company, along with the agency, analyzed the customer journey of Troy-Bilt customers to look for areas that could be enhanced. After analysis, Troy-Bilt launched the campaign according to which they would cut their customers' grass until their faulty lawnmower is fixed.
• In a survey conducted after the launch of the campaign, more than 80% of the customers said that the guarantee was an important motivator in aiding their decision to buy Troy-Bilt products.
• The survey also suggested that over 60% of the new Troy-Bilt product owners were very likely to buy Troy-Bilt products again.

Wolf-Garten

• Wolf-Garten partnered with Bild & Ernte to build a campaign for the marketing of their brand.
• The collaboration started in 2015 and the aim of the campaign was "to reinvent the traditional Wolf-Garten brand while retaining its valuable core brand message." The campaign was launched to regain the company's lost fanship among its target audience — the younger generation.
• The agency helped Wolf-Garted in completely redesigning the packaging and design.
• The campaign spanned across all forms of digital and print media including "all print material, high-impact campaigns, creative ideas for social media and online sales campaigns as well as modern product and image videos."
• The campaign helped rebuild the brand among garden owners, which was also obvious as "customer trust in the brand revived and sales picked up."

Research Strategy

What Will You Create?

• Deere & Company launched a campaign that pitched its lawn mowers as art tools that can be used to redecorate yards.
• The company created three 30-second commercials that show customers proudly displaying their mowed yards.
• A goal of the campaign as to target homeowners who were skipping vacations to have a "staycation" and would spend more money on redecorating their homes and lawns.
• One commercial featured "South Carolinian Pearl Fryar who turned his lawn into a world renowned topiary garden by logging 1,200 hours on his John Deere lawn tractor."
• Another commercial showed "Larry Carlson of Bridgehampton, N.Y., who turned a five-acre potato field into a work of art, complete with beautiful rustic gardens and a labyrinth."
• These three commercials were part of an overall $15-million "What Will You Create?" campaign that were scheduled to run a full year.
• In addition to television, the campaign also used print and digital ads to direct customers to a microsite where customers could upload pictures of their own lawns. 
• The television ads appeared during March Madness and specifically targeted male basketball fans who are also homeowners.
• There are no publicly available results for this campaign, but it did make the Best Ads on TV website.

Put the Best to the Test

• To advertise its new 100 Series lawn tractor, Deere & Company set up a "Put the Best to the Test" immersion experience in 39 malls across 22 U.S. markets.
• The mall campaign targeted men between the ages of 35 and 54 and was designed to drive traffic to a "series of ride-and-drive events at nearby Home Depot stores and Deere dealerships."
• The immersion experience included several interactive activities including a "dissected mower deck, an exhibit showing how much lighter Deere mowers are than competing brands, a demo of the Deere’s signature fully welded frame (it doesn’t use bolts), and a presentation of a 12-point Ready to Mow checklist."
• Visitors were also able to sit on a 100 Series lawn tractor to test its comfort as brand ambassadors discussed the various features of the mower and the upcoming arrive-and-drive events.
• Deere also teamed up with local radio personalities to hype the mall events and introduce the product to audiences.
• The mall teams gave away 7,000 literature packets and 6,794 ride-and-drive invitations.
• There were also 2,000 e-photos taken and 2,500 brand premiums handed out to visitors.

MowerPlus

• Deere & Company created a mowing app that would help homeowners make better lawn care decisions.
• The company's MowerPlus app for iOS and Android tracks mowing metrics, provides a summary of the current mowing session, and offers maintenance tips to keep the lawn mower running well.
• Users are able to track real-time statistics like area covered and average speed. They can also see an aerial view of the user's mowing path after each session.
• The app keeps track of how long it has been between mows and offers "maintenance and service recommendations based on the model of [the] mower."
• Other features of the app include step-by-step instructions on how to fix common issues and the ability to contact a local dealer through the app itself.
• The app not only works with the Apple Watch, but it also provides region-specific and climate-relevant suggestions for taking care of a Deere lawn mower.
• MowerPlus has a 3.5 rating out of 5.0 on the Apple Store and a 2.4 rating out of 5.0 on Google Play.
• Within months of its debut, the app had logged more than 1,000 lawn mowing hours and had been "downloaded thousands of times."
• It was also "featured in several newspapers, magazines and online blogs."
• Although official download statistics are not publicly available, Joshua Hoffman, user experience manager for John Deere, stated, "We’re really pleased with the number of downloads so far."

Research Note

AriensCo's Lawnmower Line SWOT Analysis

Strengths

• Ariens's zero-turn lawnmowers are a clear strength for the company.
• An Ariens executive said that the company's zero-turn lawnmowers are popular due to their cost-effectiveness, durability, and comfort.
• An August 2019 article quoted an Ariens's employee who said that the zero-turn lawnmowers made in the company's Brillion facility have attained "double[-]digit growth."
• A specific zero-turn lawnmower model that the company makes is the Zenith, which was the company's "first commercial zero-turn mower." Sales of that model succeeded in Europe and, as a result, the company launched the model "in the U.S., Canada and other regions of the Americas."
• Ariens has a long-standing history in the business, as its experience in manufacturing exceeds 80 years.

Weakness

• An Ariens executive identified an area of weakness for the company, including with regard to its lawnmower line, in stating the following: "[W]hile Ariens is good at building to three- to six-month forecasts, its business model and products don't lend themselves to a quick-turn, build-to-order model."

Opportunities

• The global market for zero-turn mowers presents a strong opportunity for Ariens, even though the company already excels with such products.
• From 2019 to 2025, the global market for zero-turn mowers is projected to experience 26% growth, which equates to a revenue increase that exceeds $487 million during that time frame.
• Ariens is capitalizing on the zero-turn lawnmower potential, as it recently started producing zero-turn lawnmowers in Oxfordshire, which are though to "be the first zero-turns to be manufactured in Europe."
• Ariens stated that it has observed "exceptional growth in demand for zero-turn mowers in the UK and Europe" plus the U.S.
• A blog post from Ariens published on September 7, 2019, stated that in Europe, sales of zero-turn lawnmowers have increased by over 30% during "the last four years, making them the fastest growing category of ride-on mowers and third fastest in the lawn and garden power equipment sector."
• Ariens expects that the increasing demand for zero-turn lawnmowers will continue.
• In a June 2019 Forbes article, the CEO of Ariens said that "[n]on-carbon-emitting mowers are an opportunity." He further noted that "[i]n Europe, robotic battery mowers are taking over. There’s a bright future there for those who keep up."
• In the aforementioned Forbes Article, the CEO of Ariens also identified the commercial mowing segment as an opportunity/area of growth.

Threats

• A threat facing Ariens with regard to its lawnmower line is that competition in the market for zero-turn mowers is expected to increase. Ariens's CEO noted the level of competition as a threat for the company in stating that the company is "in an industry with really tough competition."
• In the previously mentioned June 2019 Forbes article, Ariens's CEO, Dan Ariens, identified tariffs, regulations of emissions, trade wars, and lower costs as threats facing the company.

Research Strategy

Strengths

• Husqvarna Group is a market leader in the lawn mower sector. The company has a presence in more than 140 countries and a market equity of approximately $170,000,000.
• Husqvarna Group had new product releases and innovations in 2018 for the professional and consumer segments. The company is investing in market-leading consumer products in the lawn mower space and penetrating into the professional market with the launch of Husqvarna Automower 535 AWD.
• The company has been profitable by being innovative and making strategic investments in robotic lawn mowers and other business segments. In addition, Husqvarna Group has a strong global distribution network and practices cost-efficient product manufacturing. The company has 170 strategic suppliers and 25,000 retailers and dealers.
• Between 2015 and 2018, Husqvarna Group significantly reduced the carbon footprints of its products by 10%. The company achieved this through using renewable electricity in manufacturing.

Weaknesses

• The production process for lawn mowers is not highly automated, therefore, it is not the most suitable for remanufacturing, which is important in improving the company's profitability.

Opportunities

• There is increased demand for lawn mower products from the European consumer market and the market is not yet saturated.
• The US lawn mower market, the largest in the world, remains untapped.
• Consumer demographics are changing. By 2030, in North America and Europe, the number of people who are over 55 years old will be higher than those who are under 19. The shift in these demographics are changing the purchasing power and opening new opportunities for innovation.
• The robotic lawn mower segment is growing faster than other segments. In the past five years, the segment grew by 20% annually. Furthermore, robotic lawn mowers have significant potential in sectors, such as sports, commercial, parks, and hotel.

Threats

• Climate change could result in reduced demand for Husqvarna Group's lawn mower products. In 2018, Central and Northern Europe had a late spring, which was followed by a dry, hot summer. Consequently, the company suffered from lower demand in its lawn mower line.
• The growing robotic lawn mower market is attracting many competitors resulting in the need to be innovative and updated with new technologies.

Strengths

• Robomow lawn mowers can be controlled by smartphones, voice-activation, or an app.
• Robomow has received multiple international awards, such as The Gadget Show, Tech Nuovo, Trusted Reviews, Rad & Ron, Beste Product, Slinky Studio, Clickx, BestStuff.com, Bast Test, Balius, among others.
• Features patented 'Grasscycling' technology that can cut grass into tiny bits of mulch.
• Robomow is the supply-partner to Robin Autopilot, a leading monthly subscription-based lawn mowing service provider in the US.
• It offers unique features like Bluetooth connectivity, support team reporting, anti-theft system, rain sensor, GSM connectivity, Android and iOS app, Alexa support, among others.

Weaknesses

• Low footprint, as Robomow offers a product line for home-use only.
• Robomow product line is a bit noisy at 66-75db, and they can climb a slope of 36%, unlike Miimo 310 that can operate at a 45% slope.
• Most of the products can mow down small-sized lawns. Also, the mower can run only once in 24 hours.

Opportunities

• Since the company offers all-electric equipment only, it can gain the opportunity to replace conventional gasoline-based lawnmowers. New lawn mowers are being developed that consume 90% less energy than traditional alternatives.
• Develop smarter systems that can better differentiate between humans, dogs, critters, small animals, and kids. Also, new systems not requiring perimeter wire are being developed by top companies.
• Europe is the largest market in the world, and it features petit-sized residential lawns, requiring smaller lawnmowers. The opportunity lies in developing more powerful machines to cater to the larger acreage landscaping market of the US.
• Increasing awareness about environmental impact, health and social benefits of well maintained green spaces are some factors driving the market growth globally.
•  Growth in the residential construction segment of developing countries is noted. Also, the upcoming Tokyo Olympics 2020 will increase the demand among Japanese consumers.
• Another growth opportunity lies with the growing market for home automation systems.

Threats

• In Europe, animal activists are concerned about the fact that autonomous lawn movers can hurt or even kill hedgehogs or small animals due to imprecise detection.
•  Artificial grass turfs are gaining popularity owing to low maintenance and cost-effectiveness.
• Competition from Chinese companies and volatile raw material pricing can slow down the growth of the European robotic lawn mower market.
• The market for medium and large-sized equipment is slowing down due to the increased use of landscaping services.
• The competition among robotic lawnmowers is anticipated to increase, as numerous companies have started developing a range of products with smart features and advanced technology.

Strengths

• STIGA offers a diverse range of products in the lawn mower category, including robotic, front mowers, tractor, zero-turn mowers, cylinder mowers, and Titan front mowers. Additionally, it offers both lawn mowers with different power sources such as battery, electrical, and petrol-powered engines. This broad selection enables it to meet diverse lawn mowing needs.
• STIGA has many patents in the lawn mower segment, with many of those patents filed recently (2015 and above), which shows the company is innovative and can thrive in the face of soaring competition.
• The company has a recognizable brand, and according to many market reports (here, here, and here) is listed among the key players in the lawn mower industry across different segments and geographic markets.
• STIGA has been in business for more than 90 years.

Weaknesses

• The STIGA Group is a sum of five distinct European brands: STIGA, Alpina, Mountfield, Castelgarden, and ATCO. All these brands equally sell lawn mowers. The research team deduces that a negative situation that affects one of the brands may negatively affect STIGA's reputation and brand.
• The STIGA Group does not have an office in North America, while it only has one distributor in the region (Canada).

Opportunities

• As battery capacities increase and become more affordable, STIGA can offer more options to its customers.
• Husqvarna describes the robot segment as a "fast-growing segment" and notes that the "demand in the European consumer market has grown rapidly in recent years and still remains a substantial growth opportunity as the market is far from saturated. Other markets like the U.S., which is the largest lawn and garden market in the world, are still untapped."
• Therefore, from the aforementioned bullet point, the United States market for robotic lawn mowers is still largely untapped and presents a huge opportunity for the company.
• Similarly, the opportunity to consolidate and grow in the European market equally exists for STIGA.
• With the growth of robotics and artificial intelligence-powered lawn mowers, STIGA can leverage the Internet of Things (IoT) to gather and analyze data that can be used to develop and design new features that solve pressing consumer needs.

Threats

• The sales of lawn mowers are susceptible to prolonged adverse weather that is unfavorable to the growth of lawns. For example, Husqvarna, another lawn mower manufacturer blamed "cold weather for a fall in second-quarter sales in 2019 and said the dip in demand meant it would probably not achieve its margin target this year."
• Lawn mower sales are also susceptible to economic fluctuations and challenging retail markets. For example, Husqvarna blamed "rising commodity prices and a challenging U.S. retail market environment" as reasons for a dip in revenues for the second quarter of 2018.
• STIGA also faces an erosion of its market share, especially in the battery and robotic lawn mowers. According to Husqvarna, the segment is growing rapidly and attracting new entrants and different competitors; as such, STIGA and similar companies need to stay innovative and take the lead of the new technology.
• Sustainability has been a key global theme in recent times and is breeding new regulations with regard to energy use and recycling in more markets. As such, STIGA runs the risk of failing to meet the set regulations, which can lead to a dent on the company's brand reputation.

Bosch's Lawnmower Line SWOT Analysis

Strengths

•  Bosch dominates the market for lawnmowers in the U.K.
• Bosch has been at the forefront of lawnmower innovations, by equipping its mowers with the latest technologies. For example, Bosch's Indego S+ robotic mower is "the only robot lawnmower that can use weather forecasts to automatically decided when best to mow the lawn."
• A strength of Bosch's lawn mower line is that the business sector that it's a part of within the company, Consumer Goods, constituted approximately 23% of the company's 2018 total sales.
• Bosch states that a focal point of its Consumer Goods segment (which its lawn mowers are a part of) "is convenient, high-performance cordless tools, and increasingly also web-enabled tools and services."
• Bosch's EBIT (earnings before interest and taxes) increased for its Consumer Goods segment from $1.239 billion euros in 2017 (equivalent to approximately $1.4 billion USD, rounded to the nearest tenth) to $1.149 billion euros (equivalent to approximately $1.3 billion USD, rounded to the nearest tenth) in 2018.

Weaknesses

• Revenue dropped in Bosch's Consumer Goods segment (which includes its lawn mowers) from $18.5 billion EUR (equivalent to approximately $20.6 billion USD, rounded to the nearest tenth) in 2017 to $17.9 billion EUR (equivalent to approximately $20 billion USD, rounded to the nearest tenth) in 2018.
• A weakness within Bosch's Consumer Goods segment (which includes its lawn mowers) was that, in the company's own words, "[d]evelopments in [the] Consumer Goods [segment] were subdued."

Opportunities

• An opportunity for Bosch with regard to its lawnmower line is that "[t]he global robotic lawn mowers market is expected to reach $2.69 billion by 2024, growing at a CAGR [compound annual growth rate] of 14.69% during 2018[-]2024." That data illustrates an excellent opportunity for Bosch, especially because it is "increasingly using artificial intelligence in consumer goods[,]" including lawnmowers. For example, Bosch has a robotic lawnmower called Indego and the latest-version "collects and analyzes sensor-based data such as motor currents, acceleration, speed, and orientation each time it is used."
• The global market for electric lawnmowers represents an opportunity for Bosch with regard to its lawnmower line. Said market includes battery-powered mowers, which Bosch makes. Between 2018 and 2024, the global market for electric lawn mowers is expected to grow about 8% each year and thus reach a total value in 2024 of about $7 billion.
• Growth drivers behind the projected, increased demand for electric lawn mowers are "[t]he influx of battery-operated garden equipment and the declining prices of Lithium-ion battery." Thus, that projected growth presents an excellent opportunity for Bosch because the company said that it's "steadily expanding our portfolio of cordless devices."
• In discussing its Consumer Goods segment (which its lawn mowers are a part of), Bosch stated that "[t]o be even more innovative in the future, it is essential to work with users to develop products based on their needs."

Threats

• The use of artificial grass is becoming increasingly popular globally for both commercial and residential areas, which thus poses a threat to Bosch's lawnmower line.
• Since Bosch is engaged in the market for robotic mowers, a threat facing the company's lawnmower line is that an increasing number of low-cost, robotic mowers are consistently being launched. Additionally, another threat is the "volatility in raw material prices[, which] are hindering the global robotic lawn mower market."

Research Strategy

Strengths

• Honda's approach to product design, for all its products, is to fully understand the "tool's real-world applications" in order to engineer a product which "would connect the machine and the user" to build a product that would appeal to anyone who uses it.
• In 1976, this meant obtaining grass samples from the US and Europe to better understand the engineering requirements of a lawn mower. This style of approach has not changed, with the company still prioritizing "actually feeling, and absorbing" as a critical component in its design process. It is both a strength in their research and design and a unique competitive advantage.

• The results of such an approach in engineering quality lawn mowers is evident in the infrequent product recalls, having had the need to recall a lawn mower product 11 times since 1988, the most recent being in January 2014 for a faulty engine stop switch.
• Their lawn mowers are manufactured in "the United States, France, Australia, China and Italy" for local and international markets, with a sizable amount of their 500,000 annual sales occurring in Europe and in North America. Having a global manufacturing approach reduces the risk of production or supply chain delays.
• Honda works closely with its supply chain partners to ensure they meet sustainability regulations and adhere to Honda's own expectations. Having such a strong network allows Honda to ensure its lawn mower products are fit-for-purpose in each country, for example, in the US their lawn mowers are 50-state certified as meeting "CARB and EPA emissions" regulations.

Weaknesses

• While Honda is among the world's top lawn mower manufacturers, they have not been quick to change up or renew their lawn mower product lines in the US having only just started production on "its first new line of mowers in 20 years" in Swepsonville, North Carolina.
• The company has seen year-on-year losses for the past 5 years in its power products line, Life Creations, which is acknowledges is as a result of reduced sales in lawn mowers which, in Europe alone, saw a reduction in 3.7% in unit sales while in "Other Regions (including South America, the Middle East, Africa, Oceania and other areas)" sales declined 10.3%.
• An attempt to introduce an environmentally friendly autonomous mower, the Miimo, has met with limited success in the US though it has been a hit in the European market. The company admits that it is "difficult for U.S. customers to get their minds around" which would appear to indicate that their marketing efforts in the US are not targeting the correct audience.
• Honda has indicated that it does not intend to move into electric-powered lawn mowers and, in fact, its redesigned line remains fuel operated with an engine designed to provide more power. This is potentially a limiting action given the growing popularity in robotic and electric lawn mowers.

Opportunities

• The robotic lawn mower segment which is expected to have a CAGR of 10% between 2019 and 2025 will provide an opportunity for increased growth in sales of the Miimo robotic lawn mower, which Honda introduced two years ago.
• The commercial lawn mower market is anticipated to see a CAGR growth rate of 5% between 2018 and 2024, in part triggered by increased demand in North America and Europe across a range of applications such as sports fields, public parks and other public facilities. Honda is looking to capture a broader segment in this market by developing a range of commercial mowers that are eco-friendly and safe to use.
• With increased awareness of climate change and the need for better management of our environment, green roofs will become more prevalent as will the need to maintain these areas. It is an opportunity for Honda to look at an innovative electric or robotic product to maintain them.
• Honda is already focused on sustainability and have the opportunity to align their lawn mower products with their automobile and motorcycle arms, maximizing on their economies of scale to capture the electric and robotic mower market.

Threats

• Customers expect to see upgrades to products and this is a potential threat for Honda as they do not anticipate introducing electric models of their gas-powered push mowers, particularly as electric mowers had "the largest market share of 29.86% in 2018". Further, vendors who also invest in customization will grow their target audience.
• An increase desire for smart lawn mowers with "enhanced connectedness" pose a threat if Honda chooses to focus its innovation efforts on its automobile business and not its lawn mowers.
•  Artificial grass poses a threat to all lawn mower manufacturers as its use is becoming more common in both residential and commercial projects.

• A highly competitive market landscape will continue to pose a threat to Honda's position, particularly those taking advantage of rapidly improving technology to capture the rapid growth in robotic lawn mowers.

Research Strategy

Strengths

• MTD is a manufacturer of lawnmowers and has a staff strength of about 6,800. The company operates through several subsidiaries and brands such as Cub Cadet, Troy-Bilt, Robomow, Rover, Yard Machines, Remington, WOLF-Garten, as well as Bolens. MTD provides innovative products (mowers) to care for lawns and has decades of experience doing this — it has made lawns "look great since 1958."
• MTD offers an extensive collection of mowers that come in different sizes and have different capabilities to suit the need of a large consumer base. The company's collection includes lawn & riding mowers, zero-turn mowers, push lawnmowers, and self-propelled lawnmowers. The company provides residential and commercial lawnmowers.
• MTD stands out by offering several power options for consumers intending to buy its mowers. Among its lawn mower power options is "gas power" or manual propulsion to suit the need of various consumers. MTD also offers electric and battery-powered mowers among its "environmentally friendly" products with zero (no) emissions produced.
• MTD has acquired the status of one of the "top vendors" of lawnmowers in the United States. The company has an expanding product portfolio.
• MTD mowers are associated with durability and innovation. In 2019, the "zero-turn riding mower" (an MTD product) raised the bar based on durability and operator comfort — It was named by Home Depot merchants and suppliers as the winner of its 2019 innovation award. This award reviewed several home improvement equipment to select finalists.
• According to Lawn Mower Reviews (a company that researches lawnmowers to help consumers in their selection process), a majority of MTD lawnmowers have unlimited and unmatched features and come in different models. MTD lawnmowers are well-designed and "marvelous in working." MTD's commercial lawnmowers do not have any major problems reported by consumers working with them as customers have been highly satisfied with these commercial MTD lawnmowers when compared to some of its residential mowers.
• The frames of MTD's commercial lawn mower models are durable.

Weaknesses

• Some lawnmowers produced by MTD can pose a risk to operators. About "5,000 Craftsman M350 walk-behind lawnmowers" recently produced by MTD are dangerous. Sharp objects can penetrate through the collecting bag on the lawnmowers to harm operators.
• MTD recently recalled about 5000 gas-powered lawnmowers (Craftsman M350 walk-behind), with model 12ABR2BK793. These mowers were produced between January and February 2019 and sold for approximately $400.
• The company recently asked consumers that have purchased the recalled mowers to "immediately stop using" them. The study assumes that this recall might embarrass the company, constitute some additional cost to operations and get some consumers who trust MTD disappointed.
• Some "low priced" residential lawnmowers produced by MTD tend to be associated with some problems related to their construction (back-end frame as well as trans-axle). These mowers have challenges such as durability, weak braking potential as well as the potential disconnection of their blades, which give rise to safety concerns.

Opportunities

• The global market size for lawnmowers is expected to be worth $40.8 billion in 2025 and will grow with a CAGR of 6.0% between 2018 and 2025. The market was worth $25.6 billion in 2017 — One of the key companies predicted to benefit from this global market growth is MTD products. Rising demand for well-kept yards, as well as backyard beautification activities around the globe, is responsible for the growing demand for lawn mowing products.
• There are growing requirements and demand for landscaping services as well as terrain maintenance across golf courses, residential lawns, sports fields, and public parks, which is fueling the growth lawnmowers in various markets of the world, including the United States market. MTD is one of the top (significant) providers of lawnmowers in the United States. Between 2018 and 2024, the United States lawn market will grow by a CAGR of about 4% to reach $13 billion.
• The size of "lawn areas" in developed countries is increasing, and this is contributing to the rising demand for medium- as well as large-sized robotic lawnmowers. MTD Products is one of the few vendors servicing the middle-sized robotic mower segment in the world.
• MTD Products recently partnered with Robin for the installation of its robotic lawnmowers across the United States through a network of robotic mowing franchises. Robin also maintains a supply agreement with MTD.
• According to MTD CEO Robert Moll, MTD Product believes in the "future of robotic mowing." The company (MTD) is working on adopting and tapping into the opportunities that come with the robotic mowing market through its partnership with Robin. The market for lawn mowers is segmented into manual, electric, petrol, and robotic, among other segments and the robotic segment is predicted to witness increased growth.
• The market size for robotic lawnmowers in Europe is forecast to grow to over $1.5 billion between 2019 and 2024, with a CAGR of about 13%. Online sales will account for a significant volume of the European sales of these mowers during the forecast period. Europe accounted for the largest segment of robotic lawnmowers market in the world in 2018, with a market share of over 68% in terms of revenue — MTD Products is one of the key companies providing robotic mowers in Europe (MTD is positioned to benefit from this vast European market).
• Europe, North America, Asia Pacific, and the rest of the world will continue to provide demand and opportunities for vendors of robotic lawnmowers. More opportunities related to robotic lawnmowers will emanate for vendors operating in Europe (including MTD) due to significant advantages robotic mowers possess over conventional lawnmowers.

Threats

• The competition witnessed in the robotic lawn mower market is very intense as producers are introducing many innovative as well as cutting-edge lawnmowers to capture a larger share of the robotic lawn mower market. Leading vendors operating in the global market are competing in terms of price, the services offered, product availability, technology, quality, efficiency, and product effectiveness. MTD Products is a "major vendor" of robotic lawnmowers in the global market.
• MTD Products is one of the key companies providing robotic mowers in Europe (thus, the company will also be affected by intense competition in the sector). Europe (where MTD is also a key market player) is a significant market for robotic lawnmowers and accounted for a market share (sales) of over 68% in terms of revenue in 2018.
• The study assumes that some less expensive MTD residential lawnmowers may not survive the competition from other players in the lawn mowing sector. The market share of residential mowers was more than that of commercial mowers in 2018. The study assumes that problems such as safety concerns, poor durability, disconnecting blades, and weak braking might make consumers of cheaper lawn mowing brands opt for products from companies if the issue persists.

Research Strategy

Introduction

Strengths

•  A key strength for Deere & Company is that they have, over time, established a strong brand history which instills trust in consumers.
• They also have a larger than average product portfolio.
• Compared to similar companies, it's noted that they have strong financials.
• They also have a significant amount of resources to allocate to R&D and innovation which allows them to keep a stronghold.
• The company also is known for their adherence to their core values, which include integrity, quality, commitment, and innovation.

Weaknesses

•  One source notes that Deere & Company struggles with insufficient utilization of assets. A financial report noted a goal of establishing and maintaining adequate internal control to remedy this.
• It is also noted that Deere & Company has a "lack of competitive advantage for smaller farm equipment" but it was not noted whether this same weakness extends to their lawn mowers.

Opportunities

• A key opportunity for Deere & Company is that technology advancements are allowing them to revolutionize equipment.
•  Emerging markets are also beginning to be able to afford higher cost lawn mowers, and growth of the population in these markets may also lead to increased global sales.
• Acquisitions in the agricultural and landscaping equipment sectors could lead to future company growth. 

Threats

•  One key threat is that despite the opportunity of emerging markets, there is a strong financial risks in foreign markets to consider.
• Changing laws and trade regulations could impinge on foreign sales. 
• It's also noted that if steel prices increase, production costs would as well, potentially decreasing overall profit margin.

Other Relevant Data

•  Key competitors for Deere & Company in the lawn mower space were Honda, Husqvarna, Troy Bilt, TORO, Kobalt, MTD, Hustler, Craftman, Cubcadet, LEO Group, Altoz, Ariens, Bolens, Brute, and Masport.

Research Strategy

Introduction

Metal & Mining

• Target users of compact construction equipment in the metal & mining space tended to be the same users that utilize heavy mining equipment, as the functions tend to overlap between mining specific devices and compact construction equipment.
• Specifically crushers and drill equipment were used in quarrying and mining, as well as compact earth moving equipment, which was often needed to assist larger construction vehicles moving dirt, debris, and rock from mining sites.
• Companies mining for industrial metals tended to be the most likely in the mining industry to utilize compact construction equipment
• The demand within the metal & mining space is for multi-function machines that allow customers to "achieve different mining tasks with precision and efficiency".

Construction

• Development projects that have a short construction cycle are most likely to utilize compact construction equipment.
•  Examples of this include residential apartments and transportation related projects, both of which require a high turnaround. Compact construction equipment helped teams allocate and perform multiple tasks at once to keep up pace.
• Compact equipment is also likely to be used by smaller companies or contractors looking to reduce resources, through fuel efficiency, as well as versatility, which allowed these teams to require less total pieces of equipment in their fleet.
• Construction projects that require work within confined or small spaces also will often rely on compact construction equipment, as it can increase productivity over traditional equipment.

Agriculture

• The versatility and multi-use functions of compact construction equipment has led them to be increasingly utilized on farms over traditional farm equipment.
• Additionally, the increase in need for earth moving and construction capacities on medium to large farms has increased demand for compact construction equipment, to perform these less traditional tasks.

Rental Market

• Companies are increasingly moving from buying to renting compact construction equipment, meaning a potential business target for compact construction equipment companies may be rental companies, rather than end users.
•  GPS tracking capacity specifically has increased the ability for rentals to be easily tracked and monitored, which is anticipated to reduce risk and thus boost the amount of rental purchasers in the space.
• The ease of transport and multi-purpose nature specifically makes compact construction equipment a better choice for those looking to rent equipment, compared to traditional equipment which can be more challenging to move, as well as serving only one function.

Research Strategy

Mergers & Acquisitions

• The current trend in mergers and acquisitions throughout the compact construction equipment industry was determined based on the fact that multiple credible industry researchers have highlighted M&A as an industry trend.
• According to market researchers QYResearch and 360 Market Updates, the compact construction equipment industry is experiencing a growing amount of merger activity, which is expected to help concentrate the market among a smaller number of major players.
• Notably, the compact construction equipment industry is characterized both by significant foretasted growth as well as intense competition amongst a large group of key manufacturers, both of which appear to be driving this trend towards consolidation.
• One recent example of this trend is the merger agreement in June of 2019 between ASV Holdings and Yanmar Holdings, two producers of compact construction equipment such as skid steer loaders and compact track loaders.

Electromobility

• Another trend in the compact construction equipment industry is the rise in electromobility for key products.
• This trend was identified by the preponderance of industry experts including OEM Off-Highway and For Construction Pros that have recently highlighted electromobility as an emerging theme or shift in the industry.

• This shift towards electromobility is being driven by a variety of factors, including potential cost savings, noise reduction, vibration minimization, and local government regulations.
• Meanwhile, Volvo is considered a leader in this trend, with its extensive investment in developing hybrid and battery-electric offerings, as well as its position as the first construction equipment manufacturer to make a public commitment to an "electric future for its compact machine range."

Technological Enhancements

• Finally, technological enhancements were selected as a trend for this industry given the fact multiple credible industry researchers including QY Research and Allied Market Research covered this as a current theme in the industry.
• Industry experts have reported that this shift is expected to further "propel" already strong projected growth within the compact construction equipment market.
• In particular, the integration of GPS tracking systems within the compact construction equipment industry is viewed as a "major trend" that will facilitate greater rentals of compact construction equipment.
• Notably, this shift is driven by consumer needs, including a desire to better protect machinery against theft, more easily operate/transport equipment as well as the ability to procure/operate products at a lower price point.

• Hyundai is one example of a company embracing this trend, with the manufacturer equipping products such as its compact excavators with an "exclusive" HiMATE remote monitoring system.
• In particular, this technology package uses GPS to enable the remote management of critical components such as product engines, while offering customers a number of time and money saving features.

Helpful Findings

• Two market research firms, Allied Market Research and QY Research, projected in 2018 that the global compact construction equipment market will grow at a compound annual growth rate (CAGR) of around 6% in the next few years. Allied Market Research projected that the market will grow at a CAGR of 6.2%, while QY Research projected that the market will grow at a CAGR of 6.1%. Both market research firms identify skid steer loaders as a segment of the market.
• It is worth noting, however, that in the second half of 2019, construction equipment manufacturers Caterpillar, Deere, Volvo CE, Komatsu, and CNH Industrial have all reported a slowdown in their construction equipment sales. The slowdown in construction equipment sales may be indicative of a slowdown in subcompact construction equipment sales as well because there is no evidence in the public domain that points to the contrary.

1. Caterpillar

• In December 2019, it was reported that Caterpillar was expecting a drop of 10% in its fourth quarter construction equipment sales. There was news as well that Caterpillar had plans to downsize a number of manufacturing plants.
• Caterpillar reported a drop of 5.6% in its third quarter revenue and a drop of 7% in its third quarter sales of machinery, energy, and transportation in the construction industries.
• The company attributed the decrease in sales to shrinking demand from the Chinese market, adverse dealer inventory changes, and competitive pressures.
•  Local players in the Chinese market are intensifying competition by prioritizing market share and volume sales over profit.

2. Deere

• In November 2019, Deere predicted that its construction and forestry equipment sales will decrease by as much as 10% to 15% in fiscal year 2020.
• Deere made this prediction in light of the slowdown in construction activity.
• Deere also cited its management of dealer inventory levels as one of the reasons behind the forecast.
• Wells Fargo downgraded Deere and Caterpillar's stock in September 2019 as a result of flattening construction activity and the shift from equipment purchase to equipment rental.

3. Volvo CE

• Volvo Construction Equipment or Volvo CE saw its net sales in the third quarter of 2019 decrease by 4%.
• The company attributes this drop in net sales to the slowdown in the construction equipment market. According to the company, the boom in the construction equipment market has come to a conclusion.
• Volvo CE President Melker Jernberg notes that "after several years of high market levels, demand for construction equipment is slowing down."

4. Komatsu

• In July 2019, it was reported that Komatsu's construction equipment sales from April 1 to June 30 had dropped by 5.5%. The quarterly amount fell from $5.943 billion in 2018 to $5.165 billion in 2019.
•  Komatsu attributed the drop in sales to the growing uncertainty in the Chinese market and the protracted trade rift between the United States and China.
• The company's sales in China in the quarter that ended on June 30, 2019, dropped by 28.3%.

5. CNH

• In November 2019, CNH Industrial reported that, relative to 2018, its third-quarter sales and first to third quarter sales fell by 5% and 5.7%, respectively.
• Construction sales dropped by 9% in said quarter, with lower industry demand and lower North American production and sales volume for channel inventory rebalancing cited as the reasons behind the drop.
• CNH Industrial described the market environment in said quarter as difficult.

Research Strategy

CNH Industrial

• According to their 2018 annual report, CNH Industrial has seen its construction equipment segment grew from $2.206 billion in 2016 to $2.53 billion in 2017, then to $3.021 billion in 2018.
• Their 2015 annual report suggests that the company experienced a dip in sales, with construction equipment revenues dropping from $3.346 billion in 2014 to $2.542 billion in 2015, before rebounding in 2017.
• Their 2018 report states that their construction equipment segment performance tends to correlate with the United States economic cycle, so the strength of the US economy has helped their recent sales figures.
• Its light construction sub-segment (which includes its subcompact equipment) is dependent on "the level of residential and commercial construction, remodeling and renovation," inferring that these factors have been in place to create positive sales for the company.

Sany

• Sany's 2018 annual report revealed 45.61% year-on-year growth with revenue of 55.822 billion yuan ($8.306 billion USD), with significant growth in its excavator line.
• Rapidly increasing sales in eight overseas regions, including Latin America, Southeast Asia, and Indonesia, have contributed to their growth, which the company attributes to their reputation for having leading products in the market.
• Sany notes that needs for equipment renewal, as well as increased efficiencies through digitization and cost control efforts, have contributed to their recent growth.

Komatsu

• Komatsu's primary reporting segment is construction, mining, and utility (compact construction) equipment. Sales in this segment have grown steadily from 1.566 trillion yen in 2016 to 2.466 trillion yen in 2018.
• Komatsu cites its wide range of products and its reputation as an international market leader with the success of its construction, mining, and utility equipment segment.
•  Product automation and innovations in the smart construction movement are helping position Komatsu as a leader in the construction equipment global market.

Research Strategy

Jam Packed with Japanese Engineering

• In 2012, Kubota released a print and television advertising campaign in Australia, produced by the Redhanded agency.
• The campaign offers a humorous approach to illustrate how much Japanese engineering goes into each excavator the company produces, showing engineers becoming part of the equipment they are building.
• Looking through the Redhanded agency case studies, we found several references to Kubota but none related to this specific campaign, which may be due to its age.

Shaping Australia

• In 2019, Redhanded developed a Kubota campaign called "Shaping Australia" to show how ingrained the company's farm and construction equipment has been in the Australian market.
• The campaign includes dramatic drone footage of Kubota farm and construction equipment at work with the message that the company has been "Shaping Australia" for the last 40 years.
• The success of the campaign led to the campaign being launched in New Zealand in 2019.

For Earth, For Life

• Kubota's motto is "For Earth, For Life," which appears to have been a campaign in its own right and is incorporated into the company's brand story.
• Their advertising campaign associated with this motto includes television commercials and an original soundtrack. While no success metrics were identified, its continued use for several years suggests it has been successful messaging for the company.

Heroes of the Jobsite

• The Heroes of the Jobsite campaign, developed by Sarah Hoehn Creative, was launched in 2017.
• This campaign is intended to be an evolution of Kubota's "Masters of Engineering" campaign, focusing on "grittier-looking machines majestically presented on the job site."
• The campaign included print, digital, and video ads, but no success metrics could be found.

YouTube Spots

• Kubota has several humorous YouTube spots, but it is unclear if they are part of a formal advertising campaign.
• The spots "Prison Break," "Giraffe," and "Mud" offer humorous takes on the benefits of Kubota construction equipment. Martin Williams Advertising produced the "Prison Break" spot, but it is unclear if they produced all three.
• The "Prison Break" spot was released December 19, 2019, and has 453 views, while "Mud" and "Giraffe" were released on November 29, 2018, and have 2,790 and 2,530, respectively.

Research Strategy

Trust Dual View Campaign

• In 2019, Wacker Neuson launched a communication campaign during the launch of its new Dual View dumpers.
• The intention of the campaign was to introduce the 20 models in the line. It was aimed at showing the "advantages of the innovative machines in an entertaining way."
• Wacker Neuson's 'dual view' dumpers gave operators perfect views during loading, transport, and dumping by allowing them to "conveniently and quickly change the seat position through a 180-degree rotation of the entire operator control panel and the seat console."
• The campaign's slogan was "You can work on your flexibility…or trust in Dual View." In the campaign's creatives, the company stresses that the operators do not need yoga lessons to improve their mobility since the dual view feature eliminates reverse operation.
• The promotional video starts with a machine operator struggling with yoga routines before going to work. The video ends with the operator throwing away his yoga stuff because he decided to trust in dual view instead.
• A couple of the promotional videos for the trust dual view campaign garnered 12,760 and 9,481 views on YouTube

Wacker Neuson Universe

• This is an annual event hosted by Wacker Neuson at its production site in Hörsching, Austria. The event introduces new products to its business partners and customers, and to allow them to test them on site.
• According to Wacker Neuson's 2018 annual report, the goal of the vent is to strengthen customer ties and to provide the brand with valuable market feedback.
• In the 2018, customers from the EMEA region were allowed to experience Wacker Neuson's "zero-emmision machines" and to exchange ideas. The guests were treated to behind-the-scenes glimpses through factory tours.
• Wacker Neuson says that the 2018 event was attended by over 5,000 visitors from all over the EMEA region.
• Wacker Neuson's Chief Sales Officer said, "We are very satisfied with the quality of the visitors and the positive feedback we received. The Wacker Neuson Universe has now become an institution for dealers and customers and gives us the opportunity to spend a lot of time exclusively with important partners."

• In 2018, Wacker Neuson partnered with Bike & Style sports festival for an "attention-grabbing presence throughout the event" held at the Munich Airport.
• Various Wacker Neuson machines including excavators, loaders, and vibration plates were used in the construction of the venue, all of which were on display. The brand also had its banner on the "30 meter wide and four meter high grandstand" with a seating capacity of about 500 people.
• The campaign was aimed at creating awareness of the brand among airport passengers and spectators alike. The campaign was also flanked with online ads on Facebook and print ads.
• The brand got exposure throughout the 17 days of the event.

Heroes in Construction

• Wacker Neuson's Heroes in Construction campaign was a digital, print, and social media campaign that was "launched through posters with a series of hero motifs."
• Wacker Neuson understood that it deals with a widely varied customer base and different target groups require different things. Therefore, the brand hoped to keep up with the profiles of all customer segments.
• To achieve this, Wacker Neuson developed a testimonial campaign in which the customers became the brand's ambassadors.
• Apart from keeping up with the customer profiles, the brand's goal was to "find the most spectacular video of a heroic act in construction."
• The campaign was conducted via online and web channels and was characterized by clear structures, striking motifs, and modern appearance. There were no readily-available success metrics for the campaign.

Those in the Know, Know Takeuchi

• For most of the decade (2010 to 2017), Takeuchi's tag line was "Those in the Know, Know Takeuchi".
• This concept was used in an Australian TV campaign in 2016.
• It was also available on YouTube, where Takeuchi has a robust channel that began ten years ago. It has not only advertising videos, but product demo videos, service videos, feature videos, and more. This appears to be Takeuchi's primary mode of communication with its customers.
• In the early part of the decade, other instances of Takeuchi advertising its products were found primarily in construction magazines, mainly in the form of advertorials. The company also exhibited at the largest North American construction equipment convention, which is offered every three years (2014, 2017, 2020).
• The only publicly available information to assess results is to link the activities back to the revenue. In 2015, Takeuchi's revenue was $646 million US, while in 2017, it grew to $768 million US, (converted from yen), an increase of 18.8%. 

From World First to World Leader

• After visiting a construction site and seeing workers using shovels and pickaxes, Akio Takeuchi designed the "world's first excavator in 1970. This concept led to one of the highest growth product segments ever introduced in the compact equipment market." Leveraging this story, Takeuchi rolled out a new advertising tagline and campaign called "From World First to World Leader."
• All five group companies worldwide (Japan, US, U.K., France, and China) worked together to strengthen the Takeuchi brand. At the same time, the US company was given responsibility for coordinating the ideas into a global marketing strategy.
• The same marketing strategy of videos, occasional articles in construction trade magazines, and attendance at trade conventions has been carried through from 2017 to the present.
• Videos are available directly on the Takeuchi home page and categorized into Service Videos, Feature and Instructional Videos, and Walkaround videos, which talk about each model currently available (16 as of January 4, 2020).
• A comparison of revenue from 2017 to 2019 shows income in 2017 of $768 million and 2019 of $1,019 million (both converted from yen). This growth of 32.7% seems to validate their advertising strategy.

Social Media Strategy

• Takeuchi has a vibrant and active Facebook page and community of 21K followers.
• There are three major types of posts. Takeuchi creates the first type with information for current customers, such as a recent article on learning about "Takeuchi Fleet Management (TFM), and how to set it up on your Takeuchi machines."
• The second are pictures taken by customers from the cab of their machine as they work, or from job sites. Many of the images posted are stunning views of mountains and lakes.
• The third type of posts has the hashtag #takeuchipup. Owners take pictures of their dogs, and sometimes cats, in their machines.
• All three of these types of posts are engaging and resulting in comments and shares.
• In contrast, Takeuchi's Instagram page is a hodgepodge of selfies and pictures of construction sites. It does not appear to be managed or curated like the Facebook account is. Takeuchi has no Twitter account.

Research Strategy

Get Down to Dirt

• John Deere is one of the most well-known construction equipment brands in the world, but it discovered that small farms did not view equipment in the same way as large farms.
• Smaller farms often viewed John Deere products as those that were meant for construction, large farms, and forestry purposes and did not have an understanding of the compact construction equipment that could benefit them.
• Rather than show small farmers what its compact construction equipment could do for them, John Deere decided to have them discover it themselves by giving five smaller scale farmers video cameras to tell their own stories.
• Each farmer was given an iPad Mini with 3G service and instructed on how to use it. Basic parameters were also given, which included how often they should shoot, how much footage they should get, and some tips on getting good footage. There were no instructions given on what they should film.
• The iPads were set up to automatically forward the footage to the ad agency Quarry so the company could start putting the campaign together.
• Dealers visited the farmers to discuss what compact equipment would be best for their needs and the equipment was delivered in the fall so that the farmers could use it for an entire season.
• According to John Deere, the farmers "started to imagine new possibilities for what they could do with their land — they developed a new outlook on their farm."
• There are few publicly-available results of this campaign, but John Deere stated, "To date, the campaign is outperforming the engagement metrics we set out for it and demo sign-ups are on par with other online sign-up programs John Deere has run... It is outperforming industry and John Deere benchmarks for Facebook CPMs and cost per engagement."
• On YouTube, "Get Down to Dirt Series: Rob & Joanna" received over 2,500 views, "Get Down to Dirt Series: Dwayne & Tonia" received over 1,700 views, "Get Down to Dirt Series: Jeremy & Donna" received over 1,600 views, "Get Down to Dirt Series: Tarrah & Nathan" received over 1,600 views, and "Get Down to Dirt Series: Rosemary & Ken" received over 1,500 views.
• After seeing the campaign, one John Deere employee said it made him want to become a farmer and comments on social media showed an increased awareness of John Deere's compact equipment line: "I love John Deere’s video site with the small agriculture stuff. I would have felt silly pulling into a John Deere dealership for our needs before seeing the ads. Truthfully. I just didn’t know John Deere did much in between large mowers and huge tractors."

Smackdown

• John Deere advertised its 313 Skid Steer on its Skid-Steer Smackdown website.
• The Skid-Steer Smackdown website, which is no longer live, pitted skid steer equipment against each other in tug-of-war battles. The site showed "real contractors using Deere machines to complete various tasks and competitions inspired by real job site conditions, as well as battles pitting Deere units versus competitors."
• Skid Steers were "chained to each other in a 34-foot-diameter circle with the object of the battle being for one skid steer to get its own four tires outside the circle."
• The 313 Skid Steer had just come on the market the fall before it entered a Smackdown battle against "an established rival in the small-frame skid-steer landscape."
• A goal of this campaign was to demonstrate the 313 Skid Steer's strength given its size, which at the time was the smallest skid steer to enter the competition.
• Other competitions such as a hill climb were also part of the Smackdown and the "John Deere 313 [made] quick work of the moguls and the berm as the assembled crowd of over 1,000 cheer[ed] the competitors on."
• John Deere wanted to give current Deere customers a small-frame option for their equipment fleets and to give "owners of other small skid steers the opportunity to move up to the performance and reliability of a Deere."
• Following the Smackdown demonstration, John Deere took its Smackdown show on the road to give contractors the ability to try out the machines on a Smackdown-style course to see what the equipment could do.
• There are no publicly available results of this campaign, but the 313 Skid Steer won its battle and Sam Norwood, manager, John Deere Commercial Worksite Products, stated, "I was proud to see our 313 skid steer go toe-to-toe in strength, but the overall balance of our machine over uneven ground was the key to victory here... The machines' performance during these Skid Steer Smackdown events should show customers that they're taking a big-time step up in performance and reliability when they turn to Deere."

Small Machines. Big Impact

• To advertise its compact construction equipment line for small contractors, John Deere hosted a contest called "Small Machines. Big Impact."
• The contest asked landscapers, construction contractors, and other professionals to explain how they could "make a positive difference in their communities if they won a new G-Series machine."
• The person who provided the most impactful idea would win a "new John Deere G-Series skid steer or compact track loader (CTL) and one Worksite Pro™ attachment."
• The second-place and third-place winners would receive a "year-long lease on a G-Series skid steer or CTL from John Deere Financial."
• Finalists were selected based on the "criteria of community impact, alignment with one of the John Deere Corporate Citizenship priorities: solve world hunger, education or community development and the value the utilization of a John Deere skid steer or CTL would add to the project."
• The public was invited to vote on the finalists to determine the grand prize winner.
• There are few results available for this campaign, but there were 665 entries to the inaugural contest and more were expected for the second-annual contest based on the "overwhelming response" to the first edition.
• Additionally, more than 20,000 people visited the contest website to view the entries and vote.

First Date with Caterpillar

• In an effort to target new customers in the landscaping and agricultural industries directly (rather than through dealerships), Caterpillar created a campaign that encouraged small business owners to go on their "first date with their Cat dealer."
• Traditionally, Caterpillar has been known for its large commercial equipment and its smaller compact equipment was relatively unknown. Data analysis prior to the campaign showed that 58% of customers did not know about Caterpillar's compact and small equipment.
• Furthermore, customers who would typically use Caterpillar's compact equipment believed it was out of their price range and viewed the brand as aspirational. Caterpillar's marketing communications manager stated, "The new guy with the dirty vest and shoes isn’t comfortable with going into the ‘Taj Mahal’ of a dealership to buy Cat products."
• Since most Caterpillar customers do not use mobile or email as much as workers in other industries, the campaign sent physical letters to potential customers' mailboxes.
• The direct mail campaign encouraged customers to go on their "first date with their Cat dealer" and offered them a free pair of Cat Boots in exchange for a sales consultation.
• The brand is known for its Cat Boots and according to the company's marketing communications manager, "a pair of Cat Boots will get the customer moving to pick up the call and call their respective Cat sales representative."
• The campaign increased the company's reach to over 510,000 new customers and resulted in more than 4,200 sales consultations and leads.
• Caterpillar also "saw an average sales close rate of 33 per cent and achieved $53 million in revenue" for its compact and small equipment line.

China Shop

• In an effort to showcase Caterpillar's mini excavator, a compact construction product, it created a short film called "China Shop," in which an operator maneuvered a Cat 301.7 CR Mini Excavator "through a crowded 'shop' stocked with over $40,000 USD in delicate merchandise."
• This video was the third in a series of short videos for its "Built For It Trials" campaign that was designed to target a new audience outside its typical customer segments and rebrand the company as "relevant and approachable" rather than a cold Fortune 500 company.
• In the video, the mini excavator enters the shop with just a couple of inches of clearance on either side. The mini excavator is then maneuvered around the "extremely tight quarters of the shop — packed with over 3,000 pieces of china, crystal, stemware and other precious objects."
• For its final display of agility, the mini excavator picks up a single wine glass and gently places on top of "a stack of glasses to form a sixth tier."
• At the end of the video, the words "Engineered for small spaces and big expectations" are displayed across the screen, which then fade to the "Built For It" slogan written in several languages.
• Finally, the hashtag #BuiltForIt appears on the screen, along with the company's website address.
• Although there have been few publicly released results of this campaign, the "China Shop" video has received 1,073,997 views on YouTube.

Introduction to Caterpillar's Compact Equipment Line

• When Caterpillar decided to expand its offerings to include compact equipment, it ran into an issue of the company being synonymous with large earth-moving equipment.
• Dealers were hesitant to sell compact equipment to small contractors because the group was "a fragmented audience with very little awareness of Caterpillar’s compact equipment line."
• The ad agency behind the campaign, Rhea-Kaiser, decided to "leverage the cache of the Caterpillar brand and appeal to the aspiration of owning big Cat equipment, calling attention to its legacy of tough, long-lasting equipment in a new compact size."
• Using the concept of Caterpillar's large equipment as parents and the compact equipment as off-spring, the agency created several ads that included statements like "Same tough genes now available in a smaller size," "Rugged runs in the family," "The next generation of tough," "Same bloodline. Smaller offspring," and "We built our reputation on size. Now we're doing it again."
• The ads were channeled through television, digital, print, direct mail, out-of-home, and point-of-sale, and were included in dealer communications.
• There are few publicly available results of this campaign; however, it led to 100% dealer participation in the compact equipment line launch and "helped Caterpillar exceed sales goals."

Overview

• The global market for compact construction equipment is projected to grow at a CAGR of roughly 6.1% over the next five years, reaching $16,400 million US in 2024.
• Compact construction equipment is a relatively new term used in the construction equipment industry. It refers to small units "designed to work on small commercial and residential sites. The major utility factor of compact construction equipment is their versatility and ability to perform tasks that were previously undertaken by heavy machinery."
• Kubota is headquartered in Osaka, Japan. Their website shows compact excavators, wheel loaders, track loaders, skid steer loaders and tractor loader backhoes in their compact construction line of equipment.

Strengths

• Kubota has an annual revenue of $17.3 billion coming from its 186 consolidated companies around the world. Founded in 1890, Kubota began its foray into the compact construction business in 1974. In 30 years, it grew to become the third-largest company of its type by revenue in the world. (Caterpillar at $55 billion, John Deere at $39.3 billion) With over 40,000 employees, they have been the world leader in mini excavator sales for 17 years running.
• The company has a strong organizational focus on sustainable development goals. They describe themselves as a company "contributing to the world in the areas of food, water and the environment under the brand statement 'For Earth, For Life'."
• Internally, they use the term "Global Major Brand" to identify their desire to make the most significant social contribution by being trusted by the largest number of customers. They use Sustainable Development Goals (SDGs) as their compass to provide products, technologies, and services.

Weaknesses

• A review of employee reviews shows a clear pattern of discontent, reflected by a high employee turnover rate. They also have minimal opportunities for women in any upper level. One of the reviewers suggested they look at the female managers at John Deere.
• Consumer Affairs ezine has numerous reviews of poor quality in the equipment. The company has a weak aftermarket service, including owners having difficulty finding parts.

Opportunities

• The rising demand in developing countries is reflected in the booming construction industry in many African countries. This increase provides a "good opportunity for companies that manufacture construction machinery and equipment." Meeting this need is in keeping with Kubota's strategic direction. Their overseas revenue ratio has increased from 18.7% in the year 2000, to 46.1% in 2010 and 68.8% in 2018.
• Growth is not only coming from private construction efforts. There is a rise in public-private partnerships, along with increasing government investments for the development of infrastructure.
• Kubota is developing new technologies for the provision of management systems using IoT in the field, as well as reducing CO2 emissions "by introducing a solar power generation system in their buildings". They are also working to satisfy the "increasing demand for technologically upgraded and fuel-efficient equipment for refining construction activities around the world."

Threats

• Demand notwithstanding, the current global macroeconomic environment is complex and challenging. The continuing growth of protectionism, along with the slowing of the world economy, could cause severe challenges to equipment demand in the near term.
• Kubota has analyzed the water stress of its production activities at sites around the world and has identified ten locations in the Osaka Bay area, Tokyo Bay area, Okinawa, Saudi Arabia, and the Midwest area of the United States, where the water "used for its production activities is taken in areas with a relatively high level of water stress." Kubota is working to mitigate these environmental risks.