Clear information about the past and present condition of Digger’s Company in U.K

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This assignment is based on the comprehensive study of the core subject of Marketing Management. The assignment includes detailed industry analysis as per the teaching of course and clear information about the past and present condition of Digger's Company in U.K.

Digger Inc. is the flag bearer company. It has two key areas of business one is Machinery and other one is Engines. Digger's Inc. is also the pioneer manufacturer of electrical goods in all over the Europe. It was established in early 1900's in Geneva. Digger's Company currently has strong market shares of 43% in the electronic market and has the strongest dealership network all over the Europe which can help in the success of new products as they are also entering in clothing and footwear market. Digger's Inc. has recently developed and launched a complete range of scale models of all the most famous Digger Inc. machines, plus videos and DVDs of Digger Inc. machines in action, and now children caps and T-shirts on the "I Love DIGS Machines" as the strap line.

This assignment discusses market orientations and a complete marketing strategy of Digger Inc. with respect to four P's and also SWOT and PESTEL analysis.

History & Introduction Of Digger Inc.

Digger Inc. is one of the leading manufacturers of different machines, engines and electrical goods. Diggers Inc. has been serving customers in Europe since the early 1900's based in Geneva. Its first major European facility was established more than 50 years ago in the United Kingdom.

The products manufactured by DIGS have always been of high standard and the name DIGS is synonymous with QUALITY all over Europe. Since its inception, the company has been working for the advancement and development of engineering know-how in all over the Europe. The company has produced hundreds of engineers, skilled workers and technicians through its apprenticeship schemes & training programs.

DIGS has been continuously adding new products to its range. As a result, DIGS has registered a significant increase in its sales volume, during the last ten years.


Mission Statement

Digger's Inc. Today and Tomorrow

Vision Statement

"Journey towards excellence"

Digger Inc. (DIGS) company comprises of two divisions:

• Machinery Division

• Engines Division


DGIS machinery division is the flag carrier of the Diggers group of companies. This division of DIGS consists of machines manufacturing to serve customers in the construction, forestry, mining, earthmoving, waste and paving industries.

Construction Machines

A wide range of heavy machines which execute specific construction tasks under power. The power plant is generally an integral part of an individual machine, although in some cases it is contained in a single prime mover such as a towed wagon or roller.

Forestry Machinery

Forestry is the systematic management of forests used for the creation of lumber and other resources. While concern about the exhaustion of forest resources days back to the colonial time. The expansion of the technology and science of tree growing in all over the Europe widespread doubts of unverifiable wounding of forests and increase of the authorities of the federal government permitted for trained foresters to seek and in specific methods to gain important influence over the nation's forests. DIGS introduce forestry machinery for the best results in this field.


DIGS Engines Division manufactures engines for different type of machines and equipment's as well as trucks, ships, boats and more. All these electrical goods are assembled

under strict quality control and in accordance with international standards.

Over the years, DIGS electrical equipment has had been used in numerous power projects

of national importance within Europe.

In spite of stiff competition from emerging local and multinational brands, DIGS Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnerships with Caterpillar, Dan Foss, Samsung and others have enabled the DIGS Group to incorporate new technologies into existing product ranges, thus giving the U.K Market access to innovative, affordable and quality products.

Market Orientation

Today maximum successful businesses or companies take market oriented approach. A marketing orientated method means a company responds to what its customer want. Marketing orientated company is completely based around customer needs and wants information rather than what a company thinks is good for the customers.

We can say a company is a market oriented when that company or a business philosophy is thoroughly and systematically dedicated to the constant formation of superior customer value. Indeed, this includes collecting and gathering information data on competitors, customers and other important market influencers for example controllers and contractors to use that value in building.

There are three key components of a market orientation:

Customer Orientation

Competitor Focus

Cross-Functional Coordination

An increasing stream of applied exploration has originate a solid connection among a number of measures of business market orientation and its working, including customer retaining, efficiency, sales progress and a new product achievement.

Customer Orientation

To generate superior value for consumers constantly requires that retailer recognise a consumer's whole value chain and not only today but it also evolves over the time. Consumer value can be made at any part in the value chain process by making the consumer extra effective in the same markets.

A business which is market oriented recognises the total cost and full revenue subtleties not only of its instantaneous objective consumers but also of all the markets outside, for demand in the instant and upstream markets is resulting from the request in imaginative downstream markets. Hence, a business which is market driven develops a widespread understanding of its clients' and how its consumers in immediate & downstream markets distinguish value.

Market oriented businesses employees spend considerable time with the customers. Supervisors and workforces throughout the industry call on their clients or convey them into their personal services in a continuous exploration for many new ways to fulfil their needs.

Competitor Focus

Customer focus is a heart of a market orientation business. Generating superior consumer value requires more than just concentrating on customers. The strategic questions are those on which technologies, competitors and target clients identify them as different satisfiers. Greater value involves the supplier recognise and realise the principal opponents' short term weaknesses and strengths and also long term abilities and approaches.

Cross-Functional Coordination

Coordination of personnel and former resources through the company or a business to generate value for customers is the third part of the market orientation core components. One point in the customer's value chain is an opportunity for a retailer to produce value for the consumer firm. IT means that any individual in any occupation in a retailer firm can theoretically contribute to value creation

Organizational Departments

Finance Department

Marketing Department

Sales Department

Trading Department

Customer Service Department

Human Resource Management Department

Production Department

Distribution Department

Finance Department:

Finance department provide money for the working of the organization. DIGS Company's department borrows loan mainly from U.K national bank and settle terms and conditioned of the interest and time period of returning the load with it. When the sale is made the company firstly return the loan with interest.

Marketing Department:

Marketing department is the back bone of any firm. Marketing department generally analyze the needs and wants of the customer. Then this department tells about the customer needs to the company which in turn launches the products according to the needs of the customers. Marketing department is responsible for making strong advertisement for the products.

Sales Department:

Sales department is responsible for making sales of the product. This department generally takes orders from the market, gives information to the credit control department. Area credit control department gives information to the head office. Head office discuss situation with the finance department and then at last finance department gives authority to area credit control department to settle term and conditions with dealers.

Trading Department:

This department is involved for importing products. This department imports the required products according to the demand of the customer such as split unit. This department is controlled by its head, which works directly under the head office. This department sends terms and condition of trade to the head office and finance department for the financing.

Customer Service Department:

This department is very much important for the company because it makes the good will of the company. It provides services to the customers who have their clams and makes the customer loyal. It also gives the feed back to the head office to provide the required spare parts.

Human Resource Department:

Human resource department of the DIGS Company is very much conscious of hiring the employees for the company. The standards he set for hiring the new people. HRM department of the company mainly makes the external recruitment. This is usually done through newspaper web sites extra. HRM department also set salaries, packages and TA, DA allowances.

Production Department:

Production department is involved only producing the products. This department purchases raw material from the suppliers. Then pass the raw material from various dyes machines, modelling machines etc; from the assembly line according to the required shapes of the products.

Distribution Department:

This department distributes the final products from the production department to the dealers and then ultimately to the consumers. This department is only responsible for distributing products according to the requirement and demand of the sectors.

Managerial Functions



Planning is very much important function of the management. DIGS Company makes the planning regarding machinery products by observing the market. How much a company can sales in a particular segment's there any chance of growth is also in the planning of the company machine products.


The company planning regarding different engines firstly is the observation of

the market. Then after observation how much to import the engines. Finance and

trading department also give suggestion for planning regarding these products. Then set their

plans according to the requirement.



The organizing regarding machinery how to make availability of different machines assured. Taking in the account the policy regarding machinery products of the company how much to produce and when to produce etc…Almost all the department are involved in organizing and also how much margin to give to the dealers.


While organizing the company takes into account that the last year sales and how much to sale in a particular area. Mainly quality control, finance department and trading department are involved in organizing for how much to import, when to import, where to import etc…



Head office mainly leads all departments regarding machinery. All

the sub ordinate department officers lead the related department and employees and loyal

to the head office for their working. There is check and balance situation for every



Head office mainly leads all the related department of the split units. Trading department is mainly the leader in split unit case for importing it and direct reliable to the head office. For leading it also give its requirement to its head office for finance and for the quality control of the product.



Controlling is the main functions after making the pervious steps. Managers of the each department control its own department working and are liable to the managing director. There is check and balance situation. In controlling, monthly and annual basis analysis are made. How much sale is made and for the betterment of the product research and development department then do its job.


In controlling of the engines, trading department mainly control the import of the engine motors. It checks the quantity of the units and quality control department checks the quality of the product before launching it in the market.

Strategic Management Model

Macro-Environmental Scanning

Macro-Environmental scanning is the monitoring, evaluating and discriminating of information from the external and internal environment to keep people within the corporation. The company scans the environment in the following way:

General Forces:

It includes:

Political & Legal Forces:

DIGS Company is very much conscious about the political and legal environment of the country. The company changes its labour wages which is registered whenever a govt. changes the labour laws.

Technological Forces:

DIGS Company tries to adopt the future technology for using in the product. They always keep in view the technology for increasing the quality of the product for their customers. On the basis of modern technology, company is the market leader regarding the appliances.

Economic Forces:

Economic forces means change in disposable Income, flections in the market, inflation, change in rate of interest etc…Company always keep in mind the economic conditions of the country and sets its prices accordingly.

Social Cultural Forces:

It includes environmental concerns, work life quality attitudes and also work force diversity etc…DIGS Inc keeps in view the social culture changes of the country and sets its target accordingly.

Task Environment:

It Includes:


Digger Inc customers include various U.K. government organizations such as British Electric Corporation and British Telecom regarding power divisions. DIGS Company has also internal and external customer.

Internal customers are those who are the employees of the company which don't makes big affect on the sales. External customers are those which are the outsides the company such as general pubic except employees.

Supplier Diversity:

Diversity within company's supply base is dominant to Digger Inc in struggle to mirror the varied marketplaces in which company operates. Passion for constant improvement is the driving life-force behind company's Supplier Diversity Initiative, as DIGS strategically position varied suppliers who provide best quality products and excellent services, volume flexibility, cost competitiveness and innovation in support of business.

Within Supplier Diversity, company's greatest goal to provide sourcing opportunities throughout organization to a wide-ranging of diverse business types, to include:

Facility Disabled Expert Owned Business

Handicapped Owned Business

In turn, diverse suppliers efficiently support DIGS various dealings and day-to-day operations. DIGS Supplier Diversity Initiative offers a prime opportunity for mutual growth.


DIGS Company has its competitors like Caterpillar, Deere and Company, Melroe Company etc. DIGS Company makes close analysis of its competitors to understand its strategies and to overcome its deficiencies.

Public Pressure Groups:

There is no public pressure group which affect the working of the company because DIGS Company makes product by viewing all its aspects which don't affect the societal environment of the economy.

Internal Environment


Company has very systematic structure; the information flows from top to low bottom and from bottom to top mean mechanistic style have rigid chain of command.


The company has strong culture. Employees work in teams and have set great expectation and values for the incoming employees.


It includes:


Heavy Machinery, Skill full Employees etc…


Labour skills, employee skill etc…


Quickly responsible to competitors


Half and annually based training.

Strategy Formulation


Digger's Inc. Today and Tomorrow


Company has its objective regarding machinery to be number 1 in the market in the coming years. Company also set the objective to make the home appliances like split air conditioners in future.


Company has a comprehensive master plan to achieve its mission and objectives. Company is trying to stabilize its market share regarding its machines and engines and also want its growth in the future.


Company has its policy to maintain the quality of its products at lower cost and provides the consistent value satisfaction to the customer.

Strategy Implementation

Strategy implementation is the process in which strategy and policy are put into the action through the development of program, budgets and procedures.


Program is the statement of the activity of the steps needed to accomplish a single use Plan. DIGS Company has a program to make its own split units.


A budget is a statement of the corporation program in term of money. In Planning and controlling list the detail cost of each program. Company set a budget for making machines in its own company and it's also for having advertising.


Sequential steps to complete program known as procedure. Company's program for making split units includes procedures. How much to purchase from supplier and at what cost.

Evaluation & Control

It is the process in which cooperates activity and performance results are monitored so that actual performance can be compared with the desired performance. DIGS Company makes the evaluation by acquiring the information at all level from managers. And then they take the step for controlling the situation if it is not matching with the desired performance.

Business Analysis

SWOT Analysis

SWOT stands for strength and weakness of an organization in the light of opportunities and threats outside the organization.



Company has its strength in machines

Customer loyalty

Trade and experienced staff

Usage of Vinyl coating material

Compressor quality (DAN FOSS Germany)


Company has its Strength in Split Units.

Low cost from others

Long Term Performance

Low power consumption



Company has its weakness in Machines

No uses of compressor drain try

No use of drain tries


Company has its weakness in Engines

Performance problem



Company has the opportunity

Can increase it sales due to loyalty

Can import due to its name


Companies have the opportunity

To make split units

Control prices

Can increase its market share



Companies have the opportunity

Competitors can produce similar products

New foreign companies

Reduction of prices



Political or legal forces means law and order situation in the country. It includes Country policies for trading companies. Political and legal situation regarding Digger Company is stated as:


Registered Labours

Increase wages when govt. changes Labour policies

No political affects


No pressure from political parties


Mean economic condition of the country such as change in dispose bale income, fluctuation in market, inflation rate etc...Company sets the prices according to the economic situation of U.K.


Middle and upper class

Generally in inflation situation buying power decreases

Reduction of prices

Reduce of quality


Cost of product is main thing



Employees Work in Shifts.

No Women in Work Force.

Employees are well settled according to the culture


Socially no affect



Technology Affects The Working OF A Company.

Company Adopts Modern Technology

Receives Feedback.


Use of modern Of Technology.

Quality Checking.

PORTER's 5 Model

Bargaining Power of Supplier

Bargaining power of DIGS Company's suppliers is comparatively low due to the large number of supplier such as Abdullah and hearts, Pals Codes system etc…

Bargaining Power of buyer

DIGS Company has high bargaining power as compare to suppliers due to presence of many suppliers.

Threat Of New Entrant

There is always a threat of new entrant. DIGS Company is facing a threat from foreign a local companies.

Existing firms

DIGS Company competitors like Caterpillar, Deere and Company, Melroe Company etc. can reduce its appliances products prices.

Threat Of Substitute Product

Caterpillar, Deere and Company, Melroe Company etc. can produce substitute products at low rates which is threat for the company.

BCG Matrix


DIGS Machinery is placed in star box because it has high share and market growth. Its Machinery has 45% of the market share and also increasing its market growth.


Engine is also placed in star box due to high market share and market growth. Engine Division has 30% of the market share and continuously increasing market growth.

Marketing MIX






Product is a thing that satisfies customer demands. DIGS Company is very much conscious to make the products which satisfy the customer needs.

Company makes the product:

According to the needs of the customer

What kind of size and model they want

What kind of features and functions they want

What kind of packaging they want


Price is very much important because it attracts the customer in first look. DIGS Company is very much conscious about price.

Company sets the prices of the products by

Analyzing the market situation

Actual cost of the product

Marketing expenses of the product

Profit margin of the company

Comparison to other home appliances

Setting deal with dealers


Place plays a very important role for any company's product. If the product is not rightly placed, company will suffer from loss.

Company places its product:

According to the requirement of customer and market

In more populated area of the city

Against competitors products

More convenient to the customers


Once company makes the product, it needs promotion for the awareness of the customers. Unless a company will not arrange for promotion a products can't succeed.

DIGS Company promotes its product through:

Bill Boards


News paper



ISO Detail

There are some requirements that the DIGS Company fulfil to get the ISO certificate.

International Standard Practices

Total Quality Management

Good Management practice

Key Force



State Of The Art Production

Commitment For Quality

Efficiency Monitoring Process

Zero Defect

Future Plans & Prospects

The Company wants to be No.1 in the coming years.

Moreover it was a sales oriented company previously and now it is going towards the Marketing concept.

They want to manufacture the home appliances.

In addition to that, company wants to set plants for local assembling of the key products, which are becoming popular day by day in the market, such as Split Unit.

The Company may target another segment of lower income by producing cheaper split units. Their current target market is upper class and middle class.

Suggestions & Recommendations

After the core study of the DIGS Company I suggested to the DIGS Company to do:

More aggressive advertisement

To manufacture different type of machinery and home appliances in their own company

Company should to team building by regular basis meetings

Lower staff members suggestions should be taken as important advise