2000 - WesTrac becomes Northern China Caterpillar dealer HQ located in Tianjin

2004 - WesTrac Secures dealerships in New South Wales & Australian Capital Territory from Gough and Gilmore and begins operations April 9th 2004.

2010 - WesTrac and Channel Seven merge to create Seven Group Holdings Limited (SGH Ltd)

2010 - WesTrac acquires Bucyrus dealerships in NSW/ACT and WA in line with Caterpillar global mining strategy

2013 - WesTrac sheds 25% of its workforce due to downturn in the mining sector

(Seven Group Holdings 2014)

WesTrac has a proud history of being one of Caterpillar's largest dealers and embraces the latest technology and procedures into its business to provide their customers with the latest cutting edge product/techniques. WesTrac provides equipment management solutions to the following industries:

* Mining

* Construction

* On-highway trucking

* Marine

* Industrial

WesTrac has reported sales of AU$1.6 billion for the period 2013-2014 (as part of the SGH annual report).

(Seven Group Holdings 2014)

1. Alienation of construction customers

Both WesTrac and its customers came to identify it as a mining company, not a construction equipment provider. Ironically, sales of construction equipment had accounted for 60% of WesTrac's earnings prior to the mining boom. This focus on mining at the expense of construction created a strain on the WesTrac supply chain and resulted in substantially increased wait times for machine repairs and new builds. By neglecting the construction equipment market WesTrac created discontent and resentment amongst its previously loyal customer base.

This created opportunities for smaller competitors such as Komatsu, Hitachi , Kobelco , Volvo and Case New Holland to offer the same customers machines at better prices with faster delivery dates . With increased sales revenue these dealers were able ti invest in the same technology that previously allowed WestTrac Caterpillar to stand out from the competition and justify is increased sales costs.

2. Non-competitive hourly service rate

WesTrac has long been criticised for its high hourly rate. WesTrac will usually command an additional 15% of the industry average for every hour of technician labour. Customers consequently question the value of remaining loyal to WesTrac for ongoing equipment support, and WesTrac's recent marketing has failed to offer customers logical justification for the higher service price.

3. Diminishing long term contracts

WesTrac has been failing to secure long-term business through is mining group Maintenance and Repair Agreements (MARCs) and construction group Customer Support Agreements (CSAs). The high hourly service rate and dissatisfaction with response times for repairs has led to customers not renewing these agreements as the customers' perception has been that WesTrac does not value them sufficiently .

1) Communicate the value of the WesTrac brand

WesTrac must clearly communicate that WesTrac is loyal to all of its customers, regardless of the size of the business or the industry in which it operates. This communication must particularly be targeting towards current and potential construction customers. An example of this as discussed by Keller (2013) as part of this marketing campaign WesTrac could explain that the mining machines will only be worked on at specific branches and that this will leave all branches available service labour free to satisfy local customers needs .

2) Position WesTrac as a market leader in technology and automation

WesTrac also needs to reinvent itself as a market leader in technology and automation. To do this WesTrac needs to follow Caterpillar's lead and fully implement CAT Connect which helps integrate various Caterpillar systems (including telemetry , oil analysis and service systems) into one easy to use product. Additionally all service staff need to be made CAT technology capable which means being able to diagnose and repair Caterpillar GPS technology products such as CAES and Accugrade. This strategy will help minimise costs to the customer by being able to repair these systems at a local branch level rather then having to source specialised labour from the Newcastle facility. Gregory (2004) has identified that many large companies fail to adapt to new technologies or implement it fast enough and potentially face being left behind.

3) Leverage comprehensive tech support capability to justify higher costs

The ability to provide 24/7 tech support for any problems or breakdowns must be communicated to customers in order to justify the additional cost of WesTrac's products. WesTrac's high hourly service rate is required to retain qualified staff who can command higher wages from, for example, mining companies. WesTrac needs more effectively communicate the value this offers such as:

* access to expert tradesmen (no need to engage third party contractors) 24/7

* exemplary service facilities

* diminished waits for parts due to well stocked warehouses carrying 166, 00 line items between all 14 branches

Communicating the value to the customer in the WesTrac brand is important for the company to increase the companies chances of success , Keller (2013) discusses customers want to minimise perceived risk and will always return to products/services they are familiar with . This within itself is an opportunity for WesTrac provided that they focus on communicating the value of the brand effectively.

4) Communicate that WesTrac values long term service contracts

If longterm contracts are going to increase in value customers must be assured that they are treated with the respect that they deserve. WesTrac would be best served in bench marking response and issue resolution times and communicating this to customers. As discussed by Quester (2014), branch managers should have response and defect resolution times as part of their KPI's. This will cultivate a a vested interest in their service staff reporting to the customers site ASAP will improve customer perceptions of both of these products by holding branches responsible for the customers contracts in their area of operation.

-Gregory, K. (2004). Using TECHNOLOGY to GROW Your Business. Advisor Today, 99(2), 36-41

- Keller ,K.(2013). Strategic brand management:Building, Measureing and Managing Brand Equity(4th Ed.).Essex , England

-Quester, P., Pettigrew, S., Kopandis, F., Rao Hill, S. (2014). ConsumerBehaviour Implications for Marketing Strategy (7^th Ed.). Ryde,Australia: McGraw-Hill Education Australia

- Seven group Holdings Shareholder review (2014). Retrieved October 3, 2014 from www.sevengroup.com.au

- WesTrac recuitment video " The future starts today". Retreived from https://www.youtube.com/user/WesTracAus