SUMMARY: Based in this information below, develop a memo document proposing a brand
extension for John Deere, including where (what market) that extension would be sold (again, the
focus is on critical thinking; where would John Deere products be most practical today? Consider
developing countries or, ideally, a location that is growing and is near a John Deere factory). See
additional assignment details at the bottom of this document.
Length: 1 page
John Deere Equipment was founded by John Deere in 1837 and was incorporated in 1868 as Deere
& Company. Mr. Deere started this company as a one-man blacksmith shop and it is now a
worldwide corporation that has offices in more than 160 countries and employs more than 46,000
people. John Deere is one of the oldest industrial companies in the United States and it is guided by
the original values of quality, innovation, integrity, and commitment that John Deere instilled at the
The business strategy of John Deere, in the employees’ handbook is: “We aspire to serve customers
distinctively — those linked to the land — through a great business, a business as great as our
“To achieve this aspiration, our strategy is: Exceptional operating performance; disciplined growth;
high-performance teamwork; cooperation with the customer and dealer. Execution of this strategy
creates the distinctive ‘John Deere Experience’ that ultimately propels a great business and, for all
with a stake in our success, delivers…Performance That Endures.”
The company consistently strives to give its stakeholders the maximum value for their money by
continuous improvement and growth in all sectors of the company. The company is organized into
four manufacturing divisions:
Agricultural Equipment – products for farms
Commercial and Consumer Equipment – equipment related to lawn and ground care,
residential needs, golf and turf, and commercial operations
Construction and Forestry Equipment
John Deere Power Systems – products involved with developing engines for other John
Products and Services: John Deere, with the help of its many subsidiaries, is involved in the
manufacturing, distribution, and financing of a large and complete line of agricultural equipment.
The product line also includes a very broad range of forestry and construction equipment, and
various other consumer and commercial equipment.
Other features of the company include the provision of credit and managed health-care plans for
other businesses and also for the general public.
Marketing: The products of John Deere are marketed throughout the world via a large network
that consists of many independent dealers, which are supported by a decentralized marketing
These dealers have their offices in many countries such as Argentina, Australia, Brazil, Canada,
China, England, Finland, France, Germany, Italy, Mexico, South Africa, Spain, Switzerland, the
United States, and Uruguay.
Manufacturing: The factories for John Deere are located in Argentina, Brazil, Canada, China,
Finland, France, Germany, India, Mexico, New Zealand, The Netherlands, South Africa, Spain,
Sweden, and the United States.
Research & Development: Research and development has always been one of the key interest
points for John Deere as the company is known to have invested heavily in new products and new
technologies in order to meet new markets and customer demands.
The various areas of R&D include activities for support of current product, the development of new
products and extensions of existing product lines, and also for the search for new product-oriented
businesses. Many of the factories run by John Deere have a product engineering department whose
responsibilities include the design and development of new and existing products.
Diversity: Deere & Company considers diversity to be a vital part of the company’s core mission
and goals. Deere & Company believes in building a vast and great network; one that would strive to
cater to all the various stakeholders, including the consumers, the employees, shareholders, business
partners, and communities all over the world.
Since Deere & Company is a global company with its offices and production factories situated all
over the world, it has a very large responsibility to all its international stakeholders. More than
20,000 of this company’s employees reside outside the United States, and 45% of the total sales
realized come from outside North America.
Deere continues to expand its production and products worldwide and is making its presence
known in various new markets all over the world. This also means that new and diverse employees,
suppliers, and business partners from various ethnic, social, and cultural backgrounds have to be
continuously incorporated in the business strategy of Deere so that the company is able to remain
the market leader.
For this to happen, the company’s executives have to continuously hire people from diverse
backgrounds so that they can better deal with the needs and expectations of the company’s
Parameters (Focal Points) of the company’s expansion goals.
Based on the points discussed above, it is imperative that strategies be developed that will address
how Deere & Company can grow in new markets such as parts of Asia and South America.
Using R&D, manufacturing and marketing, Deere & Company wishes to expand:
(1) Product Diversification
(5) its commitment to all Employees
(6) its Commitment to the Communities in which a factory or office is located and/or
where the company has a sizable “footprint” (market presence)
(7) Emphasize why “Nothing runs like a Deere” through expanded advertising throughout
Using Critical Thinking, determine and develop the following:
A. Decide on a new product – a brand extension or a whole new category or expand in an
existing category – for John Deere to develop.
B. Decide on a market – pick a new market where John Deere should go (see above) and
develop an idea on how to reach that specific country or audience
C. Develop a memo as the Chief Marketing Officer for the company briefly discussing the
proposed new product and proposed new market. Include comment on John Deere’s
commitment to new communities to which the company plans to expand through a new
international non-profit organization designed to help local residents. This is intended as a
“goodwill” effort in an attempt to build national attention to the company’s willingness to
be a good corporate citizen. (For reference, visit www.deere.com/citizenship.)
Remember, as listed above, the company is known for innovation and quality, so think
about those factors when working on your document.