Business challenges in the Marketing

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Executive Summary

JCB is one of the giant companies in the heavy equipment manufacturing industry of the UK. The company has been affected due to this pandemic situation, where they have faced a huge loss. This report has analysed the PESTEL analysis, which shows they are socially, legally, technologically and environmentally strong, but they are weak economically and politically. SWOT analysis of JCB has been explained in this report where it has seen that JCB has an equal amount of strength and weakness in the market, which can affect in the post-Covid situation to the company. Their strength in technology, brand value can help them to develop their sustainable market as well as their threat in duplication and availability in substitute can decrease their profit margin. SMART objectives are there in the report and 4Ps of marketing mix are also there in this report, which will give an idea how JCB can grab their market again after pandemic.

1. Introduction

The pandemic situation of 2020 affected the global industry and giant business organisations, which became a reason for their unexpected loss in the market. This report has aimed to discuss the impact of this challenge in business faced by JCB and the way to overcome them gradually.

Overview of the company

JCB is a company of heavy equipment manufacturing industry, based in the UK, who is facing some issues and challenges regarding this pandemic situation of COVID 19 globally (, 2020).

Mission statement JCB has stated that their mission is to provide higher quality, reliable products to every person of the company, which will meet every customer’s needs worldwide. The company produces its products by focusing on the sustainability of the environment.
Major business challenge The pandemic situation has created an impact on the business organisation of JCB, which becomes the reason for the rise of some crucial challenges.

2. PESTEL analysis

JCB has faced issues and got some opportunities as well after a sudden outbreak of coronavirus in the global market. The global market has been affected severely when this situation took place on a global scale by spreading the virus. As per the view of Al-Mansour and Al-Ajmi(2020), a huge fall down can be seen in every industry and every organisation. As a result, some small organisations could not survive, and some giant businesses got affected in the whole world. Especially those businesses, who were dependent on foreign markets and import-export from other countries, have attacked by this situation majorly.

  • Political

Political perspective has a great impact on the business of JCB companies in a global market because every country has different rules and regulations, different overhead expenses such as Taxes, import-export expenses etc. (Gamil and Alhagar, 2020). UK Prime Minister Boris Johnson has announced a lockdown order on 23rd March 2020, which became successful from 26th March 2020 (, 2020). This is one of the major things that havebeen turned down in the global business market, and JCB was not out of this, which has also suffered due to this decision. In the total UK market, there was 72% less in export, and 59% of important business has been harmed badly (, 2020). These all have affected the business growth of JCB Company as well. As a global company, JCB has to follow every rules and legislations to achieve political support to do sustainable business in those countries. This sudden outbreak of coronavirus has affected the global market and for this reason, to optimise the spreading everywhere, governments have changed many rules and regulations regarding import and export as well (Rutzet al. 2020). This becomes a major challenge faced by the company globally.

  • Economical

The global economy has fallen, which causes a lot of severe damage in every country, where many business organisations and industries have faced many issues in this pandemic. Due to the low performance of an economic condition of the country, JCB has faced lower demand for their product as they expected in 2020. Even 1500 job roles of JCB have been in risk, which is a huge risk for the company also (, 2020). It can be observed that there is a sharp decrease by 61% rate in the business sector of England, 66% in Wales and 65% in Scotland, which altogether has weakened the economic backbone of the UK (, 2020). This has also put a negative impact on the JCB Company.

  • Social

The pandemic situation becomes the reason for the decrease in social gathering and a proper workforce in the company. Besides, people become psychologically weak to invest their money in the business as they have seen the huge fall in the global market (Shibaniet al. 2020). Demand becomes nearly half as predicted for 2020 in the last of 2019, which becomes a major issue for falling economic growth as well (, 2020). However, the company has taken steps to improve this situation by collaborating with Asian Institute of Medical Sciences to provide medical equipment to the doctor, nurse and patients.

  • Technological

JCB is a manufacturing company, which has produced a lot of popular, reliable and heavy equipment, especially for the agriculture industry and construction industry. JCB is popular in the market for their push in the technology and their development, which provide them with a huge amount of liable customers to the company (Khanna, 2020). Besides, they have not even stopped in this pandemic situation, to develop their own technology and they have built e-vehicle for construction purposes as well as one of the fastest vehicles in the world (, 2020). In the sector of technology development, they have not faced any major issues yet, which can be a reason for facing challenges in the industry.

  • Environmental

JCB has focused a lot on the environment, which can be seen in their upcoming products such as electric generators, electric heavy vehicles etc. (, 2020). All of these products are an example of their technological growth and their usage in improving the environment. However, the company has faced many challenges regarding the economy, sales etc. JCB has shown their social responsibility by collaborating with the Asian Institute of Medical Sciences (, 2020).

  • Legal

Legally JCB has not faced any issues yet, even though they have good relations with them, which is the result of their successful internationalisation. However, due to this pandemic situation governments have reduced the export-import as well as announced lockdown in terms of reducing the spread of the virus (Ghiani et al. 2020). However, this becomes an issue to deliver products as well as importing raw materials in the factories. Here JCB has faced a major issue due to a pandemic situation, which created a question mark on the sustainability of their future in the global market.

3. SWOT analysis

Due to this pandemic situation, JCB has faced some opportunities besides many problems in the global market. The company also got some treats from the market, which has been affected by the business slowly.  SWOT analysis of the company regarding their issue is in the following.

  • Strength

  • Brand Value: The brand value of JCB is very high in the global market, which is a major strength of the company. According to Rutz et al.(2020), this can mitigate this situation in the post-Covid market and help to boost their market on a global scale.
  • Healthy network: Healthy networks with the dealers, factories, and supply chain help a company to gain support from the market (Al-Mansour and Al-Ajmi, 2020). JCB has achieved that healthy relationship with them as well as they took care of them in this situation, which can be the reason, they can mitigate the risk.
  • Technology: Another strength of the company is its technology because this is the reason for its popularity in the market. They have almost 300 products in the market, and the reliability of them is huge in the markets (, 2020). This can optimise the risk of sustainability in a post-covid situation in the market.
  • Weakness

  • Patents protection: JCB has a major issue regarding the protection of their patents, which is the major reason their competitors can theft it easily. As per the view of Forster et al.(2020), this pandemic situation is a very critical situation to tackle in the business world, or it can diminish an organisation properly. This is a weakness, which can damage their business after post-Covid situation as they have less demand in the market right now (Avrămescu, 2020). This company has already introduced some e-vehicles and one of the fastest racing cars, but as they have patent protection issues, this would be another major risk in this post Covid situation. Other organisations might take a chance of this, and ultimately this would hamper the business process of JCB company
  • Demand in the market: Demand has been decreased at a higher rate, in the global market. JCB has expected that an increment will happen in their profit margin in 2020. However, after this pandemic situation demand becomes half of the expected value, which becomes a reason for feeling risk with almost 1500 jobs. This becomes a major weakness of them, which can be a reason for their fall in the market (Liu et al.2020).
  • Opportunities
  • Demand: For the brand value, the reliability of their high-quality product, there is a non-stop demand in the global market, which can arise after this pandemic situation (Amuasiet al.2020). They have produced E-vehicle as a heavy equipment manufacturer, which is another opportunity to grow up in the post-Covid market.
  • Government support: The Government of theUK and other countries have supported large-scale business organisations by reducing taxes, and providing various schemes (, 2020). JCB can take those schemes as their opportunity to grow up and bring back sustainability in the global market.
  • Customer care services: JCB has developed a good customer care service, in various places of the world, which supports its clients and customers 24×7 (Cutler and Summers, 2020). This is another opportunity to grow up, by showing care about their customers even in this pandemic situation.
  • Threats

  • New entrants: JCB has faced a loss in the market, which becomes an opportunity for the other companies, who are trying to enter the global market. They can grab the market by developing new products and releasing them before JCB.
  • Global sourcing: As a pandemic situation arose, the government of various countries stopped the import-export in a legal manner for protecting their local people (Chang et al.2020). However, for this reason, JCB becomes unable to import raw materials to the factories and export their products to another country.
  • Duplication: Already, the market is full of duplicate products of JCB products, which can be a threat. As the company is unable to produce products and pricing is increasing for their product, duplicate products can take place after post-Covid situation (Zavaleta-Cortijoet al.2020).
  • Substitute: There havemany substitutes available in the market, such as Hyundai, Mitsubishi Motors, who also have a market in manufacturing heavy equipment for the agriculture industry and construction industry (Forster et al.2020). They can grab the market when JCB is falling down in the market, which is a major threat for the company.

4. SMART marketing objectives

Objectives S









Time bounded

Objective 1: Evaluation of supply chain Evaluation of the supply chain is very important; because of this pandemic situation, supply chain has been disrupted, which can damage the business organisation (Chang et al. 2020). By improving employee policies and contractual policies, JCB can easily evaluate their supply chain and make their business sustainable. After a Covid situation, when the company will become sustainable to meet the demand in the market, the evaluation in the supply chain will be successful. Evaluation of the supply chain can be measured by measuring its success in the post-Covid market (Cutler and Summers, 2019). The supply chain not only delivers products but also helps to import raw materials in the factories. After the covid situation, JCB can supply their products to their customers and collect their feedback. In this way, they can measure their evaluation in the supply chain as success or not. Yes, this can be achieved by JCB in the post-Covid situation. They already had a healthy relationship with their dealers and supply chain sectors (Liu et al. 2020). They not only deal with them, but the company also took care of them properly. For this reason, it will be easy to connect them in the network by enhancing their facilities in the market. That will be helpful to mitigate the situation faster. Of course,evaluation of the supply chain will be helpful for the company, because this company has a major part, which is dependable upon the supply chain (Amuasiet al. 2020). Besides, as a global business organisation, JCB has spread worldwide, and to do a sustainable business, it is essential to maintain supply chain properly. Supply chain enhancement will help to improve the disrupted situation of the supply chain in the company. Almost 3 years it will take to evaluate the situation by JCB. Six months to plan and after that, they can start implementing policies in the organisation in a trial and error process.
Objective 2: Using scenario analysis for making better communication Communication is a very important part of any business, which can develop a relationship with its stakeholders. JCB has already introduced one of the best customer services for interacting with their clients and customers. Stakeholders of JCB will be happy to interact with the company, which can be measured by surveying them. More customer satisfaction means more successful in developing a relationship through communication. Yes, this is also an achievable objective for JCB. They have already a huge liable customer and client base; they have factories in most of the developed and developing country. This can be achieved easily by providing better communication with them. Communication is a significant part of a business organization because companies can attract people by using proper ways. This helps to connect stakeholders with the company. It will also help to get their business growth in post-covid situation. It will take almost 1year to get, because they have already read into various places on the earth, and they can provide their excellent service with their products to the customer to achieve a healthier relationship with them.

Table 1: SMART marketing objectives

(Source: Amuasiet al. 2020; Chang et al. 2020)

5. Recommendation for Marketing MIX

Marketing mix shows the value of four important areas, which are responsible for the success rate of marketing the products. Four key areas are known as 4Ps, which are Product, Price, Place and Promotion, analysing these areas can help a company to market their product successfully. According to Zavaleta-Cortijo et al. (2020), Marketing is a major part of any business organization, which can be improved by focusing on and segmenting those areas properly.  Marketing mix also offers a proper understanding about the customer needs from the company, which gives an idea about where the company focuses in the market.

In this report, 4P of the marketing mix will help to realize how JCB can survive in the post-Covid situation after this huge loss.

  • Product

JCB already has a broad range of products, because they produce almost 300 products all over the world. Besides, their technology helps them to produce high quality products in a good price range. According to Desa and Jia (2020), after Covid situation they faced a huge fall in the market, because most of the clients and customers are from agriculture and construction industry, which have been affected severely by the pandemic situation. Besides, they have faced less demand than their expectation, for a reason they can focus more on the low priced products to improve them and sell them in the market. After this pandemic situation, they also faced huge losses, this is why they are not yet ready to spend more money in the market, and they will buy value for money products (Forster et al. 2020).

  • Price

Prices must be lower after post-Covid situation, and in this way, people will prefer to buy value for money products. As mentioned by Ruktanonchai et al. (2020), after Covid pandemic people become more conscious of spending on the health of their family without spending extra money for high products. Thus, JCB can attract customers by reducing the price a little and they can give some offers, discounts on their products. JCB can also add some value to their products such as they can add some extra service or extra warranty period of their products, which will make them value for money products in the market. This could help them to grab the market slowly and this will increase popularity of them.

Business challenges in the Marketing

Figure: 4Ps of Marketing Mix

(Source: DU et al. 2020)

  • Place

Most of the developing countries, where the agriculture industry and construction industry is very popular. JCB can also choose those places, where the government has a free trade agreement, and there they can sell their product at a lower cost to their customers. As per the view of Gu and Wang (2020), the reason for this is that those countries offer tax-free import-export services and a tax-free market. There employees also can get job satisfaction with proper health safety and they can meet the needs of the customers.

  • Promotion

Promotion is a vital part for any business;however, they have faced many issues regarding their lower rate of sale, where they have not achieved their profit margin in a proper way in this year of 2020. As claimed by Qingbin et al. (2020), thus spending money behind promotion of their new products will not be relevant in this post-Covid situation. However, they promote their trending products at a reasonable price through social media, which will be a cost-effective way to promote themselves. Besides, they can offer more discounts to the customers without spending extra money in promotion in the post Covid market. As argued by Sirojiddinov and Sirojiddinov (2020), that would help them to increase their profit margin from the market along with achieving popularity in the market.

  1. Conclusion

In this pandemic situation, companies and industries faced a huge loss in the market, which became the reason for the fall of small business organizations in the market. JCB has faced many issues in this pandemic, which have been discussed in this report in a descriptive way. Besides PESTEL analysis and SWOT analysis have been described accurately, which are the key areas, becoming the reason for those issues. JCB should focus on some areas, which are also described in this report properly along with the two most important SMART objectives. This report also recommended some key areas to focus in the post Covid situation, which will help the company to achieve the market again.

Reference list

Al-Mansour, J.F. and Al-Ajmi, S.A., 2020.Coronavirus’ COVID-19′-Supply Chain Disruption and Implications for Strategy, Economy, and Management. The Journal of Asian Finance, Economics, and Business7(9), pp.659-672.

Amuasi, J.H., Walzer, C., Heymann, D., Carabin, H., Huong, L.T., Haines, A. and Winkler, A.S., 2020. Calling for a COVID-19 One Health Research Coalition. Lancet395(10236), pp.1543-1544., 2020.COVID-19 unprecedented experience, eye on second half of 2020: JCB India. Available at:, [Accessed on: 5thDecember, 2020]

Avrămescu, T.C., 2020. Assessments on the Effects of the Coronavirus Pandemic on the Economies of the Central and South-East European Union Countries. Ovidius University Annals, Economic Sciences Series20(1), pp.105-112.Chang, Y., Huang, R.J., Ge, X., Huang, X., Hu, J., Duan, Y., Zou, Z., Liu, X. and Lehmann, M.F., 2020. Puzzling haze events in China during the coronavirus (COVID‐19) shutdown. Geophysical Research Letters47(12), p.e2020GL088533.

Cutler, D.M. and Summers, L.H., 2020. The COVID-19 pandemic and the $16 trillion virus. Jama324(15), pp.1495-1496.

Desa, G. and Jia, X., 2020.Sustainability transitions in the context of pandemic: an introduction to the focused issue on social innovation and systemic impact. Agriculture and Human Values37(4), pp.1207-1215.

DU, Z.X., LAI, X.D., LONG, W.J. and GAO, L.L., 2020.The short-and long-term impacts of the COVID-19 pandemic on family farms in China–Evidence from a survey of 2 324 farms. Journal of Integrative Agriculture19(12), pp.2877-2890.

Forster, P.M., Forster, H.I., Evans, M.J., Gidden, M.J., Jones, C.D., Keller, C.A., Lamboll, R.D., Le Quéré, C., Rogelj, J., Rosen, D. and Schleussner, C.F., 2020. Current and future global climate impacts resulting from COVID-19. Nature Climate Change10(10), pp.913-919.

Gamil, Y. and Alhagar, A., 2020. The Impact of Pandemic Crisis on the Survival of Construction Industry: A Case of COVID-19. Mediterranean Journal of Social Sciences11(4), pp.122-122.

Ghiani, E., Galici, M., Mureddu, M. and Pilo, F., 2020.Impact on electricity consumption and market pricing of energy and ancillary services during pandemic of COVID-19 in Italy. Energies13(13), p.3357., 2020.Business support. Available at:, [Accessed on: 5thDecember, 2020]

GU, H.Y. and WANG, C.W., 2020. Impacts of the COVID-19 pandemic on vegetable production and countermeasures from an agricultural insurance perspective. Journal of Integrative Agriculture19(12), pp.2866-2876., 2020.About us. Available at:, [Accessed on: 5thDecember, 2020]

Khanna, A., 2020. Impact of Migration of Labour Force due to Global COVID-19 Pandemic with Reference to India. Journal of Health Management22(2), pp.181-191.

Liu, Z., Ciais, P., Deng, Z., Lei, R., Davis, S.J., Feng, S., Zheng, B., Cui, D., Dou, X., Zhu, B. and Guo, R., 2020.Near-real-time monitoring of global CO 2 emissions reveals the effects of the COVID-19 pandemic. Nature communications11(1), pp.1-12.

Qingbin, W.A.N.G., LIU, C.Q., ZHAO, Y.F., KITSOS, A., CANNELLA, M., WANG, S.K. and Lei, H.A.N., 2020.Impacts of the COVID-19 pandemic on the dairy industry: Lessons from China and the United States and policy implications. Journal of Integrative Agriculture19(12), pp.2903-2915.

Ruktanonchai, N.W., Floyd, J.R., Lai, S., Ruktanonchai, C.W., Sadilek, A., Rente-Lourenco, P., Ben, X., Carioli, A., Gwinn, J., Steele, J.E. and Prosper, O., 2020. Assessing the impact of coordinated COVID-19 exit strategies across Europe. Science369(6510), pp.1465-1470.

Rutz, C., Loretto, M.C., Bates, A.E., Davidson, S.C., Duarte, C.M., Jetz, W., Johnson, M., Kato, A., Kays, R., Mueller, T. and Primack, R.B., 2020. COVID-19 lockdown allows researchers to quantify the effects of human activity on wildlife. Nature Ecology & Evolution4(9), pp.1156-1159.

Shibani, A., Hassan, D. and Shakir, N., 2020. The Effects of Pandemic on Construction Industry in the UK. Mediterranean Journal of Social Sciences11(6), pp.48-48.

Sirojiddinov, I.K. and Sirojiddinov, K.I., 2020. Institutional Transformations In The Fruit And Vegetable Industry And Their Impact On Mitigating The Consequences Of The Coronavirus Pandemic In Uzbekistan. The American Journal of Applied sciences2(08), pp.15-20., 2020. Nearly 1,500 JCB jobs at risk as demand for machines halves. Available at:, [Accessed on: 5thDecember, 2020]

Zavaleta-Cortijo, C., Ford, J.D., Arotoma-Rojas, I., Lwasa, S., Lancha-Rucoba, G., García, P.J., Miranda, J.J., Namanya, D.B., New, M., Wright, C.J. and Berrang-Ford, L., 2020. Climate change and COVID-19: reinforcing Indigenous food systems. The Lancet Planetary Health4(9), pp.e381-e382.


Appendix 1: PESTEL analysis

Political Government issues mostly related to the import-export, which has been stopped after lockdown.
Economical Demand has become almost half than expected.
Social They have introduced a broad range of customer service worldwide, which become popular in this pandemic.
Technological JCB has introduced E-vehicle as heavy equipment manufacturing companies.
Environmental JCB has collaborated with Asian Institution of Medical Sciences to reduce the pandemic situation.
Legal JCB has not faced legal issues due to good relationships with the governments.

(Source: Sirojiddinov and Sirojiddinov, 2020)

Appendix 2: SWOT analysis

Strength Weakness
Brand Value

Healthy network


Patents protection

Demand in the market


Opportunity Threat

Government support

Customer care services

New entrants

Global sourcing



(Source: Qingbinet al. 2020)

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