June 24, 2002

Stunning sales success: Part Four
‘New Generation’ delivers a new leader

"The dealers were ecstatic about the new models," said Bill Malone of the Dallas Branch. "We knew we had too many things that took power from our two-cylinder design. Dealers couldn’t get the new models fast enough. It was a godsend to the dealer organization."

Boyd Bartlett, a Division Sales Manager in Michigan, agreed. "Deere needed a big boost with dealers," said Bartlett. "This electrified the entire dealer organization. It was a great thrill for all of us…it was the greatest time in the history of this company."

Fred Heitke, General Sales Manager of the Minneapolis Branch, also admitted his favorable feelings. "The tractor looked so beautiful, we were sure we were really going to take over the industry," said Heitke. "Deere Day in Dallas was an impressionable day to say the least."

Dick Morrow was on the "inside" of the operation as one of the set-up crew from the Planter Works that spent a month in Dallas ahead of D-Day getting everything ready. "The new models were so nice-looking and far ahead of the competition at that time. They were extremely well-accepted by everyone," he added.

No matter how big a bash Deere hosted to launch the new tractors to its dealers, the true test of the expensive event’s success would be what customers thought of the New Generation models when they were delivered to dealers to sell.

Despite the fact that no attempt was made to take orders or even mention prices during the day’s event in Dallas, proof positive can be found in sales figures for the following years.

Deere’s share of wheel tractors sold in the U.S. rested at 23 percent in 1959. By 1964, it was up to 34 percent — from not quite a quarter to more than a third of all tractors sold in the country!

Even more stunning, Deere passed leader International Harvester for the first time in history with total sales of farm and light industrial equipment. In 1963, Deere’s $762 million sales exceeded IH’s $665.4 million. That year, Deere was also ahead of its farm machinery competitors in net income per dollar of sales and net income per dollar of total assets.

Clearly, the "Deere Day in Dallas" event and the "New Generation of Power" tractor line catapulted Deere into the No. 1 position in the farm equipment industry, making John Deere the world’s largest producer and seller of farm and industrial tractors and equipment. Best of all, Deere never looked back nor relinquished its top position as achieved with Hewitt at the helm.

Forbes thought the theme "A New Generation of Power" was "somewhat grandiose" but referred to the new models "symbols of a livelier, more dynamic company" and credited Hewitt himself. "He has transformed the eminently successful but rather shy and conservative company," they admitted.

As soon as Hewitt took charge in 1955, he boldly stated his goal: "Believe me, we in Deere & Company are not aiming to be runner up either—we are aiming to be first in all our business activities. Pass International Harvester!"

In fact, the 1960s were a very powerful decade of domination by Deere. Not only did Deere’s sales and net income increase significantly after the summer of 1960; its number of employees also rose dramatically (from around 30,000 to 45,000 by 1966). Deere also got a new headquarters building, introduced a line of consumer equipment, and started the John Deere Chemical Company in the 1960s.

They wrote highly of Deere’s engineering excellence as witnessed by this comment from Implement & Tractor magazine: "In the context of a dynamic industry such as farm equipment, the significant fact is not a newly engineered line of equipment but an engineered new line of equipment. There is a vast difference. The latter connotes a long-range objective, a master strategic plan, with all the tactical details oriented toward and integrated with the major objective. The new Deere line is all of this. …

"Should anyone ask for proof about what astute husbanders of risk capital project for this industry, just point to John Deere management’s critical decision as evidenced in its New Generation of Power."

And there's more!

This brochure says it all:

"ANNOUNCING THE NEW GENERATION OF POWER"

"The phrase, 'A New Generation of Power,' is no mere slogan. The words were carefully and thoughtfully chosen as exactly descriptive of the new John Deere line of tractors.

"In what better way could we tell you that this indeed is the biggest advancement in farm power in decades?

"How more forcibly could we impress you with the truth that these are not 'improved' versions of any previous tractor designs?

"How much more clearly can we tell you that these tractors are entirely new and original from front grille to drawbar —tuned to the new generation of farmers and farming?

"How much better can we say that these tractors were born of your needs —İnot just for today, but as Deere engineers see them projected on the landscape of tomorrow?

"How much more explicitly can we say these tractors were built around your preferences above all else — that with the development of each feature, you, your power requirements, your comfort, your convenience, and your operating costs, were the governing consideration?

"For it’s all true. For five years, John Deere designers and engineers have literally been 'locked in' with your preferences in tractor design. And only after around-the-clock and around-the-calendar tests proved beyond any doubt those preferences were completely satisfied, have these tractors been released to you.

"So here it is — 'A New Generation of Power' unmistakably John Deere in craftsmanship and quality. We offer it for your most critical inspection."

An interesting "behind the scenes" photo shoot made the cover of The Furrow that introduced the "New Generation of Power."

In the driver’s seat (literally and figuratively) is Chairman William Hewitt who is surrounded by other top execs who played a primary role in developing and launching the new line of ag and industrial tractors.

Everything for the Dallas event was planned out in great detail, complete with mock displays in smaller "toy-size" scale.

While it only filled one room at this size, the full version filled several acres of parking lot in Dallas. İ

The advertising was enthusiastic:

"Pictures and words cannot begin to describe the ‘feel’ and thrill of actually driving a new John Deere Tractor.

"Only through a field demonstration with you at the wheel as judge — can you begin to realize and appreciate the new command these tractors give you over operating costs, job quality, time, and human effort. The ‘New Generation of Power’ is on display at your John Deere dealer’s store. There’s a type and size to meet your needs. Inspect these new models from every angle, make your own comparisons, then have your dealer ‘bring one out’ to your farm. Chances are it will stay right there!"