Even though I have set out and reached the stage I wanted to achieve with this project, I decided to take it further and attempt to rig this caterpillar. 
At first I went ahead and added the joints across the body of the caterpillar:
However, after speaking to our technical instructor Ian, he thought a better way to deal with this was to make a motion path instead. 
After a bit of fiddling around, we managed to get the caterpillar following the path. However, we had to separate the feet and it's spikes from the motion path as they would become distorted if we had just put the entire model onto the path. 
So, in order to get the feet and spikes onto the model, I had to use a MEL script called rivetT. I would select two edges that crossed, copy rivetT into the MEL bar at the bottom and up would pop an IK. I then parented the feet and spikes to it's IK.
However, when I went to put the model on the motion path, it seemed that only the feet had stuck to the model. I solved the issue by parenting the spikes to the feet's IK's.
As I finally got the caterpillar moving along the motion path, another problem occurred. I can't make it move like a caterpillar when it's on a motion path. Instead of moving like a caterpillar would, it's moving like it's a centipede or something. 
I took a couple of playblasts so you can see the type of movement that's occurring at the moment:


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