In early 2004, Patricia Messar, the director for brand and marketing at Chevrolet
Europe, assembled the Project Midasgroup. Project Midaswas the name given to the strategy to introduce the General Motors Chevrolet brand of passenger cars to Europe in 2005. Ms. Messar and the Project Midas team faced a unique challenge given the circumstances surrounding the Chevrolet brait? launch. Specifically, the Chevrolet brand would replace the Daewoo brand in Europe. The Daewoo brand was introduced to Europe in the rnid-1990s by Daewoo Motor Company of Seoul, Korea. In October 2002, General Motors took on part ownership and management control of the automobile business and began marketing the GM Daewoo brand in Europe through GM Daewoo Europe, a wholly owned subsidiary of GM Daewoo Auto & Technology, with headquarters in Zurich, SWitzerland. FollowingGeneral Motors' corporate strategy to market GMDaewoo vehicles under the Chevrolet brand in Asia (except South Korea),South America, and North America in 2003, the Project Midas team was assigned responsibility for making the brand conversion from GMDaewoo to Chevrolet in the European passenger car market. The conversion would further the transformation of Chevrolet into a global brand name. "The GM Daewoo products, quality,styling, and customer acceptance was considered an excellent starting point;' said one senior General Motors executive. Chevrolet brand positioning was the assignment for the assembled Project Midas marketing group. Brand positioning also had its unique circumstances and challenges. The Chevrolet brand launch had to be accomplished with the existing GM Daewoo product line, carry-over names for individual product models, and the same dealers and operating policies and practices. Based on industry, market, and consumer insights accumulated in the months prior to the meeting, the Project Midas workgroup set out to craft a Chevrolet positioning statement that would (1) resonate with European car buyers; (2) complement General Motors' multi-brand portfolio in Europe; and (3) be consistent with the global perception of the Chevrolet brand. In addition, the Project Midas marketing group was given a 2005 market share goal of 1 percent for the Chevrolet brand in the European passenger car market and a 75 million euro media budget (1 euro = U.S. $1.13) to achieve this goal.This market share goal represented an increase over GMDaewoo brand sales of 132,200 units in 2003, which represented less than 0.85 percent market share.
The cooperation of ChevroletEuropein thepreparation oftllis case is gratefully acknowledged. This casewaspreparedby Professor RogerA. Kerin andProfessor RajSethurarnan, Edwin L. Cox School of Business,Southern Methodist University, as a basisforclassdiscussionand is not designedto illustrate effectiveor Ineffective handlingof an admtnistranve situationor for research purposes. certain information in the case is disguisedforproprietary reasons. AllGeneral Motors brand names are trademarksof GeneralMotorsCorporationand used with permission.Copyright© 2007 by RogerA. Kerin and Raj Scthuraman. No part of thiscasemay be reproduced without written permission of the copyrightholders.
THE EUROPEAN PASSENGER CAR MARKET: EARLY 2004
Europe is the largest passenger car producer in the world. Of the 42 million passenger cars produced worldwide in 2003, 41 percent were produced in Europe. Western Europe alone accounted for 36 percent of worldwide passenger car production. Europe is also the global leader in new passenger ear registrations, representing 43 percent of all new passenger ear registrations worldwide. Exhibit 1 shows the number of new car registrations by country in 2003. Five Western European countries-Germany, the United Kingdom, Italy, France, and Spain-recorded about 74 percent of new European passenger ear registrations in 2003. New passenger car registrations in 2003 increased 0.6 percent over 2002. This increase followed two...