Matiz Caselet

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Matiz (Re-launch of a car)
General Motors is seriously considering relaunching the Matiz car in India. The first strategic decision that GM has to take is whether it should bring the Matiz car back or not. This would depend on whether GM should enter the small car market or not? Also, does the existing manufacturing capability and vendors offer any cost advantages to effectively compete in this segment. Second, if it decides to relaunch the car, it has to decide how it should do it considering the history and negative image of Daewoo. Should it launch the car under a new brand name or use the old brand name? Will the past positioning of Matiz be a hindrance taking into consideration that the automobile market has changed considerably.

There are a lot of companies which decide to relaunch a product with new positioning. Does it make sense to do so? Companies think it is easy to market a product with a brand name which already exists as they think it would be less costly to do so. However, they don't realize that they have to spend as much money changing the positioning of the product as they would have to spend to build a new brand. In fact, changing the positioning of a brand can be more difficult than establishing a positioning of a new brand.

Which stand do you support, re-launching with old positioning or new positioning? What did they do and what was the result?
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