General Motor Corporate
Chevrolet Europe marketing plan
1. Company Description
General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 204,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services.
2. CASE SITUATION AND GOALS
This section covers two aspects of corporate strategy that influence the marketing plan: the company’s mission, and the company’s goals. Mission:
As General Motors’ corporate strategy to market GM Daewoo vehicles under the Chevrolet brand in Asia (except South Korea), South American, and North American in 2003, the Project Midas team was assigned responsibility for marketing the brand conversion from GM Daewoo to Chevrolet in the European passenger car market. Patricia Messar, the director for brand and marketing at Chevrolet Europe, assembled the Project Midas group and first take respond to the Chevrolet brand positioning. Goals:
* Nonfinancial goals
To launch Chevrolet brand in Europe, we have to be accomplished with the existing GM Daewoo policy and capital, which include the production line, carry-over names for individual product models, and the same dealers and operating policies and practices.
In this Chevrolet positioning, first we need to resonate with European car buyers. Secord, as corporate global marketing strategy, we need to complement General Motors’ multi-brand portfolio in Europe and third, we need to be consistent with the global perception of the Chevrolet brand. * Financial goals
The financial goals are simple for Chevrolet. First, we need to achieve 1% for the Chevrolet brand in the European market in 2005. Second, we have a 75 million euro media budget.
3. Marketing Analysis and Situation
A. The size, scope and share of the market
Europe is the largest passenger car producer in the world
Total new passenger car registrations in Europe in 2003 were 4.4% lower than 2000. The 2003 the total European passenger car market size was 15,520,755 units. Industry analysts in Europe were forecasting a 1-2% annual increase in new car registrations for 2004 and 2005. So we can assume the market size will at least increase to 15,675,962.55 units.
Fig 1.1 Manufacturers and Brand Market Shares in Europe: 1999-2003 2001 and 2002, in these two years, because of the economic situation, automobile industry facing a very strong impact and keep declining. However, in chart 1.1, we can see that two kinds of car manufacturing company have a distinctly increase market share in 2001 and 2002. These two kinds of car companies are French-based company- Peugeot Group and Renault, and Japanese Manufacturers. In the long run, the European passenger car buyers believe that French-based company’s brands stand for innovation and comfort. While their competition of Japanese’s brands of automobiles stand for cost-effectiveness, and dependability. So we can get a hint that consumer tend to purchase a car with more innovations, comfort and cost-effectiveness.
Our exit-target customer group for Daewoo brand is the traditional blue collar segment includes skilled blue-collar workers who are flexible in their brand selection and willing to spend money on cars. In this area, our main competitors are Ford, Fiat, Peugeot, Renault, and Volkswagen’s Skoda.
Fig: Brand market share (%)
Ford’s market share keeps dropping from 8.9-8.6%. According to...