General Motors Corporation, hereafter referred to as GM, has an impressive history spanning over 100 years. According to GM's website, GM is the "global industry sales leader since 1931," and their sales are representative of such a business. GM has a responsibility to its stakeholders to remain competitive and profitable. With the decline in the economy dating back to approximately year 2000 and the impact of rising fuel prices, GM found itself in a struggle to remain profitable. Losses in profit coupled with high inventory levels, GM recognized the need for an unprecedented sales promotion to empty its dealerships of the rapidly aging current year models. In June 2005, GM announced its "Employee Discount for Everyone" sales promotion. The results were phenomenal, as sales skyrocketed to record levels. The sales promotion was, indeed, without a doubt, a success. However, the sales promotion worked on the premises of discounting a method which deteriorates brand image. The purpose of this paper is to redesign this sales promotion in an effort to not only sell vehicles, but also promote long term branding. Elements contained within this paper include: New Targeting, New Positioning, New Goals, New Messaging, New Creative, New Media Choice, and lastly Evaluation of Plan. All of which will be discussed in greater detail in their respective sections.
In order for GM to over come their tarnished image, they need to adopt a new promotional strategy and opt-out of their old discounting ways. GM needs to adopt a strategy that will enhance their brand image. They can do this with the following targeting and new promotion. The new target audience is full-nest families and the new promotion is aimed at building long term brand loyalty is through a built-in maintenance program.
To begin, GM's new promotion will not be discount orientated but instead one that will add value to their image. The idea behind the new sales promotion revolves around a maintenance program. The maintenance program is designed to provide the customer with an excellent protection/warranty plan. The maintenance program is not an additional expenditure for the customer because the cost of the program will be built into the overall sales price of the vehicle. The specifications of this plan include either 100,000 miles or 7 years of protection (which ever one comes first). The protection plan covers a huge array of parts and also services. These services include but are not limited to routine oil changes, schedule check ups, fluid flushes, and tire rotations. The services will be explained to the customer upon purchasing the vehicle along with guidance for when they need to come back for all the services. With this new sales promotion, GM needs to segment properly in order to attract full nest families, the group for which their vehicles are intended to be sold to. A full nest family refers to any household which includes at least one or more children. GM would have the most success segmenting to this group because they have similar needs and lifestyles. Generally speaking, this segments' lifestyle consists of sports, traveling, or just a means of transportation for several people. With this lifestyle, families need vehicles that can support such activities. GM can provide these families with solutions to their needs and lifestyles with all the vehicles they manufacture. This new segmentation will help GM target the proper market because most of their vehicles are sold to families with similar needs and lifestyles.
This sales promotion will provide many benefits to GM and the consumer. The benefits will include convenience, quality, and a better brand image. To begin, the maintenance program will be available to the customer anywhere. Meaning that if they are away from the dealership in which they purchased the vehicle, they can still get the free maintenance performed on their vehicles at another...