The Hummer word derived from the military multipurpose vehicle soldiers call Humvee, which stands for High Mobility Multi Purpose Vehicle. This vehicle has been designed by AM General when they were the contract in 1979 by US Army to design a new vehicle for the Army to replace the old jeeps.a specialty vehicle manufacturer, Am general get the contract of designing a multi purpose vehicle from US Army. The big boxy Humvee designed by Am general was launched for field operation in the Gulf War in 1991. Tv shots and media coverage of war made people familiar with the vehicle, In 1992 in response to the popularity and notoriety of Humvee launched a civilian version of it H1. it weighed 7100 pounds, had a 6.5 litre V8 turbo diesel engine that produced 195 horsepower and propelled the vehicle to 60 miles in 18 seconds. However speed was never a point of difference for H1. rather it was designed to take serious elite road warriors of the beaten path. The vehicle could travel in very rough surfaces. The ad went “the world’s most serious 4*4”. It portrayed the vehicle’s offrorad capabilities and military heritage. The target market was rich affluent people who could pay 100000 dollars to own the toughest vehicle. Am general also opened a Hummer driving Academy to train people how to drive it.
GM market research
GM found that most people associated Hummer name with the rugged and tough vehicle. In 1999 Gm made a contract with Am to buy the brand name and supply them with H2 sport vehicle for next seven years. H2, a smaller version would appeal to wealthy individuals, baby boomers who wanted to enjoy the life by facing challenges, and also to 30-40 individuals who were working in investment banks or so. GM also hoped to launch H2 in luxury SUV market. Gm planned to sell 19000 H2 in 2002 and continue selling 40000 for the next years with a starting price of 49000 dollars.
Softening the market
Gm hired Modernista to develop 3 million dollar ad campaign, which...