“MORE CAR THAN ELECTRIC”

Anna GalianKeiko Hoen

Sean MohanMatt Rosenthal

If you want an electric car, you need

a CHEVY VOLT

“MORE ELECTRIC THAN CAR”

Anna GalianKeiko Hoen

Sean MohanMatt Rosenthal

Agenda

1. Current Situation2. Product Issues3. Current Positioning 4. The Problem5. The Solution6. Recommendations7. Financials8. Conclusion

Current Situation

• Investment of $1.2 billion in R&D

• Sales lagging competition

• Growing competition in category

Jan

'13

Feb

'13

Mar

'13

Apr '1

3

May

'13

Jun

'13

Jul '13

Aug '1

3

Sep

'13

Oct '1

3

Nov '1

3

Dec '1

3

Jan

'14

Feb

'14

Mar

'14

0

500

1000

1500

2000

2500

3000

3500

4000

Volt's Sales Volume

Volt; 18.07

%

Leaf; 25.98

%

Tesla; 19.04%

Prius; 16.52

%

Oth-ers;

20.38%

*For 3 months

Market Share 2014

Product Issue• Impractical for a

family’s only vehicle▫Cramped back seating▫No A/C for back seats

•Daunting interior for tech-averse consumers▫Complex center console▫Smartphone App▫Screen instead of gauge

cluster

Positioning Issue

“More car than electric”• Positioning Volt as any

other Chevy▫ Wrong target market

• Positioned as if consumers decision is based on:▫ Performance▫ Fuel Efficiency

Target Market & Their Values

Redefined Positioning Statement: “The Chevy Volt is the only electric

vehicle for people with places to go due to its superior range-extension

capabilities, letting them use electricity when they want it, and

gas when they need it to satisfy any distance requirement.”

Recommendation

Old Positioning: “More car than electric”

RecommendationFive things that influence VOLT’s rate of

adoption (Kotler & Keller)COMPATABILITY:• Corporate Partnerships• Demonstrate value to the

commuting consumer

DIVISIBILITY: • Expand rental car pilot

programs• Lock-in exclusive contract

with Avis, Enterprise or other rental companies

COMMUNICABILITY:• Create awareness• Stimulate interest in Volt

through social media conversations

• “Volt Challenge”

COMPLEXITY:• Simplify product description• “Range-extension

capabilities”

Relative Advantage:

Promotional Strategy

No added marketing expendituresReallocate advertising expenses!

Financials

Driving Factors: • Price cut from August ’13• New Chevy Volt 2015 Model

released in August ’14• Modified promotional strategy

85% Sales

Volume(2013 - 2015)

2016 Net Profit

$2.8 billion

(annual) 2013 2014 2015 2016

Sales Volume

23,094

38,336

76,672

153,344

2013 2014 2015 20160

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Sales Volume

81% Profitability

(2013 - 2015)

Current Positioning:Sales not meeting projections…

WHY?

Recommendation

“More car than electric”

“Electric when you want it, gas when you

need it.”

1. Simplify Product Description2. Corporate Partnerships3. Expand Rental Car Programs4. Stimulate Interest

• Social Media• Volt Challenge

Sales Volume

85%

Without additional advertising spending

Conclusion

Positioning Problem

Any Questions?

Appendix

Appendix

Appendix Volt’s Sales Volume

MonthJan '13

Feb '13

Mar '13

Apr '13

May '13

Jun '13

Jul '13

Aug '13

Sep '13

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

Sales volume (units)

1140 1626 1478 1306 1607 2698 1788 3351 1766 2022 1920 2392 918 1210 1478

Jan '13

Feb '13

Mar '13

Apr '13

May '13

Jun '13

Jul '13

Aug '13

Sep '13

Oct '13

Nov '13

Dec '13

Jan '14

Feb '14

Mar '14

0

500

1000

1500

2000

2500

3000

3500

4000

Sales volume

Axis Title

Competition – Market ShareVolt Leaf Tesla Prius Others Total

Sales 2013 23094 22610 17650 12088 20400 95842Market Share

201324.10% 23.59% 18.42% 12.61% 21.29%

100.00%

Sales 2014 3606 5184 3800 3296 4067 19953Market share

201418.07% 25.98% 19.04% 16.52% 20.38%

100.00%

Volt; 18.07%

Leaf; 25.98%

Tesla; 19.04%

Prius; 16.52%

Others; 20.38%

*For 3 months

Market Share 2014

Volt; 24.10%

Leaf; 23.59%

Tesla; 18.42%

Prius; 12.61%

Others; 21.29%

Market Share 2013

Appendix