gm - california state university, bakersfieldecarter2/csub.mktg.600 winter 07/gm … · ppt...
TRANSCRIPT
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Presented byTiemoko Diarra, Bret Haney,
Adam Pinson, and Elizabeth C. Wong
MKTG 600March 8, 2007
Quality Redefined
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Overview
• Situational Analysis• Product/Brand Business Structure • Marketing• Marketing Mix and CRM• Global and Holistic Marketing
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History of GM• 1897 – “Olds Motor Vehicle Company, Inc.”
founded• 1902 – Cadillac Introduced• 1903 – Buick Introduced under W. Durant• 1907 – “Oakland Motor Car Co.” (Pontiac)
introduced• 1908 – GM organized, incorporates Buick
– Later incorporates Oldsmobile• 1909 – Pontiac, Cadillac incorporated
– Acquires Rapid Motor Vehicle Co. (GMC)
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History of GM
• 1909 - Bankers reject Durant’s prop. to buy Ford• 1911 – Chevrolet founded
– Incorporated in 1915• 1985 – Saturn created (first model 1990)• 1989 – GM buys 50% of SAAB• 1999 – GM acquires rights to Hummer (H2 in
2001)• 2000 – GM announces end of Olds (last in 2004)
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Other notables in GM History
• 1971 – Alliance w/ Suzuki• 1972 – Daewoo founded in joint venture• 1988 – Geo introduced (later merged w/
Chevy) • 1993 – EV1• 1994 – Daytime Running Lights• 1997 – OnStar introduced in Cadillac• 1999 – Deal w/ XM Satellite Radio
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SWOT Analysis• Strengths
– Market Leader• 23+% of market share
– Name Recognition• GM Goodwrench =
Quality– Size
• Distribution Network
• Weaknesses– Legacy Costs
• UAW labor costs– Poor Forecasting
• Big SUV vs. High Gas Prices
– Perceived Quality• Cadillac Tops at 34%• Saturn Bottom at 7%
– Brand Dilution• Too Many brands under
GM umbrella
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SWOT Analysis• Opportunities
– Alliance/Merger w/ Chrysler
• Add. Technologies and style
– Foreign Car Markets• China, India
– Mass Customization• Experiment w/ Saturn
line– Underserved Markets
• Busses, Motorcycles
• Threats– Rising Fuel Costs– Rapidly Advancing
Technologies being Developed by Comp.
– Substitutes• Telecommuting, High-
Speed Rail, Alternate Personal Transports (Segway, etc.)
– Infrastructure• Limits alternate fuels
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Environment TrendsShaping Target Market
• Rising Fuel Prices– Fuel Efficiency
• Hybrid Technology• Alternative Fuel
– Smaller Cars• Environmental Health
– Emissions
Increased Safety– New government
regulations– Demand for added
safety features• Unique Styling
– Consumer wants individuality in vehicle
What do these lead to?
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Target Market(s)
• GM must first target young, new-to-market consumers– Establish relationship, create loyalty
• GM must target brand-deserters– Re-establish perception of quality, fuel-
efficiency, style• GM must target brand loyalists
– Must maintain brand image with current customers to keep them loyal
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Environment TrendsFraming Competitive Patterns
• Competitors developing Hybrid Technologies– Fuel efficiency and lower emissions
• Alternate Fuels being developed– E85, Air-propulsion
• Smaller Vehicles rather than SUV/Trucks• Tailoring vehicles for changing customer
wants/needs– Customization (enhanced features and style)
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US Market Share, 2006
Other, 12.8%n/a ppms
Toyota, 15.4%20,798 ppms
Honda, 9.1%24,757 ppms
Ford, 17.5%35,700 ppms
DaimlerChrysler, 14.4%
3,7392 ppms
GM, 24.6%41,820 ppms
Nissan, 6.2%39,062 ppms
PPMS = per percentage of market shareSource: WSJ
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GM Products
• Good– Durable goods: “tangible goods that
normally survive many uses” - Kotler et. All, 374
• Service: GM Goodwrench Parts & Service
• Experience: dealership experience, warm and friendly
• Idea: Chevy Trucks “Like a Rock”
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PRO
DU
CT
LEN
GTH
LIN
EPRODUCT MIX LINE
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Five Product Levels• Core Benefit: Transportation• Basic Product: Engine, seats, headlights,
trunk, wheels, windows• Expected Product: working car, service,
financing options • Augmented Product: excellent customer
service, standard options, • Potential Product: fuel-efficient, uniquely
designed cars, with excellent customer service
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GM Product Classifications• Durability & Tangibility
– Durable– Services
• Consumer-Goods– Shopping goods
• Homogeneous (price): Saturn, Chevy• Heterogeneous (product features/service) SAAB, Pontiac
– Specialty goods: Cadillac, Buick• Industrial-Goods
– Capital Items • Installation: manufacturing factories, robots• Equipment: hand tools etc.
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GM Life Cycle
• Industry & Company in maturity stage
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GM Customer / Brand Value• Image Value:
– Increase Customer Perceived Value by producing attractive cars
• Product Value:– Focus on quality (total features & characteristics) and
add value to GM by augmenting customer expectations
• Services Value– Through outsourcing GM Goodwrench services,
expectations on great service can be achieved everywhere
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GM Brand Concepts
• Brand Resonance– “Intensity or depth of the psychological bond
customers have with the brand”• Brand Equity
– “creating brand knowledge structures with the right customers”
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GM Brand Concepts
Salience
Performance Imagery
Judgments Feelings
Resonance
Identity
Meaning
Response
Relationships
Broad Awareness
Points of Parity
Positive Reactions
Intense loyalty
Brand Development Branding
Objective
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Structure & Strategies
• Mission: sustain, grow, and preserve leadership in the market.
• Value delivery process in an era of abundant choices.
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Board of Directors
President Executive Committee
Financial Staff
Legal Department
General Advisory Staff
GM Acceptance Corporation
Chevrolet Division
SheridanDivision
Canadian Division
Oldsmobile Division
GM Truck Division
GM Export Company
Cadillac Division
Buick Division
Inter-company
Parts Division
Oakland Division
Samson Tractor Division
Scripps Booth Corp.
General Motors’ Organization Structure, before
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Board of Directors
President’s Council Corporate Functions
North American Operations
International Operations
GM Acceptance Corporation
Midsize & Luxury Car Group
Small Car Group
GM Power Train Group
Vehicle Sales, & Marketing Group
Development & Technical Cooperation Group
GM Europe
Asian & Pacific Operations
Latin American, African, & Middle East Operation
General Motors’ Organization Structure, Now
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Hierarchy Vs Self Organizing Teams
Used to be Vs Now
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POP Vs POD
• POP: – quality factor of fuel efficiency– restore image by comparison to the exemplar
Toyota• POD:
– focus on the "GM" company brand– leverage its plan for streamlined and value-
focused models– being “American”
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Marketing Mix & CRM
• Price• Place• Promotions• CRM
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Price• “Keep America
Rolling”– Problem w/ interest
rate change• Lease deals• Employee Pricing
– 0% financing, 36 mo. For pick-up trucks in TX, CA, FL
• More generous financing deals
• Stats– Aug. 1-20, 2006
(Power Info. Network)• GM – 84 day to sell a
car• Ford – 83• DC – 90• Honda – 37• Industry avg – 64
• Retain value– Pontiac Solstice (made
in low qtys)
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Place
• Channels– Dealerships– Used-car stores– Online
• GM• CarsDirect
• Partnerships• Suppliers
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Promotions• Theme: Quality Redefined• Ads
– Chevrolet• This is our Country• Ain’t We Got Love
– Cadillac– Pontiac (Español)– Hummer– Contest
• Sales– Rebates: $500-8000– Cash back– Low-interest financing
• Sweepstakes• Events
– LA Auto shows, etc.– NASCAR
• PR– TiVo, YouTube– Mass customization ads– Awards
• 10 awards for “Best Overall Value of the Year”
• Personal Selling– Dealerships, sales reps– P2P technology
• Videos/info to sales force• Sales force automation system• Data mining; tagging codes
– GM “feel” to all brand ads; distinct “American” and quality feel to individual ads
• Direct Marketing• COMMUNICATING VALUE
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Familiarity-Attitude-PRBuick/Cadillac – premium
elegance; special woods, fabrics, lighting + Architectural, frosted glass, stainless steel, high-tech
Chevrolet – “Chevy moments”; Chevy for everyone
Hummer – Go anywhere, do anything, glass floor panels
Pontiac – energy; hip; laser images; fuel efficent
Saab – Clean, open, crisp; glass flooring, LED screens
Saturn – architectural; hybrid; esoteric
Favorable Attitude
Unfavorable Attitude
Low
Fam
iliar
ity
Hig
h Fa
mili
arity
Note: Values are subjective
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CRM
• Sales force MIS• Customize a car
– Chevrolet– Cadillac
• Customer input– Commercial contest– Blogs– Customer panel/task
force
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Global & Holistic Marketing
• Global Marketing– Asia-Pacific– Value-chain
• Holistic, Ethical, and community responsibility– In-Kind donations:
$13.4m– Philippines– MLK National
Memorial– Educational
partnerships
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GM of the future?
• Brand Contraction– Eliminate GMC, merge Buick/Cadillac
• Outsource majority of service– Maintain service at Cadillac/ select Chevy
dealers• GM/Chrysler?
– Further contraction in the long-run