gm marketing strategy1[1]

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Ahmed zeyada 20090526 Nadeen mohamed 20070090 Sally el sayed 20070221 Sandra atef 20070642

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this presntation was for markting strategy for general motors company

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Page 1: Gm Marketing Strategy1[1]

Ahmed zeyada 20090526

Nadeen mohamed 20070090

Sally el sayed 20070221

Sandra atef 20070642

Page 2: Gm Marketing Strategy1[1]

Agenda•History

•Background

•The Competitive situation

•Marketing strategy

•Project Objectives

•The Marketing Mix

•SWOT Analysis

•Identify Problem

•Q & A

Page 3: Gm Marketing Strategy1[1]

History

• General Motors Corporation established a wholly owned subsidiary in Alexandria, Egypt in 1927 through 1958.

• Over the past 30 years, General Motors has conducted business in Egypt through franchised dealers, who invested millions of pounds in facilities.

• Since 1955, GM has obtained almost all of Egypt's locomotive business, averaging 40 units annually. Egypt has been one of the biggest overseas markets for Detroit diesel engines, which drive tugboats in the Suez Canal, trucks on Egyptian highways and power plants in outlaying communities.

Page 4: Gm Marketing Strategy1[1]

Background

• Multinational automobile manufacturer founded in 1908.• Was the world’s largest automaker until last year.• GM is the ninth largest publicly traded company in the

World.• GM today employs about 266,000 people around the world..• With global headquarters in Detroit, GM manufactures its

cars and trucks in 35 countries and its vehicles are sold in 200 countries.

• Currently, the United States holds the “largest national market” for General Motors. China, Canada, the UK, and Germany follow the United States for GM’s largest markets.

Page 5: Gm Marketing Strategy1[1]
Page 6: Gm Marketing Strategy1[1]

vision statement

“General motor is committed to be a leader in providing transportation products and services of such quality that our customers will receive superior value, our employees and business partners will share our success and our shareholder will receive a sustained superior return on their investment.”

Mission Statement:

GM's vision is to be the world leader in transportation products and related services. We will earn our customer's enthusiasm through continuous improvements driven by the integrity, teamwork and innovation of GM people.

Page 7: Gm Marketing Strategy1[1]

objectives position the company for sustained competitiveness,

profitability and growth. satisfy customers based on the design, quality, technology

and value of our cars and trucks. Continue solid growth in global vehicle sales.. Investing dedicated to improving cultural, economic,

educational, environmental, and social aspects of our communities.

Page 8: Gm Marketing Strategy1[1]

The Economic Situation

• The combination of the sharp run-up in oil and gas prices, rapid declines in the housing/mortgage/credit sectors, and the lowest levels of

consumer confidence in nearly 30 years have all dramatically reduce both the economic and automobile industry outlooks.

• over the past few months, U.S. auto sales have declined by more than 30%.

Page 9: Gm Marketing Strategy1[1]

• The automobile industry is highly competitive. The North American automobile industry is dominated by what’s known as the ‘Big Three’: General Motors, DaimlerChrysler, and Ford Motor Company.

• The two largest foreign competitors include both Toyota and Honda.

• Since Toyota’s introduction of the Prius, an innovative gas electric hybrid car, GM has been struggling to keep up with competition.

• US auto makers lost 8% of the US auto market last year, while Asian manufacturers gained 5% and European companies gained 3%

The Competitive Situation

Page 10: Gm Marketing Strategy1[1]

Competitive Situation How Does GM compete?

$182

Billion

$230

Billion

$177

Billion

$172

Billion

266,000 316,000 274,999 245,000

2008 Sales

Revenue

EmployeesAt 2008Year-end

Page 11: Gm Marketing Strategy1[1]

The Competitive Situation 2006 GCC Market Share

GM13%

PAG1%

Other Know n6%

Chrysler1%

Mazda1%

BMW1%

Unknow n10%

Mercedes1%

KIA & Hyundai9%

Mitsubishi10%

Nissan11%

Toyota36%

Page 12: Gm Marketing Strategy1[1]

GM marketing strategy

• Marketing Strategy plays one of the most important role to achieve company goals and objectives.

• general Motor is one of the best automobile company in the word. General Motors manufacturing the cars and trucks in the international market.

• General Motors segmentation strategy is main aim to target the different groups. In this GM think that the whole market is single market

• General Motors design the car with the different range of cost and it design it’s strategy according to the Income, Age, Family, occupation.

Page 13: Gm Marketing Strategy1[1]

Marketing strategy development Project objectives

Modify the company’s U.S. product portfolio, toward more fuel-efficient cars and crossovers.

Reduction in brands, name plates and retail outlets, to focus available resources and growth strategies on the company’s profitable operations.

Page 14: Gm Marketing Strategy1[1]

The Marketing Mix:

Product• Buick One of the most popular vehicle brands in China Saab One of the

most popular vehicle brands in Sweden .• GMC trucks are positioned as the Professional Grade versions of the

equivalent • Chevrolet vehicles Pontiac is a mid-level brand featuring a sportier,

high-performance driving experience .• Hummer is a brand off-road vehicles sold by general motors Brand

Name Brand Logo Brand Image Remarks.• Saturn is known for its company-wide "no-haggle" sales philosophy .• Opel is the main GM brand name in Europe except in the UK Vauxhall

models are right-hand drive derivatives of GM's Opel brand • Isuzu is mostly known for trucks of all sizes, Holden no longer held the

number one sales position in Australia, losing ground to Toyota . • Daewoo In 2004, General Motors pulled the Daewoo brand of

vehicles out of Australia and New Zealand, citing irreparable brand damage Suzuki stands No.1 in the world for compact automobiles.

Page 15: Gm Marketing Strategy1[1]

• Differentiation strategy:

Cadillac:

Cadillac is a brand of luxury vehicles owned by General Motors. Full-line, edgy-styled, high volume luxury brand that competes

directly with BMW and Mercedes-Benz.

Chevrolet: Brand Name Brand Logo Brand Image Remarks Chevrolet America's

NO.1 selling brand , Remain GM’s high-volume brand, mainstream-oriented, offering vehicles in every major segment. Competes with Ford, Toyota, Dodge and Nissan.

The Marketing Mix:

Product

Page 16: Gm Marketing Strategy1[1]

The Marketing Mix Price

• GM provides a wide range of vehicle priced from US$10,000 to US$100,000+ catering to various customer segments all over the world from middle to luxury class automobiles.

• Since early 2006, GM has executed competitive strategy, particularly in the United States, that combines an emphasis on value pricing (including the reduced prices on most 2006model year vehicles).

• GM belives It will builds the reputation of GM products and brands and enhances residual value for their products, whilesupporting improved pricing per transaction.

Page 17: Gm Marketing Strategy1[1]

• GM’s distribution strength in rural areas, which is a significant competitive advantage, will be largely preserved.

• GM develops, manufactures and markets vehicles worldwide through their 4

• automotive regions:• · GM North America (GMNA)• · GM Europe (GME)• · GM Latin America/Africa/Mid-East (GMLAAM)• · GM Asia Pacific (GMAP)

The Marketing Mix Place

Page 18: Gm Marketing Strategy1[1]

The Marketing Mix Promotion

• Auto shows:• Auto Show is the main method for GM to promote its

products.• GM Magazine:• GM HIGH TECH PERFORMANCE• Delivers the tech articles, news, and reviews wanted by the

late-model GM performance enthusiasts.• “Employee Discount for Everyone“• is also making a huge promotion strategy called "Employee

Discount for Everyone“ promotion allows people to purchase selected vehicles at the same price as employees.

Page 19: Gm Marketing Strategy1[1]

Strengths Name recognition Corporate Social Responsibility Quality improvements and

perception there of.

Opportunities Cut health-care costs and

move production overseas. Concentrating on smaller

more fuel efficient cars Expansion of their global

presence .

Weaknesses The decline of market share. High pension obligations and

health care costs. Lack of differentiated products. Unfocused product line Unresponsive corporate culture. Too much investment in SUVs

and Trucks.

Threats Intensity of rivalry among

competitors worldwide. Weak consumer confidence

and tight credit. The UAW can hurt General

Motors if unhappy. The Volatility in fuel prices. Government legislation.

S.W.O.T. analysis

Page 20: Gm Marketing Strategy1[1]

Identified Problem

Falling car sales has been a problem for GM due to increased competition from foreign manufacturers & rising oil prices.

Page 21: Gm Marketing Strategy1[1]

Thank You

Page 22: Gm Marketing Strategy1[1]