"there is only one boss. the customer. and he can fire everybody in the company from the...
TRANSCRIPT
"There is only one boss. The customer. And
he can fire everybody in the company from
the chairman on down, simply by spending
his money somewhere else."
Sam Walton
"There is only one boss. The customer. And
he can fire everybody in the company from
the chairman on down, simply by spending
his money somewhere else."
Sam Walton
GM COSTUMERS PROFILEGM COSTUMERS PROFILE
Federico ArangoLevi Dickerson
Joe BiedenharnKaan Ketenci
Federico ArangoLevi Dickerson
Joe BiedenharnKaan Ketenci
BAA 605
Vision• GM’s vision is to be the world leader in
transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork and innovation of GM people.
• Becoming the best is an unending journey, a constantly changing destination. But that’s where we’re determined to drive – one car, one truck, one customer at a time.
CORE VALUES
• Customer enthusiasm• Integrity• Teamwork• Innovation• Continuous improvement• Individual respect and responsibility
CULTURAL PRIORITIES
• Enhance product and customer focus
• Act as one company• Embrace stretch targets• Move with a sense of urgency
Positioning Statement
At GM, we are committed to providing our customers with “gotta have” products that are
high quality and visually appealing, and to being leaders in fuel economy and safety.
Every day our employees are looking for new and innovative ways to improve the products
we manufacture.
CUSTOMER RETENTION
• Delivering a good experience to current customers
• Positive Sales Process• Efficient personalized
service • General vehicle
reliability
• Delivering a good experience to current customers
• Positive Sales Process• Efficient personalized
service • General vehicle
reliability
CRITICAL FACTORSCRITICAL FACTORS
Top Ten Factorsin Choosing Your Vehicle
• Reliability/Durability• Interior Comfort• Exterior Styling• Quality of Workmanship• Dealer was convenient/liked dealer
in my area• Performance• Like the image the vehicle portraits• Gas Mileage• Safety• Passenger Capacity
Critical Factors for Customer Satisfaction With Dealer Service
• Service Initiation
• Service Advisor
• In-dealership Experience
• Service Delivery
• Service Quality
• User-Friendly Service
GLOBAL PRESENCE
SEGMENTATION
• Demographic:
Type of Markets– Consumers
• Consumers– Men and women– Legal driving age (adapted to the law
in each country)– Companies (for profit & not-for-profit)– Governments
Geographic Segmentationand brands offered
GMNA (The United States, Canada and Mexico)
* Buick * Cadillac* Chevrolet * GMC* HUMMER * Pontiac* Saab * Saturn
GMNA (The United States, Canada and Mexico)
* Buick * Cadillac* Chevrolet * GMC* HUMMER * Pontiac* Saab * Saturn
Geographic Segmentationand brands offered
GME (Europe)• Opel• Vauxhall• Saab• Chevrolet• Cadillac• Corvette• Hummer
Geographic Segmentationand brands offered
GMAP(Asia Pacific, Australia and India)
• Buick• Cadillac• Chevrolet• Daewoo• Holden• Opel• Saab
Geographic Segmentationand brands offered
GMLAAM(Latin America, Africa and the Middle East)
• Chevrolet• Suzuki (GM Argentina)• Isuzu (GM Argentina)• Saab• Opel
Product Segmentationby Body Style
• SMALL CARS
• SEDAN
• SPORT/CONVERTIBLE
• SPORT UTILITY
• PICK-UP TRUCK
• SPORT/CARGO VAN
SMALL CARS
• IN EUROPE, ASIA AND ALMOST EVERY OTHER COUNTRY IN THE WORLD FAMILY CARS ARE SMALL CARS
• UNTIL RECENTLY, IN THE UNITED STATES MOST SMALL CAR BUYERS WERE YOUNG OR LOWER INCOME BUYERS
SEGMENT CRITICAL FACTORS
Small Cars are now attracting buyers insegments outside their traditional targetmarkets due mainly to several factors:
• The increase in the price of crude oil per barrel has directly effected gasoline prices.
• Environmental consciousness of car buyers
• Improved design
Annual Average Crude Oil Price 1970 - Present
0
20
40
60
80
100
120
140
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003
Year
Price
Average Nominal
Inflation Adjusted 2005
Annual Average CrudeOil Price 1970 - Present
Small CarsMarket Attractiveness
• Customers around the world are becoming more and more concerned with reducing pollution created by combustion engines. Smaller cars, in almost every case, produce fewer emissions than their larger counter parts.
• Recently car Manufacturers have made great improvements on the performance and design of small cars.
• Youthful design and affordability.
Cont
• The major issue effecting car buyers is rising fuel cost.
• This is leading car manufactures to explore more fuel efficient vehicles.
• Many of the more fuel efficient models being offered by car manufactures are small cars.
SEDAN CARS
•Customers in this segment are people all around the world who have urban living needs.•Sedans provide better riding and more carrying capacity than small cars. At the same time, they provide more fuel efficiency and drivability compared to most SUVs.
GLOBAL MARKETCar vs. SUV
• Four-door sedans (large portion of car sales) mostly preferable to SUV’s outside the U.S. markets.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
GMNA GME GMLAAM GMAP
CAR
SUV
SUB-SEGMENTS
• Sub-segments of the sedan market include economy sedans, family sedans and luxury sedan segments.
• GM has products for every sub-segments and sizes; moreover four-door Sedan segment is the GM’s second largest product line after SUV’s with 25 four-door sedan cars (in the U.S.).
SEDAN CARSCOMPETITORS
• Toyota, Honda, Nissan and reputable European competitors like BMW and Mercedes. Additionally, Japanese luxury brands makes the rivalry cruel for GM in this market segment.
• At this point GM doesn’t offer any Hybrid car, only fuel efficiency is proposed by GM is compact size sedans with small engines on this segment. At the same time Honda presents mid-size sedan Accord Hybrid as a successful example of targeting latest market trends.
SPORT/CONVERTIBLE
• Customers in this segment are comparatively younger and have the financial ability to buy a higher-priced car for its esthetics or personal interest.
• Mostly singles and couples without children.
• A sporty appearance, good acceleration, ride and handling are general characteristic of sport cars.
Sport/Convertible GM
• GM offers dozen of sport cars around the world from compact size such as Solstice to high-end such as Corvette. In addition, GM is preparing to compete with the European luxury sport cars with the Cadillac V-series.
Pick-Up/Truck &Sport-Utility Vehicles
A successful but shrinking market
for General Motors
A successful but shrinking market
for General Motors
PICK-UP/TRUCK• These vehicles are primarily targeted to customers in
North America and more specifically the United States. Americans who need more space and towing capacity than either large cars and even SUVs can provide
• Culture. Bob Lutz, the head of Product Development for GM has said, “The Pick-up is the Cowboy’s Horse.” Grouping the pick-up truck together with the image of a cowboy gives the vehicle a very distinctive, American position in the consumer’s mind.
• Until 2004, the Detroit automakers were the primary players in this market. However, Toyota, Nissan, and Honda have all introduced full size trucks to compete against the American companies
Sport/Utility Vehicles
• Like light duty trucks, SUV’s have had the most success in the American market.
• Every single major car company has a product offering in the SUV market.
• The best thing about the SUV is its overall popularity among all the target markets in the United States. Whether it be young mothers, twenty-something males, or first time drivers, the SUV appeals to many customers due to its perceived safety benefits, drivers ability ‘to see more of the road, and stylish features.
StrengthOf Market Position
• General Motors success in the SUV and Light Duty truck markets have undoubtedly been one the primary factors in the company’s avoidance of bankruptcy the last few years.
• After 9/11 GM set out to increase market share as a company to 29%. In 2004, they were able to reach this goal in the Light Duty Truck and SUV Market.
Market Attractiveness
• The overall SUV and Light Duty Truck Market is not nearly as attractive as it was a few short years ago.
• In the late 1990’s when fuel costs were low General Motors was making as much as $10,000 on each SUV and light duty truck sold.
• Due to high fuel costs and a sluggish American economy, GM has been forced to drastically reduce the prices of these vehicles. In other words, profit levels in the SUV market have been trending downward in the SUV market for several years.
SPORT/CARGO VAN
These are designed for those who want to have and SUV but want all the cargo capacity from a minivan. Now GM is trying again, hoping to transform its lackluster minivans into "crossover sport vans" with the look of sport utility vehicles and options like all-wheel drive.
• Each van is aimed at a different type of customer
• Interiors are where many minivan buyers make or break their purchasing decision
'In order for GM to once again become a profit leader in the automotive industry, the
company must trim its excessive brand and product offerings.'
'In order for GM to once again become a profit leader in the automotive industry, the
company must trim its excessive brand and product offerings.'
CUSTOMER SATISFACTION INDEX Q4 2000 Q4 2001 Q2 2002 Q2 2003 Q2 2004 Q2 2005 % Change 04
Average Industry 80 80 80 80 79 80 1.30%
Toyota 82 83 83 85 84 87 3.60%
Honda 82 83 82 82 85 86 1.20%
BMW 84 86 86 85 84 86 2.40%
GM – Cadillac 86 88 86 87 83 86 3.60%
GM – Buick 86 86 86 84 83 84 1.20%
Hyundai Motor Company 76 81 78 81 81 84 3.70%
Ford – Lincoln, Mercury 85 82 84 81 86 83 -3.50%
GM – Saturn 82 80 81 81 81 81 0.00%
GM – GMC 81 79 81 83 80 81 1.30%
Ford – Volvo 82 81 82 81 80 81 1.30%
DC – Mercedes-Benz 87 86 83 83 80 80 0.00%
DC – Chrysler 80 78 80 82 80 80 0.00%
GM – Pontiac 78 78 78 76 79 80 1.30%
Mazda 78 78 81 82 78 80 2.60%
Nissan 78 80 80 79 81 78 -3.70%
Volkswagen AG 83 81 82 76 80 78 -2.50%
DC – Jeep 75 76 79 79 77 78 1.30%
GM – Chevrolet 80 78 78 79 77 78 1.30%
DC – Dodge 81 77 78 78 75 78 4.00%
All Others 75 79 77 75 78 76 -2.60%
Ford – Ford 77 78 78 80 76 75 -1.30%
GM PERCEPTUAL MAP
GM North America Product offeringsvs.
Toyota North America Product offerings
General Motors Toyota
2 Door Cars:15 2 Door Cars:5
4 Door Cars:24 4 Door Cars:6
SUV: 30 SUV: 11
Trucks: 8 Trucks: 6
Vans: 12 Vans: 1
Total: 89 Total: 29
CONCLUSIONS
• GM produces 60 more brands of cars than its extremely successful competitor, Toyota.
• With 89 total brands of vehicles in the North American marketplace, GM not only competes against its competitors, the company is competing against itself.
• In 2005 alone, GM saw its market share decrease thus far from 28% to 25%.
References
• Guide to car types: • http://www.consumerreports.org/cro/cars/new-cars/guide-to-car-types-405.htm• GM Finance 2004 from:
http://www.gm.com/company/investor_information/docs/fin_data/gm04ar/download/gm04arfinancials.pdf
• General Motors Corporation 2001-2004 Annual Report: http://www.gm.com/company/investor_information/stockholder_info/
• GM Website: http://www.gmbuypower.com• Edmunds,New car buying Guide:
http://www.edmunds.com/buyguide/sedan.html?tid=edmunds.e.buyguidelanding.content.type.1g.*
• Cadillac wants to attract younger buyers but its old man image gets in the way,The wall street journal: http://proquest.umi.com/pqdweb?index=1&did=27224904&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1132014399&clientId=30358
References
• The Automotive Industry Records Substantial Long-Term Vehicle Quality Improvements. Retrieved from http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005089
• General Motors. Retrieved November 8, 2005 from: http://www.economist.com/displaystory.cfm?story_id=4066591http://www.economist.com/displaystory.cfm?story_id=1538140http://www.econmist.com/displaystroy.cfm?story_id=2327059http://www.economist.com/displaystory.cfm?story_id=456146
• GM Perceptual Map. Retrieved November 10, 2005, from: http://www.utdallas.edu/~tskim/Lecture%20Note%206.pdf
• Customer Satisfaction Index. Retrieved November 11, 1995 from: http://www.theacsi.org/