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Presented by Tiemoko Diarra, Bret Haney, Adam Pinson, and Elizabeth C. Wong MKTG 600 March 8, 2007

Quality Redefined. Presented by Tiemoko Diarra, Bret Haney, Adam Pinson, and Elizabeth C. Wong MKTG 600 March 8, 2007. Overview. Situational Analysis Product/Brand Business Structure Marketing Marketing Mix and CRM Global and Holistic Marketing. History of GM.

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Presented by Tiemoko Diarra, Bret Haney, Adam Pinson, and Elizabeth C. Wong MKTG 600 March 8, 2007

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  1. Quality Redefined Presented by Tiemoko Diarra, Bret Haney, Adam Pinson, and Elizabeth C. Wong MKTG 600 March 8, 2007

  2. Overview • Situational Analysis • Product/Brand Business Structure • Marketing • Marketing Mix and CRM • Global and Holistic Marketing

  3. 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)

  4. 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)

  5. 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

  6. 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 SWOT Analysis

  7. 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 SWOT Analysis

  8. 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 Environment TrendsShaping Target Market What do these lead to?

  9. 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

  10. 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)

  11. PPMS = per percentage of market share Source: WSJ

  12. 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”

  13. PRODUCT MIX LINE PRODUCT LENGTH LINE

  14. 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

  15. 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.

  16. GM Life Cycle • Industry & Company in maturity stage

  17. 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

  18. 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”

  19. GM Brand Concepts Brand Development Branding Objective Relationships Intense loyalty Resonance Response Positive Reactions Judgments Feelings Meaning Points of Parity Performance Imagery Identity Broad Awareness Salience

  20. Structure & Strategies • Mission: sustain, grow, and preserve leadership in the market. • Value delivery process in an era of abundant choices.

  21. General Motors’ Organization Structure, before Board of Directors President Executive Committee GM Acceptance Corporation Legal Department General Advisory Staff Financial Staff Chevrolet Division Sheridan Division Canadian Division Oldsmobile Division Buick Division Cadillac Division GM Export Company GM Truck Division Samson Tractor Division Oakland Division Inter-company Parts Division Scripps Booth Corp.

  22. General Motors’ Organization Structure, Now Board of Directors Corporate Functions President’sCouncil North American Operations GM Acceptance Corporation International Operations GM Europe Midsize & Luxury Car Group Small Car Group GM Power Train Group Vehicle Sales, & Marketing Group Development & Technical Cooperation Group Asian & Pacific Operations Latin American, African, & Middle East Operation

  23. Used to be Vs Now Hierarchy Vs Self Organizing Teams

  24. 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”

  25. Marketing Mix & CRM • Price • Place • Promotions • CRM

  26. “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) Price

  27. Channels Dealerships Used-car stores Online GM CarsDirect Partnerships Suppliers Place

  28. 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 Promotions

  29. Buick/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 Familiarity-Attitude-PR Favorable Attitude Low Familiarity High Familiarity Unfavorable Attitude Note: Values are subjective

  30. Sales force MIS Customize a car Chevrolet Cadillac Customer input Commercial contest Blogs Customer panel/task force CRM

  31. Global Marketing Asia-Pacific Value-chain Holistic, Ethical, and community responsibility In-Kind donations: $13.4m Philippines MLK National Memorial Educational partnerships Global & Holistic Marketing

  32. 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

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