Transcript Document

Quality Redefined
Presented by
Tiemoko Diarra, Bret Haney,
Adam Pinson, and Elizabeth C. Wong
MKTG 600
March 8, 2007
Overview
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Situational Analysis
Product/Brand Business Structure
Marketing
Marketing Mix and CRM
Global and Holistic Marketing
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)
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)
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
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
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, HighSpeed Rail, Alternate
Personal Transports
(Segway, etc.)
– Infrastructure
• Limits alternate fuels
Environment Trends
Shaping 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?
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, fuelefficiency, style
• GM must target brand loyalists
– Must maintain brand image with current
customers to keep them loyal
Environment Trends
Framing 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)
US Market Share, 2006
Other, 12.8%
n/a ppms
GM, 24.6%
41,820 ppms
Toyota, 15.4%
20,798 ppms
Honda, 9.1%
24,757 ppms
Ford, 17.5%
35,700 ppms
PPMS = per percentage of market share
Source: WSJ
Nissan, 6.2%
39,062 ppms
DaimlerChrysler
, 14.4%
3,7392 ppms
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”
PRODUCT LENGTH LINE
PRODUCT MIX LINE
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
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.
GM Life Cycle
• Industry & Company
in maturity stage
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
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
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”
GM Brand Concepts
Brand
Branding
Development
Objective
Relationships
Intense loyalty
Resonance
Response
Judgments
Meaning
Identity
Performance
Feelings
Imagery
Salience
Positive Reactions
Points of Parity
Broad Awareness
Structure & Strategies
• Mission: sustain, grow, and preserve
leadership in the market.
• Value delivery process in an era of
abundant choices.
General Motors’ Organization Structure, before
Board of Directors
President
GM Acceptance
Corporation
Financial
Staff
Chevrolet
Division
Sheridan
Division
GM Truck
Division
Canadian
Division
Samson
Tractor
Division
Executive Committee
Legal
Department
Oldsmobile
Division
General
Advisory Staff
Buick
Division
Oakland
Division
Cadillac
Division
Intercompany
Parts
Division
GM Export
Company
Scripps
Booth
Corp.
General Motors’ Organization Structure, Now
Board of Directors
President’s Council
North
American
Operations
GM
Acceptance
Corporation
Corporate Functions
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
Used to be
Vs
Now
Hierarchy Vs Self Organizing Teams
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 valuefocused models
– being “American”
Marketing Mix & CRM
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Price
Place
Promotions
CRM
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)
Place
• Channels
– Dealerships
– Used-car stores
– Online
• GM
• CarsDirect
• Partnerships
• Suppliers
Promotions
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Theme: Quality Redefined
Ads
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– Chevrolet
• This is our Country
• Ain’t We Got Love
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Cadillac
Pontiac (Español)
Hummer
Contest
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Sweepstakes
Events
– LA Auto shows, etc.
– NASCAR
TiVo, YouTube
Mass customization ads
Awards
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Dealerships, sales reps
P2P technology
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10 awards for “Best Overall Value of the
Year”
Personal Selling
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Sales
– Rebates: $500-8000
– Cash back
– Low-interest financing
PR
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
Familiarity-Attitude-PR
High Familiarity
Low Familiarity
Favorable Attitude
Unfavorable Attitude
Note: Values are subjective
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
CRM
• Sales force MIS
• Customize a car
– Chevrolet
– Cadillac
• Customer input
– Commercial contest
– Blogs
– Customer panel/task
force
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
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