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Chevy Europe

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by

Aashita Anand

on 4 December 2015

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Transcript of Chevy Europe

CHEVY EUROPE
SWOT
Good design- Distinctive yet in line with European tastes
Great Value for the money- good equipment at low price
Very loyal customer base
Good brand awareness (16%) with little prejudice
Favorable image amoung those who know the brand
Strengths
Weaknesses
A limited prodcut range
No disel engines
Relatively poor workmanship
No 0% finance
Lack of brand advertising
Low product awaremness
Lack of dealer/contract consistency
Lack of any significant marketing or product development initiatives since November 2002
Opportunities
Japanese brands trading up- leaving room on the lower price end of the market
Good reputation of Asian service established by Japanese brands
The GM umbrella (GM Daewood Europe)
"Stealing" market share from European value brands- especially Fiat (Italy)
Threats
Erosion of value for the money
High level of depreciation associated with all Korean brands
Bankruptcy weakening the image
Transition to GM creating confusion and poor satisfaction record among current customer base
Major Issues
Chevy
Strengths
Weaknesses
Opportunities
Threats
Fiat
European Market is highly competitive: An estimated 20 automakers offer: 50 Brands - 200 Models

European Car buyers purchase brands based on national identifications

Daewoo is a Korean Car manufacturer

Less than 1 percent of european car buyers know of daewoo

European Passenger Car Buyer Perception of Korean Cars
Major Competition
Smaller engines
Robust and sold build
Perceived as stylish/nice design
Higher status (than Asia)
Better reputation
Safe
More expensive
Service reputation not as strong as Japanese brands
Japanese car models taking away market share
Less brand recognition than GM (no umbrella)
Service is considered to be imporving
Constraints
Europe is the largest car producer in the world and the global leader for new passenger car registrants
Europe Produces 41% of cars world wide
Europe also represents 43% of all new passenger car registrants- worldwide
Epilogue
Mission
Global Issues
- Perception/Culture
- Economy
- Distribution
- Restrictions
Industry
Body Type
Passenger Car Size
Executive Cars
"smaller than SUV"
Medium
"family cars"
Small Car
"city car"
Estates
Other
Mono-space
Saloons
Small 34.2%
Medium 46.1%
Executive/Other 19.7%
Percentage of market
Executive Summary
Goals
Non Financial
Brand Conversion from GM Deawoo to Chevrolet in the European passenger car market
Further the transformation of Chevrolet into a global brand
Complement General Motors' multi brand portfolio in Europe
Be consistent with the global perception of the chevrolet brand
Craft a Chevrolet positioning statement that would resonate with European Car buyers
Financial
Traditional
46%
Mainstream
35%
Postmodern
19%
Upper
Liberal
Socio-
Critical
Postmodern
Upper
Conservative
Mainstream
Pragmatic
Striver
Social
Climber
Conventinal
Modern
Counter
Culture
MARKET SEGMENTS
Traditional
46%
11%
Pragmatic
Striver
Target Markets
Market Analysis
Blue Collar
12%
Blue Collar
Flexible in brand
Willing to spend money on cars
Buyer Behavior
Cars Identified with Class
Middle Class
Ford
Opel/Vauxhall
Fiat
PeugotRenault
Volkswagon skoda
Lower Class
GM Daewoo
Buyer Behavior
Frustrated, cannot afford desired prodcuts
Lower Class
Used cars
Large cars
Mostly well-known European
brand famly cars
Ford
VW
Peugeot
Renault
Fiat
Demographics
Blue Collar
12%
Pragmatic
Striver
11%
Social Stats
Value
Orietnation
Value
Orietnation
Social Stats
Middle class- middle
Middle class- lower
Traditional
Traditional
Middle Class- lower
Lower Class
Down to earth, unpretentious
Traditional meaning of life
Broad age range, often middle aged, older people
Mainly married
Modest formal education
Blue-collar, working class
Free time is devoted to the family and improving the home
the family is a place for solidarity, mutual help
No excessive consumer aspirations no prestige consumption
Matiz (8,000-10,300 Euros)
Kalos (10,000-12,500 Euros)
Lacetti (13,500- 17,600 Euros)
Rezzo (12,000- 17,300 Euros)
Evanda (21,000- 22,400)
- 1/5 of GM sales from Europe
- Presence in Europe
since 1911 (Louis Chevrolet)
- Under the brands Opel/Vauxhall, Saab, and GM Daewoo, GM owned 10% market share
- Chevrolet and "bowtie" virtually unknown in 2004
History
Product
& Price
Placement
Competitive
Affordable
Practical
Stylish &
Fun
Current
Distribution
Pragmatic Striver
Blue Collar
High Growth
Promotion
"5th P"
Perception
European Roots
American Attitude
Versatility
and
Value
Germany, UK,
Italy,France,
Spain
- Daewoo known as a
"good value" with loyal
customer base
- Daewoo accounted
for 8% of GM Europe
sales in 2003
1. Resonate
2. Complement
3. Consistency
Complete given tasks within the 75 million Euro budget (84.8 million USD)
1% Market Share for Chevrolet in the European passenger car market
Cars Identified with Class
4 P's
Solutions
• Market Chevy line as returning to its birthplace, not “Americanizing” Europe

• Focus on European Roots

• Keep the concept of the Daewoo brand to appease loyal customers

•Consider joint venture with a well established automaker to ease further into other markets
Implementation & Creativity
• Overhaul dealers to be “all Chevy”

• Only include Chevy products (no mixtures of leftovers)

•Marketing Slogan: “Chevy…Welcome Home”
2005
2011
Achieved by:

• Rebranding Daewoo and marketing it as the Chevrolet brand in Europe
• In South Korea, Daewoo would continue just focus on its domestic market
GM successfully added Chevrolet into its global brand
GM currently re-branding Daewoo to Chevrolet in South Korean Market
[“What started a few years aback with The re-branding of Daewoo’s portfolio to Chevrolets in “difficult” markets including Europe, is now getting formed out globally with the backup of the nameplate in South Korea’]
April 2011:

• GM had re-outfitted its Korean dealers

• Chevrolet signage and merchandising

•Car inventory has rapidly shifted into Chevrolet-only product
Citations
Dave Leggett. (1 January). The automotive industry in 2004 - strategic challenges and opportunities ahead - 2004 management briefing: Regional issues - Europe. Just - Auto: The automotive industry...2004 Management briefing,16-24. Retrieved July 22, 2011, from ABI/INFORM Global. (Document ID: 655237221).
http://kwikiblog.blogspot.com/2011/04/post-daewoo-gm-plasters-chevy-brand-in.html
http://www.carmild.com/2011/01/2011-gm-re-branding-daewoo-to-chevrolet-in-south-korea.html

http://www.just-auto.com/news/general-motors-to-rebrand-daewoo-models-as-chevrolets_id70565.aspx?dm=yes
• Annual Sales targets (market share increase) have been set

• Monitor sales closely and decide where adjustments need
to be made
Controls
Recommendations
Market Chevy line as returning to its birthplace, not “Americanizing” Europe

Focus on European Roots

Keep the concept of the Daewoo brand to appease loyal customers

Consider joint venture with a well established automaker to ease further into other markets

GM & Fiat: “In a joint statement both GM and Fiat believe that the joint venture is working well and creating synergies.”
Full transcript