1.

0 Introduction
General Motors Company (GM) is an American multinational
automobile manufacturer founded in 1908 and said to be growing steadily
from a small company into one of the largest corporations in the world in the
20th century. It produces and markets vehicles worldwide with global
headquarters in Detroit under thirteen brands such as Chevrolet and
Vauxhall. In 2009, however, GM officially declared bankruptcy due to the
financial failure that it has faced. It was luckily emerged from bankruptcy by
reorganizing it into a new company which was separated from the original
company with the help of U.S. government.
2.0 Marketing strategy
2.1 General Motors strategic marketing planning
2.1.1 General Motors mission statement
General motors doesnt have an official mission statement but according to
the statement in their official website, they state that GM take great pride in
their work and take great care to deliver exceptional cars and a positive
ownership experience to their customers around the world and hope there is
a sustained return to the employees and business partners as well as stock
holders.
2.1.2 General Motors objectives and goals
GM vision is to design, build and sell the worlds best vehicles. The primary
elements of their strategy to achieve this vision are to:
Deliver a product portfolio of the worlds best vehicles that includes cars,
crossovers and trucks, allowing GM to maximize sales under any market
condition.
Selling vehicles globally by targeting developed markets, which are
projected to have increases in vehicle demand as the global economy
recovers, and further strengthening the position in high growth emerging
markets;
Improve revenue realization and maintain a competitive cost structure to
allow GM to remain profitable at lower industry volumes and across the
lifecycle of our product portfolio.
Maintain a strong balance sheet by reducing financial leverage given the
high operating leverage of GM business model.
Ensure that GM dealers and customers have consistently available,
transparent and competitive financing options through GM financial and other
providers.
2.1.3 General Motors current business portfolio
General Motors portfolio exists at several different levels: portfolio of
divisions; portfolio of brands within divisions; portfolio of models within

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brands; brands, models and price ranges, and mechanical and cosmetic
variations. Further discussion will be continued in the final assignment.

2.2 General Motors potential strategy development

Deliver a product portfolio of the worlds best vehicles to maximize

sales.
Selling vehicles globally by targeting developed market as such putting
an emphasis in Chinas market.
Advance technology in each product create a competitive advantage
by leveraging strategic global partnerships to bring new vehicles and
technologies.

2.3 General Motors Marketing oriented strategies

2.3.1 Market segmentation
The most critical market focus for any automaker is to decide which car
market segment it wants to compete. General Motors segmentation strategy
is main aim to target the different group. GM think that the whole market is
single market, thus it produce car with the different range of cost and it
design its strategy according to the income, age, family, occupation. General
Motors, which produces vehicles under 13 brands in 37 countries thus has
successfully crossed most of the major 18 markets segments in the
automotive industry. However, this also increase the risks and potential to
loss market focus by fragmenting the segments.
2.3.2 Market targeting
General motor has produces 13 brands of vehicles to all over the
world, with variety of brand names. A large reason for wide variety of quality
brand names is to appeal to all target market. Hence, global strategy of
general motor is to produce a brand to every place and every target markets.
Different brand tend to attract different target market.
2.3.3 Market positioning
General Motors has always been one of the leading brand in the
automotive industry. The high quality and luxury car image has successfully
place the company in an important global presence especially in United
Kingdom and China, which they posted the largest year-over-year sales in the
market. However in 2013, General Motors position as the market leader in
automotive industry was threaten by Volkswagen and Toyota.
2.4 Marketing Mix Strategies
2.4.1 Product
GM consists of a wide variety of vehicle brands namely Buick, GMC,
Chevrolet, Cadillac, Hummer, Saturn, Opel, Isuzu, Daewoo which act as the
automotive leader to all target markets.
2.4.2 Price
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GM provides a broad range of vehicle from middle to luxury class with prices
from US$10,000 to US$100,000+ catering to various customer segments
worldwide. GM had implement policy in most 2006 model year vehicles to
reduce their prices in United States. GM believed that will courage their sale
volume.
2.4.3 Place
GM distributes their strength in rural areas which help to promote their
market and compete with other brands. In addition, GM developes
manufactures and markets vehicles through their four automotive regions
such as GM North America(GMNA), GM Europe(GME), GM Latin
America(GMLAAM) and GM Asia Pacific(GMAP).
2.4.4 Promotion
The main method for GM to promote its product is through auto show.
Besides that, GM also used GM magazine to promote its product. GM High
Tech Performance delivers the technology articles, news, and reviews wanted
by the late-model GM performance enthusiasts. GM makes a huge promotion
strategy which is known as Employee Discount for Everyone. This allows
people to purchase selected vehicles at the same price as employees.
2.5 SWOT Analysis
Strengths
- Name recognition
- Strong brand portfolio
- Largest manufacture in the
market
- Global network of suppliers
and distributors
- New vision and strategy
- Quality improvements
- Extensive cash reserves
Opportunities
- Growing
economy
of
automotive market
- Increasing demand for hybrid
electric vehicles
- Emerging world markets
- New and refreshed vehicles

Weakness
- Declining market share
- Brand dilution
- Product recalls
- Poor corporate reputation for
green technology
- Bureaucratic culture
- Poor financial performance

Threats
- Economy fluctuations
- Rising raw material costs
- Rising fuel prices
- Stringent emission standards
- Strong
competition
in
automotive industry
- Weak consumer confidence
and tight credit

3.0 Challenges

Rivalry of the competitors

Bargaining power of consumers
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Ongoing Financial Crisis

Weakness in Global Automobile Industry

4.0 Issues
General Motors had lose it market focus in corporate portfolio. This corporate
portfolio is currently operating out of control, with a crippling loss of market
focus that has been occurring at every level of the portfolio, and with high
and growing cash losses occurring over several years.

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