OF

“PRODUCT & BRAND

MANAGEMENT”

SECTOR-: AUTOMOBILE
TOPIC -: MARKETING PLAN FOR SMALL
CAR SEGMENT (CHEVROLET)

SUBMITTED TO:- SUBMITTED BY:-

Miss. Malika MINNI ALAG
(Lect. In Mgmt.) R1002A-17
REG.N0 11002174

CONTENTS
 1. INTRODUCTION
2. BUSINESS MISSION
3. HISTORY
4. ENVIRONMENTAL ISSUES
5. SITUATIONAL ANALYSIS
6. BRAND CARRIER
7. SWOT ANALYSIS
8. MARKETING STRATEGIES
9. MARKETING MIX
10. PLACE AND DISTRIBUTION
11. IMPLEMENTATION, EVALUATION AND CONTROL
12. ORGANIZATIONAL STRUCTURE AND PLAN
13. FINANCIAL PROJECTIONS
14. IMPLEMENTATION TIME-TABLE
15. SUMMARY
16. REFERENCES / BIBLIOGRAPHY

ACKNOWLEDGEMENT

A report is not an effort of a single person but it is contributory effort.

So, I would like to thanks to all those who have helped me directly or
indirectly during my report.

I am also thankful to Miss. Malika for her keen interest, constructive

criticism, persistent encouragement and untiring guidance throughout the
development of the report. It has been my privilege to work under her
inspiring and provoking guidance.

MINNI ALAG
 “INTRODUCTION”

General Motors Company, also known as GM, is a United States based automaker
with headquarters in Detroit, Michigan.

GM was the world's 18th largest corporate entity and third largest automaker as
ranked by 2008 revenues on the Fortune Global 500. Ranked by global unit sales for
2008, it was the world's second largest automaker. GM manufactures cars and trucks
in 34 countries, recently employed 244,500 people around the world, and sells and
services vehicles in some 140 countries.

GM is now majority owned by the United States Treasury and governments, with the
US government investing a total of $57.6 billion under the Troubled Asset Relief
Program. While no GM shares are currently available to the public, the company
plans an initial public stock offering (IPO) in 2010.

GM plans to focus its business on its four core US brands — Chevrolet, Cadillac,
Buick, and GMC. In Europe, following a period of negotiation to sell a majority stake
in its Opel and Vauxhall brands, GM decided to retain full ownership of these
operations. In 2009, General Motors employs approximately 244,500 people around
the world. General Motors' global headquarters is the centre located in Detroit,
Michigan, United States.

The main markets of GENERAL MOTORS are-:

1. North America.
2. European Union.
3. China.
4. South America.

MANAGEMENT -:

• Edward White Jr. - Chairman of the Board of the Directors

• Fritz Henderson - Chief Executive Officer
• Ray Young - Chief Financial Officer
• Robert "Bob" Lutz - Vice Chairman
• Tom Stephens - Vice Chairman
• Edward "Ed" Welburn - Global Vice President of General Motors Design,
current and only the sixth head designer.

The domain name “gm.com” attracted at least 7 million visitors annually

by 2008.

“BUSINESS MISSION”

Since, mission is a part of vision so, if the vision of any company is clear and
static, then mission will be clear too.
The mission of General Motors Company is to earn more and more profits, by
satisfying the customer needs. The mission is to provide quality goods to the
customers, with use of advance technology.
Mission is a mandatory aspect of any of the organization and, it improves the
quality of the product. And also, it helps in motivating the company, for the
timely innovation in the existing product and also introduce and launch new
products.

Marketing objectives:

The marketing objective is to establish the company as an expert in market place.

Every company have some of the other objectives, because objectives are the one,
which set the base/path for any organization, also it helps in competing with
various other players, and also helps in generating profits, along with providing
quality products and best services to their customers.

“SALES PATTERNS IN DIFFERENT COUNTRIES”

Countries Sales in 2008

United States (2,981) 22.1%

Australia (133) 13.1%

China (1,095) 12.0%

Republic of Korea (117) 9.7%

Brazil (549) 19.5%

France (114) 4.4%

United Kingdom (384) 15.4%

Spain (107) 7.8%

Canada (359) 21.4%

Argentina (95) 15.5%

Russia (338) 11.1%

Venezuela (91) 33.3%

Germany (300) 8.8%

 Colombia (80) 36.3%

Mexico (212) 19.8%

India (66) 3.3%

Top 4 markets/regions by vehicle sales in 2008 (thousands) -:

North America (3,552) 21.9%

European Union (905) 12.3%

China (1,095) 12.0%

South America (815) 20.8%

“HISTORY”

Chevrolet Motor Company of Michigan is incorporated in November of 1911 by

Louis Chevrolet, William Little and Edwin Campbell, William Durant's son-in-law,
Headquarters are in Detroit.
In 1918, General Motors buys the operating assets of Chevrolet Motor Company in
May.

In 1921, GM decides to proceed with commercial application of Kettering's 'copper-

cooled' engine, intended to replace the traditional piston engine. The initial target is
to put the copper-cooled engine in all of Chevrolet Division's cars.

In 1923, GM's first European assembly plant is established in Copenhagen under the
name General Motors International A/S.
The first GM vehicle assembled outside the U.S. and Canada, a Chevrolet utility
truck, comes off the Copenhagen assembly line on January 7, 1924.

In 1924, William S. Knudsen becomes president of Chevrolet and joins the GM Board
of Directors.

In 1953, the Chevrolet Corvette is introduced. It is the first volume production sports
car and the first production car with a plastic body to be produced in quantity.

In 1954, Chevrolet introduces small-block V-8 engine on 1955 trucks.

In 1958, Chevrolet introduces the El Camino, designed to combine big car comfort
with the utility of a pickup truck, as a 1959 model.
In 1959, Chevrolet introduces the Corvair.

In 1963, Chevrolet introduces its midsize Malibu as a 1964 model.

In 1966, Chevrolet introduces the F-body Camaro as a 1967 model. The following
January, Pontiac introduces the Firebird, its third line of cars, as a 1967 model.

In 1975, Chevrolet introduces the Chevette in October. This U.S.-built T-car was first
designed by Opel and is also manufactured by GM subsidiaries in Argentina, Brazil
and England.

In 2001, The Chevrolet Cruze was launched in Japan. Developed by GM and its
alliance partner Suzuki, the Cruze is the first GM vehicle to be built in Japan since the
1930s.
In 2003, GM announces that the 2005 model year GMC Envoy XL, Envoy
UV and Chevrolet trailblazer EXT will be the first vehicles to showcase its
innovative.

The Chevrolet Corvette celebrates its fiftieth anniversary with a caravan of 5,000
Corvettes driven by owners from each of the 50 states converging at the National
Corvette Museum in Bowling Green, Ky.

In 2004, for a record sixth time, Chevrolet Corvette is picked as the official pace car
for the classic Indianapolis 500 race.
.

“ENVIRONMENTAL ISSUES”

In the middle of 1999, the Environmental Protection Agency (EPA) removed

23,000 cubic yards (18,000 m3) of contaminated sediments and soil from the General
Motors site in Massena, New York for disposal at a licensed facility in Utah. The
amount contained 13,000 cubic yards (9,900 m3) of contaminated sediments dredged
from the St. Lawrence River. The sediments had been stored on the site since 1995.
There was also 10,000 cubic yards (7,600 m3) of contaminated sludge from the active
wastewater treatment plant on the General Motors property.

In September 2006, the state of California filed suit against General Motors,
Chrysler, Nissan, Toyota, Honda, and Ford. The companies were accused of
producing cars that emitted over 289 million metric tons of carbon per year in the
United States, accounting for nearly 20% of carbon emissions in the United States and
30% of carbon emissions in California.

The Union of Concerned Scientists ranked General Motors as seventh out of the
eight world's largest automakers in 2007 for environmental performance. The report
noted that GM manufactured the most vehicles achieving 30 mpg-

“SITUATIONAL ANALYSIS”
In today’s modern world, it is basically seen that, use of four-wheeler has
increased deliberately, specially by the middle class segment.
So, in order to target middle class segment, CHEVROLET is planning to launch a
new small car named, “FUNDAMENTAL”.

Its a four wheeler automobile, designed with latest technology and better
engineering. Price of the car is set by the company, in such a range that- it will
effectively meet the needs of the customers, specially the middle class segment,
since its company’s main target market. Many middle class customers, who were
not able to purchase a car, now with launch of FUNDAMENTAL, they can fulfill
their dream of owning a car.

Competitor:

There are many players in every sector. Similarly, in competition to Chevrolet’s

new small segment-oriented car, “FUNDAMNETAL”, there prevails intense
competition among all the players.
As to cope up with increasing demand for a small car, the automobile companies
are manufacturing at their level best to meet with customer’s needs since, the
production rate is too low and demanding rate is quite high. The main competitors
for Chevrolet’s “FUNDAMENTAL” car might be -:

1. TATA.
2. MARUTI SUZUKI.
3. HONDA.
4. TOYOTA.
5. HYUNDAI.
6. Others.

Customer profile:

The market Profile has drastically changed, as compared to past years. In today’s
world, not only people above 20 years of age are using car, but also, the car is
being used by a person, who is 20.
Earlier, only rich class used to afford a car, but now in current customer profile,
every middle class family desires to own a car, so its a great opportunity for
automobile companies to grab this edge of generating profits.

Technology:

Technology often helps in innovations and, innovations leads to success.

Grabbing a new technology means, an organization is capable of gaining an
advantage over competitors.
CHEVROLET has used latest technologies in its new car i.e.,
“FUNDAMENTAL” so that they can develop ways to lower down the cost of
production and also providing new variants to the customers in different model. if
the technology is latest than it is affordable by all the people. Different features
are -:

1. Luxurious interiors.
2. Available in 5 different colors, with exclusively modern graphics.
3. ABS break system.
4. Free accessories worth rs.10,000.
5. 5-door entry system.
6. Best cooling air conditioners.
7. Available both in petrol and diesel variants.

The above explained features are for top-class model, which is for high-profile
customers, but in case of middle and base model, the following features are being
offered by the company -:

1. Air bags.
2. 3-door entry system.
3. Power windows.
4. Available only in diesel variant.

“Brand carrier”

In the last three years, annual small-car sales in Europe have grown from under one
million to almost 1.4 million units and FUNDAMENTAL, backed by the high value
promise of the gold bowtie, is expected to substantially increase Chevrolet's
penetration of the segment, particularly in western European markets.

While re-energizing Chevrolet's small-car offer, “FUNDAMENTAL” is the next step

in a new product development program. This car features a new, more expressive
design language for the brand.

Chevrolet continues to be Europe's fastest-growing mainstream automotive brand.

Despite challenging market conditions in the second half of 2008, Chevrolet increased
its annual sales volume by almost 11 percent, selling more than 500,000 cars in
Europe for the first time.

“SWOT ANALYSIS”

SWOT is a tool for analyzing, companies “internal and external” environment.

It is a frame work, which helps a company to generate strategic alternatives, form
a situational analysis.
SWOT analysis is useful, when limited amount and time is available, with the
company, in a complex situation.

Strength:
1. Positive goodwill in the minds of the customers.
2. One of Chevrolet's biggest marketing assets is its five racing teams-: NASCAR
Nextel Cup Series, NASCAR Craftsman Truck Series, Indy Car Series, American
Le Mans Series, and NHRA Drag Racing.
3. Increased brand awareness.
4. Ascertained customer trust and believe.
5. Providing satisfactory and durable products/goods.
6. Better after sale services.
7. Different products for different target groups.
8. It has five divisions of vehicles -: cars, trucks, sport utility vehicles, vans, and
commercial vehicles.

Weakness:

1. Highest model is not affordable by normal people.

2. Financial resources.
3. It cannot compete with foreign manufacturers since, it dont hold many of
luxury brands.
4. Unable to compete with its competitors.

Opportunity:

1. Due to increased income, increase in standard of living of customers

2. As economy is growing, demand for such companies is also growing.
3. Grabbing new technological changes.
4. Market growth prospects.
5. Concentrating on all sections of society and then, manufacture a product.

Threats:

1. Changing taste and preferences of consumers.

2. Prevailing strong competitors.
3. Unable to grab new technologies, due to financial crisis.
4. Threat from competitors like, HYUNDAI, MARUTI, TOYOTA, etc.

“MARKETING STRATEGIES”

1. Target market strategy of “FUNDAMENTAL” -:

Target market is strategy to, select any specific market, as its target and, then
impart that target market, with excessive advertisements and promotion. This is
done, just to enhance its market share, and to achieve all this, company needs to
understand customer needs, and then satisfy them. Companies also needs to
maintain relationship with the existing customers and maintain ongoing
relationship with them.
General Motors, target its customer on the basis of feedback, in relation to their
tastes, preference, income and features.

2. Differentiated Strategy -:

Company aims at undifferentiated strategy, since it targets all the

segments. Chevrolet is already prevailing in large-car segment, and now it
is also launching “FUNDAMENTAL” in small car segment inorder to
compete with other players like, HYUNDAI, MARUTI, TATA,etc.
CHEVROLET’s small car “FUNDAMEBTAL” will be available in
between range of 3.5 lacs to 4.2 lacs.
This will basically target middle class segment.
By existing in both large and small car segment, company can earn more
profits and even capture market share.

“MARKETING MIX”

1. Product:

A product mix is set of all product and items that a particular offer for the sales. A
product mix has its many product line different model of small car with different
prices and features are as follows -:

FUNDAMENTAL’s highest model:

The price of highest model is 4.2 lacks.

This top-class model consists of following features -:

1. New and modern graphics.

2. ABS break system.
3. Air-bag facility.
4. Electronic window 4-sided.
5. Luxurious interiors.
6. Latest air-conditioning technology system.
7. Available in different colors.
8. Extended fuel capacity.
9. Fog resistant mirrors.
10. Free asseccories worth rs.10,000.
11. Available both in petrol and diesel variants.
12. Also, available a special “Limited Edition” model, for top-class customers.
2. FUNDAMENTAL’s middle-class model -:

The price of middle model is 3.9lacs.

It includes following features -:

1. Electronic power window system.

2. Air conditioner.
3. Free Insurance.
4. Its available in 3 different graphics.
5. Available both in petrol and diesel.

3. FUNDAMENTAL’s base model -:

Price of the base model is 3.5 lacs.

Basic features of this model are as follows -:

1. 2-sided power window.

2. Low fuel capacity.
3. Available only in colors.
4. Low quality ABS system.
5. Available only in diesel variant.

“ PLACE and DISTRIBUTION”

The plant for production for four wheel car is situated at AMRITSAR in Punjab.
The distribution of car in such a way that people remind about the company. The
advertisement of distribution is done through out the India. Like newspaper, radio
channel, TV channel, hooding etc. the product is first transfer from the plant to
the distributor and offer that to the customer.

Promotion:

Promotion is a very important key element of a marketing mix. Promotion means

to produce information about the product and the company towards the consumer.
There are many promotion system like-

1. Advertisement:

The product is promoted by doing advertisement of it by different channel like

TV, newspaper etc.

2. Sales promotions:

In this sale is promoted by giving different types of free gift coupons or gift items
to the customer like giving free accessories to the car to the customer.

3. Personal selling:
In this some person are trained by the company that how they convince the
customer about the product to by going door to door. In promotion the company
also done a contract with the agents, sponsors. So that they advertise the product
in the different ways.
Promotion is also done online as company pay to the internet that they pop their
advertisement when any users open that site. This is the costly method but for the
promotion the company do that.

4. Price:

The price of the different model of cars is set on the basis of industries standards.
This price covers sales, cost, raw material cost and other cost which increased in
the production. There are different price centers made by the company so no
wrong thing was happen. The price should be set by taking care of the people or
customer profile so that every kind of people going to afford the car.

“IMPLEMENTATION, EVALUATION AND CONTROL”

Marketing research:

It is a systematic and objective process of identifying, formulating and, objective

setting of a marketing problem and, collecting, processing, analyzing,
interpreting the data, in order to find a justified solution for that problem.

1. The demand for the product(car) is being analysed in this stage and also, car
sold per day is find out, in order to know the future prospects.

2. Finding out the number of competitors in that segment.

3. Identifying the technologies being used by competitors.

4. Finding out the type of customer and type of market, the company is going to
target.

5. Setting up the price of different variants/types of car.

6. Finding out the latest demand trend of the market.

Market research is done by the research and development department. The person
assist the member in research and development department were-
a) Strategic planner
b) Cost accountant
c) Finance manager
d) Other experts.
All these person were play an important role in planning the strategy and in the
process of introducing the new car.
“ORGANIZATIONAL STRUCTURE AND PLAN”
The manner in which an organization divides its labour into specific tasks and
achieves co-ordination among these tasks. organizational structure basically refers
to the way that an organization arranges its people and their jobs, so that its work
can be performed and its goals can be achieved.
The relationship among these different positions, are illustrated graphically in an
organizational chart.
The best organizational structure for any organization depends
on many factors such as,
1. Type of work.
2. Its size in terms of employees.
3. Revenues related.
4. Geographic dispersion of its facilities.
5. Range of its business.

The plan for new product (car) is made according to the needs and demand of the
customer so that, company is able to increase market share at a higher level. Our
company ensures the customer that they don’t suffer from any problem by
purchasing these cars.

TYPES OF ORGANIZATIONAL STRUCTURE -:

1. Line and Staff organizational structure.

2. Divisional organizational structure.
3. Matrix organizational structure.

CHEVROLET follows “LINE AND STAFF” organizational structure.

“FINANCIAL PROJECTIONS”
(In Rs. Crores)

SALES 2009 2010 2011 2012 2013

Net Sales 177.56 232.15 374.91 227.77 325.56
Other 11.91 4.45 -0.53 -3.86 -5.73
Income
Stock Adj. -21.56 13.54 -63.76 -76.54 -4.14
Total 167.91 250.14 310.62 147.37 315.69
Income
Total 34.54 136.87 154.87 118.66 119.54
Expenditur
e
Net Profits 133.37 113.27 155.75 28.71 196.15
Total Debt 72.03 221.86 211.56 276.67 137.92
Objectives:

The financial objective of the company is to be financially solvent within its fisrt
two years of operations.
The company aims at achieving sales target approx rs.250crore by the end of
2011and of rs.500crore by the end of 2013. Company is also planning to-:

1. Contract with more dealers and open more showrooms of CHEVROLET.

2. In order to meet with future requirements and obligations, company will
also be planning to take loan from various financial institutions.
3. Since, net profits are decreasing in future projections, so company will be
developing a “CONTROLLING COMMITTEE”, which would look after the
inflow and outflow of cash.

“IMPLEMENTATION TIME-TABLE”

2011 :

1. The company plans to achieve a greater market share, and grab more and
more customers.

2013:

2. Company plans to capture entire market segment.

3. Provide effective after sale-services and, create a positive goodwill in the
minds of the customers.

“SUMMARY”

CHEVROLET basically aims at increasing their profits by increasing its sales

and for this target, they need to strengthen their sales force, since salesmen are
the people who directly communicate with customers.
Hence to increase sales of Chevrolet’s “FUNDAMENTAL”, company is
planning to open more and more showrooms, across country.
Over the next coming years, company is planning to achieve a landmark in sales
aspects, by customer satisfaction. Company is also planning to higher skilled
labour, who is effective in complying with technical and financial aspects of the
organizations.

“REFERENCES / BIBLIOGRAPHY”

1. http://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/index.html
2. http://www.gm.co.in/content_data/AP/IN/en/GBPIN/999/index.html

3. http://resources.bnet.com/topic/chevrolet+and+strategy.html

EDITION PUBLICATIONS BOOK NAME AUTHOR’s

NAME
13th PEARSON MAKETING KOTLER,
MANAGEMENT KELLER,
KOSHI, JHA
3rd KALYANI SERVICE PARAMPAL
MARKETING SINGH,
RAMNEEK
KAUR
5th KALYANI MARKETING C.N.
MANAGEMENT SONTAKKI
1Oth VIKAS MARKTING ARUN
MANAGEMENT KUMAR,
N.MEENAKSHI