CIA 3

Research report -Blog

GENERAL MOTORS

A Report submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration

Submitted by

SHIVANI K NAIR 2028149

SUBMITTED TO: PROF BARKATHUNISSA A

School of Business and Management

Christ (Deemed to be University), Bangalore

JANUARY 2022
Abstract
General Motors (NYSE:GM) is a global automotive manufacturer dedicated to advancing an all-
electric future that is inclusive and accessible to everyone. The Ultium battery platform, which
will power everything from mass-market to high-performance vehicles, is at the heart of strategy.
The report will give an insight on the brand hierarchy and brand portfolio of General motors. And
will give an idea on General Motors BCG Matrix Brand Portfolio with suitable recommendations
to improve the company’s branding strategies in India. Also discussed the challenges faced by
general motors to reach out to Indian customers.

INTRODUCTION

General Motors Company

The General Motors Company (GM) is a multinational automaker based in the United States. The
company is headquartered in Detroit, Michigan, and is the largest automobile manufacturer in the
United States as well as one of the largest in the world. William C. Durant founded General
Motors on September 16, 1908 in Flint, Michigan (Coursehero, 2018). Durant immediately
offered company stock for $2,000 of his own money, raising $12 million in just two weeks.
General Motors used those funds to go on a buying spree, acquiring over two dozen competitors
and suppliers. General Motors soared to the top of the automotive industry as a result of these
acquisitions, and by 1909, the company claimed to have sold over 25,000 cars and trucks.
(Britannica, 2021).Between 1909 and 1916, General Motors continued to add new brands to its
portfolio, which included Buick, Olds, Pontiac, Cadillac, and Chevrolet at the time. (Britannica,
2021).From 1931, when it overtook Ford Motor Company, until 2008, when Toyota overtook it, it
was the world's largest automaker for 77 years.

The company has manufacturing facilities in eight different countries. Chevrolet, Buick, GMC,
and Cadillac are the company's four main automobile brands. It also has joint ventures with
Chinese brands Wuling Motors and Baojun, as well as DMAX.
FINDINGS AND DISCUSSION

BRAND HIERARCHY AND BRAND PORTFOLIO

Coorporate brand

Family brands

Buick GMC Cadillac

Individual Brands
Silverado
Encore Sierra XT5

Company
Product Description
4*4 pickup truck Luxury
Light Duty Pickup
truck
Luxury crossover
SUV

The diagram above shows how the GM brand hierarchy is built. General Motors is the corporate
brand, followed by four major family brands: Chevrolet, Buick, GMC, and Cadillac, which
together account for more than 90% of GM's revenue, according to their annual report (General
Motors, 2016) Each family brand consists of more than 15 individual brands. This report will
focus on significant individual brands, (Coursehero, 2018) According to Business Insider
magazine The Chevrolet Silverado (Truck) is the second best-selling vehicle in the United States,
while the Chevrolet Equinox (SUV) is ranked 15th, followed by the Chevrolet Malibu (Sedan)
and GMC Sierra (Truck).
Under Chevrolet (Individual brands, models and product description)

Crossovers
Cars
&SUVs

Spark Aveo Equinox

Beat Trailblazer

Tavera Captiva Traverse

Enjoy Corvette Trax

Optra

Trucks

Colorado Silverado

Silverado
HD

Under Buick (Individual brands, models and product description)

Luxury SUVs
Trucks
and Crossovers

REGAL TOURX ENCORE GMC Sierra GMC Canyon

Envision ENCLAVE

ENCLAVE
AVENIR
Under GMC (Individual brands, models and product description)

Crossovers
Trucks
& SUVs

Sierra HD
Yukon Terrain Sierra
Denali

Acadia Canyon

Under Cadillac (Individual brands, models and product description)

SUVs Sedans

ESCALADE
XT4 CT4 CT4-V
ESV

CT4-V
ESCALADE XT5 CT5
Blackwing

CT5-V
XT6 CT5-V
Blackwing
On a global scale, General Motors' brand portfolio includes a complete range of vehicles that
meet the various needs of drivers. Under the GM Corporate umbrella, there are eight distinct
automotive brands. (General Motors, 2016) Chevrolet, Buick, GMC, Cadillac, Holden, Baojun,
Wuling, and Jiefang

Vehicle brands

Holden

Chevrolet
Wuling

Baojun Buick

Jiefang

Other brands
Chevrolet: This is the best-selling vehicle in the GM brand portfolio. Cars, trucks, and SUVs that
are both affordable and fuel efficient. Prices range from $13K to $50K, with the exception of one
model, the Chevrolet Corvette, which starts at $56K and can reach $100K.

Buick: The third best-selling cars in the GM brand list are luxury sedans and crossovers. Buick is
not only GM's oldest brand, but it is also the oldest automobile marque in the United States. It sits
between Chevrolet's mainstream brand and Cadillac's flagship Luxury brand. China accounts for
80% of Buick sales.

Cadillac: This is the GM portfolio's high-end brand. Cadillac has always been considered a
luxury car in the United States. Cadillac is the second-oldest automobile brand in the United
States. Cadillac was founded in 1902 and purchased by General Motors in 1909. It is the fourth
most popular GM brand in terms of sales.

GMC: SUVs, trucks, and vans are the main focus of this brand. It is the company's second-best-
selling brand.

Holden: This is the GM brand, which is globally integrated. It is manufactured in Australia and
has maintained a strong market position in the country.

Wuling; SAIC Motor, General Motors, and Liuzhou Wuling Motors Co Ltd have formed a joint
venture.

Baojun: SAIC-GM-Wuling Automobile is a Chinese automobile brand owned by a joint venture

between General Motors and SAIC Motor. China is Baojun's main market.

Jiefang: FAW Group has formed a joint venture with us. Jiefang manufactures pickup trucks,
vans, SUVs, MPVs, and 1-, 2-, and 3-ton trucks, as well as CKD kits for assembly in Russia,
Ukraine, Mexico, and Vietnam, and exports to over 20 countries.
General Motors BCG Matrix Brand Portfolio

Star Question

Chevrolet Bolt
Wuling
Chevrolet Volt
Buick

GMC
Holden
Caillac
Cash Cow Dog

Star - Chevrolet's Bolt and Volt are the company's most recent electric vehicles. They are
considerably less expensive than Tesla. On a full charge and full tank, the Chevrolet Volt
provides 53 electric miles and the Chevrolet Bolt provides 238 electric miles. GM has been
actively rebranding Buick in recent years. Buick is no longer regarded as "an old man's
automobile." Its designs are in line with current car trends, and it is marketed as a more family-
oriented vehicle. According to the official Buick website, globally Buick delivered 1,046,746
vehicles for 2016. This revolutionary number has never been achieved before in the brand's 113-
year history. In terms of price, Buick is in the middle of the pack between Chevrolet and Cadillac.
The popularity of Buick in China is the most important factor in its success.

Cash Cow: GMC and Cadillac are GM's older brands, and they continue to sell well. In fact, after
Chevrolet, GMC is their second best-selling vehicle. General Motors, on the other hand, has made
no effort to design new models or to invest in keeping them relevant (neither of them have an
electrical model).

Question: In 2002, Wuling was acquired by General Motors. Wuling is only 44% owned by
them. The main concern is that GM does not have sufficient authority to control Wuling-related
decisions. Despite its high growth rate, it has a small market share.

Dog: Holden is another of GM's older brands, but it has steadily lost market share in Australia
over the last five years. Furthermore, the company was involved in several scandals involving
violations of employee rights, which did not help matters.
Flanking Strategy

As BMW and Mercedes have done with their hierarchy, GM could leverage its successful
Cadillac and Corvette models by flanking them with high-performance, smaller but aggressive
vehicles. As a more affordable premium vehicle, Buick sits alongside Cadillac. GM should also
improve the quality of its finished product, increasing reliability and improving design to
incorporate better materials for more appealing and quieter interiors.

Challenges faced

Chevrolet, a brand of General Motors, was present in India. Chevrolet, despite having some
interesting global products, was never able to gain a significant market share. Maruti Suzuki,
Hyundai, Mahindra, and other popular mass-market car brands defeated the company.Opel was
GM's first foray into India in 1996, and it enjoyed some success before being phased out. Then, in
2003, it debuted Chevrolet. The decision to pull the Chevy brand out of India came as a surprise,
coming just months after GM CEO Mary Bara announced a $1 billion investment in the country.
(auto.hindustantimes, 2021)

Ways to improve the company’s branding strategies in India

For its brand managers, the GM brand needs more clarity in its positioning statement. The
company needs to create a clear brand positioning statement so that all future sub-brand
managers' branding and marketing activities are aligned with how GM perceives the brand and
what it expects from its customers with that sub-brand. In terms of the brand portfolio, the
company needs to be more discerning in classifying Buick as a premium brand and Cadillac as a
luxury brand, so that consumer perception does not lump Cadillac and Buick together.
(Coursehero, 2018)

CONCLUSION

General Motors continues to be a market leader in the automotive industry, with strong consumer
brand equity. GM should segment their products in such that overlapping doesn’t occur, confusing
consumer perception. With regards to its international brands. General Motors has taken the
necessary steps to consolidate their brand portfolio and concentrate on their core competencies.
The company's brand portfolio is strategically sound, with brands, sub-brands, and extensions to
meet the needs of all attainable opportunity markets.
References

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Review
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http://www.history.com/this-day-in-history/william-durant-creates-general-motors
3. auto.hindustantimes. (2021, september 9). Retrieved from HT auto:
https://auto.hindustantimes.com/auto/ford-to-stop-india-production-5-auto-companies-
that-bid-farewell-41631181919287.html
4. Britannica. (2021, January 24). Retrieved from The Editors of Encyclopaedia. "General
Motors": https://www.britannica.com/topic/General-Motors-Corporation.
5. Buisness Insider. (2015, June 13). These are the companies that spend the most on
advertising.
6. Coursehero. (2018). Retrieved from 11 4 gm brand hierarchy and portfolio the figure:
https://www.coursehero.com/file/pi18p3l/11-4-GM-Brand-Hierarchy-AND-Portfolio-The-
figure-above-reveals-how-GM-brand/#/question/ask
7. General Motors. (2016). Retrieved from Program Guidelines. General Motors.
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brand-report-card