CHEVROLET EUROPE

AMRI YANUAR (MH102204) IVANA CHANDRA VOO (MH111031) MOHD HAMIZAN BIN ABDUL AZIZ (MH111014)

INTRODUCTION: COMPANY BACKGROUND

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Chevrolet Europe, an automobile brand under the General Motors Corporation. At the present, Chevrolet used as to reposition the Daewoo Motor Company, a subsidiary company under General Motors Corporation after the bankruptcy of Daewoo Motor Company due to heavy debt burden. In 2004, Project Midas assembled as a name given to the strategy to introduce the General Motors Chevrolet brand of passenger cars to Europe in 2005.

THE ORGANIZATION

The mission:
making the conversion branding from General Motors Daewoo to Chevrolet Europe where the conversion will further the transformation of Chevrolet into a global brand name.

Chevrolet Europe Objectives:

Resonate with European buyers Complement General Motors multi-brand Be consistent with the global perception of the Chevrolet brand

THE ORGANIZATION

Distinctive Competency
The General Motor Daewoo products quality, styling, and customer acceptance will be excellent starting point for the company distinctive competency.

PERFORMANCE AND POTENTIAL

Daewoos have won The Worlds Most Beautiful Automobile of 1998 awards held in Milan, Italy for Matiz car. PAST PERFORMANCE heavy debt burden with inconsistent marketing strategy, Daewoo Motor Company declared bankruptcy, soon loses its momentum in Europe as well as other countries

PRESENT PERFORMANCE

Penetrate into automobile market in Europe with new image and brand quality of Chevrolet Europe Continuous research for product development

PERFORMANCE AND POTENTIAL

Based on current performance, with new image and brand quality, it is believed that Chevrolet will became one of the positive brand name under General Motors Corporation

Lack of awareness in European car on the Chevrolet brand, the company believed that it provided clean slate upon which to position the Chevrolet brand in Europe

CURRENT SITUATION FACED BY ORGANIZATION AND MANAGERS

To recover the brand image from the previous Daewoo Motor Company, a project based on Project Midas assembled. The project is transforming the Daewoo brand into Chevrolet Europe brand. The production will focuses on cars production based on combination of European design and Korean technology The project Midas will be responsible on finding the right solution in repositioning the product development.

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ACTIONS AVAILABLE FOR THE ORGANIZATION

Qualitative research: y to find the customers needs, wants, and to meet their expectations y To know the acceptance of new branding image y To find positioning territory by focusing on the product appealing, relevant for users, uniqueness in product design and credible Marketing Strategies y New implementation on marketing such as value positioning, product development, sourcing, distribution, pricing and advertisement by using existing marketing medium such as retail stores, dealers, suppliers, operating policies, and practices

COST AND BENEFITS OF ACTIONS BOTH QUALITATIVE AND QUANTITATIVE TERMS

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In attempt of positioning the Chevrolet brand in Europe, continuous research and development is necessary which may cost funds and full employees participants in all level.

The benefits through qualitative terms; y improved product, with positive image quality y Bring up General Motors Corporations company name, where it able to reverse the bankrupted company to become successful company The benefits though quantitative terms; y Increase sales growth y Production increased y Financial returns from the General Motors investment

Nature of The Industry, Market, and Buyer Behavior

Nature of Industry Structure

Introduced GM Daewoo

Produced Low Price Car

Convert GM Daewoo to Chevrolet

Retain the Loyal Customer

Produced car based on Europe/Korean designed

Competitors Based Companies

Italy Company Based

Korean Company Based

German Company Based

French Company Based

Japanese Company Based

Strengths

Weaknesses

How do buyers buy

Stylish/Nice Design Better Reputation Higher Status

Look modern Smaller Engines Robust/Solid

More Expensive

Better resale value Safe Smaller size

Daewoo Unit Sales in Europe 1995-2003 1995-

250,000 200,000 150,000 100,000 50,000 0

1995 1996 1997 1998 1999 2000 2001 2002 2003

Market Segmented

19% 35%

Traditional Segments

46%

Mainstream Segments Postmodern/Materialisti c Segments

Market Segments (Traditional Segments)

11% 12%

7% 16%

The Upper Conservative Segment Traditional Mainstream Segment Traditional Blue Collar Segment Pragmatic Striver Segment

Market Segments (Mainstream Segments)

Social Climber Segment

8% 18%

9%
Convertional Modern/Progressive Modern Mainstream Segment Counter Culture Segment

Market Segments (Postmodern/ Materialistic Segments)

5% 5%
Upper Liberal Segment Socio-Critical Segment Postmodern Segment

9%

Success Requirement
Focus on Strengths Diversified Product Range Improved poor workmanship Change the customers bad perception

Acquisition
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By 1999 Daewoo acquired by General Motors became GM Daewoo Company

Acquisition
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Problem that arise after acquisition The crucial problems that GM Daewoo face is to change the perception regarding the product brand of General Motors Daewoo as it brings an image of Korean automobile technology-based economical car.

Role of customer
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Positive feedback from loyal customers The loyal customers are willing to buy same product brand as they are tended to be traditional in their value creation.

Customer Satisfaction
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GM Daewoo has a various product in order to fulfill customer wants Pursue the customer from different product segmentation (Micro van, Small car, Medium)

Globalization
To be able to penetrate into the European automobile market, Chevrolet Europe implemented new strategies on the marketing. y Project Midas conducted to positioning the Chevrolet product line into the market with new improved quality image from previous brand, the Daewoo automobile brand.
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Potential Profitability
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The investment in terms of financial resources and management flow from General Motors will improve the companys performance from time to time The attempt in going global will provide wider marketing resources in expanding the companys growth.

Organizations Future Ability

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The efforts in branding the Chevrolet as transmission from Daewoo product Enhance the organization abilitys in competing with other automobile companies

QUESTION & ANSWER THANK YOU