CASE NAME:
“Chevrolet: A Century of Product Innovation” Group Name: Spider man
1. Trầần Th Thuý Nhi ị (GL) 2. Tr nh Bích Ng ị c (GM) ọ
3. Nguyễễn Ngọc Xuần Nhi (GM)
4. Nguyễễn Minh Quang (GM)
5. Nguyễễn Bách Tùng (GM)
Semester: 22.2A (2022-2023)
Subject: Marketing Strategy Instructor: Tr ng Quang C ươ m ẩ CONTENTS Page
I) Marketing Strategy analysis 4
1) Current Marketing strategy 4 a) Segmentation b) Targeting c) Differentiation d) Positioning
2) Current Marketing Mix a) Products b) Price c) Place d) Promotions
II) Answers to questions: 1) Question 1: 11
a) Answer by students’ words 11
b) Verbatim citation from the case 13
c) Citation from the textbook 14 2) Question 2: 15
a) Answer by students’ words 15
b) Verbatim citation from the case 16
c) Citation from the textbook 16 3) Question 3: 17
a) Answer by students’ words 17
b) Verbatim citation from the case 17
c) Citation from the textbook 18
ANNEX: Contribution evaluation of individual members 19
PART I: MARKETING STRATEGY ANALYSIS 1.
Current Marketing strategy: a) Segmentation bases:
Segmentation bases of this company are: -
Demographic (Age and life cycle stage, Income) - Psychographic (Lifestyle) - Behavioral (Benefit sought) b) Targeting
The target market of Chevrolet consists of customers between the ages of 18 and 34 who
are in the middle-class, have a young family now or soon, globally located, with a
modern and innovative lifestyle, and seek out benefits - tend to buy products according to
its performance and quality, looking for the vehicles with more functional than stylish. c) Differentiation i. Main competitor: 1. Ford
Ford Motor Company is a multinational American corporation that manufactures and
sells automobiles, commercial vehicles, and luxury vehicles under the Ford brand. One of
the major strengths of Ford is its global presence. The company has a strong presence in
key markets around the world. Another strength of Ford is its innovation in advanced technology. 2. Chrysler
The main product of the Chrysler Company is automobiles, particularly the Chrysler
brand of cars. One of the strengths of the Chrysler firm is its brand recognition and
reputation. Chrysler has a reputation for producing high-quality vehicles at affordable
prices. Another strength of the company is its ability to innovate and adapt to changing market trends. 3. Toyota
Toyota is known for producing reliable and efficient vehicles that range from passenger
cars to trucks and buses. The company has a global presence and is one of the largest
automobile manufacturers in the world. Toyota has a reputation for consistent innovation
and is a leader in eco-friendly technology, including the development of hybrid vehicles.
Another strength of Toyota is its focus on customer satisfaction. ii.
The differentiation base: Product Services Channels People Image attributes 1 8 8 7 8 8 Important 2 6 7 5 5 8 Distinctive 3 9 8 7 6 7 Superior 4 8 5 5 5 7 Communicable 5 6 7 6 7 7 Preemptive 6 8 7 5 7 7 Affordable 7 8 7 7 5 7 Profitable 53 49 42 43 51 Total points -
So the differentiation base is product attributes. d) Positioning
To customers between the ages of 18 and 34 who are in the middle-class, have a young
family now or soon, globally located, Chevrolet is a reliable vehicle that includes up to
seven airbags and OnStar Automatic Crash Response. 2. Current Marketing mix a) Products
The company has developed large trucks; delivery vans; full-size, mid-size, compact, and
sub-compact automobiles; sports cars; and even race cars. Here are some Chevrolet
Models Sold within the United States: -
Cars: Sonic, Cruze, Malibu, Corvette, Camaro, Impala, Spark -
SUVs/Crossovers Trucks: Equinox, Traverse, Tahoe, Suburban, Trax -
Vans: Colorado, City Express, Silverado, Express -
Electric Vehicles: Volt, Spark EV b) Price Cars: - Sonic: 16.000 - 21.000$ - Cruze: 17.000 – 23.000$ - Malibu: 25.000$ - Corvette: 65.500$ - Camaro: 26.400 – 73.300$ - Impala: 29.027 – 32.741$ - Spark: 13.600 – 18.100$ SUVs/Crossovers: - Equinox: 26.600 – 33.400$ - Traverse: 34.520 – 54.200$ - Tahoe: 54.200 – 77.400$ - Suburban: 55.500 – 79.100$ - Trax: 20.400 – 23.900$ Vans: - Colorado: 29.200 – 46.800$ - City Express: 22,855–23,715$ - Silverado: 20.024 – 25.260$ - Express: 14.332 – 31.768$ Electric Vehicles: - Volt: 24.137 – 28.100$ - Spark EV: 13.600 – 18.100$
*Chevrolet Vehicles: Prices, Reviews & Pictures | U.S. News. (n.d.). U.S. News Best Cars.
Retrieved June 12, 2023, from https://cars.usnews.com/cars-trucks/chevrolet c) Place
In general, Chevrolet cars are sold through a combination of dealerships, official websites automotive , shows and exhibits. -
Chevrolet has official websites for its various business operations. Through these
websites, customers can access information about products and locate dealers. -
Dealerships are Chevrolet partners authorized to display GM products and transact
with customers and have acted as the most valuable link between the
manufacturers and its customers in the distribution channels. At dealerships,
customers sign contracts for the purchase of automobiles and contracts for auto loans from GM Financial. -
Moreover, GM engages in automotive shows and exhibits. These shows and
exhibits, involving popular automotive-specific organizations and audiences, allow
the company to extend its market reach and potential distribution. -
In some regions, Chevrolet may also work with independent distributors or agents
to expand their reach. The company makes use of various channels of distribution
to ensure that their new vehicles, old vehicles and their space parts are made
available to their potential customers. Distribution channels used by Chevrolet aim
to provide convenient and accessible access to their cars for consumers. Manufacturer Distributors/Agents Dealerships Websites Retailers End-users End-users End-users d) Promotion i. Advertising:
Advertising is the most significant tactic in General Motors promotion efforts. In South
Africa, Chevrolet commercials have emphasized familial values as well as excitement.
Taglines include “Captiva. Made for Memories.” and “Where Will Chevrolet Take You?”.
It helps the company attract potential customers and enhance its brand promotion strategy
in the market. Although Chevrolet applies a global brand strategy, it still adjusts to fit each specific market. ii. Sales Promotions
Chervolet adopted a patriotic theme with taglines such as “America's Best Seller,
America Best Buy" and “Baseball, hot dogs, apple pie and Chevrolet”. One of its most
popular taglines “Like a Rock" in 1991 to describe its Chevrolet pickup truck. The tagline
imbued the brand with a sense of strength and durability. Chervolet would continue its
America theme with its “An American Revolution" tagline adopted in 1994, “Chevy
Runs Deep" and its most recent “Find New Roads” to emphasize a global perspective. iii. Personal selling
Personal selling typically happens inside dealerships, where employees persuade
customers to purchase automobiles from General Motors. Chevrolet Motor Company is
well known for its personal selling tactics, the majority of the business requires face to
face interactions and transactions. This is needed in order for the seller to provide the
consumer with a great vehicle that is reliable, affordable, and long lasting. Personal
selling is more effective for Chevrolet Motor Company, rather than a consumer buying
products online. With more input and education of a product, personal selling provides this security. iv. Public relations (PR)
Public relations are applied in the form of sponsorships of charitable activities and events
to promote GM brands and products and to help such events, thereby supporting GM
corporate social responsibility strategy. In 1935, Chevrolet started sponsoring the All-
American Soap Box Derby, which it would continue to support for the next decade.
Chevrolet vehicles driven by drivers such as Jeff Gordon and Jimmie Johnson would go
on to become a common sight in racing circuits.
Chevrolet continued courting race car drivers as endorsers, and racing greats Junior
Johnson, Mark Donohue, Tony DeLorenzo, Dale Earnhardt, and Jeff Gordon all won
races driving Chevrolet models. The Chevrolet Cruze, one of the company’s most popular
models, won the Driver’s Championship and Manufacturer’s Championship in the 2010
World Touring Car Championship races. Chevrolet’s association with race car driving has
established many of its models as sporty, high-quality vehicles. Chevrolet also provided
the engines for the 2012 Indy Racing League. In 2015, it sponsored the Chevy Indy Dual
in Detroit. By reentering the Indy Racing League, Chevrolet has reinforced its racing heritage and brand image. PART II: ANSWERS Question 1:
“Evaluate the diversity of vehicle types and sizes that are sold under the Chevrolet
brand name. What strengths and weaknesses are evident in Chevy’s product mix?” a) Answer the question
Chevrolet offers an extensive variety in the company’s product mix, which includes
large trucks, delivery vans, full-size, mid-size, compact, and sub-compact
automobiles; sports cars; and even race cars. Besides, the wide range of cars inspired
the owner’s belief that the best way to provide competition to Ford, the chief competitor,
was by offering a broad variety of vehicles.
Chevy markets seven cars, four trucks, four crossovers, and one vehicle that is powered
by electricity in the United States. Moreover, the vehicles are a collection that includes
the large suburban as well as the sporty Corvette. Chevrolet sells the Camaro and the
Corvette to a class of buyers that would desire a sports car and can afford to purchase
one. Also, Chevy offers vehicles that are safe and comfortable for the average family
while saving on the cost of fuel. Such vehicles include the Cruze and the Impala, which
are provided by the company as sedans for families. Further, Chevy offers its clients
pickup trucks, which are more popular than the cars sold by the firm. For example, the
Silverado, which is the company’s most common vehicle, Further, the company
introduced the Volt to the product mix to expand the variety of vehicles it offers. The Volt
uses the battery as well as gasoline in the event that the electrical charge is consumed.  Strengt hs
Chevy’s strengths include, as I previously mentioned, a broad portfolio, strong brand
equity, strong brand loyalty, competitive advantage over many other brands, diversified
product mix, and they are innovative. Chevy introduces a new vehicle model each year
that has different sizes and price ranges and can cater to their customers’ needs. As such,
this helps the company deal with the problem of product obsolescence and gain a
competitive advantage in the market. Cars such as the Sonic, Spark, and Cruze are
smaller in size, but offer new styling and great gas mileage. The Malibu and Impala offer
a roomier interior and an iconic style. The Corvette and Camaro are sports cars that have
both speed and beauty. In the ever popular SUV market, Chevy offers the Equinox,
Traverse, Tahoe, and Suburban. It also offers the electric car, the Volt, and a solid line of trucks.
The company aspired to become a part of American culture and pushed its brand
in that direction by having a large presence with American sporting events. In particular,
it is highly associated with NASCAR and is currently driven by many famous sporting
figures. Chevy’s goal of being synonymous with American culture can be seen with such
slogans as “America’s Best Seller, America’s Best Buy,” and “Baseball, hot dogs, apple
pie and Chevrolet.” The company today continues the same strategy that it has used for
years by continuing to have strong roots and marketing in America.
The corporation does have some opportunities and threats concerning its future.
One opportunity is the growing demand for fuel efficient cars. If Chevy can build cars
that are superior to its competitors and have sleek designs that customers want, then it can
place itself in a very good position. Also, the world now has a global economy. Where
Chevy’s America based marketing worked well and may still work well in America, it
needs to come up with campaigns to target its growth in foreign markets. This is a huge
opportunity considering the world’s population is many times what it is in America.  W eaknesses
The company had many successes but it also had failures in two of its vehicles; the
Chevy Corvair popular in 1962 failed after it was deemed unsafe due to safety issues with
its steering, and the Chevy Vega failed because of poor quality and product recalls which created negative publicity.
Chevy made a mistake of attempting to drop the nickname “Chevy” in 2010. As a result,
the company received serious adverse reactions from customers, which challenged the
management to continue using the nickname.
Chevrolet faces threats as well. These threats come from direct competition from
companies such as Ford, Toyota, and Honda. Also, the company faces the huge threat of
recovering from its bankruptcy because GM ended up discontinuing.
b) Verbatim citation from the case
- “The company has developed large trucks; delivery vans; full-size, mid-size,...diversity
of the Chevrolet product mix that exists today”
- “Chevrolet Models Sold within the United States”
- “Although the Chevrolet brand has evolved over the years, it maintains many of the
same themes it started out with a century ago: a quality vehicle with deep roots in
America’s past… “Chevy Runs Deep,” and its most recent “Find New Roads.”
- “The car company has had a notable presence in the Indy 500, Formula One, and
NASCAR series, with drivers like Tom Kendall, Jacques Villeneuve, John Force, and
even Paul Newman choosing to race Ford vehicles. Creating solid connections to
America’s past is an important part of Ford’s branding strategy.”
- “Chevrolet adopted a patriotic theme with taglines such as “America’s Best Seller,
America’s Best Buy” and “Baseball, hot dogs, apple pie and Chevrolet.””
- “Ford and Chevy vehicles are both considered to be practical and affordable cars, and
although Chevy is generally viewed as being sportier than Ford, Ford’s sports vehicles
like the Mustang are direct competitors to Chevy’s sports cars”
- “Yet its 2012 model received lackluster reviews and was criticized for using “cheap
interior materials and construction.””
- “In 2010 GM decided the company would stop using the popular American nickname
Chevy and only use Chevrolet in corporate communications and advertising”
- “The reasoning behind this was that international buyers of Chevrolet tended to get
“Chevy” and “Chevrolet” confused, believing that they were different cars. However,
consumer backlash and managerial changes convinced GM to drop this plan.”
- “After nearly a century in business, Chevrolet faced its greatest threat with GM’
bankruptcy in 2008. The company required a massive $50 billion government bailout,
and although GM has rebounded, its reputation took a while to recover”
c) Citation from the textbook -
Chapter 7: Segmentation and positioning principles; Part 1: Principles of
competitive positioning; Page: 161 Question 2:
“How has Chevrolet strategically managed its brand and reputation over the
last 100 years? What opportunities and threats will affect Chevy’s branding
and reputation in the future?” d) Answer the question
The Chevrolets brand has changed over the years the company has been in operation.
However, the company still maintains and uses some themes that it began with, such as
the subject of creating quality vehicles that have deep roots in America's past. Also,
Chevy tries to preserve their brand as a central part of the culture of America. Chevy
achieves that by associating themselves with sporting events in America. Also, the
company makes use of tag lines integrating the name America with an aim to reiterate the relationship.  Opportunities
International markets-Chevy sells more than 4 million cars in over 140 countries. Further,
the number is expected to continue growing due to increase in investments by Chevy in
additional foreign markets. The Electric car market provided a good opportunity for the company to make the Volt.  Thr eats
The regulations by the government, especially on fuel efficiency, might force the business
to make lighter vehicles as well vehicles that are more efficient.
Secondly, the rivalry with its main competitor, Ford, may intensify because Ford did not
accept to be bailed out by the government. As such, Ford will have more advantage
especially in the area of combative advertising.
Finally, the rise in the fuel prices and the increase in the use of public transportation may
adversely affect the sales figures of Chevy and eventually the profit figures
e) Verbatim citation from the case -
“Although the Chevrolet brand has evolved over the years, it maintains many of the same
themes it started out with a century ago: a quality vehicle with deep roots in America’s
past…Chevrolet vehicles driven by drivers such as Jeff Gordon and Jimmie Johnson
would go on to become a common sight in racing circuits.” -
“The safety issues have also provided threats and opportunities for the Chevy Volt’s
prime competitor, the Nissan Leaf…With analysts predicting that only one will win in
grabbing the majority of the U.S. market share, the stakes are high.” -
“Such modifications will be important as environmental conditions in the market
continue to change. For instance, new and impending regulations require automakers to
create vehicles that are more fuel efficient. By 2025 vehicles must be able to reach 54.5
mpg. Such changes will be costly and demand that GM take action now. Thus, new
Chevrolet vehicles are likely to be lighter and possess more energy saving technologies.
Such modifications are essential to ensuring that Chevrolet meets both consumer
demands and the regulatory demands of the government.” -
“After nearly a century in business, Chevrolet faced its greatest threat with GM’s
bankruptcy in 2008…(Ford stated that it had run its course), this viewpoint represented
the sentiments of many Americans who felt that GM and Chrysler had overextended
themselves and then depended upon taxpayers to bail them out for their mistakes.”
f) Citation from the textbook -
Chapter 2: Strategic Marketing Planning; Part 2: Establishing the core strategy; Page: 34,35,36 Question 3:
“What specific marketing strategies would you recommend that might help
Chevrolet last another 100 years? How important is Chevy's legacy of innovation to
the brand’s future?” g) Answer the question
Chevrolet needs to become autonomous with quality. It has improved its quality
significantly over the last decade, however, it needs to continue to do so in order to
survive. The company needs to use marketing strategies that will expand its exposure in
foreign countries. Many countries feel like the cars made in America are cheap and are
not very high in quality. Chevrolet is going to need products that are of the same “global
core architecture.” Making cars that appeal to multiple markets is something that Chevy
needs to do. Customer awareness in other countries needs to increase dramatically.
Chevy's legacy of innovation is vital to the brand's future because it helps companies to
create new and improved products, stay competitive, and meet the evolving needs of their
customers. Research has shown that customers like that there are small changes to cars
every model year, and that total refreshes are done every few years. Chevy needs to
continue this trend, maybe with more frequency. It currently has models that have not
been refreshed for many years, like the Impala. The company also needs to revolutionize
the use of electric cars because the current trend is that people are gradually turning to
electric cars (Volt, Spark EV). Innovation helps to set a brand apart from its competitors,
attract new customers, and retain long-term customers. Therefore, Chevy's legacy of
innovation will undoubtedly continue to be a key factor in ensuring the brand's future success.
h) Verbatim citation from the case -
“GM’s VP of marketing saw this as a major advantage, using it to position the Volt as “a
car first and electric second” and claimed that the Volt can give drivers the peace of mind
that they will not become stranded if they use up the electricity reserves”
i) Citation from the textbook -
Chapter 12: Competing Through Innovation; Part 1: Innovation strategy ; Page: 301,302, 305 % No. Full name Remarks Contribution 1
Trầần Thị Thuý Nhi 100% 2 Tr nh Bích Ng ị c ọ 100% 3 Nguyễễn Ng c X ọ uần Nhi 100% 4 Nguyễễn Minh Quang 80%
Did not follow the requirements 5 Nguyễễn Bách Tùng 50%
of the task despite being reminded many times. ANNEX