Tuesday, April 2, 2019
Marketing Strategy For The Chevy Volt Marketing Essay
selling Strategy For The nark five Marketing EssayIn November of 1911, Louis Chevrolet, William Little and Edwin Campbell integrated the Chevrolet Motor Comp all(a). Chevrolet offers an sorting of motorized fomites to the general public such as subcompact machines, sports cable railcars, high life cars, trucks, SUVs, and vans. Chevrolet diagnose the cut and testament continue to serve its customers for geezerhood to come, verbalise Nick Kalapos the Times leader in a documentary astir(predicate) Chevrolet be the leader in their community (15). Chevrolet continues to be on teetotum with performance, value, fuel economy, and value leader for popular Motors North America (13). umpteen passel ar becoming to a greater extent awargon of global warm up and they ar trying to find various managements to become more than environmentally cozy. Record oil prices comport pushed consumers toward fuel effectual vehicles and make prompted many goernments to consider galvanic transportations as a way of change of location (5). Research shows that consumers want eco couthie cars. About 68 percent remove say that they are pass oning to buy an eco friendly car deep d birth the next couple of years (1). Will Buss said that in reference to immaturetons Third Law of Motion, consumers watch reacted to gas prices, which wee-wee soared to picture levels, by buying someer gas-guzzling sport-utility vehicles and more of the fuel-efficient and hybrid- plyed variety. As consumers become more aware of how harmful emissions are and how much oil prices continue to rescind they lead be more willing to buy and the direct for electric cars and hybrids will take eitherwhere the automotive groceryplace (1).Chevrolet is searching for those who are willing go the extra mile to be early adopters for the upstart five that will hit the market in late 2010. The people who are going to be more interested in the Eco friendly cars are the Generation Y con sumers, says James Schroer. As Generation Y grows up they are going to demand for their vehicles to become more environmental friendly. Gen Y consumers have grown-up up to be technology savvy and they are known to be more familiar with technology than any antithetic coevals (1). By come aparting high technology that could be benevolent to the consumers it would entice number one woods to plug in rather than filling up (5). nettle quintuplet has soaring technology that will give buyers a quick phone application that will let the owners control key vehicle functions along with On star. I phones, b leave outberries and android phones will be functional with the electric car. Remote access will also be possible from a cell phone web browser that will have applications for starting, locking and unlocking the doors, security system arming and disarming commands, and t sinkk popping. a handle thither are applications for honking the horn so people will be subject to locate the ir cars easily. The Chevy volt has cutting technology innovations for the generation Y. As this generation matures and gains more mightiness, their influence will spread crossways the country (4).There are also some cultural issues to deal with when it comes to electric cars. Some Issues to the highest degree the electric car depends solely on the time the vehicle will come out, the terms of the fin and close importantly the consumers (5). Ameri chamberpots want to do good things for the environment, as long as they do non have to compromise performance, convenience, or comfort which causes a major issue (1). Americans only want to do what is suitable and as long as it does not affect their everyday life. Many Americans have a large family which requires them to need a tolerantger vehicle like a SUV making a gas eating vehicle more suitable than a small electric car.Bigger issue that arises is the lack of batteries that are available. Many car manufactures have been slow to commit to their decisions nearly electric vehicles, because they are unsure almost how many people will want to purchase the electric car. Without orders being placed assault and stamp bombardment manufactures cannot devote in the time and money that is necessary to puzzle the batteries at a timely fashion. Gassenheimer says that he has tie in that the join States will trade their dependence on the Middle Eastern oil for a reliance on Asian batteries (5). Many experts say that Western companies have more beat in technology and Asians are the leaders in producing Lithium-iron batteries for electronics. A c at oncern for the U.S is that they really dont know if they have the resources or capabilities to produce mass stacks of Lithium-iron batteries and the same(p) concern goes for atomic number 63. So a major concern arises or so where the Lithium-iron batteries are going to be made. This is a huge issue out-of-pocket to Asians being the only ones that are experienced in making fill of Lithium-iron batteries. An issue to the highest degree shipments of the Lithium-iron batteries is that its on a strict International code that would be placed on goods making these goods being labeled in the dangerous goods category. Tollefson verbalise, When the first generation of anything comes out, to a certain extent car manufactures are rolling the dice and this is the jumbogest roll of the dice any personate has ever made (5).With the rising accelerator pedal prices and consumers growing preference for environmentally-friendly technologies, the hybrid car market has grown tremendously. Toyota, being a huge competitor to oecumenical Motors captured the largest parcel of the hybrid car market. Automobile companies such as DaimlerChrysler, crossway and commonplace Motors (GM) have agreed to double their annual employment of energy efficient vehicles by 2010.With all the environmental issues going on, nearly all elevator car companies are scrambling t o be the first and best new electric or hybrid on the market. Shane Donahue stated, Our competitors and some others are pursuing similar technologies and other competing technologies, in some cases with more money available. There can be no assurance that they will not acquire similar or excellent technologies sooner than we do. With that being said, it can be recognized that General Motors notices that their competitors are one step-ahead of them in the hybrid car market. The GM Chevy quintuplet will enter the market as a direct competitor to the Toyota Prius hybrid and the Honda Insight hybrid. The Toyota Prius is only a conventional hybrid, the quint is basically a plug-in car that has to affirm the beau mondes ability to innovate and turn the company around. However, Nissan has announced that it will beat the quint to market in bowling pin 2010 with its Nissan click, which boasts a 100 mile range on a charge. The Leafs buns launch date will beat General Motors Volt pl ug-in hybrid, and period Japans Mitsubishi and Subaru both launched EVs for sale to fleets in Japan last month, the cars are smaller, lower-speed, city cars with far little range than the 100 miles-per-charge, claims Nissan for the Leaf. With the Chevy Volt and Nissan Leaf threatening to steal the green car market, Nissan is accelerating its plans for a plug-in recitation of the Prius (19)Ford has also announced that it will produce a battery-powered version of its Focus, called Focus EV, in late 2011. As healthful as many other companies are working on electric cars such as the BMW City, Dodge Circuit, Tesla Model S, and Chinas BYD E6. Although they are way more expensive, Tesla has veritablely sell a few of its cars, which gives it some advantage.Another eco friendly competitor of Chevrolet is Zenn. Their selling slogan is Zero Emission and No Noise. The Zenn does not use gasoline but is all galvanizing The Zenn companys idea on eco friendly cars is rough purity and origi nal feeling. The Volt needs at least 8 hours for it to charge fully, but the Zenn can take as little as 4 hours to get a full charge. The price of owning a Zenn is fractional the speak to of the 2010 Volt which has not all the same hit the market yet. The Zenn has been stated in Time magazine as small, inexpensive electric vehicles that can be charged to cover enough miles to handle the daily commute. (20) The Zenn is a Canada base company which has already launched the car in Canada and in the United States. Its sales are increasing with the concerns of a bad economy. A Zenn has importantly less move than a regular vehicle that will have to be importanttained on a regular basis. The owner will never have to worry about changing the oil, replace a filter or muffler and there is absolutely no need for an emission test.Chevrolet has many routes to take its new innovations with its worldwide channels of action and distribution. GM has organized its scratchs into four channels C hevrolet, Buick-Pontiac-GMC, Cadillac-Hummer-Saab and Saturn. Now it has changed the job responsibilities and titles of some(prenominal) of its channel leaders (3). A channels brand name depends on where the vehicles are being produced and exchange in. Channels use divers(prenominal) brand names to make their vehicles appear more localized. Many of the changes made to the cars are designed specifically to meet the customer needs of where their production is being made. GM took over bankrupt Daewoo Auto and technology to wait on retrieve Daewoo reputation at home. GM received a big motion with Daewoo with their exports. Chevy europium is a swiss-based firm that sells rebranded products of the GM Daewoo. Chevy Europe sold few United States domestic markets that were modified to suit the European regulations. Chevy Europe sold the Camaro, Beretta, Corvette, Blazer and the Trailblazer. In 2005 Chevy Europe rebranded its ownership to the Ssangyong, however the Daewoo name retained its name in southwestward Korea and Vietnam afterward 2005. The Suzuki badge is in the U.S and Canada, Pontiac Badge Canada, the Holden badge in Australia and New Zealand, and the Buick badge in China for some certain GM Daewoo models. Marketed in different distribution channels operated by the Netherlands-based Kroymans Corporation group are the Corvette and Cadillac. Kroymans Corporation going to sell German GM vehicles such as the Opel and they will also sell Netherlands and Belgium made brands. Kroymans is going to stay think only on importing, distribution, marketing car and retail sales in the Netherlands. The reason for this is because the Chevy Brand represents value- rallyn cars in Europe. The Corvette name was made into different brand for Europe and Japan. With this World wide vast coverage GM will be capable of designing and marketing vehicles to different resolves of the world. By having this wide coverage GM will be able to draw knowledge and cultural differences from engineers around the world (2).Market get downThe Chevrolet Volt is a hybrid electric locomote. The cars main source of power comes from lithium-ion batteries stored underneath its hood. The batteries can receive charge through one of ii ways. They can store electrical energy from the small, gasoline powered engine, or can be charged by using 120-240V AC outlets. On a full battery charge, the Volt is capable of traveling over 40 miles (22). A study found that this distance satisfies nearly trey quarters of Americans daily commutes. In plus, Chevrolet expects the batteries to last for up to ten years.The Chevrolet Volts main place market is middle family unit families that share similar opinions, interests, and hobbies. Segmenting the market and choosing this group is reflected within GMs marketing schema. They will adapt a strategy that is tailored to attract consumers with related lifestyles and purchasing behaviors.With all the Green Marketing focus in toold age world , many consumers are odoring for vehicles that are environmentally friendly. Also, with the recent state of the economy, many consumers are seeking a car that provides good value and quality at a fair price. The Volt is a new kind of hybrid that runs primarily off of electrical energy which greatly reduces its fuel consumption. With increasing gas prices and a poor stinting state, this makes the Volt attractive to these eco-friendly customers. As GM seeks to be a part of the Go Green initiative, many consumers who value this idea will deject to become loyal to General Motors.When GM set out to price the Volt, they had a good idea of where to position their product. Some other big automobile companies have already dipped into this market and give the Volts marketers a good idea of a fair price for this type of vehicle. Nissans Altima crisscross is priced at $34,000, followed by Hondas Accord ranging from $35,000-$40,000 (23). The Toyota Camry Hybrid rounds off this vehicle class w ith a standard price tag of $37,000 (24). These prices made it apparent to Chevrolet that for the Volt to be competitive it should be priced somewhere in the range of $30,000 to $40,000 depending on available options.The anticipation of the introduction of the Volt is growing, according to Chevrolet. They have over 30,000 potential buyers that cannot wait to mother one of these fascinating cars. Chevrolet wants consumers to see the car as more than just an inexpensive way to travel. They want to the vehicle to reflect style, and be a car that people aspire to own (24). However, some automakers are skeptical of the Volt. Some of the more luxurious competitors feel that most consumers will not pay a higher amplitude for a car that really doesnt offer much more than a basic automobile. Chevrolet hopes to shock them as well as the consumers it captures with the Volts release.Chevy and GM have worked hard to make the Volt a user friendly and customizable car. iodin of the features the y are offering will be a few different gauge interfaces from which the driver will be able to choose. One set contains a standard, traditional gauge set with all radiation pattern gauges placed directly over the steering wheel, small-arm a plump for set displays the gauges from the center of the dash. This uphold set is impressive, in that it uses touch cloak technology and backlit LED lighting for a bright, clear display. Both sets render drivers to see how they are using the cars energy, which can let them adjust brainish patterns to reduce lost energy (25). Still, the location of the interface is strictly up to the driver, and consumers like the idea of being able to customize a vehicle to their liking.Another advantage the Volt has over foreign electric vehicles is its federal official rebate program. The government offers $7,500 off for buying the Chevrolet brand. This becomes quite a negotiate chip when talking about a sticker price of 30-40K. General Motors is plannin g to produce tens of thousands of these new vehicles to be sold around the world. An actual price has not been set but the pricing strategy and utmost MSRP will factor in gasoline prices (26).Chevrolet offers many ser debilitys that other companys lack. An important service that Chevrolet has is a life saving service called On-Star. The Chevrolet Volt will be equipped with On-Star, but not just any On-Star, it will come with On-Star EV Lab. This version is offered to give the Volt a more high tech appeal (6). One of the features includes communicating with the Volt by telling it to charge during the night at off bloom times to take advantage of lower rates this technology is called smart charging (6). On-Star automatically runs hundreds of diagnostic and maintenance checks on your vehicles key operating systems and lay off a summary report right to your inbox every month (7).Chevrolet has been a loyal company that has always been superb when coming up with new ideas for vehicles. Chevrolet has been working hard to process this new advanced automobile. Volt is an electric vehicle with a range extender. Volt runs on electrical energy from its battery, and therefore it runs on electricity it creates from gas. Depending on the weather, the electrical features that are turned on and how you drive, you can drive up to 40 miles on the electricity stored in the battery on the whole gas and emissions free(8). After this takes place, the range-extending generator automatically kicks in to provide the electrical power. This allows the Volt to go for several hundred spare miles, until it is plugged in again.Chevrolets brand is becoming more solid after GM filed for chapter 11 bankruptcies and has just recently emerged. Chevrolet is one of the leading automobile brands in America. The automakers are continuing to launch fuel efficiency options, while also introducing safety and security packages for the new models. Trailing the American urban congestion, the Chevys hybrids are poised to surpass their mainstream competitors. Above all, the most visually clutch feature for the brand of Chevrolet vehicles is the Chevrolets corporate logo that creates a distinct look for the exterior(9).FinancialsThe Chevrolet Volt has an estimated price of around $40,000, in the U.S. market. Due to the capacity of the Volts battery pack it qualifies for the maximum US $7,500 federal tax credit. The former vice president Bob Lutz initially wanted the Volt to be sold at around $30,000. Electricity is an highly affordable way to power a car the median(a) American pays less than 12 cents per kilowatt hour. If the fair American drives less than 40 miles, it will hail about a dollar a day for electricity (8). This is about the same cost as running a basic household appliance. To extradite even more, some utility companies recommend charging overnight for off-peak rates and may even offer incentives to customers who do so (8). The Volt is being endorsed by Dalt on McGuinty and the Ontario government in Canada. The province will provide a $10,000 subsidy, and will purchase 500 Volts for the Ontario Public Service fleet. The subsidies are part of McGuintys target to have electric vehicles make up 5% of all cars in Ontario by 2020. (10)At the Sydney Motor Show in October 2008, Holden stated that the Volt would be available in Australia by 2012 for more than $30,000. At the U.S. average cost of electricity ( pretendly 11 cents per kWh), a typical Volt driver would pay about $2.75 for electricity to travel 100 miles, or less than 3 cents per mile. GMs average annual sales growth over the past tense five years is a low 0.7 per cent. It has accumulated losses of $51 billion (U.S.) since 2005, and the shareholder value of GM, with 2007 sales of $297 billion, is a humbling $12 billion. (21)An analysis of the financial statements of the Chevrolet Volt show that the accounts receivable remain at about $500,000 throughout the year not including a se asonal pas seul in sales. The accounts receivable turns over once every 60 days. The broth on the other hand remains about $800,000 and turns over every 90 days. The accounts payable remains at $400,000 and turns over about once every 45 days. With an accounts receivable collection period of 60 days and an average balance outstanding of $500,000, results show that $750,000, is the amount that should be gathered on the receivables in 90 days. If the inventory of $800,000 valued at cost turns over once in 90 days and if the average markup is about $200,000, notes sales should amount to about $250,000. If there is no seasonal factor, the total amount divided by four should be an approximate test on the amount budgeted for the next 90 days.A Chevy Volt owner could theoretically drive 15,000 miles for less than $300.00 a year, take for granted current rates for electricity stay the same. Volt uses about 2500 kWh annually, which is an extremely affordable way to power a car as the ave rage American pays less than 12 cents per kilowatt hour. In other words, if you drive 40 miles or less that could work out to be about a dollar a day. And that can add up to big savings. (27). Depending on the weather, the electrical features that are turned on and how you drive, you can drive up to 40 miles on the electricity stored in the battery totally gas and emissions free. After that, its gas-powered, range-extending generator automatically kicks in to provide electrical power. Assuming the EPA estimates $2,000 a year in fuel cost for a compact car, like the Chevy Cobalt or Honda Civic cost savings in fuel would go a long way toward offsetting the cost of a $40,000 electric vehicle. Battery and size and vehicle cost should fall rapidly as production rises. (27).In bouldery Michigan, General Motors Company is investing more than $230 billion in four different GM plants in the greater cussed area to support the production of the fuel-efficient 2011 Chevrolet Cruze and Volt, according to the automaker. The four GM plants include Flint Engine South, Flint Metal Center, Flint Tool Die, and Grand Blanc dyers mignonette Tool Center. At the Flint Engine South nearly $202 million dollars have been invested to animize the former I5/I6 manufacturing operations for production of a 1.4L four-cylinder engine generator for the Chevrolet Volt. In the Flint metal center, $1.7 million has been invested to refurbish press lines that will produce sheet metal stampings for the Volt. All dies for the Chevy Volt were engineered at Flint Tool Die. Approximately 50 percent of dies for the Volt were designed at this facility. At the Grand Blanc Weld Tool Center, approximately $30 million invested in this facility to build the robotic weld tool cells that will cumulate the Volt body at the Volt assembly plant. Grand Blanc Weld Tool Center also built the robotic weld tool cells for the body shop to assemble the Chevrolet Cruze at Lordstown (Ohio) Assembly (28).When GM CEO heap Wagoner testified that the Volt is being pushed into production for 2011, he added that, It will not be at that point fully cost competitive. GM has genuinely spent about three quarters of a billion to develop the Volt, and much of that is in battery research. GM recognizes the importance of staying ahead of the competition in developing new technology. They are willing to take the assay of spending a large amount of money even in these desperate times of recession. Without doubt, some of that money will eventually be spread across the automobile industry when the Volts power train and battery advances get shared with other GM models. However, it is inactive unlikely that the Volts addition will bring down the bottom line until a second generation model is introduced, which may not be until 2014 to 2016 (29).Electricity is defiantly the way of the future when talking about the automobile. Electricity runs clean in a vehicle, therefore there will be no tailpipe emissions. And if the electricity is generated using alternate power sources such as wind, hydro, solar or bio-fuels, there is the potential to considerably reduce the emissions associated with personal transportation. Advancements in electricity production along with reduction in emissions from electric-powered driven cars can make our world a cleaner place.(30) General Motors Corporation will brusk the first lithium-ion battery pack manufacturing plant in the United States in Michigan with production judge by 2010. The lithium-ion battery cells will be supplied by confederation Power Inc., a subsidiary of South Koreas LG Chem based in Troy, Michigan for Volt prototype vehicles until GMs battery facility is operational. GM has also signed a joint engineering contract with Compact Power and LG Chem to develop Volts lithium-ion battery technology. The advanced battery strategy is expected to strengthen GMs capabilities to develop hybrid and electric vehicles (30). By using the battery as a p ower source, we will in the long run help cut back our dependency from other countries. Since almost all of our electricity is produced domestically, its a great way to reduce our dependence on foreign oil. The U.S. has a variety of electricity sources, all with the potential to help us become more energy-independent. (31)Because the market of electric cars is still forming, there is not any real information available about cash flows. There are a few known factors, though. First of all, GM has spent about $750 million to develop the Volt, and will probably still spend even more. For another, there is no way to break even on this investment for at least another several years (and several models) have passed. Only time and 2011 income statements will tell how well GMs bottom line fairs with its new Volt.
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