Vision

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"There is only one boss. The customer. And
he can fire everybody in the company from
the chairman on down, simply by spending
his money somewhere else."
Sam Walton
GM COSTUMERS PROFILE
Federico Arango
Levi Dickerson
Joe Biedenharn
Kaan Ketenci
BAA 605
Vision
• GM’s vision is to be the world
leader in transportation products
and related services. We will earn
our customers’ enthusiasm through
continuous improvement driven by
the integrity, teamwork and
innovation of GM people.
• Becoming the best is an unending
journey, a constantly changing
destination. But that’s where we’re
determined to drive – one car, one
truck, one customer at a time.
CORE VALUES
•
•
•
•
•
•
Customer enthusiasm
Integrity
Teamwork
Innovation
Continuous improvement
Individual respect and responsibility
CULTURAL PRIORITIES
• Enhance product and customer
focus
• Act as one company
• Embrace stretch targets
• Move with a sense of urgency
Positioning Statement
At GM, we are committed to providing our
customers with “gotta have” products that are
high quality and visually appealing, and to
being leaders in fuel economy and safety.
Every day our employees are looking for new
and innovative ways to improve the products
we manufacture.
CUSTOMER RETENTION
CRITICAL FACTORS
• Delivering a good
experience to current
customers
• Positive Sales Process
• Efficient personalized
service
• General vehicle
reliability
Top Ten
Factors
in Choosing Your Vehicle
•
•
•
•
•
•
•
•
•
•
Reliability/Durability
Interior Comfort
Exterior Styling
Quality of Workmanship
Dealer was convenient/liked dealer
in my area
Performance
Like the image the vehicle portraits
Gas Mileage
Safety
Passenger Capacity
Critical Factors for Customer
Satisfaction With Dealer Service
•
•
•
•
•
•
Service Initiation
Service Advisor
In-dealership Experience
Service Delivery
Service Quality
User-Friendly Service
GLOBAL PRESENCE
SEGMENTATION
• Demographic:
Type of Markets
– Consumers
• Consumers
– Men and women
– Legal driving age (adapted to the law
in each country)
– Companies (for profit & not-for-profit)
– Governments
Geographic Segmentation
and brands offered
GMNA
(The United States, Canada and Mexico)
* Buick
* Chevrolet
* HUMMER
* Saab
* Cadillac
* GMC
* Pontiac
* Saturn
Geographic Segmentation
and brands offered
GME (Europe)
•
•
•
•
•
•
•
Opel
Vauxhall
Saab
Chevrolet
Cadillac
Corvette
Hummer
Geographic Segmentation
and brands offered
GMAP
(Asia Pacific, Australia and India)
•
•
•
•
•
•
•
Buick
Cadillac
Chevrolet
Daewoo
Holden
Opel
Saab
Geographic Segmentation
and brands offered
GMLAAM
(Latin America, Africa and the Middle East)
•
•
•
•
•
Chevrolet
Suzuki (GM Argentina)
Isuzu (GM Argentina)
Saab
Opel
Product Segmentation
by Body Style
•
•
•
•
•
•
SMALL CARS
SEDAN
SPORT/CONVERTIBLE
SPORT UTILITY
PICK-UP TRUCK
SPORT/CARGO VAN
SMALL CARS
• IN EUROPE, ASIA AND ALMOST
EVERY OTHER COUNTRY IN THE
WORLD FAMILY CARS ARE SMALL
CARS
• UNTIL RECENTLY, IN THE UNITED
STATES MOST SMALL CAR BUYERS
WERE YOUNG OR LOWER INCOME
BUYERS
SEGMENT
CRITICAL FACTORS
Small Cars are now attracting buyers in
segments outside their traditional target
markets due mainly to several factors:
•
•
•
The increase in the price of crude oil
per barrel has directly effected
gasoline prices.
Environmental consciousness of car
buyers
Improved design
Annual Average Crude
Oil Price 1970 - Present
Annual Average Crude Oil Price 1970 - Present
140
120
100
80
Price
Average Nominal
Inflation Adjusted 2005
60
40
20
0
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
Small Cars
Market Attractiveness
• Customers around the world are
becoming more and more concerned
with reducing pollution created by
combustion engines. Smaller cars, in
almost every case, produce fewer
emissions than their larger counter
parts.
• Recently car Manufacturers have
made great improvements on the
performance and design of small
cars.
• Youthful design and affordability.
Cont
• The major issue effecting car
buyers is rising fuel cost.
• This is leading car
manufactures to explore more
fuel efficient vehicles.
• Many of the more fuel efficient
models being offered by car
manufactures are small cars.
SEDAN CARS
•Customers in this segment are
people all around the world
who have urban living needs.
•Sedans provide better riding
and more carrying capacity
than small cars. At the same
time, they provide more fuel
efficiency and drivability
compared to most SUVs.
GLOBAL MARKET
Car vs. SUV
3,500
3,000
• Four-door
sedans
(large
portion of
car sales)
mostly
preferable to
SUV’s
outside the
U.S. markets.
2,500
2,000
CAR
SUV
1,500
1,000
500
0
GMNA
GME
GMLAAM
GMAP
SUB-SEGMENTS
• Sub-segments of the sedan market
include economy sedans, family
sedans and luxury sedan segments.
• GM has products for every subsegments and sizes; moreover fourdoor Sedan segment is the GM’s
second largest product line after
SUV’s with 25 four-door sedan cars
(in the U.S.).
SEDAN
CARS
COMPETITORS
• Toyota, Honda, Nissan and reputable European
competitors like BMW and Mercedes.
Additionally, Japanese luxury brands makes the
rivalry cruel for GM in this market segment.
• At this point GM doesn’t offer any Hybrid car,
only fuel efficiency is proposed by GM is
compact size sedans with small engines on this
segment. At the same time Honda presents midsize sedan Accord Hybrid as a successful
example of targeting latest market trends.
SPORT/CONVERTIBLE
• Customers in this segment are
comparatively younger and have the
financial ability to buy a higher-priced
car for its esthetics or personal
interest.
• Mostly singles and couples without
children.
• A sporty appearance, good
acceleration, ride and handling are
general characteristic of sport cars.
Sport/Convertible GM
• GM offers dozen of sport cars
around the world from compact
size such as Solstice to highend such as Corvette. In
addition, GM is preparing to
compete with the European
luxury sport cars with the
Cadillac V-series.
Pick-Up/Truck &
Sport-Utility Vehicles
A successful but
shrinking market
for General
Motors
PICK-UP/TRUCK
• These vehicles are primarily targeted to customers in
North America and more specifically the United
States. Americans who need more space and towing
capacity than either large cars and even SUVs can
provide
• Culture. Bob Lutz, the head of Product Development
for GM has said, “The Pick-up is the Cowboy’s
Horse.” Grouping the pick-up truck together with the
image of a cowboy gives the vehicle a very
distinctive, American position in the consumer’s mind.
• Until 2004, the Detroit automakers were the primary
players in this market. However, Toyota, Nissan, and
Honda have all introduced full size trucks to compete
against the American companies
Sport/Utility Vehicles
• Like light duty trucks, SUV’s have had the
most success in the American market.
• Every single major car company has a
product offering in the SUV market.
• The best thing about the SUV is its overall
popularity among all the target markets in the
United States. Whether it be young mothers,
twenty-something males, or first time drivers,
the SUV appeals to many customers due to
its perceived safety benefits, drivers ability
‘to see more of the road, and stylish features.
Strength
Of Market Position
• General Motors success in the SUV
and Light Duty truck markets have
undoubtedly been one the primary
factors in the company’s avoidance of
bankruptcy the last few years.
• After 9/11 GM set out to increase
market share as a company to 29%.
In 2004, they were able to reach this
goal in the Light Duty Truck and SUV
Market.
Market Attractiveness
• The overall SUV and Light Duty Truck Market is
not nearly as attractive as it was a few short
years ago.
• In the late 1990’s when fuel costs were low
General Motors was making as much as
$10,000 on each SUV and light duty truck sold.
• Due to high fuel costs and a sluggish American
economy, GM has been forced to drastically
reduce the prices of these vehicles. In other
words, profit levels in the SUV market have been
trending downward in the SUV market for
several years.
SPORT/CARGO VAN
These are designed for those who want to have and
SUV but want all the cargo capacity from a minivan.
Now GM is trying again, hoping to transform its
lackluster minivans into "crossover sport vans" with
the look of sport utility vehicles and options like allwheel drive.
• Each van is aimed at a different type of
customer
• Interiors are where many minivan buyers make
or break their purchasing decision
'In order for GM to once again become a
profit leader in the automotive industry, the
company must trim its excessive brand and
product offerings.'
CUSTOMER SATISFACTION INDEX
Q4 2000
Q4 2001
Q2 2002
Q2 2003
Q2 2004
Q2 2005
% Change 04
Average Industry
80
80
80
80
79
80
1.30%
Toyota
82
83
83
85
84
87
3.60%
Honda
82
83
82
82
85
86
1.20%
BMW
84
86
86
85
84
86
2.40%
GM – Cadillac
86
88
86
87
83
86
3.60%
GM – Buick
86
86
86
84
83
84
1.20%
Hyundai Motor Company
76
81
78
81
81
84
3.70%
Ford – Lincoln, Mercury
85
82
84
81
86
83
-3.50%
GM – Saturn
82
80
81
81
81
81
0.00%
GM – GMC
81
79
81
83
80
81
1.30%
Ford – Volvo
82
81
82
81
80
81
1.30%
DC – Mercedes-Benz
87
86
83
83
80
80
0.00%
DC – Chrysler
80
78
80
82
80
80
0.00%
GM – Pontiac
78
78
78
76
79
80
1.30%
Mazda
78
78
81
82
78
80
2.60%
Nissan
78
80
80
79
81
78
-3.70%
Volkswagen AG
83
81
82
76
80
78
-2.50%
DC – Jeep
75
76
79
79
77
78
1.30%
GM – Chevrolet
80
78
78
79
77
78
1.30%
DC – Dodge
81
77
78
78
75
78
4.00%
All Others
75
79
77
75
78
76
-2.60%
Ford – Ford
77
78
78
80
76
75
-1.30%
GM PERCEPTUAL MAP
GM North America Product offerings
vs.
Toyota North America Product offerings
General Motors
Toyota
2 Door Cars:15
2 Door Cars:5
4 Door Cars:24
4 Door Cars:6
SUV: 30
SUV: 11
Trucks: 8
Trucks: 6
Vans: 12
Vans: 1
Total: 89
Total: 29
CONCLUSIONS
• GM produces 60 more brands of cars
than its extremely successful
competitor, Toyota.
• With 89 total brands of vehicles in the
North American marketplace, GM not
only competes against its competitors,
the company is competing against
itself.
• In 2005 alone, GM saw its market
share decrease thus far from 28% to
25%.
References
•
•
•
•
•
•
•
Guide to car types:
http://www.consumerreports.org/cro/cars/new-cars/guide-to-car-types-405.htm
GM Finance 2004 from:
http://www.gm.com/company/investor_information/docs/fin_data/gm04ar/download/g
m04arfinancials.pdf
General Motors Corporation 2001-2004 Annual Report:
http://www.gm.com/company/investor_information/stockholder_info/
GM Website: http://www.gmbuypower.com
Edmunds,New car buying Guide:
http://www.edmunds.com/buyguide/sedan.html?tid=edmunds.e.buyguidelanding.cont
ent.type.1g.*
Cadillac wants to attract younger buyers but its old man image gets in the way,The
wall street journal:
http://proquest.umi.com/pqdweb?index=1&did=27224904&SrchMode=1&sid=1&Fmt=
3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1132014399&clientId=
30358
References
•
•
•
•
The Automotive Industry Records Substantial Long-Term Vehicle Quality
Improvements. Retrieved from
http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005089
General Motors. Retrieved November 8, 2005 from:
http://www.economist.com/displaystory.cfm?story_id=4066591
http://www.economist.com/displaystory.cfm?story_id=1538140
http://www.econmist.com/displaystroy.cfm?story_id=2327059
http://www.economist.com/displaystory.cfm?story_id=456146
GM Perceptual Map. Retrieved November 10, 2005, from:
http://www.utdallas.edu/~tskim/Lecture%20Note%206.pdf
Customer Satisfaction Index. Retrieved November 11, 1995 from:
http://www.theacsi.org/
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