Founded in 1911 and headquartered in Michigan Chevrolet has been popularly known as Chevy a company established and is operating & selling automotive and related accessories. General Motors is the parent who owns Chevrolet and Chevy contributes around 42% of the total sales volume of the General Motors.
Over the years the company has been known for its advanced functional vehicles and is associated with various championships such as Indycar, FIA World Touring Car Championship, British World Touring Car Championship, NASCAR etc.
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Segmentation, targeting, positioning in the Marketing strategy of Chevrolet –
Chevrolet uses a mix of demographic and geographic segmentation variables in order to understand the different groups of customers with specific needs and wants.
Differentiating targeting strategy is used by Chevrolet for profiling the customer and making products and services as per the requirement of the customers.
Recent Industry Insights
In 2022, Chevrolet unveiled the all-electric Silverado EV, marking a significant step in GM’s strategy to release 30 new electric vehicles globally by 2025. The Silverado EV is expected to have a range of over 400 miles on a full charge, showcasing Chevrolet’s commitment to combining performance with sustainability (source: General Motors press release, January 2022).
Moreover, General Motors plans to spend $35 billion on electric and autonomous vehicles by 2025, an increase from the initial $27 billion announced in 2020. This acceleration underscores Chevrolet’s role in the broader strategy to lead in electric vehicle market share in North America (source: General Motors investor announcement, June 2021).
It has positioned itself as a company more focused on comfort and provider of value for money automotive products & services to the customers.
Marketing mix – Here is the Marketing mix of Chevrolet.
SWOT analysis – Here is the SWOT analysis of Chevrolet.
Mission- “Not Available”
Vision- “Not available”
Tagline-“Find new roads”.
Competitive advantage in the Marketing strategy of Chevrolet –
Global Presence: Being present in more than 130 countries across the globe through its Parent company General Motors and those of alliances is helping the company in optimizing processes and various functions across the service delivery channel.
Strong Parent Company: General Motors being the pioneers of the automobile industry supported by the strong financial position along with the presence in the meta-market businesses are what helping the company stay strong even when the sales are down in the global markets by 5.5% in financial year FY 16-17.
Product innovation & technological advancement: Hybrid models introduced by the Chevrolet like Chevrolet Malibu & Tahoe (in US market) and many other is what making the company ahead of its competitors. The company is also investing in hybrid & plug-in vehicles for both Passengers and commercial segment.
Global Consolidation: Chevrolet has started the process of global consolidation and therefore has exited Europe in late 2013 and India in 2016. While North America, Brazil, Mexico, Canada and China still accounts for the major sale of the Chevy vehicles.
BCG Matrix in the Marketing strategy of Chevrolet –
Chevrolet deals in two major businesses i.e. automotive manufacturing/ sales & distribution and marine manufacturing.
Its automotive business through company own brands and those of alliances are starred in the BCG matrix while marine manufacturing segment is a question mark in the BCG matrix.
Distribution strategy in the Marketing strategy of Chevrolet –
Chevrolet uses multi-level distribution strategies to make its offerings available to the end customers. Channels such as company-owned showrooms, dealerships, DSA (direct selling agents), authorized service centres, resellers, and the e-commerce sites are helping the company in making the products available to the end customers.
Brand equity in the strategy of Chevrolet –
Chevrolet has been ranked 57 in the list of Forbes’s world’s most valuable brand as of May 2017. Based on market capitalization method the company has been valued at $ 10.3 billion.
Competitive analysis in the Marketing strategy of Chevrolet –
The factors affecting the consumer demands in the competitive market include vehicle design, price, quality, fuel economy, variants, safety, overall functionality, and reliability. Its leadership position in countries globally varies widely. In an automotive competitive market Chevrolet competes in passenger car, trucks and vans & commercial vehicles manufacturers.
Automotive and meta-markets are overcrowded with companies eating each other’s market share. Companies like Honda, Toyota, Nissan, Mitsubishi, Skoda, Volkswagen, Suzuki are the major competitors of Chevrolet who competes in segments like hatchbacks, SUV, Sedan, crossover, and others.
Market analysis in the Marketing strategy of Chevrolet –
Due to changing regulatory provisions, volatile fuel prices, demographic variables, automation in the industry, and government regulations; the automobile industry as a whole is facing the issue of stagnant growth rate and stiff competition within the industry.
Developing countries like those of Asian nations are showing positive growth rate as these markets are evolving with the rise in income level, & purchasing power.
Customer analysis in the Marketing strategy of Chevrolet –
A customer of Chevrolet is the middle-income group individuals in the age group of 30- 45 years who are looking for a family vehicle.
While SUV’s fit to the pocket of the upper-middle-income group. Customers of Commercial vehicles and Vans are the transportations companies or logistics companies. The major setback is its servicing cost which is higher as compared to others company’s offerings in the same segment.
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