Saturn:An Image Makeover

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  • Using full spectrum of segmentation variables, describe how GM has segmented the automobile market?
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  • 1. By:- Kalp Desai Sunil Chhajar Anand Muchhal Anshu Kejriwal Prashant Yadav Arghya Saha
  • 2.
    • Q1. Using full spectrum of segmentation variables, describe how GM has segmented the automobile market?
  • 3. Bases of Segmentation
    • Country:- USA
    • Climate:- Western & southern parts are warm & dry but northern & Eastern parts are cold & dry & winds accompany rains
    • Market Size:- 281.4 million people
    • Market Density:- Urban, Semi-urban & rural
    Demographic Geographic
    • Age:- 38 years
    • Income:- $51000 p.a approx
    • Family size:- 4 to 5
    • Gender:- Both-Male & Female
    • Occupation:- Mostly Salaried professionals
    • Education:- High school graduates.
    Psychographic
    • Lifestyle:- Mostly strivers & impulsive Experiencers
    • Social class:- Middle class
    • Personality:- compulsive, spendthrift.
    Behavioral
    • Usage:- Regular & everyday
    • Loyalty status:- Strong
    • Benefits:- Safety, innovative features, Fuel Economy, Balanced Drive.
  • 4. Analysis
    • Saturn, in the beginning, had a differentiated products for different market segments.
    • “ You get what you ask for”
    • Since the co. had invested a lot in R&D, it focused on customer relationships
    • Innovative features like ABS created higher value.
    • Non-truck buyers who wished for better fuel economy.
  • 5. Q2.What segment(s) is Saturn now targeting ? How is GM now positioning Saturn? How do these strategies differ from those employed with the original Saturn S-series?
  • 6. Five Patterns of Target Market Selection Single-segment concentration Product specialization M1 M2 M3 P1 P2 P3 Selective specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3 Market specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market
  • 7. Saturn is now Targeting:
    • Selective Segmentation
    • To reach the type of import buying customers.
    • High end customers.
    • Luxury loving people.
    m1 m2 m3 p1 p2 p3
  • 8. GM’s POSITIONING SATURN
    • CREATING BRAND IMAGE : PEOPLE POSITIONING BY SERVING THEM WITH QUALITY PRODUCT & SERVICES ATTACHED TO IT.
    • INTRODUCING NEW MODEL : SKY TWO-SEAT ROADSTER , AURA SPORT SEDAN , OUTLOOK CROSSOVER VEHICLE ,GM LAMBDA PLATFORM
    • CHANGE IN PRODUCT LINE : HIGH PRICED VEHICLE
    • ADOPTING AN IMAGE : SPORTY EUROPEAN BRAND OPEL
    • PROVIDES TWO SUB-LINES OF VEHICLE:
    • “ RED LINE” – Performance- oriented.
    • “ GREEN LINE”- Environmentally friendlier. Hybrid at low price.
  • 9. DIFFENCES MADE FROM S- SERIES
    • LUXURY CAR
    • LACK OF MODEL
    • QUALITY FELL BELOW INDUSTRY AVERAGE
  • 10. Q3.DESCRIBE THE ROLE THAT THE SOCIAL RESPONSIBILITY PLAYS IN SATURN’S TARGETING STRATEGY?
  • 11.
    • Introduction of innovative technologies .
    • Introduction of cars powered by ICE(Internal Combustion Engines).
    • Launching of hybrid cars as an environmentally sound alternative.
    • Line Green Teacher Grant program.
    • It gave equal opportunities to women, ethnic minorities and people with disabilities.
    • It gave philanthropic support to various causes.
    ENVIRONMENTAL COMMITMENT : : OTHER COMMITMENTS
  • 12.  
  • 13.
    • LACK OF MODELS DURING 1990’S.
    • DOWNTURN OF SALES DUE TO RECESSION.
    • DECLINING TREND IN QUALITY-FALL BELOW MARKET AVERAGE.
    • KEEPING LESSER MARGINS WHICH LEADS TO MODERATE GROWTH IN PROFITS AND REVENUE.
    • LACK IN VISION FOR INNOVATION, IMPROVEMENT, REBADGING AND INFUSING.
    • LOYAL CUSTOMERS ONLY KEPT THE SALES CURVE MOVING UPWARDS.
    • SATURN CLEARLY CHANGED ITS IMAGE AND STARTED FLOORING NEW MODELS LIKE SKY, AURA, OUTLOOK.
    • SATURN HAS VALUABLE ASSETS LIKE ROCK SOLID DEALER NETWORK, HIGH-PURCHASE PROCESS SATISFACTION RATINGS AND LOYAL CUSTOMER BASE TO BUILD UPON
    • HIGHER PRICES AND MARGINS WOULD REPRESENT GREATER GROWTH IN PROFITS AND REVENUES.
    • THE GREEN-LINE INTRODUCED A FULL HYBRID TECHNOLOGY AT A PRICE MUCH LOWER THAN ANY OTHER HYBRID OFFERING.
    NEGATIVES POSITIVES
  • 14. Q5.WHAT SEGNMENTATION, TARGETIING, AND POSTIONING AND RECOMMENDATIONS WOULD YOU MAKE TO GM FOR FUTURES SATUREN MODELS?
  • 15. ANALYSIS SEGMENTATION TARGETING POSITIONING DIFFERENTIATED MARKETING DIFFERENTIATED SEGMENT MORE FOR MORE MORE FOR SAME MORE FOR LESS THE SAME FOR LESS LESS FOR MUCH B EN I FITS PRICE
  • 16. THANK YOU