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Strategic Brand Positioning in a recession for Opel

Strategic Brand Positioning in a recession for Opel






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    Strategic Brand Positioning in a recession for Opel Strategic Brand Positioning in a recession for Opel Presentation Transcript

    • An Investigation of Strategic Brand Positioning during a recession
      a Case Study of Opel
    • Impacts of economic recession
      Auto Industry one of the hardest hit
      In order to remain competitive brands must adapt
    • Analyse and make recommendations for Opel’s marketing activities
      Develop a marketing mix to foster growth in the current economic crisis
      Aim of the report
    • Wholly owned subsidiary of GM from 1929
      GMSA is GM’s largest market in Africa
      5 manufacturing facilities in Africa
      5,000 employees
      Produce Opel and Chevrolet, Isuzu and the HUMMER H3
      Market Chevrolet, Opel, Isuzu and the premium brands HUMMER SAAB and Cadillac
      Background of Opel
    • Filed for bankruptcy in 2008 in the US
      GMSA however is not affected
      No longer produce the Hummer SUV
      GM Europe sold its Opel/Vauxhall arm to Magna and Sberbank
      Magna plans to inject €500 - 700 million into Opel and cut 10,000 jobs in Europe
      Background of Opel
    • External Audit
    • Political
      South African politics remained stable throughout recession
      Infighting within ANC formed COPE
      Prudent banking legislation shielded South Africa
    • Despite Apartheid, South Africa has a modern infra-structure
      Not without problems
      Unreliable Trains
      Expensive Ports
      2008 Electricity Crisis
      Transnet and Eskom development
      2010 Injecting capital in development
    • Diverse population
      Main problems:
      Rich vs. Poor gap
      Social democratic
    • During recession South Africa fared relatively well compared to US
      Still had adverse effects
      GDP retracted 1.4% in 2008 (Fourth Quarter)
      GDP retracted 6.4% in 2009 (First Quarter)
      Remains financial hub of Sun-Saharan Africa
    • Global recession more exacerbated
      USA hardest hit
      6.9 Million Jobs lost during recession
      216,000 jobs lost in August 2009
      Exports have fallen
      Foreign Investment Decreased
      Less Demand for SA minerals
    • industry analysis
      Global and Local industries hit
      Consumers do not want to enter into credit
      Vehicle Sales in SA decreasing
      Certain un-established Brands have left the industry
    • Customer Analysis
      Perfect Competition
      Identified Segments included
      Budget Consumers
      Passenger Vehicles
      Luxury Vehicles
      Commercial Vehicles
    • Segment Analysis vs. Competitive position matrix
    • Porters 5 Forces of Competitive Rivalry
      Bargaining Power of Suppliers
      Threat of Substitutes
      Degree of Rivalry
      Bargaining Power of Buyers
      Threat of new Market Entrants
      Competitor analysis
    • Brand Audit
    • Brand History
    • Product Portfolio
    • Versatile use of space
      Flexible Interior
      Responsive Driving Dynamics
      Contemporary styling
      Product Related Attributes
    • Positioned as “the German pedigree at the right price”
      Determined to bring the German technology to the broadest, most diverse range of customers
      Brand Positioning
    • Prices at mid-range levels
      Dealership network
      Aggressive TV advertising
      Legal dispute with VW in 2003
      Online advertising with MSN Autos
      Changes in brand image
      1990: Joy to Technology
      1994: We Understood
      2002: Fresh Thinking-Better Cars & Discover Opel
      2009: "WirlebenAutos“ (We Live Cars)
      Price, Place, Promotion
    • Customer Knowledge
    • Brand name: Opel
      Brand logo
      A silver flash inside a ring as a subtle reminder of the speed and power of the German-made cars
      The ring also represents the letter “O,” the first letter of the brand name
      Clear communicator of openness, freedom and connectivity
      Functional benefits
      Corporate social responsibility
      Sources of Brand Equity
    • Customer Based Brand Equity Model
    • German Heritage
      High Brand Awareness
      International Market
      Favorable brand logo
      Competitive Pricing
      Customer awareness of Brand
      Environmental track record
    • Too many changes in brand positioning
      No clear brand message to consumers
      Target market is still limited in demographics
      Limited product portfolio
      High variable costs
      Lack of brand engagement among consumers
    • Stable political atmosphere
      Revamping of infrastructure
      There are still many untapped consumer segments
    • Slow economic recovery
      Exports affected
      Intense competition from low-cost car makers
      Banks not willing to loan capital
    • Recommended Strategies
    • Limited Portfolio
      Low-cost and luxury segments
      Competition from GWM and Tata
      Utilise German brand identity
      Economies of scale
      Additional market share
      Target market over segmented
    • Elastic demand curve
      Disposable income ↓, demand ↓
      Reducing prices  brand image affected
      Having value-added features and services
      Magna’s injection used to compensate for high labour costs
    • Forth party logistics (4PL)  efficiency
      Value engineering
      Domino effect  increased profits or reduced costs
      Port demurrage charges are still high
      Effective stock management
      Making use of infrastructure from 2010 Soccer World Cup preparation
    • Promotion
      Change of brand mantra 5 times in 20 years
      Confusion and no clear brand message
      Weaken brand image
      Little brand engagement and sense of community
      “Opel Owners Club” to increase brand resonance
      Promotions focus on long term brand building
      Online media
    • End of Presentation
      Questions or Comments