When consumer receive new information, they are not only at first confused and disordered in mind, but they also try to categorized the brand association with their existing memory.
50th Anniversary Corvette Case Study
50th Anniversary Corvette
• Chevy’s U.S. car sales continually decreased in 2002
Down 13.1% for the first 6 months
• Automotive industry
Economy started to fall in 2001
Car sales decreased in the short run and expected to increase after 2003
• General Motors
$ 175 billion in sales a year
Buick, Cadillac, Chevrolet, GMC
2001 GM re-established its position as the world’s best automaker
Ranked as #1 in advertising expenditures
Named from a famous French racer
In 2002, Chevy produced 19 different models.
Ranked high in initial quality
A remarkable, high-performance American sports car was first produced in 1953.
2003 the 50th Anniversary Special Edition
Produce a limited number (up to 10,000) of special model vehicles as demanded.
Special edition has some special ornaments.
• Who are the target audiences for Corvette? How about
• What are the strength/ weakness of Corvette/Chevy?
1. What is the role of advertising and promotion in the
automobile purchase decision? How useful is the
traditional hierarchy of effects model in this market?
The activity of attracting public attention to a product or business, as by paid
announcements in the print, broadcast, or electronic media.
Informational displays at the point of purchase (e.g. Sales people)
• Advertising and promotion plays three main roles:
1. Exposure : awareness, attitudes
=> an extensive decision making (automobile: high involvement product):
search behavior, find several alternative choices, long period
2. Trigger: customer responses
=> New information, Building emotional attachments
• The traditional hierarchy of effects model
2. What is the role of Corvette for the Chevrolet brand?
What should it be? How does your answer affect
Corvette’s advertising strategy?
• “In the past, we’ve kind of hidden Chevrolet from Corvette.” Kurt Ritter,
Chevrolet’s general manager.
• High-performance American sports car/ luxury sports car/ dream
machine/ race car
• Low connection between Corvette and Chevrolet
• It should be a flagship model that produce halo effect to benefit the
whole Chevy brand.
• Increase overall Chevrolet brand image/ awareness
• Transfer the special emotion (connection?) from Corvette to Chevy
• Link Corvette with Chevrolet. No longer hide Chevy from Corvette’s
• Intentionally lead customers to build connection between Chevy and
Corvette: emotion, performance
3. Why has Corvette not received strong advertising support
in the past? Should the level of support (budget) be
increased for the 50th anniversary of the vehicle?
1. Not top-selling model. The Impala and Malibu enjoyed more
advertising dollars, since they are among Chevy’s top-selling cars.
2. They already became the leader in luxury sports car market, hence
Chevy doesn’t need to spend too much effort.
3. Corvette had 28% of the U.S. “luxury sports car” market, which was
more than twice the share of the second largest brand.
However…they already received strong advertising supports
compare to other brands within the same class.
YES! We need to increase the budget support, because…
1. It is an unique opportunity to arise brand awareness/ reinforce brand
2. Build up the emotional and quality (performance) connections
between Corvette and Chevy
4. What would you recommend to Corvette regarding
advertising objectives, message strategy, and creative
tactics for the 50th anniversary?
• For the whole Chevy’s product line, reinforce the connection between
Chevrolet and Corvette in order to create brand preference and maintain
• Differentiate Corvette from other competitors (Sports Car) by
establishing the brand and positioning it in a particular way”.
Message strategy —— Affective Strategies
• “Dream Machine, Dreams Continue….”
Corvette is not only an automobile; it is also a dream in the past, on the
road, and in the future
Creative Tactics —— High-involvement/Transformational
• Emotional Authenticity for the target audience
• Overclaimed the transformational key benefits
Historical American Dream Machine
• Presenter with ideal-similarity.
Run a Contest about sharing your dreams —— Winner
• "We want to reinforce the fact that it is a halo product and tie it
closely to the Chevrolet brand," said Chevy vice president for
marketing Chris Perry.
• "Every Chevy dealer should try and sell at least one Corvette or they
are missing an opportunity," said Steve Hurley owner of Stingray
Chevrolet in Plant City, Fla. "It is a piece of history."
5. What recommendations would you make regarding other
promotional activities and public relations?
• Relationship management:
Stakeholders relationships (customers, dealers, employees..)
• Corporate Social Responsibility (CSR):
education, blood donations…
customer loyalty program e.g. free race trail driving experiences