2. If you want an electric car, you need a
CHEVY VOLT
“MORE ELECTRIC THAN
CAR”
Anna Galian
Keiko Hoen
Sean Mohan
Matt Rosenthal
3. Agenda
1. Current Situation
2. Product Issues
3. Current Positioning
4. The Problem
5. The Solution
6. Recommendations
7. Financials
8. Conclusion
4. Current Situation
• Investment of $1.2 billion in
R&D
• Sales lagging competition
• Growing competition in
category
0
500
1000
1500
2000
2500
3000
3500
4000
Volt's Sales Volume
Chevy Volt is not differentiated from
other green cars
Failure to communicate unique
product attributes
Volt,
18.07
%
Leaf,
25.98
%
Tesla,
19.04
%
Prius,
16.52
%
Others
,
20.38
%
*For 3 months
Market Share 2014
5. Product Issue
• Impractical for a
family’s only vehicle
▫ Cramped back seating
▫ No A/C for back seats
• Daunting interior for
tech-averse
consumers
▫ Complex center
console
▫ Smartphone App
6. Positioning Issue
“More car than electric”
• Positioning Volt as any
other Chevy
▫ Wrong target market
• Positioned as if consumers
decision is based on:
▫ Performance
▫ Fuel Efficiency
7.
8. Target Market & Their Values
Upper-Middle/Upper
Class
• High-income jobs,
disposable income
Suburban Commuter &
Traveler
• 40+ mile round-trip
commute to work
• Value extended-range
capabilities
Early Adopter
• Likes to be first to own
new products
Tech-Savvy
• Not intimidated by new
technology
Target
Marke
t
Flexibility
• Decrease Reliance
on Electricity
• Ability to Add Gas
When Needed
• Overcome “Range
Fear”
Low interest in
performance
Decrease Cost of
Ownership
• Avoid frequent trips
to gas station
• Save money by
charging at work
Values
9.
10. Redefined Positioning Statement:
“The Chevy Volt is the only electric
vehicle for people with places to go due to
its superior range-extension capabilities,
letting them use electricity when they
want it, and gas when they need it to
satisfy any distance requirement.”
Recommendation
Old Positioning: “More car than electric”
11. Recommendation
Five things that influence VOLT’s rate of adoption (Kotler
& Keller)
COMPATABILITY:
• Corporate Partnerships
• Demonstrate value to the
commuting consumer
DIVISIBILITY:
• Expand rental car pilot programs
• Lock-in exclusive contract with
Avis, Enterprise
or other rental
companies
COMMUNICABILITY:
• Create awareness
• Stimulate interest in Volt through
social media conversations
• “Volt Challenge”
COMPLEXITY:
• Simplify product description
• “Range-extension capabilities”
Relative
Advantage:
Promotional
Strategy
12. No added marketing
expenditures
Reallocate advertising
Financials
Driving Factors:
• Price cut from August ’13
• New Chevy Volt 2015 Model
released in August ’14
• Modified promotional strategy
85%
Sales Volume
(2013 - 2015)
2016 Net Profit
$2.8 billion
(annual) 2013 2014 2015 2016
Sales Volume 23,094 38,336 76,672 153,344
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2013 2014 2015 2016
Sales Volume
81%
Profitability
(2013 - 2015)
13. Current Positioning:
Sales not meeting projections…
WHY?
Recommendation
“More car than electric”
“Electric when you want
it, gas when you need it.”
1. Simplify Product Description
2. Corporate Partnerships
3. Expand Rental Car Programs
4. Stimulate Interest
• Social Media
• Volt Challenge
Sales Volume 85%
Without additional
advertising spending
Conclusion
Positioning Problem
