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- 1. “MORE CAR THAN ELECTRIC” Anna Galian Keiko Hoen Sean Mohan Matt Rosenthal
- 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
- 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
- 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
- 14. Any Questions?
- 15. Appendix
- 16. Appendix
- 17. Appendix Volt’s Sales Volume Month Jan '13 Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '14 Sales volume (units) 1140 1626 1478 1306 1607 2698 1788 3351 1766 2022 1920 2392 918 1210 1478 0 500 1000 1500 2000 2500 3000 3500 4000 Jan '13 Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '14 Axis Title Sales volume
- 18. Competition – Market Share Volt Leaf Tesla Prius Others Total Sales 2013 23094 22610 17650 12088 20400 95842 Market Share 2013 24.10% 23.59% 18.42% 12.61% 21.29% 100.00% Sales 2014 3606 5184 3800 3296 4067 19953 Market share 2014 18.07% 25.98% 19.04% 16.52% 20.38% 100.00% Volt, 18.07% Leaf, 25.98% Tesla, 19.04% Prius, 16.52% Others, 20.38% *For 3 months Market Share 2014 Volt, 24.10% Leaf, 23.59% Tesla, 18.42% Prius, 12.61% Others, 21.29% Market Share 2013 Appendix