Marketing Plan: General Motors Company - Case Study Example

Marketing Plan: General Motors Company Affiliation Marketing Plan: General Motors Company Executive Summary A marketingplan plays a major role in an organization’s quest for developing an efficient, accurate and reliable market penetration strategy. A marketing plan may be defined as a specified mechanism developed specifically to suit the marketing objectives and requirements of a particular organization. Different organization embrace different marketing strategies based on both their internal and external environmental factors (Bose, 2010). An analysis of these factors enable the creation of an appropriate marketing plan. Generally, a market plan aims at enabling the achieving of an organization’s marketing objectives. The General Motors Company is a global corporation in the automotive industry. The corporation has been in existence for years, thus massive success in its industry. The organization’s marketing plan can be attributed to its global success. The organization enjoys a global recognition identity as its products attract similar market perception. However, a more effective marketing plan can be developed for the organization. This is based on that the modern automotive industry has numerous entrant thus increased competition. For this reason, general motors should be able to maintain its market relevance and significance. This paper will develop for General Motors Company. The marketing would be in respect to all the factors that affect the organization and the automotive industry. The marketing plan would also include a projection of the expected sales and benefits after an efficient implementation plan. Company Overview The General Motors Company is a global corporation operating in the automotive industry. The corporation has its origin in the United States with its headquarters in Detroit. General Motors Company was previously known as General Motors Corporation up to 2009. This is after a reorganization. The corporation was formed in 1908 (General Motors, 2015). However, the organization has retained most of its operation and market as the change in organization was influenced by the fast changing automotive market. GM majors in the designing, manufacturing and production of vehicles and vehicle parts. The company also markets and distributes vehicle and vehicle parts. The corporation also offers financial selling services. GM’s target market are global consumer of vehicles. The organization produces 37 vehicle for the global automotive market. The organization has at least a single manufacturing centers in 120 countries across the globe, with a total of over 200,000 employees. Its main car brands are Opel, GMC, Cadillac and Chevrolet (General Motors, 2015). These vehicle have a high demand across the globe. GM has also numerous subsidiaries across the globe. These subsidiaries enable its creation of products that are desirable for the global market. From 1931 to 2007, GM recorded the highest sales rate in the automotive industry. This success is attributed to its effective global market penetration techniques. In the 2009 reorganization the corporation dropped three vehicle brands, Hummer, Pontiac and Saturn (General Motors, 2015). However, the corporation remains one of the largest vehicle manufactures across the globe. In addition, GM has one of the five largest IPOs in the entire globe after the 2010 first public offering. With a proper marketing plan, the corporation may be able to emulate its success prior to 2008. Situational Analysis (SWOT Analysis) Strengths The major strength of General Motors Company is the brand. In an argument by Dacko (2008) the brand an organization has created may be significant in its market significance. The author further asserts organizations with a major brand have an easier task in developing market penetration and recognition techniques (Dacko, 2008). All consumers in the automotive industry recognize the GM brand. Anther strength is the vehicle under General Motors. Since its inception the organization the product selection has been exception. The corporation has t its exposal major vehicle brands across the globe. For instance, Cadillac, Opel, GMC and Chevrolet have attained global recognition for their quality. Bose (2010) points out that product selection of an organization also determines their market performance. Weaknesses One major weakness of the organization is the massive competition in the automotive industry. Numerous automotive corporation have established global trademarks and brand. In addition, these corporation have acquired a huge market sector that was previously dominated by GM. For instance, the global consumption of Mercedes and Toyota has increased significantly. For this reason, General Motors have a challenge in creating a global dominant brand. Its top vehicles rank below the most referred vehicle in the global market. Another weakness of the corporation is increasing its profit margins. Since 2008, general motors made its first profit in 2010. This was influenced by the downfall of its sales that required reorganization. The task of creating and marketing their brand is limited by the fact that the organization still requires to develop profit generation strategies. Opportunities In an argument by Grewal & Levy (2014) the size of the market is significant in determining the opportunities of an organization. The authors assert that a massive market is not affected adversely by numerous competitors (Grewal & Levy, 2014). In regards to GM, the automotive industry is massive. In addition, GM having significance in the global market increase its opportunity to succeed. The globe has a massive number of consumer of motor vehicle and vehicle parts. Each years, the market grows by an average of 20%. Another opportunity is that GM has to its exposer numerous subsidiaries across the globe. The subsidiaries in other nations mainly focus on creating vehicle that fit the interest of a particular market. This provides an advantage over its competitors who may not have subsidiaries. Threats A major threat to GM is increasing competition. The automotive industry has numerous market entrants keen to attain market significance. These new entrants are also market viable based on that they manufacture new product that suit the evolving vehicle consumer market. For instance, there is an increasing demand for sports cars that is not a specialty with GM. Since 2007, the major threat of GM is creating a stable corporation that would provide reliable products and create partners. Since its instability from 2008, numerous partners have not opted to merge of operate in collaboration with GM. The risk is more significant in considering that GM greatly relies on partners to expand its global market. Objectives and Goals The main objectives of the marketing plan is creating an image of GM that maximizes on its strengths and opportunities, and minimizes the risks created by its strengths and weaknesses. Firstly, the marketing plan should focus on creating a new market perception of General Motors. This is because GM has previously rendered unstable by law suits and poor operational strategies. Since its reorganization, the corporation requires rebuilding of its image to suit the market preference. The goal of those objective is to retain the previous market brand of GM. Bose (2010) asserts that the main objective of a marketing plan is creating an image that portrays an organization as reliable and consumer appreciative. Another objective of the marketing plan is enabling GM acquire a massive market advantage over its competitors. In an argument by Kerin (2012) a marketing plan must have an objective of enabling achievement of a competitive advantage. This objective would require an approach that would analyze major market determinants. For instance, the plan should pricing strategies preferences, branding preferences and product delivery preferences. Creating effective strategies to attain success over these market determinants would ensure a greater competitive advantage (Kerin, 2012). The goal of this objective is enabling the corporation to attain market relevance and compete fairly in the market. STDP (Targeting, Differentiation, Positioning) Strategies Targeting Kotler & Keller (2012) is of the assumption that the creation of proper targeting strategies is only done by understanding the size of the organizations assumed market. The authors further assert that this knowledge allows for the planning of a proper marketing strategy (Kotler & Keller, 2012). GM enjoys a massive target market. Since its inception the organization has attracted a wide range of consumers. This is attributed to their long time in the industry and extended market reach. Its target market extended to the global platform that have preference to the GM brand or vehicle brands supplied by GM. Differentiation The difference between the products provided by General Motors is the brand of the company and its vehicles. General Motors have a renowned massive experience in its creation of quality products. This experience has increased the market perception of the organization. Grewal & Levy (2014) assert that the brand of an organization provides a unique opportunity for an organization to increase its market reach. In regards to GM, the organization recorded the leading sales from 1931 to 2007 in the automotive industry. This success can be attributed to its unique brand. In addition, GM product also offer a unique market experience to the market. For instance, vehicle brands such Opel, Cadillac, Chevrolet and GMC are unique GM products only. No other automotive corporation supplies similar products. Positioning The ability of an organization to succeed in the market is influenced by its ability to influence the market perception of its products and services. A positive market perception attracts more sales and increased market relevance and significance. For General Motors, the market should understand the quality of its brand and products. This could be done by providing the market with information on the company’s history since its inception. Its market performance since its creation portray the organization as a successful venture with a massive market preference. The quality of creation of brand such as the Chevrolet or GMC is exceptional. The market should be able to understand the level of quality of these products. With the provision of these information to the target market, the organization should then monitors the trend in its sale. From the sales information, the corporation may analyze the effectiveness of the targeting, differentiation and positioning strategies. To effectively ensure accuracy of the process, the research methodologies should be quantitative. From the numerical feedback accurate strategies may be implemented to increase the effectiveness of the targeting, positioning and differentiation strategies (Dacko, 2008). Branding Strategies In an argument by Krugman (2013) branding is an effective marketing tool that an organization should maximize on. The author further asserts that branding is a significant factor for organization with huge brands (Krugman, 2013). The consumer population is often pleased and attracted to renowned organization and products brands. For this reason, organization are required to invest massively in the creation of brand that would increase its recognition and perception. GM has an advantage in that it has recognized brand. The organization has been in existence for more than five decades. In addition to the time factor, the GM bran dis known for quality product in the automotive industry. GM should increase maximization of its brand. Firstly, the organization should conduct a market research on the most preferred vehicles in the modern market. The corporation should then incorporate in its brand the vehicles or manufacture vehicles that suit the same characteristics. Kerin (2012) points out that brand extension increases the market relevance on an organization. In addition GM should consider labelling on the GM brand on vehicle from its subsidiaries. Currently, its subsidiaries do not brand vehicle with the GM brand. This strategy would increase the market reach of the GM brand. Marketing Strategy The marketing strategy that should be implemented should be in regards to the factors of the marketing mix, Products, Place, Promotion and Price. The strategy should also be inclusive of legal and ethical factors, and the role of CSR activities. Product In an argument by Kotler & Keller (2012) the product and price by an organization is the greatest determinant of the success of a business. An organization should ensure the product or service provided to the market fits the description preferred by the customer. This should be inclusive of the size, color, brand and name of the product. In addition, these factors should be addressed to be different from the organization’s competitors. GM satisfies all the description of a unique product. However, the corporation should provide color as preferred by the consumer. Place General Motors should analyze and identify the appropriate location its target market frequents to acquire products. The size of the corporation’s target market minimize the probability of using physical marketing and sales teams. The most effective place for the corporation to market its products and brands is through online platforms. Provision of product information on the company website would be an effective strategy. Grewal & Levy (2014) assert that the selection of the place should be done in consideration of both the perception of the market and company objectives. To offer unique services from its competitors, the organization should offer online sales options with shipping services to its foreign consumers. Promotion Promotional strategies are aimed at increasing the market knowledge of the products and services and organization offers. Kerin (2012) is of the assumption that promotional strategies should be timely and appropriately located to capture the attention of the intended market. General Motors have numerous promotional options. The company may use the online platform which provides reach to its massive target market. The media also provides an exceptional platform. Considering that the target market have different origins, the media reach should be done to suit specific markets in consideration of culture and language. To effectively reach out to an appropriate audience, GM should place adverts in motorsport events such Formula One. Price Kotler & Keller (2012) point out that the pricing strategy should be in consideration of the financial needs of the organization as well as the consumer preference factors. Considering that GM, recorded its first profit in 2010 since 2008, the pricing strategies should be able sustain the operation of the business. To effectively set its prices, an evaluation of its competitor’s prices should be done accurately. In addition, GM should also develop an accurate value of its brand and products. Ethical and Legal Considerations, and CSR activities In an argument by Kerin (2012) the role of an organization to maintain its ethical and legal standards is mandatory. The requirement functions as a marketing strategy as well an operational strategy. Ethical standards increase the market relation of an organization, and legal standards ensure that an organization retains its legal certification to operate. In regards to marketing, CSR activities are mandatory requirements. This increases the market perception of an organization. For this reason, GM should develop proper CSR frameworks and abide by the required ethical and legal standards. Financial Projection The current volume of production in GM is slightly above 9 million cars with the current market reach (General Motors, 2015). With the increased efforts to increase the size of target market, the production volume may increase by 10% on a yearly basis. The same projections are expected in the amount of sales. The projection is, however, on the first years after the implementation of the marketing plan. For the same level of success to be analogous in consecutive years, it is required that the marketing plans be revised annually. This is based on that within a years, competitors may develop new market strategies that may hinder achieving a competitive advantage. From GM’s annual revenue of about $150 billion, the corporation records an operating revenue of about $4 billion (General Motors, 2015). This is inclusive of the cost of advertising and promotional strategies. However, an increase in the volume of sales based on a new marketing plan, the annual revenue would increase. Consequently, an increase in advertisement and promotional cost is expected. Evaluation and Control Metrics In an argument by Bose (2010) the best way to monitor the success of a marketing plan is creating performance chart based on the objectives and goals to be attained. The success required should be based on a particular time frame. The monitoring should be done on a timely basis to accurately evaluate the success of the plan. The definition of success of the plan should be done in respect to objectives and goals. In this case, the success of the plan should be measured by its effectiveness in changing the perception of the market on GM, increased market relevance and offering a great competitive advantage. Conclusion From the information and arguments presented, one may assert that the automotive industry requires an extensive market research for the purpose of creating a reliable marketing plan. The success of GM over the years has been significant but its downfall promoted a reorganization that requires a market education on the new brand. With proper segmentation and consideration on factors on the marketing mix, the corporation would develop a reliable marketing plan. Conclusively, proper product placement and selection of marketing channels provide the greatest opportunity in the creation of a reliable marketing plan. References Bose, C. (2010). Modern Marketing: Principles and Practice. New Delhi: PHI Learning Pvt. Ltd Dacko, S. (2008). The advanced dictionary of marketing. Oxford: Oxford University Press. General Motors. (2015). Retrieved from http://www.gm.com/company/aboutGM.html Grewal, D., & Levy, M. (2014). Marketing. New York, NY: McGraw-Hill/Irwin Kerin, R. (2012). Marketing: The Core. New York: McGraw-Hill Ryerson. Kotler, P. & Keller, K. (2012). Marketing Management. New York: Pearson Education Limited. Krugman, E. (2013). Consumer Behavior and Advertising Involvement. London: Routledge. Read More