Holden Commodore - Branding the Flagship, Segmentation in the Passenger Car Industry - Case Study Example

Case Study Segmentation in passenger car industry- Holden Commodore- branding the flagship Executive Summary Every industry and organization use different strategy in order to measure and identify their market as the concept of marketing cannot be applied with out this process. It is not possible to tailor, price, promote and distribute a product if the organization is not ware of who is will the buy the product, when, where and how often the consumer will buy the product and the details that they wish to know about it? In this case study we will see the segmentation in passenger car industry for Holden Commodore. Introduction VFACTS was set up by Chambers of Automotive Industries after dissatisfaction was shown by the industry members with reference to accuracy of data that were received from their previous sources. Instead of waiting for compilation of registration data, VFACTS gets the information directly from the car dealership (Retailers). This process is monitored by a committee that comprises of industry representatives. This report will give a detail analysis of Holden Commodore branding the flagship in the passenger car industry segmentation. Purpose of the report Each sale is classified in to one of the eight predestined groups which are then used by Chamber of Automotive Industry to make a passenger market report that is divided into subdivisions of small, light, medium, people movers, upper medium, luxury, prestige and sports. The criticality to the usefulness and accuracy of the report depends on the designation of every make and model of vehicles. Vehicle make and model are assigned to their grouping by the conciliation amongst the committee members. Holden Commodore, an automobile produced by the Holden segment of (GM) General Motors in Australia. Since 1984, Holden started advertising the flagship Commodore model as Holden Calais; Holden Ute and Holden Berlina in 1988 and 2000, accordingly. These were previously known as Commodore utility and Commodore Berlina. To battle the increasing sales erosion and the precincts of the petite Australian market, Holden has widened the export plans of Commodore. In spite of the tuff competition from its rivals like Ford Falcon it has held position in the market. Findings GM HOLDEN has come out with a much better entry level version of MY10 Commodore that has fuel competent direct-injection 3.0-litre V6 and is to be sold in September. As the smallest Commodore engine from 1986- 1988 VL models are fitted with GM’s (SIDI) Spark Ignition Direct Injection technology that claims to reduce the consumption of fuel by 12 per cent. The Commodore engine is more proficient than the other brands like Toyota Aurion’s. Commodore’s recent 3.6 litre V6 that is codenamed LL4 delivers 210kW at 6400rpm and 350NM as it is fitted by SIDI technology. The upgraded version of this car is available in Ute and SV6 sedan wagon, the Calais V and Calais wagon and sedan, and the Caprice and Statesman long-wheelbase sedans. SIDI 3.6 litre engine improves the fuel economy in premium models anywhere between 7 to 13 percent. The versions of SIDI V6’s would be a part of latest Holden EcoLine range, and be at par with the standard GM’s 6L50 6 speed automatic transmission, that according to Holden would deliver new levels of shift feel, refinement, performance and power train. As per Holden, the top selling car in Australia will cost less than $325 to run at the current analytic price of $1.25/litre, besides producing less than 600kg of carbon emissions on an average drive of 20,000km year. Whilst there is no cite of the usage of the weight-saving aluminum panels, Holden has said that weight diminution have been achieved, alongside with fitment of the low rolling tyres and the other fuel-saving advancement. Whilst the basic LPG and Ute models would continue with GM’s antiquated four speed automatic, the later is claimed to provide improved competency, with Omega sedan the LPG use dropped to six percent from 14.2 to 13.4L per 100km. Mark Reuss the chairman and managing director of GM Holden alleged that the new engines will extend Commodore’s reign making it Australia’s top-selling vehicle. Mr. Reuss said that People have asked for low operating costs, keeping the litheness of the size of Commodore and that is what exactly the company is offering. The major step forward for Australian car industry is the Direct-injection technology. It offers the Australian car buyers what they need a more sophisticated Commodore among the four cylinder contenders whilst delivering the flexibility and space. According to Mr. Reuss the Australian and their families are not getting smaller and the distances are not getting any nearer but the expectations of customers with reference to fuel competency and environmental impacts are changing swiftly. Holden understands this and hence their new technology is their response. It takes advantage of the advanced technology potential, an all alloy engine that is made in Australia and also made available to the Australian car buyers. The Holden models has been a staple domestic tour car racing and (HRT) quasi factory Holden racing team that has participated successfully in the V8 Super car race since 1960.The (HSV) Holden Special Vehicles that was formed in partnership with Tom Walkinshaw. He primarily modifies, manufactures high-performance Commodore options. To further support the brand, HSV introduced HSV Dealer Team in the V8 Super car fold in the year 2005 with the HSV Toll Racing naming rights. "Holden lion and stone" or the logo, has played an important role in creating Holden's identity. Rayner Hoff was assigned to design the emblem for Holden Motor Body Builders in 1928. This logo refers to a prehistoric tale where the observation of lion’s rolling stones leads to the discovery of the wheel. It revised the logo with the launch of 48-215 in 1948 and then redesigned another for better presentation of the company. This emblem was worked upon once more in 1994. As per the ANCAP (Australian New Car Assessment Program) every Aussie built big sedan car could have maximum 5 star crash test rating soon after the added reminder of seatbelt added to Toyota Aurion and the new not yet released full VE Commodore range, Caprice and Holden WM Statesman. In order to achieve 5 star rating seatbelt warning lights were added to base Omega sedan. A pole test was also conducted in Dec 2008 to achieve the 5 star rating and then stem the marketing benefit that the rival Australian Ford had. Since then it has gained 5 star rating with VE Sportwagon however has decided not to initiate the seatbelt reminders on full VE sedan series and the WM long wheelbase model in order to achieve a wide series 5 star rating benefit till the up gradation of MY10 that is currently ingoing production and would be launched soon. The managing director and new chairman Alan Batey says that their confident level is very high with reference to these vehicles as per the real world safety capability is concern and it’s a pleasure to receive the third party endorsement. He has also mentioned that the 5 star results is a reflection of their thorough approach to every aspect with regards to the safety of the vehicle. He also mentioned about the commitment of a continuous improvement policy that is highlighted with the commencement of the exciting range. The application of Holden’s 5 star rating is to special edition of International sedans and all Commodore LPG dual fuel sedans, however it does not apply to VE Ute range that is 4 stars rated in spite of the side airbags, ESC and standard fitment seatbelt reminders. The rival Ford’s Falcon based Ute is also 4 star rated although it could achieve 5 rating if the poles test was conducted. All the WM models and VE wagon, sedan are standardized with ESC, traction control, ABS brakes with brake assist and EBD and traction control. Conclusion There were tremendous sales between 1991 and the year 2006 in the Australian market. In 1954 Holden started to export vehicles. It sent FJ to New Zealand and since then the exports have continued. In order to broaden the sales horizon it catered Commodore, Statesman and Monaro models to the left and right hand drive markets. As of now the middle east is the largest exported of Holden cars with Statesman sold as Chevrolet Caprice since 1999 and Commodore sold as Chevrolet Lumina since 1998 and are sold in Fiji, South Africa and Brunei.In Brazil it is sold as Chevrolet Omega. Commodore sedans were also imported as G8 by Pontiac in North America from 2008 to 2009. The G8's termination was a result of GM's Chapter 11 bankruptcy that resulted in failure of Pontiac brand. Monaro sales started as Chevrolet Lumina Coupe to the Middle East in 2003. Shortly in a year, a modified version sales if this car started in North America as Pontiac GTO, and under the name Monaro through Vauxhall dealerships through out the United Kingdom. The arrangement continued till 2005 until the car production was stopped. The sales of the long wheel based Statesman in the Chinese and Buick Royaum market began in 2005, before it was replaced by Statesman based Buick Park Avenue in 2007. The exports of Statesman to South Korea began in 2005. These models were sold as Daewoo Statesman, and latter as Daewoo Veritas from 2008. The move in international markets has proved to be profitable for Holden; the export income increased from AU$973 million in 1999 to approximately $1.3 billion in 2006. On the comment by Mr. Burela form its rival Ford Falcon which stated about out engineering the competitors and production of the six line cylinder Falcon engine that has an consumption rating of 9.9L/100km with auto transmission that’s standard with certain models and obtainable for $2000 additional with others, Holden released the document that introduced the direct injection V6 engine that showed a graph representing consumption of Commodore and its competitors. It represented that the 3 L V6 commodore model was at 9.3 Liters per 100 km as the most effectual below the Ford Mondeo which was at 9.5 Liters per 100 km , Toyota Aurion at 9.9 L per 100 km, Honda CR-V with 10L per 100km and Ford Falcon XT at 10.5L per 100 km. Holden decided to pick the XT Falcon model that has 5 speeds automatic in comparison to the optional 6 speed automatic. It decided to exclude Commodore 3.6 V6 that uses between 9.9 L per 100 km and 10.3 L per 100 km. Recommendations The production of new lean 3.0-litre engine will make Commodore the most fuel efficient six cylinder car in Australia. The combination of new low rolling resistance tyres and standard GM-sourced six speed automatic transmission, the engine will help the Commodore Berlina and Omega to accomplish a certified fuel economy average of approximately 9.3L per 100km, under cutting the Toyota Aurion and Ford Falcon by 0.6L per 100km. Holden also would introduce 2 new Melbourne made V6 engines that were made using (SIDI) Spark Ignition Direct Injection technology. The entry-level would be 3.0-litre and there would be a new first-rate 3.6-litre V6. Both would run on the regular 91 RON unleaded petrol. According to Mark Reuss the GM Holden managing director and chairman the smaller engine Holden car was arriving soon and not in 2 years– an obvious reference to Ford Australia’s statement of a four cylinder Falcon that was to be introduced in 2011.He also mentioned the public and government opinion that demanded for more efficient and cleaner vehicle and deliver the mentioned vehicle soon and not in 2 years. Michael Case the chief engineer of RACV and ANCAP representative informed GoAuto at Omega’s 5 rating that VE Commodore sedan can also be measured as safe with the most recent round of development in spite of FG sedan’s score of 34.61/37 compared to Commodore’s score of 33.45/37 as a score that is more than 32.5 is required for a 5 star rating. Accordingly to Mr. Case it is as secure as Falcon as it’s a 5 star NCAP automobile and technically there is not much difference in score (Terry Martin). Works Cited Terry Martin. " Holden’s MY10 VE/WM series and Toyota’s Aurion achieve five-star safety rating." 29 August 2009, . Read More