Chevrolet Cruze in India
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Transcript of Chevrolet Cruze in India
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Chevrolet Cruze InChevrolet Cruze In
IndiaIndiaBusiness Case StudyBusiness Case Study
Submitted by:
Aditya MahwarKushal Vig
Punit SethiaSaurabh DugarVaibhav
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GENERAL MOTORSGENERAL MOTORS
Founded 16Founded 16thth September 1908September 1908
Headquarters Detroit, MichiganHeadquarters Detroit, Michigan
Led in global car sales for 77Led in global car sales for 77consecutive years(1931-2007)consecutive years(1931-2007)
Bankrupt on June 1,2009Bankrupt on June 1,2009
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GENERAL MOTORS INDIAGENERAL MOTORS INDIA
Based in Halol, GujaratBased in Halol, Gujarat
2008- 66,000 cars sold2008- 66,000 cars sold
3.3% - Market share3.3% - Market share
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PRODUCT PORTFOLIOPRODUCT PORTFOLIO
Chevrolet SparkChevrolet Spark
Chevrolet Aveo U-VAChevrolet Aveo U-VA
Chevrolet AveoChevrolet Aveo
Chevrolet Optra MagnumChevrolet Optra Magnum
Chevrolet CaptivaChevrolet Captiva
Chevrolet TaveraChevrolet Tavera
Chevrolet SRVChevrolet SRV
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Passenger vehiclesPassenger vehicles
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Background & SituationBackg
round & Situation
analysis:analy
sis: Continuous decrease in sales, and inability to cater toContinuous decrease in sales, and inability to cater to
the lower segment of the market.the lower segment of the market.
GM made 70% of its own parts, which led to higherGM made 70% of its own parts, which led to higher
operational costs.operational costs.
Inefficient production and testing processInefficient production and testing process Lots of legacy methodologies carried out, which isLots of legacy methodologies carried out, which is
outdated in the current scenariooutdated in the current scenario
Heavily invested and focused in the home marketHeavily invested and focused in the home market
rather than developing or under-developed economyrather than developing or under-developed economy Bankruptcy of GMBankruptcy of GM
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Other Factors Leading toOther Factors Leading to
GM DownfallGM Downfall Strong global competitors with lower operating &Strong global competitors with lower operating &
legacy costs.legacy costs.
GM intended to buy stakes of chrysler but thatGM intended to buy stakes of chrysler but that
also ultimately failedalso ultimately failed
Spike in oil prices along with the worst economicSpike in oil prices along with the worst economic
downturn...since the Great Depressiondownturn...since the Great Depression
The run-up in gasoline prices, plummetingThe run-up in gasoline prices, plummeting
consumer confidence spelled the end by lateconsumer confidence spelled the end by late
September 2008.September 2008.
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Possible SolutionPossible Solution
Divest some brands but keep rich model portfoliosDivest some brands but keep rich model portfoliosfor remaining brands and reform the companysfor remaining brands and reform the companys
structure to provide each brand division with morestructure to provide each brand division with more
autonomyautonomy Restructuring in to a decentralized organization inRestructuring in to a decentralized organization in
order to put more emphasis on individual brandsorder to put more emphasis on individual brands
rather than regional divisionsrather than regional divisions
Market research, internal and external analysisMarket research, internal and external analysis
required in order to make this alternativerequired in order to make this alternative
successfulsuccessful
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Particulars of PossibleParticulars of Possible
SolutionSolution BenefitsBenefits
Focused resources on less brandsFocused resources on less brands
Distinct target markets which define brand equityDistinct target markets which define brand equity
More capital to invest in R&D for each specific brandMore capital to invest in R&D for each specific brand
More autonomy to brands which decrease decision making timeMore autonomy to brands which decrease decision making time
Feasibility of implementing the solutionFeasibility of implementing the solution
To divest some brands is a quite good strategy for GM, thereforeTo divest some brands is a quite good strategy for GM, therefore
it will be able to cater to more market segments in proper wayit will be able to cater to more market segments in proper way
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Future TargetsFuture Targets
10% market share by 201110% market share by 2011
Sell 2,00,000 cars by 2010Sell 2,00,000 cars by 2010
Making GM India a key production & R&D baseMaking GM India a key production & R&D base
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CRUZECRUZE
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CRUZECRUZE
Price LT- Rs 12,45,000Price LT- Rs 12,45,000
LS- Rs 10,99,000LS- Rs 10,99,000
4 cylinder VCDi 16v SOHC 1991cc engine4 cylinder VCDi 16v SOHC 1991cc engine
150ps , 327nm torque150ps , 327nm torque
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CRUZECRUZE
Dynamic & aggressive stylingDynamic & aggressive styling
Comfortable InteriorsComfortable Interiors
Class leading featuresClass leading features
Refinement & versatilityRefinement & versatility
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CRUZECRUZE
PEPS- passive entry passive startPEPS- passive entry passive start
Cruise ControlCruise Control
Rain sensing wipersRain sensing wipers
Smart ScreenSmart Screen
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HONDA CIVICTOYOTA
COROLLA
COMPETITORS
SKODA LAURA
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Cruze Civic Laura Corolla
Engine 2.0L Diesel 1.8L
Petrol
1.9 Diesel 1.8L Diesel
Power 148 bhp 125 bhp 105 bhp 132 bhp
Price 10.9/12.45lakhs
14.25 lakhs 10.5-14.25 lakhs
Features
PEPS Yes No No No
Rainsensingwipers
Yes No No No
CruiseControl
Yes No No No
Smart
screen
Yes No NO No
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HOW CRUZE WOULD HELPHOW CRUZE WOULD HELP
GM INDIAGM INDIA
Change Consumer perception about GM products
Increase Brand Image & Brand Value
Provide a standard for future quality of GM vehicles
Help to Increase Market Share & Revenues
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Positive effectsPositive effects
GM India has reported 50% growth in salesGM India has reported 50% growth in sales
Sold 7,654 units in September 2009Sold 7,654 units in September 2009
Chevrolet Spark sold 4,706 units ,double its usualChevrolet Spark sold 4,706 units ,double its usual
monthly salesmonthly sales
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THANK YOUTHANK YOU