On star ppt 3
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Transcript of On star ppt 3
WAPA09
A MARKETING PLANAcharya, Green, Kas-Osoka, Rondez, Tran and Turner
Marketing Strategy 57102/10/11
Special Guest: Kathy Klotz
OnStar Rearview Mirror
OnStar
Roadmap
Mission
• To keep you safely connected in ways you never thought could be possible driving an non-General Motors cars.
Product Description
• OnStar Rear-view Mirror • Traffic Update:– Will provide live traffic updates
• Accidents• Weather-related issues• Slowdown spots• Will suggest alternative route
• Weather:– Will provide live weather
updates• Direction• Within a 100 miles• Wind speed• Possibility of rain or storm• Snow fall
Targeting Market
• Families• Safety• Efficiency• Stability • Brand growth
• Young Adults New Drivers
• Aware of surroundings Expansion
• Economic and Social Value
• Big cities like Shanghai
Market Needs
United StatesContinued consistencyNew Technologycapabilities Easier useProvide consumers withcentralized supportGive weather and trafficupdates in an instant
China• Tremendous success as an
upscale marque• Change in public perception• Information-gathering
ability• Use of new tech factors
such as smart phone capabilities
• Strengths– Strong GM brand name– Excellent reputation– Safety 1st
– Connections– Globally in 32 countries
• Weaknesses– Weak GM brand name– Lack of patent protection– Lack of customer’s
connections– Innovation of new product
• Opportunities– New technology– Selling product international– Adding safety to the road
• Threats– Consumer not adapting– Blue Link technology– Changes in regulations– Cost of plans and services
Competition
• Hyundai’s Blue Link Systems– For low and mid-range
customers– Telematics system for safety– One-on-one assistance– Entertainment– Charges between $100
annually
• GM OnStar Rear-view Mirror– For low and mid-range
customers– Telematics system for safety– One-on-one assistance– Charges between $200 to
$300 yearly– Operates Global Positioning
System (GPS)
Marketing objectives
• Motto “Safety, Security and Communication”.• Rear view-mirror in the US and China.• Lunch as a new product( add in).
Traffic Update and Weather bottom.• Inter into the international market with new product.
China-Beijing• Identify the target markets and Buyer motivation
points Younger generation
Marketing Strategy
• SWOT analysis• Sell Rear view to Non GM cars also.• Find local business partners at China.• China’s Monetary policy for microeconomic management.• Follow the 5 M’s
• Mission, Money, Message, Media and Measurement. price stability, full employment, international balance of payments,
and growth
• Communication plan personal selling, events and experiences, sales promotion,
advertising, public relations and publicity, and direct marketing
Pricing
United States
Service Only Safe and Sound $199?year or $18.95/Month Direction and Connection$299/Year or $28.90/Month
$ 299 –Rear view Mirror
China Service Only Direction and Connection$75/Year or $7/Month
$50- Rear view Mirror
OnStar Pro-forma in the U.S.
OnStar Pro-forma in the U.S.
Service Only - $199/year
(in thousands)
2012 2013 2014
Revenue 1,094,500 1,422,850 1,849,705
COGS 437,800 569,140 739,882
Gross Profit 656,700 853,710 1,109,823
General, Selling, Administrative Costs 394,020 512,226 665,894
Income Taxes 110,326 143,423 186,450
Net Income 283,694 368,803 479,444
OnStar Pro-forma in the U.S.
Rear-View Mirror - $299
(in thousands)
2012 2013 2014
Revenue 2,549,872 3,314,834 4,168,060
COGS 1,529,923 1,988,900 2,500,836
Gross Profit 1,019,949 1,325,933 1,667,224
General, Selling, Administrative Costs 611,969 795,560 1,000,334
Income Taxes 171,351 222,757 280,094
Net Income 440,618 572,803 720,241
OnStar Pro-forma in the U.S.
OnStar Pro-forma in the U.S.
Rear-View Mirror - $50
(in thousands)
2012 2013 2014
Revenue 511,800 511,800 511,800
COGS 102,360 102,360 102,360
Gross Profit 409,440 409,440 409,440
General, Selling, Administrative Costs 163,776 163,776 163,776
Income Taxes 45,857 45,857 45,857
Net Income 117,919 117,919 117,919
OnStar Pro-forma in the U.S.
OnStar Pro-forma in China
Service Only - $75/year
(in thousands)
2012 2013 2014
Revenue 22,500 30,000 37,500
COGS 4,500 6,000 7,500
Gross Profit 18,000 24,000 30,000
General, Selling, Administrative Costs 7,200 9,600 12,000
Income Taxes 2,016 2,688 3,360
Net Income 5,184 6,912 8,640
OnStar Pro-forma in China
OnStar China
Market Research Plan
Population• China – 1,331,460• U.S. – 310,788,625
Trend• 35 cars per 1,000 people in China• 850 cars per 1,000 people in the U.S.
Market Share
China – 14.7% U.S. – 18%
Culture• China: Aspirations focused to own a car• U.S.: Necessity in daily life
QUESTIONS ?