Ravindra Rathore

8/8/2019 Ravindra Rathore

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Institute of Management Studies

Devi Ahilya Vishwavidyalaya, Indore.

A Project Report

To study Car Launching By GM as Product Positioning andDifferentiation. Positioning on Specific Product features,Positioning on benefits, Positioning on customer needs,

Positioning for specific usage occasions.

Submitted in the partial fulfillment of

Masters of Business Administration

(2009-2011)

Submitted To: Submitted by:

Shishir Jain Ravindra RathoreMBA III sem (MM)

IMS, DAVV, Indore IMS, DAVV, IndoreRoll no. 43494


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SELF DECLARATION

I have tried my level best in making this project report useful, pragmatic & successful. I have tried to provide the accurate

information to the best of my knowledge. The data collected isprimary, secondary, authentic & analyzed by me.

I have got the Information which is asked to Sales manager. All other

information has also been gathered from reliable sources.I hereby declare that project entitled To Study the reasons behindthe Positioning of a product in reference to Portable carSPARK(GM) is authentic. I have put in my efforts meticulously tomake this project to come up to the expectations and pragmaticallyviable.

Ravindra RathoreRoll no. 43494


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ACKNOWLEDGEMENT

I express my sincere thanks to Mr. Bhurcharan Singh (Head of

Purchase in GM) to give me an opportunity to do this research .

I would like to express my sincere

gratitude to Sales Executive (GM) who always made themselves

available for guiding me in my endeavors. His inspiration is immense.

Indeed working with him was a memorable experience.

I am grateful to Sales Manager (GM) for their timely suggestions,

constructive criticism and constant supervision during project. I also

thanks my family and friends for their valuable support and guidance

in carrying out the project.

I hope that my energy will create a positive sign through my

project report in the concern.

Thanks

Ravindra Rathore

MBA(MM) Sec.-B


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INDEX

Definition 1

Positioning strategies & value proposition 2

Positioning by benefits & brand positioning 3

Positioning by usage & why positioning is

important

4

Positioning by user & environment 5

Positioning by competitor/against competition &

competitive advantage

6

Positioning by corporate identity &

differentiation and positioning

7

Positioning by brand endorsement & developing

and communicating

8

Product class positioning & differentiation

strategies

9

Price equity positioning & problem 10

General Motors- Introduction 11

SWOT analysis 12Methodology 13

Conclusion 14


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Definition:

It is the act of developing the companys offerings and image to occupy adistinct place in minds of customers.

It is the position in the perceptual space of the consumers mind that theproduct takes in relation to competitors product.

It helps Brand Manager in identifying the core meaning of brand andcommunicates them as unique to brand.

End result of Positioning: it gives customer a value proposition a reasonto buy the productPositioning also involves developing andimplementing marketing strategies to achieve the desired position in

market.

Product, price ,distribution and promotion are the potential tools forpositioning a company and its offerings.

Market segmentations and positioning are interrelated .

One can select target market first and then develop positioning or visaversa.

Positioning is needed because of intense competition in many productcategories(clutter)

E.g. : Maggi Convenience food to solve frequent food demand forgrowing kids.

Dove Premium brand with high moisturizer content.

Mahindra Scorpio: hybrid positioning- luxury car & thrill of SUV.

Indica : more space with no extra cost. more car per car .

Virgin, Vodafone, Pepsi, ICICI- Jeetey raho .

Raymond The Complete Man.


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Positioning Strategies:

1.Positioning by product features / unique attributes: -

Reference to specific features.

Indicate product superiority.

Telling the customers what the features mean to them(benefits achieved).

E.g. front loading, semi automatic washing machine, power steering ofthe car.

medimix ayurvedic soap 24 different herbal ingerdiant .

J&J no tears shampoos, Lava mobile phone.

Titan raga-fashion accessory.

Value Proposition:-

The result of positioning is the successful creation of

a customer focussed Value Proposition.

Value Proposition:

A cogent reason why the target market should

buy the product. For eg.

The value proposition of Dominos Pizza whose target market is the

Convenienc minded Pizza lovers, looking for benefits like

delivery, speed and good quality is:

A good, hot pizza delivered to your door within 30 minutes of

ordering.


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2.Positioning by benefits :-

Closely related to product-feature adds.

Product bought for their benefits, choosing a unique benefit to position.

Close-Up fresh breath and opposite sex appeal.

Colgate total fights 12 oral problems.

Anchor & Dabur babul-strong teeth.

Car buying- economy, luxury, esteem & safety.

Fructis shampoo- long & strong hairs.

All clear shampoo-anti dandruff.

Krack , itchguard.

Brand Positioning: Remember

This

What seven concepts are critical topositioning?

1. Perception (theirs, not yours)

2. Differentiation

3. Competition

4. Specialization

5. Simplicity

6. Leadership

7. Reality


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3.Positioning by usage and use time:-

Product sold on the basis of their consumer usage.

Brands associations with a particular usage or situation

E.g. knorr soups- used in evening.

Britania marie.

After bath cream- used after bath.

Comfort fabrics .

Livon hair lotion.

Milkmaid-Usage for making sweets.

Why Is Positioning Important

Nobody is waiting for our product/service. Nobody really wants to

Listen to us.

Thousands of messages fight every day

Why Is Positioning Important for consumers attention.

If you can stand out with a unique benefit, you have a chance of gettingAttention.


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4.Positioning by users :-

Associates the product with the users or the class of users.

Products intended for use by a particular group.

E.g. J&J products, amul paneer.

Super active-health supplement for middle age.

Women Horlicks.

Complan.

Sunsilk shampoo.

Environment

The marketing environment is the external environment. Few things to

consider:

How is the market now satisfying the need your product satisfies?

What are the switching costs for potential users for your market?

What are the positions of the competition?


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5.Positioning by competitors/ against competition:-

Positioning a product in comparison to competitors brand.

Reference of competitor n giving an argument in favor of own brand.

Looking for weak points in other brands n launching own product againstthose weak points.

Direct and indirect comparison with competitors

E.g. Thumps up v/s Pepsi and Complan v/s Horlicks

Tata salt, tide, vim etc

Competitive Advantage

The competitive advantage is an internal question. What do you have thatgives you advantage over your competitors. Some things to consider:

Is your company small and flexibile?

Do you offer low cost and high quality?

Does your product offer unique benefits?

Are you the first on the market with thisproduct (First mover advantage)?, etc.


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6.Positioning by Corporate Identity:-

Brand draws a direct connection with the corporate identity (benefit of itscredentials).

Use corporate name to label their names in various product category. E.g.LG, Samsung.

In other cases, a separate brand launched revealing corporate connectione.g. Dabur HUL, Nestle etc.

Differentiation & Positioning

Process of creating favorable relative position:

(1) Identification of target market (2) Determination of needs, wants, preferences and benefits desired (3) Examination of competitors characteristics and positioning (4) Comparison of product offerings with Competitors (5) Identification of unique position (6) Development of a marketing program (7) Continual reassessment

Differentiation Strategies Product Descriptors

Product features

Advantages

Benefits Customer Support Services Image

Positioning Strategies Strengthen the Current Position Repositioning Reposition the Competitio


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7. Positioning by brand endorsement:- Successful brand is used as an endorser of a new entry. E.g. Dabur used

vatika to promote its shampoo.

Nestle used Maggi to promote catch-up, pickles & soups.

Raymonds park Avenue endorses soaps, after shaves, perfumes &deodorants.

Developing and Communicating a

Positioning Strategy

Positioning: How many ideas to promote?

Unique selling proposition (USP) Choosing an attribute and presenting yourself as number one

in benefits such as quality, superiority, price etc. Thisbecomes the Point of Difference.Eg. Nike, Sugarfree, Lux, etc.

Points of Parity:It refers to the associations that are not necessarily unique to

the brand but may infact be shared with other brands.Category- NecessityCompetitive-Negate competitors POD.

Eg. Dettol and Savlon

There are some popular positioning strategies thatcan be pursued:

Product Attributes: What are the specific product

attributes? Benefits: What are the benefits to the customers? Usage Occasions: When / how can the product be used? Users: Identify a class of users. Against a Competitor: Positioned directly against a

competitor. Away from a Competitor: Positioned away from competitor.

Quality/Price Positioning.


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8.Product class positioning:-

Positioning brand with respect to a product class by developing class

related association.

E.g. Nescafe- instant coffee.

Bru brand filter coffee.

Cadbury bytes-sweet snacks.

Differentiation Strategies

Product DifferentiationEg. A lawnmower manufacturer

Personnel DifferentiationEg. Singapore Airlines.MC.Donalds people are courteous, IBMpeople are professional, etc.

Channel DifferentiationEg. Eureka Forbes, Avlon, etc.

Image Differentiation

Identity and Image needs to be distinguished.

Identity is the way a company aims to identify or position itself or itsproduct.

Image is the way the public perceives the company or its products.

Eg. Hyatt Regency hotels developed a distinctive

image through its atrium lobbies.


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9.Price-quality positioning:-

Some brands occupy single economy position like Nirma and Hamam.

This is low quality low price position for price conscious customers.

Other brands occupy a premium position like Surf excel and dove.

This is high quality high price position for price quality consciouscustomers.

Madura Garments Peter England- lower end brand and Louis Philippeat top end.

Big Bazar is Value for Money- isse sasta aur accha kahin nahin

Problems

Four major positioning errors

Underpositioning vague idea ofBrand

Overpositioning too narrow an image

Confused positioning companymakes too many claims or changesbrand positioning frequently

Doubtful positioning hard to believebrand claims in view of productqualities


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General Motors

Type Limited liability company

Industry Automotive

Founded 1908reestablished 2009

Founder(s) William C. Durant

Headquarters Renaissance CenterDowntown Detroit, Michigan, USA

Area served Worldwide

Key people Edward Whitacre(Chairman)Daniel Akerson(CEO)

Products Automobiles

Owner(s) -United States Department of the Treasury(61%)-United Auto Workers Union Voluntary

Employee Beneficiary Association (17.5%)-Canada Development Investment

Corporation (7.9%)

-Government of Ontario (3.8%)-Bond holders of Motors LiquidationCompany (9.8%)

Employees 204,000 (2009)[1]

Divisions Chevrolet , Buick, Cadillac,GMC

Subsidiaries AC Delco,General Motors Canada,General Motors do Brasil,GMFinancialGeneral Motors India, General Motors Truck & Coach DivisionGeneral Motors Ventur, Global Hybrid Cooperation

General Motors South Africa,GM-AvtoVAZGM Daewoo (70.1%),GM Holden LtdGM Performance Division,OnStarOpel, Vauxhall

Website GM.com


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Introduction

General Motors is the worlds largest automaker with 386,000 employees in

over 50 years. Despite this sheer size, its auto sales have declined from about 60percent of the U.S. vehicle market in the 1970s to only 28.3 percent today. Thisdecline is attributed to stiff competition from Ford, DaimlerChrysler and theJapanese all of whom enjoy lower production costs, have a reputation for carswith better styling and quality than General Motors.

General Motors adoption of a vertically integrated corporation which at onetime manufactured up to 70 percent of its parts, as a power source ofcompetitive advantage, enabled the company to build cars at lower costs than itsrivals. However, over time, these policies worked in favour of General Motorscompetitors who were then able to make motor vehicles at much lower co stsbecause they could purchase their vehicle parts from outside vendors and alsobargain on pricing.

For the past 15 years, General Motors has struggled to overcome the abovelegacy, inefficient product processes and thousands of outdated informationsystems that could not communicate with each other. Alth ough the company hasnow become much leaner and more efficient by shedding off tens o f thousandsof workers, closing dozens of plants and squeezing costs of motor vehicle partsby scouring the globe for the lowest prices much still needs to be done.

It is our recommendation that General Motors use Internet and other leading-edge information systems technology to reconstruct its entire value chain,transforming itself into a customer-focused business that provides manydifferent electronic services to consumers as well as motor vehicles.


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S.W.O.T. Analysis

Strengths:-

o Worlds largest vehicle manufacturer with production in 32countries

o Worlds sales leader since 1930s with a 15% global vehiclemarket

o Leadership in America controlling a third of the entire US marketo Trucks and SUVs vehicles sales record in North America -

increased market shareo Sales in over 190 countries with a strong position in emerging

economies

o Technological potential, global partners and ventures with other

automakerso GMAC Major GMs subsidiary specialising in financing GM

vehicle purchaseso Averages a profit of US $ 701 per vehicle up by 108 % from 2001

Weaknesses:-

o GMs share of the automobile market has fallen. (Automakersstock has stumbled

y 70% in the last five years)

o Second lowest productivity average with 24 labour hours pervehicle

o Under utilisation of its plants and technologyo Cost structure Pension liabilities and cost of health care for all

employees

y currently stands at US$24 per hour at GM compared to $12 at foreignfactories

o Peace with the labour union (United Auto Workers) has decimated

GMs pension

y fund since the GM family of 7.5 million is comprised of employees,

retirees andy their respective family members

o Bureaucratic culture where each unit markets to the same consumerseparately and

y differently with almost the same producto Low profitability due to inefficient production processes


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o Inefficient investments addressed emission standards cost GMUS $ 2.2 Billion

y compared to Hondas US $ 53 Million

Opportunities:-

o Use of knowledge gained from its subsidiaries, partnerships,buyouts, joint

y ventures Daewoo, Saab, Isuzu, Fiat, Opel, Vauxhall, Toyota (Nummi)o Expansion of their global presence - having their own European

model operationo Expand in emerging economies especially Eastern Europe

o Use of substitutes in the production (plastic and fiberglass) a ndcomponent

y manufacturing operations in countries with cheap labour costo Leadership in environmental investigation and safetyo Product differentiation through options and name recognitiono Lead on growing light truck sectoro GMAC financing to increase US saleso Create new model types and styles to change consumers demando Reduce costs of inventory and sales incentives by finding ways to

make cars that

y customers have actually ordered. Build to order can generate productioncost

y savings of US $ 20 billion per year

Threats

o Future cost have environmental and safety regulations USFederal Legislation

y and Regulations as well as Foreign Legislation and Regulationo Declining quality of the infrastructure in the countryo Stiff competition from domestic and foreign aut omakers that enjoy

lower costso Global economy which affects customers purchasing powero Macro economy Incomes, unemployment, inflation, interest

rates, recessiono The permanent increase in oil prices force potential customers to

venture into

y buying other motor vehicles with less fuel consumption

y Industry Analysis


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o New technology is changing manufacturing process and productdesign

o There is a worldwide stagnation in demand which leads to adecline in sales

o Create mega dealers and auto supermarkets to bring s ervices closer

to consumerso Demand for excellent world class product in every respect is high

o Evident worldwide overcapacity of different models of vehicles

Competitor Analysis:-

o Sheer size and market share make new entrants an unlikely to be athreat

o Vertical integration of GM does not encourage purchases fromsuppliers hence

y they lose out on price bargainingo Ford, DaimlerChrysler and Japanese manufacturers have better

styling and

y quality; an approach which GM should consider adopting to sustain its

y competitive edge

o Cost of GM motor vehicles is perceived as being too higho Buyers are nowadays inclined to buy sport utility and pickups

which are not

y manufactured by General Motorso GM enjoys a healthy product line and segmentation in pricing and

functions


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INDIAN FOUR WHEELER INDUSTRY

De-licensing in 1991 has put the Indian automobile industry on a new growthtrack, attracting foreign auto giants to set up their production facilities in the

country to take advantage of various benefits it offers.

This took the Indian automobile production from 5.3 MillionUnits in 2001-02 to 10.8 Million Units in 2008-09.

In 2008-09, the Indian automotive industry provided directemployment to more than 300,000 people, exported autocomponent worth around US$ 2.87 Billion, and contributed5% to the GDP


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GM India Product launches

Launched On Model Rate (Rs. In Lakhs) Competitor

2003 Chevrolet Optra 7.81-10.29 Honda Civic,Skoda

Octavia,Maruti Verna

2004 Chevrolet

Tavera

7.66-9.4 Toyota Innova,Tata

Safari,MahendraScorpio

2006 Chevrolet Aveo 5.99-7.05 Honda City,MarutiSwift Dzire, FordFiesta

2006Chevrolet AveoU-va

3.8-4.25 Maruti Swift,SkodaFabia, Hyundai I20

2007 Chevrolet Spark 3.09-3.70 Maruti WagonR, TataIndica,MarutiWagonR

2008 ChevroletCaptiva

17.40-19.22 Ford Endeavour,Honda CR-V,Mitsubishi Pajero

2009 Chevrolet Cruze 10.93-12.56 Honda Civic,SkodaOctavia, Skoda Laura

2010 Chevrolet Beat 3.42-4.03 MarutiRitz,FiatGrande

Punt,Hyundai I10


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Product Positioning

Chevrolet Spark Small Size

Chevrolet Beat Small Size

Chevrolet U-VA Small SizeChevrolet Optra Mid Size

Chevrolet-Aveo Mid Size

Opel Corsa Mid Size

Opel Astra Mid Size

Chevrolet Tavera SUV

Chevrolet Tavera Neo SUV

Chevrolet Captiva SUV

GM India Product Line Up


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Advertising and Promotion:-

Media use for advertising mainly;

Print media including newspaper ,magazine,brochures etc;

Outdoor media such as billboard, hoardings;

Appoint Saif Ali Khan and RaniMukharajee as brand ambassador topromote the brand Chevrolet AVEO U-VA brand;

They also take part in various auto expo and exhibition for trader orientedsales promotion;

In customer oriented sales promotion they offer special seasonaldiscounts , gift vouchers, special offers, Product warranties .

Marketing strategy of GMI

3 pillars to create high impact and recognitionfor brands:

1.Integrations and Innovations

2.Strategic Partnerships

3.Sustenance and Continuity


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Chevrolet Marketing Campaign

GMs Chevrolet breaks Bluetooth marketingcampaign in mall

A Bluetooth-based campaign to promote the

Chevrolet Spark LPG in a shopping mall activityachieved close to 11,000 downloads in two daysin Banglalore alone.

Customers needed to switch on their mobileBluetooth and accept messages from"BluFi@forum" to participate in the campaign in amall.

"The strategy is to make Chevy talk to customersand provide them an opportunity to potentialcustomers to get closer to the Chevy,"

Dealership

General Motors India is now appointing more dealers andauthorized service outlets in urban, semi-urban and other cities

to widen its network and reach out to its valued customersacross the nation.

GMIPL currently has 250 dealerships in 178 cities across India .

GM Indias rapidly growing network of Chevrolet dealershipsand service centres in the pipeline to support the increasing

demand for GM products.It has also entered into financing arrangements with some of the

public and private sectors banks to offer low EMI schemes to itsvalued customers.


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General Motors India has rolled out an aggressive integratedmarketing campaignrevolving around its best-selling mini car,the Chevrolet Spark. This campaign revolves around a once-in-a-lifetime, limited period special offer to prospective mini car

buyers.

The marketing communication strategy takes a holistic, 360

degree approach and encompasses print, electronic, radio,digital, outdoor, cinema, CRM, showroom support,directmarketing, mall display activity and rural activation.

The Road is tough, but the ultimate goal a leaner , stronger, viable GM is one we share.

Fritz Henderson ( CEO )

General Motors


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METHODOLOGY

SAMPLE UNIT: Distributors, Sales Executives and Middle

Manager.

SAMPLE SIZE: 25

SAMPLE TECHNIQUE: Personal Interview

CONTACT METHOD: personal contact

DATA ANALYSIS: Interpretation on the basis of responses given by

interviewees.

Result of Interpretation:

In result for positioning of cars they applying belowfollowing strategies-

Positioning strategies revolvedAround

Who am I?What am I?

For whom I am?Why me?

Six basic question to create aPositioning

What position do we have in prospectsmind?

What position do we want to own?What companies must be outgunned if

we are to establish that position?Do we have enough money to occupy

and hold the position?


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Do we have guts to stick with oneConsistent positioning strategy?

Does our creative approach matchourPositioning strategy

Six steps taken to reach aDecision

Identify competitors

Assessment of consumers'

perception of competition

Determining competitors position.

Analysing the consumerspreference.

Making the positioning decision


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ConclusionNow a days positioning of a new product is very difficult task for acompany, Market is change in each an every second, Customerchoices are also change with their view. Four Wheeler is also having

new aspect from old to now a days market is small customer tastechange day by day, competitors are many so that GM follows aspecific strategy for positioning of his product.

Ravindra Rathore

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