FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

I.

NATURE OF THE INDUSTRY, MARKET, AND BUYER BEHAVIOR

1. What is the nature of the industry structure, conduct, and performance?

Introduced G.M. Daewoo

Produced low price car

Convert G.M. Daewoo to Chevrolet

Retain the loyal customer/s

Produced car based on Europe/Korean designed

Chevrolet is General Motors' largest global brand with 2011 sales of 4.77 million vehicles in more than 140 countries. It is the fourth biggest global car brand in terms of sales and also one of the fastest growing brands in the world.

Chevrolet cars combine bold design, performance, innovation and practicality. They provide outstanding value for money. Established in the U.S. by Swiss migr Louis Chevrolet in 1911, the brand celebrated its centenary in 2011. The brand was relaunched in Europe in 2005. It is represented with a total of 2,500 sales and service outlets in Western and Central Europe.

The European Chevrolet line-up includes the Spark city car, the small Aveo sedan and hatchback, the compact Cruze sedan and hatchback, the Orlando family van, the

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Captiva SUV, the legendary Camaro and Corvette sports cars and the extended-range

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Volt electric car. In 2012, Chevrolet is launching the Cruze station wagon and the Malibu mid-size sedan. The table below shows some fast facts about Chevrolet Europe: Sales and Market share in 2011 in Western and Central Europe 206,400 vehicles 1.24 % market share (We 1.07%, CE 2.56 %) Number of Dealers, Sales and Service Outlets Number of Employees in Europe Cars sold in Western and Central Europe are produced at About 810 GM plants in North America (3 plants) GM plants in South Korea (4 plants) 2,500

2. Who are the competitors and what are their strengths and weakness?

Italy company based

Korean company based

German Company based

French company based

Japanese company based

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Strengths

Weaknesses

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3. How do buyer buys in this industry or market?

Stylish/Nice Design

Better Reputation

Higher Status

Modern Look

Robust/Solid

Smaller Engines

More expensive

Smaller Size Safe

Better resale value

According to the qualitative research of the G.M. Daewoo, the buyers in this industry prefer to spend less of their disposable income on a car purchase. They have to look in every aspects and decisions that they would come up to in order for them to purchase a car. In this the G.M. Daewoo conducted a qualitative research wherein they examined both the core and potential attitude and buying behavior of their customers. One contributing factor that their customers have is that the car is not a status object for them which means it made their team to understand all the things that their customers wants. They want this; they will give this to you. This resulted into a higher income growth of the Chevrolet in Europe.

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INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

4. Can the market be segmented? How? Can the segments be quantified?

Traditional Segments
Traditional Segments

Mainstream Segments
Social Climber Segments

23% 19% 46% 35%

26%

Mainstream Segments Postmodern/Materialisti c Segments

51%

Post-Modern/Materialistic Segments
26%

48%

UpperLiberal Segment SocioCritical Segment

26%

Yes, the market can be segmented Chevrolet cars are segmented based on car owner social status, demographic, geographic, socio-cultural, psychographic, buying behavior and value orientation across national boundaries. In the case of Chevrolet Europe the market segmented through

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Upper Conservative segment which comprise of upper class European elite,

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Traditional Blue Collar in this type of segmentation the people in this type are flexible in their brand and willing to spend money in a car that they like, Traditional Mainstream segment in this type of segmentation people in this type tends to buy products according to its performance and quality

Since market segments can be done this are some processes on how to segment the market of Chevrolet Europe and other businesses

Define your market Evaluate which market or markets you want to pursue Qualify your chosen market or markets Gather and analyze data on your selected market Understand your audience Form your segments

Market can be quantified by considering the budget allocated of 75 million euro offering 50 brands in over 200 models of 20 automakers 83.9% of new passenger car unit sales in 2003 Western Europe accounted alone for 36% of worldwide passenger car production 132,200 sales increased passenger car in 2003 European sales increased 21.7% in 2003 following the assumption of sales and marketing responsibilities by GM DAEWOO Europe

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5. What are the requirements for success in this industry?

SUCCESS REQUIREMENTS Change the customers bad perception One of the factors that affect one customer in buying such product is their perception towards a certain product. In automobile industry changing their perception is a big task esp customers are very careful in choosing what to buy and also because they are not easy to convince. But when a automobile companies succeed there is a high guarantee of growth in demand and revenue. Improved poor Workmanship Service can also be a basis for purchasing in the Automobile industry because some are up to the warranty and services they could get after buying. Improving at its best can be an asset to the company through the power of word of mouth (spreading how good the service provided by that certain company to fellow customers). It is one of the best way to convince buyers.

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Diversified Product Range

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Seeking for something more profitable can also be done in improving workmanship. Offering miscellaneous and providing more services that can make customers feel delighted

Focus on Strengths Focus Improvement Success. Focusing on the strengths of the

company has the big chance to site the things that needs to be improved. It can be a bridge to a successful and a better performance that can be seen by customers.

II.

THE ORGANIZATION Organizations Mission:

1. What are the organization mission, objectives and distinctive competency?

Making the conversion branding from General Motors Daewoo to Chevrolet Europe where the conversion will further the transformation of Chevrolet into a global brand name. Objectives: Resonate with European buyers Complement General Motors multi-brand Be consistent with the global perception of the Chevrolet brand. Distinctive Competency: The Gene ral Motor Daewoo products quality, stylin g, and customer acceptance will be excellent starting point for the company distinctive competency.

2. What is its offering to market? How can its past and present performance be characterized? What is its potential? Past Performance:
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During the past performance of the G.M. Daewoo products, they won The Worlds Most Beautiful Automobile of 1998 which was awarded in Milan, Italy for

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the Matiz car. Hence, the heavy debt burden with inconsistent Marketing strategy, Daewoo Motor Company declared bankruptcy, which soon resulted to the lost of its momentum in Europe as well as in other countries. Present Performance: The present performances have penetrated into an automobile market around Europe with its new image and brand equity of Chevrolet Europe. With its continuous research for product development they have reached the lime light again. Potential based on the performance: Based on the current performance of Daewoo Motor Company, with the help of the new image and brand quality, it is believed that Chevrolet will became one of the positive brand name under General Motors Corporation. The lack of awareness in European cars on the Chevrolet brand, the company believed that it already provided a clean slate upon which to position the Chevrolet brand in Europe.

3. What is the situation in which the organization or manger find itself? The current situation faced by the organization and managers are the following: To recover the brand image from the previous Daewoo Motor Company which is a project based on Project Midas assembled. The project is transforming the Daewoo brand into Chevrolet Europe brands The production will focus only on cars production based on combination of European design and Korean technology. The project Midas will be the responsible one on finding the right solution repositioning the product development.

4. What factors have contributed to the present situation?

III.
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A PLAN OF ACTION

1. What actions are available to the organization?

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The actions available for the organization must be conducting a Qualitative research and implementing new marketing strategies. The qualitative research have to find the customers needs, wants in order to meet their expectations. There must be an acceptance of the new branding image. Lastly, to find positioning territory by focusing on the product appealing that is relevant for users and there should be uniqueness in the product design as well as credibility too. For the marketing strategies, the new implementation on marketing such as value positioning, product development, sourcing, pricing and advertisement by using existing marketing medium such as retail stores, dealers, suppliers, operating policies, and practices.

2. What are the costs and benefits of action in both quantitative and qualitative terms?

In attempt of positioning the Chevrolet brand in Europe, continuous research and development is necessary which may cost funds and full employees participants in all level. The benefits through qualitative terms have improved product, with positive image quality. It will bring up General Motors Corporations company name, where it able to reverse the bankrupted company to become successful company. While the benefits though quantitative terms would be an increase in sales growth and production, and financial returns from the G.M. investment.

3. Is there a disparity between what the organization wants to do, should do, can do and must do? Yes, it will be an acquisition wherein it arises after the crucial problem that G.M. Daewoo faces. They have to change the perception regarding the product brand of G.M. Daewoo as it brings an image of Korean automobile technology-

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based and for the economical perception as well.

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FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

IV.

POTENTIAL OUTCOME

1. What will be the buyer, trade, and competitive response to each course of action? The competitive response is globalization. This will help to be able to penetrate into the European automobile market wherein the Chevrolet Europe implemented new strategies on their marketing. Project Midas conducted to positioning the Chevrolet product line into the market with new improved quality image fromprevious brand,the Daewooautomobile brand.

2. How can each course of actions satisfy buyer, trade, and organization requirements? Each course of actions can satisfy buyer, trade and organization requirement first by knowing the role of the customer. The loyal customers are willing to buy same product brands as they tended to be traditional in their value creation. A positive feedback is another good contributing factor for it. Implementing total customer satisfaction is what the G.M. Daewoo did. They has a various products in order to fulfill customer wants that will pursue the customer from different product segmentation

3. What is the potential profitability of each course of action? The investment in terms of financial resources and management flow from General Motors will improve the companys performance from time to time. The attempt in going global will provide wider marketing resources in expanding the companys growth.

4. Will the action enhance or reduce the organizations ability to compete in the future? Yes, because the efforts in branding the Chevrolet as transmission from Daewoo product enhanced the organization abilities in competing with other automobile companies.
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