Marketing Management

Assignment
Products & Markets
1.

Johnnie Walker

2.

General Motors

Ajay Yadav

Group-F members

Products and Markets

Johnnie Walker: The Market Journey
By getting the
more
than
concepts,
Global
universal

global model right, Johnnie Walker reversed a continuing decline and

doubled its global business in ten years. Successful global advertising
as demonstrated by the Effective Brands consultancys Leading
Brands project, start with a simple but powerful idea: they address a
human motivation that crosses cultures. At the highest level are
motivations like a desire to be healthy and safe, attain an education,
provide
well for ones children, and achieve ones aspirations. Next, they find a
positioning that goes beyond describing product attributes to address
the
motivation. Johnnie Walker started with the understanding that
men
around the world, regardless of culture or country of origin, seek to
advance in their lives. This universal human motivation
unlocked both a global positioning specifically, inspiring
men to progress and an advertising expression of this, Keep Walking.

The eight drivers of irresistible brands help constantly evaluate whether Johnnie Walker is
on track.

Know-how Johnnie Walker outperforms the market on Know-how attributes

such as quality and reputation.

Momentum The brand is over a century old but is simultaneously

contemporary. The logo has changed gradually to suit the times, and a constant
programme of innovation ensures Momentum.

Differentiation Despite operating in a competitive market, Johnnie Walker

stands apart, particularly well differentiated at the emotive level.

Emotion Johnnie Walker outperforms other brands on the emotive criteria

that are relevant to Assertion instilling feelings of confidence, ambition and
intelligence

Symbolism Johnnie Walkers understanding of the language of emotion is

apparent in every brand choice, from its colours to bottle shape and logo design

Nexus The emotive heart of Johnnie Walker, built around Assertion, links
through every layer of the brand. Its social identity and the product itself are also
strong and assertive

Alignment Every Johnnie Walker brand touchpoint has a consistent look and
feel, evoking the same sense of boldness and quality.

Unity The Johnnie Walker brand family holds together very well. Variants are
intrinsically similar, but target a different audience of consumers and situations
within Assertion.

Parent Company
Category
Sector
Tagline/ Slogan
USP

Segment
Target Group
Positioning
Strengths

Johnnie Walker
Diageo
Beverages (Scotch Whisky)
Foods and Beverages
Keep walking
Highest quality blended scotch whisky with
heritage
STP
Mid-aged urban people wanting premium
scotch beverage
Businessmen and executive professionals
from the upper middle and upper class
Premium and rare scotch
SWOT Analysis
1. Strong customer and brand loyalty
2. Unique packaging that customer could
recall
3. Legacy and heritage associated with brand
4. Popularity and following among the high
income group and its intended use for special
occasions
5. "Keep Walking" slogan and logo are
extremely well recognized world over

Weakness

opportunity

Threats

Competitors

6. Sponsorship of premium lifestyle events

adds to brand value
1. Brand protection costs are high as product
replicas affect image and sales
2. Penetration in the market is low no easy
availability
1. Increased consumption of scotch on
special occasion
2.Spending power for such premium products
amongst the consumer is increasing
3. More global penetration
1. Comparatively low prices of competitors
2. Use of champagne for special occasions
3. Local blended scotch and their high
penetration in the market
Competition
Black Dog
Chivas regal
Whyte and mackay

Marketing and Customers:

Classification
Volume contribution
Markets

Character

Mature
50%
US, GB, France,
Japan, Italy, Austria,
Germany Spain

Declining, stagnant
Brand proliferation
Price sensitive
Strong retail power
High investment
required for
advertising and
promotional activity
Off-trade* skew
Global Masculinity Study Findings.

Developing
30%
Greece, Portugal,
South Korea, Czech
Republic, Venezuela,
Mexico
Growing yet
unstable economies
Increased
competition
Increasing cost of
doing business
Growing retailer
power

Emerging
20%
Brazil, Colombia,
Thailand, Turkey,
Taiwan, Poland,
Indonesia, Russia,
Chile
Volatile economies
Underdeveloped
trade and distribution
Grey channel
issues

(a) Life Stage 1 (2022). The first life stage is characterised by searching for identity,
moving towards independence and laying down the foundations for a future career
through education. It is also the time when fun and socialising are at their peak and male
bonding is intense.
(b) Life Stage 2 (2632). By this time men have started to seek a more established life
and are making commitments to careers and relationships. Most men achieve
independence from parents at this stage, and there is a universal quest for a partner.
Success becomes a key concern as men seek to establish themselves materially and
win recognition from others. There is a universal desire to buy a house and car, and most
acquire these, or are on the way to doing so, during the second life stage.
(c) Life Stage 3 (3743). The majority have now been married for a number of years
and become increasingly home-centred during this age. There is a desire for security and
stability, and the achievement of these goals is often equated with financial success. By
the third life stage, most men have settled down in one career after a period of
experimentation and change. Anxiety and stress are often reported in relation to work.
Men are concerned about future prospects and fear that younger, better-skilled
colleagues may overtake them.
(d) Masculinity and Role. There have been major changes in the expression of
masculine identity and in mens roles. Mens associations with masculinity show that the
sense of masculinity comprises clearly defined and enduring elements. These elements
may be seen as constituting the masculine archetype like the Provider, the Protector, and
the Leader. The concept of masculinity is extremely important to men worldwide and
provides the cornerstone of individual identity. The changes have occurred in the
expression of the archetype rather than in the archetype itself.
(e) Traditional masculinity defined the man as the provider and protector of the family
with absolute authority. It emphasised physical strength, power and dominance while

demanding repression of the emotional side of the character. Emotions were seen as the
province of women, who were perceived not only as more emotional but also as more
irrational, less intelligent and biologically and socially inferior. Men today still have a very
strong sense of the masculine archetype, and their sense of masculinity is rooted in this.
The theme of leadership continues to be expressed through emphasis on achievement at
work and the themes of being a provider and protector through emphasis on
responsibility for the family.
(f) Rational values are those that epitomise the more tough-minded side of masculinity
and focus on the qualities a man needs to succeed in the work environment and as
financial provider. In contrast, the emotional values characterise a mans needs in
relationships with others. It is interesting to note that emotional as well as rational
values are of universal importance to men, though they are likely to be suppressed to a
greater extent in more traditional societies. Men are progressing from a definition of
success based on physical superiority to one based on task competence, and one that
encompasses emotional fulfilment and happiness. This progression can be seen as
having a cumulative nature, with men retaining the previous means of expressing
achievement but the balance of importance shifting. Todays man, in valuing emotional
success, still sees task competence as important but not at the expense of his own
identity.
(g) Regional Variations. Regions can be compared on both the amount of change that
has occurred and on the degree to which men have accepted this change. In some
societies a fairly high degree of change occurred but was seen as forced, resented by
men and grudgingly tolerated in order to benefit from womens financial contribution to
the home. In other societies there is a greater degree of commitment to the change and
the principle of sharing and equality of men and women.
(h) Masculinity in the Future. There is variation in mens expectations of masculinity in
the future, depending on the state of change in a particular society, but certain broad
themes are apparent. Womens views show considerable agreement globally on the
characteristics they hope for in a man of the future.
(i) Style and Tone of Advertising Messages.
It is evident that men worldwide are
becoming more sophisticated in their reactions to advertising. In most countries, there is
growing appreciation of more subtle, multi-layered advertising styles. Greater complexity
is appreciated especially the showing of men in multi-dimensional roles, e.g., father,
companion, provider rather than a uni-dimensional portrayal related to the product sector,
e.g., a man simply showing off physical strength. There is also growing appreciation of
communication that is involving and draws the audience into a certain mood or
experience. Emotion is an important element as long as this is portrayed as having
sincerity and depth. There is a desire for experiences and situations that while
aspirational, seem realistic and not based on exaggerated or plastic stereotypes. Men
today tend to reject advertisements that seem to be trying to make up their minds for
them, lack entertainment or do not talk to them on their own level. In contrast, lifestyle
advertising that suggests product and brand benefits is well received. Communication
with men can also trade on values expressed by international or local values. Style
preference is also influenced by age, with a more playful, direct communication style
being liked by the youngest men, with this reflecting the tone of interaction of their peer
group. Overall, men react most positively to advertising that entertains them and utilises

storylines
or
scenarios that are
exciting
and
interesting in their
own
right.
The
growing wish for more
sophisticated
advertising
that
portrays aspirational
lifestyles
and
messages implies the
need
for
the
development
of
advertising
that
accurately
reflects
mens
changing
values
and
expectations.
The
requirement
for
images with depth
and credibility, and
their dislike of falsity and obvious stereotypes means that an understanding of values
that allows communication to be as finely tuned as possible to the nature of its particular
audience will be of considerable benefit. Mens relationships can be depicted as multidimensional, with four main spheres being identified in the research. Each of these
spheres brings out a different aspect of self that is associated with particular values.
(j) Men with Men - This is a sphere in which a man identifies himself as one of the
boys. Interaction in this sphere takes place in a variety of contexts where the man is in
the company of his male friends, e.g., sport, work, pub or gym. Men with Family This
sphere is of great importance to men worldwide, and the changes in masculine identity
(greater emotional expressiveness) and mens roles (more sharing of domestic tasks)
have served to bring men into closer contact with their families and make the family
central to their sense of fulfilment and identity. Men with Women - Archetypal masculine
values such as strength, power, dynamism and rationality are important to men, and it
was also important to women that men should possess them. Emotional values such as
tenderness, sensitivity, care and tolerance are becoming more important to todays man,
and they constitute the basis of closer and more enriching relationships between men
and women. Values relating to eroticism, in particular the ability to create feelings of
passion, sensuality and sexuality, are an innate part of mens values in relationship with
women. Finally, values relating to looks are also highly relevant to this sphere and are
reflected in concerns with appearance and a desire to project well-groomed
sophistication. Men with Themselves - Mens relationships with themselves involve
values relating to self-identity and role. In this sphere, the fundamental questions of who
am I? and what should I be doing? arise. It is evident that men are acquiring an altered
self-perception, with the rigid, traditional parameters of male identity being replaced with
more flexible, open means of definition. The changes in this sphere have considerable
implications for marketing and advertising. As men seem to be more open to new ideas

and more likely to consider possibilities according to the needs of the self rather than
according to their fit with the dictates of traditional masculinity, messages can be
addressed more directly to the realm of the emotional.

General Motors

General Motors an
American automaker
with its headquarters
in Detroit, is the
world's
second
largest
automaker,
traces its roots back
to 1908. With its
global headquarters
in
Detroit,
GM
employs 205,000 people in every major region of the world and does business in some 157
countries. General Motors produces cars and trucks in 31 countries, and sell and service
these vehicles through the following divisions: Buick, Cadillac, Chevrolet, GMC, Opel,
Vauxhall. GM's OnStar subsidiary provides vehicle safety, security and information services.
General Motors Company [GM] is a highly reputed American Multinational Corporation that
designs, manufactures, and markets and distributes vehicles parts and quality vehicles. It
has its headquarters in Detroit Michigan and it traces its roots back to 1908. General Motors
has been able to identify the many benefits that this industry presents and has been able to
utilize available opportunities. GM has gone on to meet the needs of millions of clients
globally thanks to its reliance on and study of the PEST forces. The rise of many other
automakers like Toyota, Nissan and Honda among others has pushed GM over the years to
come up with great strategies on how to meet the large market out there. Succeeding in the
automobile industry in the tough economic times has not been easy for General Motors and
its competitors. A good PEST analysis of General Motors will present great strategies and
decisions made by the company.

Political factors- Laws and governmental factors have impacted the

automobile industry since 1960s. Most of the regulations are derived from
consumers ever increasing concerns for the surrounding environment and
safer high-quality automobiles. The many clients in the automobile industry
have set new demands and new set of trends that have pushed all companies
to produce quality vehicles that abide to transport and safety rules.
Economic factors The automobile industry has great influence in every
countrys economy. This industry is the biggest user of aluminum, copper,
iron, steel, rubber, computer chips and vinyl among other materials; hence a
lot of revenue is obtained from sail of all these products. The industry also
creates a lot of jobs for the large populations.
Social factors In todays society, people are judged by the vehicles that
they drive. Every person wants to drive a quality, lavish and attractive vehicle.
GM understands clients preferences and produce vehicles that will meet their
needs and requirements regardless of their prices.

Technological factors The advent of internet has impacted every industry

globally and it has great influence on the automobile industry. General Motors
has websites where clients can access information on available products and
automobile services. Making inquiries has become easy regardless of ones
location.

There is no better example of just how important market focus is than the case of General
Motors, which has been devastated because of a complete loss of market focus in their
corporate portfolio. The major myth is that GM is just one more victim of the current global
downturn. However, the fact is that, during this time, highly market-focused competitors like
Toyota and Honda have had solid net cash flows. The real and central cause of GMs fall has
been the loss of market focus across the many different portfolio levels in the company.
These levels include the portfolio of divisions, brands within divisions, models within brands,
the physical and cosmetic variations among models, market segments, dealers and
suppliers.

General Motors portfolio exists at several different levels: portfolio of divisions; portfolio of
brands within divisions; portfolio of models within brands; brands, models and price ranges,
and mechanical and cosmetic variations. Unlike many other automakers, GM has five major
car divisions: Chevrolet, Pontiac, Buick, Cadillac and Saturn (not counting Saab, and the
recently shut down Oldsmobile Division). When you consider these divisions and the
competitive market segments outlined, it appears that several possible market focus choices
are possible. One obvious one is for the five different GM divisions to focus on different
market segments. In the history of GM, this was essentially true for many years.
However, over the years, this market focus at the divisional level has completely unraveled.
Over time, and for a variety of reasons, each GM division has offered an expanding array of
brands, physical platforms and models across many of the 18 market segments. As a result,
a huge divisional and cross-divisional replication of cars in many of the market segments
outlined now occurs. For many of these market segments, GM now competes with itself for
market share and cash flow. Within each of the major divisions, GM markets a number of
brands and models. Not only is there a significant number of different brands and platforms
within each division, but the platforms are often used to create rebadged replicate cars
within and across divisions that are essentially the same physical car, replicated at the same
price point across other divisions. This rebadging merely magnifies the absence of market
focus.
Another indication of GMs loss of market focus is its habit of having wide price-band
overlaps within a division and across divisions. Within divisions, there are many different GM
car brands and models whose prices at retail (with different cosmetic and mechanical
options) cut across each other, so that the top-end, fully-equipped car of one brand is higherpriced than a stripped version of another car brand. This has the potential to create huge
price confusion among buyers.Moreover, price band crossing occurs not only within a
division, but also across divisions, mainly because of the replication across divisions. In
Toyota, if you have about $25,000 to spend, you can only buy two or three different vehicles.
Across GMs divisions, you can buy many different cars and variations of them for $25,000.

The car buyer with $25,000 to spend is definitely confused as he or she tries to cope with the
huge GM brand, model, and dealer portfolio. This is not true of many of GMs major
competitors, particularly Toyota and Honda.
Even within a particular brand and model, GM often offers a great number of variations and
options, mechanical and cosmetic. For most of its cars, Toyota offers two basic engine
choices, a V6 or an inline four cylinder engine. In some GM divisions there are many more
different engine choices, some manufactured in GM and others from different outsource
suppliers. There are also many more mechanical options and model variations. This means
that the GM portfolio is even larger than 95 cars, when you look at the total number of cars,
variations, price ranges, brands, replicates, and dealers within five major divisions and
between them. GMs portfolio proliferation has now been detailed, from the number of
portfolio divisions to the number of portfolio brands, models and rebadged replicates within
and across divisions, to the brand and model price ranges and overlap to the huge number
of brand and model cosmetic and mechanical variations. This amounts to out-of-control
portfolio proliferation, a fragmentation of market segments and car product positions, and a
complete breakdown of market focus. Such a proliferation has huge impacts on a large
number of factors that affect GMs cash flow and competitive performance.

The ultimate objective of market-focused strategies is to create and sustain high and
growing cash flow over the long term. Over the last few years, GM has clearly been moving
to a devastating cash position, the result of years of negative net cash flow. As a result, GMs
cash needs have now grown to the point where the company needs government money to
survive. While it is true that Toyota and Honda are also currently having short-term cash flow
difficulties, they do not have GMs history of cumulative cash flow losses. Their high degree
of market focus has paid off, not only in producing reasonable cash flow, but in minimizing
their cash losses when global markets turned down. Historically, GMs financial metrics have
focused on growing market share and revenue, rather than on creating and sustaining
positive net cash flow. However, the loss of market focus on the scale and scope of GMs, in
the long run, inevitably lead to huge cash losses.
One of the major factors driving GMs loss of market focus and runaway portfolio has been
the unmonitored behavior of each GM division, which has acted as though it were a standalone carmaker, offering a full portfolio of cars across many different market segments,
seemingly without regard for the strategies of other GM divisions. The first division of GM
(Chevrolet/Buick Division) could be designated/re-positioned for low to medium priced cars
and the second division of GM (Cadillac Division) could compete in the high priced
segments. Both the number of GM car brands and models should be dramatically reduced.
Cross-brand and cross-divisional vehicle rebadging and replication must stop.
There should be no price-band crossovers between the two divisions, or major brands within
divisions. For example, the highest-priced Chevrolet must be cheaper than the lowest priced
Buick. The highest-priced Buick must be cheaper than the lowest-priced Cadillac. The
number of car dealers has to be dramatically reduced and clearly defined as Chevrolet
/Buick dealers or Cadillac dealers. The number of vehicle assembly plants should be
reduced and reorganized around the two divisions. The number of mechanical option and
the choices and variations in brand and model engines and transmissions have to be

dramatically reduced. For example, one automatic transmission design should be enough to
service all of Chevrolet/ Buick division and maybe even Cadillac. Chevrolet/ Buick division
does not need more than two or three engine choices. The number of outsourced parts
suppliers has to be dramatically reduced to bring costs and quality under control. What GM
needs in every segment they
focus on are some high unit
volume bread and butter cars
that sell in good volume and at
solid unit margins. Like most
other large corporations, General
Motors has an enormous and
complex
multi-level,
interconnected
corporate
portfolio. Nested in the corporate
portfolio
are
portfolios
of
divisions, of brands within
divisions, of models within
brands,
of
cosmetic
and
mechanical variations within
models, of market segments, of manufacturing plants, of supply chains, and of dealers. This
corporate portfolio is currently operating out of control, with a crippling loss of market focus
that has been occurring at every level of the portfolio, and with high and growing cash losses
occurring over several years. Incredibly, GMs web site currently lists a product portfolio of
over 95 cars. To underline the seriousness of GMs market-focus problem, we need to
understand that recent indications are that it plans to launch 19 new vehicles by 2010.
Recent estimates are that GM burned through $6.2 billion of cash in the last three months of
2008, and lost $30.9 billion for the year 2008. In 2007, GM is estimated to have lost $38.7
billion. Market focus demands the existence of two critical conditions if planning and strategy
are to be successful that is, the creation of car market-segment shares, and the creation of
car-positive cash flow. Without both of these conditions, market planning and strategy will
fail.
Every level of the corporate portfolio must create, support, and sustain customer choice and
market share for every car in the portfolio. If any level of the portfolio is not supporting
customer car choice, fast action must be taken to quickly turn the strategy around, reallocate
resources being used to pursue the strategy, shut the initiative down, or sell or exit the
situation. This means that every car in the portfolio of cars that GM markets must create high
market share in the market segments in which it competes. GM cannot afford to market cars
that sell in small numbers or that competes in very small, specialized market segments.
Then again, high market shares of particular segments are not nearly enough to support a
market-focused company. Every GM car must also create and grow long-run net cash flow
from these market shares.
Re-gaining market focus
It is unclear whether GM can rebuild market focus in time to avoid being washed
away by a sea of negative cash flow. Current escalating requirements for cash indicate that
GM is operating in high negative net cash flow, and that despite laying off 47,000 more

employees and getting cash infusions from the government, it may all be too late. If GM is to
turn the situation around, there will have to be, first and foremost,
a dramatic change in leadership,
a re-conceptualization of GMs place in the industry ,
its position in the eyes of its customers,
significant corporate and divisional restructuring,
and a rebuilding of market focus.
This will not be fast or easy, nor perhaps, will it be possible. Some of the major steps that
must take place include the following:
o Leadership must become very clear what their new market focus objectives
and performance metrics must be and must not be.
o

GMs objectives must not be to:

Maximize car revenue (dollars per year)

Maximize car market share (share of units)
Maximize unit car sales
Develop and apply new technologies, product
innovations for their own sake.
Develop and market extreme environmental cars.

and

process

None of the above dangerous and misleading corporate objectives will support market focus;
some objectives can actually improve market focus, while reducing long-run net cash flow
(for example, maximizing unit car sales). GM should downsize the number of divisional
portfolios to two from five, to have any real hope of rebuilding market focus. Toyota has two
divisions (Toyota and Lexus), as does Honda (Honda and Acura). The clear rationale for
these market-focused strategies is to be able to compete in one division for low and
medium-priced cars, and in another for high-priced cars. The autonomy and power of
divisional managers to plan their own car portfolios has to be dramatically reduced, and
coordinated by GM corporate portfolio management.