Observed Cultural Patterns in India & United States America
Chevrolet ( General Motors )

Presentation By:
• • • • • • • Priya Mishra Sundeep Choudhary Ankur Chaurasia Sakshi Agarwal Deepika Anand Sandeep Rana Vinayak Thakur

This is a comparative study between GM, India and GM , USA where the Chevrolet brand is extensively studied. The comparison was drawn under 4Ps of marketing that are: Product Price Promotion Place

• • • •

Brief to introduction to GM • World’s largest automaker. Annual global industry
• •

• •

sales leader for 77 years Largest market: U.S. followed by China, Brazil, UK, Canada and Germany GM cars and trucks are sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling Leading vision: "provide the best cars and trucks to customers in every market around the globe" Environmental vision: "from gas-friendly to gasfree"

Product Portfolio
• Lower Segment

Chevrolet Aveo Competition : Honda City, Hyundai Accent, Ford Fiesta, TATA Indigo

• Lower Luxury Segment Chevrolet Optra

Competition: Toyota Corolla, Elantra, Skoda Octavia, Lancer

• Multi utility Segment

Chevrolet Tavera Competition : Toyota Innova, Scorpio, TATA Sumo

• 2011 Chevrolet Aveo - Spied • Chevrolet Aveo RS • 2011 Chevrolet Volt • 2010 Corvette Grand Sport • Chevrolet Cobalt SS • 2010 Camaro SS • 2010 Chevy Malibu • 2010 Chevrolet Equinox

• • • • • • • • •

Equinox Express HHR Impala Malibu Silverado 1500 Avalanche Colorado Corvette

• Targets customers in different segments . • Models phased out in other countries are launched in India. Panther phased out in Korean market is relaunched in Indian market with name Tavera. • Product names in case of some models is changed keeping in view of the culture and target customers. In china spark is sold by the name QQ.

• Pick ups and mini trucks are not launched till now in Indian market as the trend of camping culture is not present in Indian families. • Both in us and Indian markets GM is concentrating more in new product innovations to increase more brand value under its new reinvention plan. Volt in the same year is shown both in Detroit and Indian auto expo2010. • Focusing More on global product launches Beat can be quoted as one of the best examples.

Pricing in India
Chevrolet deals with 3 types of social income based classes. • Capitalist :- Top level executive. • Upper middle class:-Highly educated, middle management. • Lower middle class:- Semi professionals.

• It has catered the capitalist class by cars like Chevrolet (Captive) which costs 17lacs to 19lacs . It has used premium pricing here because this group is not at all price sensitive. • It has covered upper middle class people by its cars like Aveo, Optra , Tavera, Magnum. Which costs between 5lacs to 10 lacs. Tavera is the most prefered car in this segment by big families. • It has catered last segment that is lower middle class by its cars like UVA, Spark, and newly launched Beat. These all costs between 3lacs to 5lacs. In this group Chevrolet has used penetration pricing.

Pricing in US
• Cars launched by Chevrolet in United States are Chevrolet Corvette: MSRP $48,565 A sports car for every man (and woman). It uses premium pricing

• Chevrolet Suburban: MSRP $45,495 Bodystyle SUV Best cargo hauler. It also uses premium pricing. • Chevrolet Tahoe: MSRP $36,965 Bodystyle SUV Its designed if you don’t need a Suburban.

• Chevrolet Avalanche: MSRP $35,460 Bodystyle Truck An ultimate family truck. • Chevrolet Express: Minivan/Van. • Chevrolet Impala: MSRP $24,365 Bodystyle

MSRP $23,790 Bodystyle Sedan Provides decent propulsion with improved fuel economy.

• Chevrolet Cobalt: MSRP $15,660 Bodystyle Coupe • Chevrolet Aveo5: MSRP $11,965 Bodystyle Hatchback An alternative to a used corrola. All these cars below like Aveo and Cobalt etc, uses penetration pricing

• In India Chevrolet mainly concentrated on middle and lower segment car. • They were many cars in 3-10 lacs (INR) bracket. • While in US the emphasis laid on premium pricing and SUVs. • In US owning car is just a hobby while in India it is a symbol of status. • Family orientation is more in India Eg: Tavera

Inferences on the basis of Pricing

Promotion Strategy in India
• • • • • • Marketing budget New models (latest editions) Unlimited choice (car for every one ) Use of jingles Discounting Extra services (The Cashless Car Ownership Offer )

• • • • Brand ambassador Sponsoring events Campaigns Social activities

Promotion in US
• GM concentrates its research dollars on fewer vehicles, packs them with the latest features and technologies and updates them relentlessly. They spend 7 billion dollars on research and development every year. • Chevrolet spends approximately 2 billion dollars on Advertisements every year.

Inferences on promotion strategy
• In India Chevrolet focused on brand building since it is a new entrant in the market. • They also emphasized on brand ambassador whereas in US the promotion was technology driven. • Here, Chevrolet upgraded the technology of its old products and launched them into the market.

• Where as in India they have emphasized on brand building . In India they rarely had technology up gradation but launched the phased out products ( in other countries ).

Distributions Decisions in India the product must to  Place is important in business because
be easily accessible to consumers. Corporate restructuring would not affect where Chevrolet dealerships are located, just the distribution of manufacturing lines; therefore, it would not significantly affect profit loss or gain.

 Each industry has a certain cost burden that shapes much of its strategic conduct. For example, steelmaking involves heavy manufacturing and raw-material costs; toy manufacturing involves heavy distribution and marketing costs. Chevrolet strategize to reduce these costs. Chevrolet with the most modern (i.e., most cost-efficient) plant have a great advantage over other car making companies.

Chevrolet distribute many cars in India. Some of the cars provided by Chevrolet with their manufacturing plant are as follows:  The Corsa and Astra were built at a plant in Halol, Gujarat.  The Chevrolet Forester, a rebadged Subaru, was imported directly from Fuji Heavy Industries in Japan.  The Optra and Tavera are built at the Halol plant.  The Chevrolet launched in India the Chevrolet Captiva SUV.  Chevrolet also is the sole Engine supplier for the Formula Rolon single seater series in India.

 Country-wide Chevrolet is service points 

present with 203 sales &

Expansion target of 250 dealerships & 250 service  outlets in 2009

 Registered a growth of 9.6% by selling 65,702 units in 2008 over 2007

 Place is important in business because the product must to be easily accessible to consumers.  In India Chevrolet has concentrated on personal selling and therefore dealership has been given region wise.  In India Chevrolet has its lot many dealers in every state and also has service stations in every states.  Company also book cars online through the website by asking quotes for the vehicle and by filling small form.  After this personal company locate the dealer or company sales person visit the client with virtual brochures.

Supply Chain in US
• GM, USA is different from GM, India only in a way that in US they have a dedicated R&D Department. • GM, USA also like GM, India have same distribution channels. • They also have personal selling methodologies and they have several dealers based in various parts of countries.

• They also have a popular website through which their products can be procured. • They have also introduced some computer system which can help them in inventory maintenance because through this supplier can directly assess the demand and recent trends in demand. • The application such as MIS is widely used and also local intranet is developed.

Comparison of Supply chains
• There is exactly no difference in the distribution strategy of the company in India and USA. • The only difference lies in the supply chain where there is much use of technology and R&D. • In a way organization culture in both countries is different based on the pattern of living.

• The orthodox methods are given preference in India, thus company mainly relaunched the earlier model in India. • Where as in USA people are more tech savvy thus they look for something new in the product. • Hence innovation and research and development is more prevalent


Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer: Get 4 months of Scribd and The New York Times for just $1.87 per week!

Master Your Semester with a Special Offer from Scribd & The New York Times