GROUP 4 { Aneesh, Tania, Indu } presents...

A Case Study on Chevrolet Beat

 Introduction Background and summary of the case Market segmentation & Differentiation variables in the Beat Variants of Chevrolet Beat Beat and major competitors Differentiation strategies adopted by Chevrolet Recommendations Conclusion References

Contents

Introduction
This case study pays attention to the small segment car of Chevrolet, Beat that was introduced into the market at a time when Maruti was the ruler of the small segment.

Background and Summary of the Case

Chevrolet , also known as Chevy, is a brand of vehicle produced by General Motors Company (GM). Founded by Louis Chevrolet in 1911. Chevrolet was acquired by General Motors in 1917.

Contd
Chevrolet is known for its sedan model cars like Aveo, Camaro, Corvette, Cruze, Impala, Malibu and Volt. During the early 2010, Chevrolet decided to launch a new car in the hatchback segmentBeat. The brand had a lot of differentiations to offer. Their hatchback model Spark could penetrate the market.

Contd..
The hatchback segment at the time was dominated by Maruti. The competitors of Beat were Alto, Wagon R, Swift Petrol, Hyundai Santro, i10 etc

Market Segmentation and Differentiation Variables

 The first vehicle to come out of GMs mini-car version. The car targeted primarily middle-income group. The stylish exterior and its funky looks were designed to attract the youth. The Beat , with world class safety features, has the most powerful engine in its category.

Contd
Exterior watch outs: Dynamic grill design, Aggressive front headlamps, Muscular side profile, Stylish alloy wheels, Striking tail lamps, Satin silver roof rails. Interior watch outs : Illuminated cluster display, Stylish dash, Tilt steering, Ultra spacious, Auto AC, MP3 player.

Contd
The light -in- weight SMARTECH engine used in Chevrolet Beat LPG version The car is adorned by a large split grille for a sports car look A compact car at a competitive price tag Advanced safety features is yet another variable of this funky look car

Variants of Chevrolet Beat

Chevrolet Beat cars

Price

Average (kmpl /km\kg)

City 14.5 Highway 18.6 Petrol City 14.5 Highway 18.6 Petrol City 11.2 Highway 13.29 LPG City 14.5 Highway 18.6 Petrol City 11.2 Highway 13.29 LPG

Engine

Chevrolet Beat PS Chevrolet Beat LS Chevrolet Beat LS LPG

Rs.3,62,197 (Pune) Rs.3,86,142 (Pune) Rs.4,10,000 (New Delhi)

1199 cc

1199 cc

1199 cc

Chevrolet Beat LT Chevrolet Beat LT LPG

Rs.4,30,245 (Pune) Rs.4,53,000 (New Delhi)

1199 cc

1199 cc

Beat and major competitors

Cars & Variants DIMENSIONS Length (mm)

Chevrolet Beat 1.2PS,1.2LS, 1.2LT 3640

Maruti Swift LXi, Vxi, ZXi

Hyundai i10 Magna, Sportz, Asta 3585

Maruti Wagon R LX, Lxi, VXi 3595

3760

Width (mm) Turning Radius (m)

1595

1690

1595

1475/1495

4.45

4.7

4.75

4.6

ENGINE Max power (PS)

Mileage (kmpl)

80.5

85

80

68

18.6 3 years or 100,000 km 3,62,197 to 4,53,000

17.94 2 years or 45,000 km 4,26,994 to 5,51,346

19.81 2 years or unlimited 3,48,000 to 5,91,000

18.9 2 years or 40,000 km 3,34,450 to 4,19,695

Warranty

Price (Rs.)

Differentiation strategies adopted by Chevrolet

Reduce labor expenses Cut legacy costs Decrease production capacity Low inventory costs New designs and marketing strategies Value-addition through product differentiation

Findings & Recommendations

 The sales of Beat was great during its initial stages It got an enthusiastic response with about 10,000 bookings in the initial 24 days after its launch The GM reported total sales of 69,579 units last year and expects to cross one lakh sales figure this year (including Spark)

 At this stage , our recommendation focuses on the after sales-service of the GM as the customers are dissatisfied in that area The GM should formulate tactical and strategic decisions to retain the demand for Beat in this highly competitive position Customer feedback should pave way for improved customer service and quality up gradation

References
Marketing Management K. S. Chandrasekhar www.google.com www.chevrolet.com