Marketing Strategies of General Motors: An Analysis

General Motors (GM) is expected to grow in the car selling sector with a target of 77.8 million units by 2025, growing at an annual rate of 4.4%. The company has been adapting to the changing market conditions by shifting focus towards electric, bio-mass, and CNG vehicles due to scarcity of petrol and diesel. GM is one of the top players in the car industry along with Ford, Toyota, Volkswagen, and Hyundai. The company has a strong brand presence globally with its Chevrolet division being the best-selling brand in the US. GM's marketing strategy involves segmentation targeting middle-income groups for small cars, elite class for luxury sedans, and entrepreneurs for commercial vehicles. The company uses a multi-level distribution strategy to reach customers and leverages its 100-year history and brand image for effective advertising.

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Individual Market Analysis
General Motors (GM)
A study of Situation analysis, segmentation and Marketing mix

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Table of Content
Particulars Page no
Cover Page 1
Executive summary 3
Situation analysis 4
Segment Information 5-6
Marketing mix 6
Conclusion 6
Reference 7

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Executive Summary
General Motors or GM is known to the world not just it has presence globally but also for its
heritage, performance, innovation, technology and growth as well. In the year 1908 September
16, William C. Durant formed this as a holding company which is now become a giant
organization. The company has now headquarter in Detroit, Michigan U.S.A. and is trading on
NYSE and S&P 100 and 500. The only company which has presence over 6 continents which
describes how well they have spread their operation over a century since its inception. As per a
source it has now 396 facilities all over the world. Marry T. Barra is now heading the giant as
Chairman and CEO. As per Fortune list 2017, it is now ranking at 8th position and 1st among
automobile companies.[en.wikipedia.org,2017]
As per NASDAQ, the company is expected to grow its earning at a rate of 9.23% annually. It has
been successfully operating its business in countries like China and U.S.A where it’s leading the

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race in consecutive years. As per a source, it has now an employee base of 2, 15,000 across the
world.
According to the company website, it makes from electric cars to heavy duty full size trucks to
serve different customers. Now it has 8 distinctive automobile brands which are Chevrolet,
Buick, GMC, Cadillac, Holden, Baojun, Wuling and Jiefang. Among those Chevrolet is the
famous cars and trucks in many countries and won awards for its superior quality and
performance.
This is a brief about the company which is operating in Automobile industry across the world. In
this report we are going to discuss situation analysis of GM and the industry it is in, a discussion
on its 3 segment on the basis of psychographic, demographic, behavioral and geographic
perspective and finally will discuss about marketing mix of GM for which I have chosen
“Product” for discussing its development and strategy.
Situation Analysis
It has been a long journey since 1908, General Motors has been playing a dominant role in
Automobile industry all over the world. From its first Buick horseless carriages to today’s
Chevrolet volt, it shows the innovation and excellence journey it has covered over the years. The
company started with automobile but it has now become a corporate giant by entering into

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segments like finance, aviation, defense, IT, electrical and electronics components etc. With the
success at each step, it has now been operating over 37countries of 6 continents with its different
car brands like Chevrolet, GMC etc. As per a source, the company has led for almost 77 years
(1931-2007) consecutively in selling of vehicles, which is a record by any automaker till date to
have such long regime.[Weihrich, H. (1982)]
Global presence, a century old experience and image, diverse portfolio, innovation, strong
presence in Asian market etc. can be counted its superiority over others. As per their website,
they claim that in one Chevrolet car is sold at an average time of 8.33 seconds around the world.
They have a dealer base over 19000 among 125 countries that shows how good supply chain
they have. Safety and security and the motive of earn customer for life has made them more
successful than rest.
As per a report, it has now 11.9% market share in global automobile selling of vehicles.
According to a website, the annual growth in revenue is around 9.20% and in for 3 and 5 years
average it will go by 2% increase. In 2016, they achieved 10 million delivery of vehicles which
is a record. China is supposed to be the largest market for GM in future dates. [nedssouky.
(2012)]
Talking about automobile industry, today it is business of 1 trillion pound and 6th largest
economy in the world as per world auto industry report. In this year the projected car selling is
expected to grow up to 77.8 million. This sector is growing at 4.4% annually. Today due to
scarcity of petrol and diesel, the sector is moving towards making electric, bio-mass and CNG
vehicles.[www.gm.com,2017]

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Ford, Toyota, Volkswagen, Hyundai etc. are the top players who are giving tough competition to
General motors.
Segment Information
Small Car segment
Demographic -The Company is targeting middle income group people who wants better
efficiency of mileage and fuel consumption at reasonable price. For ex- Chevrolet Beat, Bolt etc.
are for middle income group and mostly in China and India where such population is more.
Psychographic- Give feeling to the middle income group to have a classy and efficient car with
the accessories they see in other class.
Behavioral- Happy with a low budget car giving good performance and with variant of colors
giving choice to customer to select their best color.[Barabba, V. et.al2002]
Geographical- China, India, Brazil, Canada, France etc. where small cars are in demand.
Luxury and Sedan car segment
Demographic- The elite class people or the rich persons who want to have a car which is more
than a car in respect to its design, look, performance and value. Mostly it is preferred by
cooperators, political leaders, movie and sports star.
Psychographic- The feeling of being rich, elite and special which shows some prestige and class
in society. For ex- Chevy Camaro, Buick Cascada etc.

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Behavioral- Those who are willing to live luxurious, shows they are rich and can afford a
premium class cars, for them GM offers such highly designed and luxurious cars.
Geographic- Mostly in U.S.A, China, Canada, Australia, U.A.E are the countries where the per
capita income is high, that is the target market for GM.[Young, J. (2017,)]
Commercial Vehicle
Demographic- For all kind of entrepreneur and as per their requirement across the world, it offers
vehicle. For ex- Colorado for low budget business and Silverado classic for high budget
business.
Psychographic- The car offering depends upon the carriage and fleet that business needs and the
quality of vehicles varies proportionately with that.
Behavioral- Strong, bolder, smarter and more sculpted looks for car.
Geographical- Availability almost all parts of world whether it is for off-road or on road
performance.
Marketing mix
Product
Chevroletis the best for GM motors all time. It has appealing from lower income group to
luxury class and commercial vehicles. The vehicle is made for high performance, fuel efficient
and sportive as well. The company designed logo has been gaining attention and in U.S.A. it is
the best-selling brand for GM. The company has adopted differentiation strategy for this car

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segment. It comes with different prices with different technological features. As per an
independent survey, the brand accounts 42% of total sale of GM. Chevrolet Malibu and Tahoe
are some of its leading innovation that is used by the company to give competitive advantages.
Company’s multi-level distribution strategy like Dealership, DSA, service centres, resellers, e-
commerce sites etc. are the modes which improves the reaching of cars to public. Its 100 year
presence and brand image makes advertisement easier. Use of common man experience in using
car and explosive diagram presentation with detail specification to customer is getting attention
of customer.[Bhasin, H. (2016)]
Conclusion
GM motors has been constantly delivering performance in automobile industry across the world
with its superior innovation, supply chain, experience and divestment. Its segmentation strategy
has been done well so far. The marketing strategy is also responsive in nature. Competitors and
economic condition are somewhat concerns for the company which it needs to look after.
References
(n.d.). Retrieved from en.wikipedia.org: https://en.wikipedia.org/wiki/General_Motors
(n.d.). Retrieved from www.gm.com: https://www.gm.com/company/about-gm.html
Bhasin, H. (2016, December 06). Retrieved from www.marketing91.com:
https://www.marketing91.com/marketing-mix-chevrolet/

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nedssouky. (2012, April 23). Retrieved from www.slideshare.net:
https://www.slideshare.net/ndessouky/gm-marketing-strategy11
Young, J. (2017, May 29). Retrieved from panmore.com: http://panmore.com/general-motors-
company-swot-analysis-recommendations
Barabba, V., Huber, C., Cooke, F., Pudar, N., Smith, J., & Paich, M. (2002). A multimethod
approach for creating new business models: The General Motors OnStar
project. Interfaces, 32(1), 20-34.
Weihrich, H. (1982). The TOWS matrix—A tool for situational analysis. Long range
planning, 15(2), 54-66.