Strategic Marketing Management: Chevrolet and Volvo Comparison Report

This report provides a comparative analysis of Chevrolet and Volvo, focusing on their value propositions and product price strategies within the automotive industry. The introduction highlights the significance of differing value propositions among companies in the current business environment, setting the stage for a detailed examination of Chevrolet and Volvo. The report delves into Chevrolet's product line, emphasizing its focus on offering good quality at a reasonable price, targeting the middle-income market. Conversely, it explores Volvo's emphasis on high-quality, premium vehicles with unique features, targeting a high-end consumer base. A comparison section contrasts these approaches, highlighting Chevrolet's commitment to affordability and Volvo's focus on innovation and premium pricing. The report concludes by summarizing the distinct value propositions of each brand, underscoring how their marketing strategies align with their respective market segments and product offerings.

Strategic marketing management

Product price relationship
Table of Contents
Introduction................................................................................................................................1
Chevrolet....................................................................................................................................1
Volvo..........................................................................................................................................1
Compare and contrast the value proposition..............................................................................2
Conclusion..................................................................................................................................2
References..................................................................................................................................3
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Product price relationship
Introduction
In the present business environment, it has been noticed that different companies have
different value propositions. In this paper, the discussion will be made on the two companies
which are Chevrolet and Volvo. These companies are famous in the automobile sector as they
consider different value propositions to make their product different from other competitors
present in the market.
Chevrolet
Chevrolet offers different types of vehicles such as cars, small cars, electric cars,
Crossovers, Trucks and SUV’s. The product line of the company relates with Chevrolet
Express, Chevrolet Chevy Malibu, Daewoo Damas, Chevrolet Cruze 1.6T, Duramax V8
engine and Chevrolet big block engine. There are also different vehicle which are launched
by the company in 2019 such as Spark, sonic, cruze, Malibu, Volt, Camaro and Impala
(Chevrolet, 2019b). The value proposition of Chevrolet is related with average price as they
focuses on offering good quality for the reasonable price. Chevrolet products and services
generate value in different manner for the mass market in relation risk reduction, stability and
also design (Payne, Frow & Eggert, 2017).
Chevrolet offers wide range of new and used cars which is affordable by the middle class
people. The company emphasizes on providing quality and safety which directly boost the
trust of the customers. Chevrolet works on the improvement of the technology, research and
development related to fuel efficiency. Therefore, it can be said that Chevrolet focuses on the
average price value position in which the good quality is offered at the reasonable price. Due
to this reason, the target market of the company is the middle income group and the people in
the age of 30-45 years who want family vehicle (Chevrolet, 2019b).
Volvo
Volvo Cars is one of the luxury vehicles brand and the company manufactures different
types of vehicles such as station wagons, sedan and compact executive sedans. The product
line of the company links with trucks, buses, marine and industrial engines and also financial
services (Volvo, 2019b).The value propositions of the company relates with high price
because of the value it provides in the form of high quality and special features (Volvo,
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Product price relationship
2019a). For high class people, who prefer premium automobile, the company has launched
Volvo XC90 which offers exceptional protection of the passenger. Also, luxury midsize
XUV’s offers different technological innovations that boosts the experience of the customers.
It is noticed that company emphasizes on innovation strategy which helps in introducing new
designs in the market. For Volvo, the technology is considered as the aspiration to move
towards attaining growth. The company emphasizes more on creative approach and
innovative thinking so that it could be easy to reach the vision. The cars that are introduced
by the company are high in price but their features are unique as compared to other cars
(Åkesson, Skålén, Edvardsson & Stålhammar, 2016).
There are various initiatives taken by the company such as CampX by Volvo group. In this
the company focuses on global innovation arena in context to business transformation. iLabX
are also introduced by the company in which start ups have the opportunity to test their ideas
with the experts of the company (Volvo, 2019c). Hence, it is also one of the effective
approaches that help in boosting the service quality. So, it can be said that Volvo emphasizes
on considering the value proposition related to offering high price of cars with good quality.
Compare and contrast the value proposition
In relation to Chevrolet Company it is noticed that company focuses on average price only
because of the value in relation to good quality for reasonable price. The company offers
good quality to the customers in reasonable price. The marketing statement of Chevrolet is to
offer the highest level of service in different aspects of the function in the automotive
dealership and the company also focuses on offering their customers with the good quality
products at fair and competitive price. Chevrolet is committed to lead and dominate the
industry in the automotive sector (Chevrolet, 2019c).But on the other hand, it is examined
that Volvo emphasizes on offering the products and services at high price but they focuses on
innovation approach which assist them in launching new designs in the market. This
approach helps them to differentiate themselves from the other competitors present in the
market (Leroi-Werelds, Streukens, Van Vaerenbergh & Grönroos, 2017)
Conclusion
Therefore, it can be said that Chevrolet and Volvo comes under automotive sector but they
have different value positions. Chevrolet focuses on the position related to average price due
to the value in the form of good quality for reasonable price but on the other hand, Volvo
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Product price relationship
emphasizes on high price as they offers premium quality with different features. So, the value
proposition of the company also differs in relation to the market share of the company.
References
Åkesson, M., Skålén, P., Edvardsson, B., & Stålhammar, A. (2016). Value proposition test-
driving for service innovation: How frontline employees innovate value
propositions. Journal of Service Theory and Practice, 26(3), 338-362.
Chevrolet. (2019a).Truck.Retrieved from: https://www.chevrolet.com
Chevrolet. (2019b).2019 vehicles.Retrieved from: https://www.chevrolet.com/build-your-
own-chevrolet/previous-year
Chevrolet. (2019c).Mission statement.Retrieved from:
https://www.chevyofavon.com/MissionStatement
Leroi-Werelds, S., Streukens, S., Van Vaerenbergh, Y., & Grönroos, C. (2017). Does
communicating the customer’s resource integrating role improve or diminish value
proposition effectiveness?. Journal of Service Management, 28(4), 618-639.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
Volvo. (2019a).Get to know.Retrieved from: https://www.volvo.com/home.html
Volvo. (2019b).Our brands.Retrieved from:
https://www.volvogroup.com/en-en/about-us/what-we-do/our-brands.html
Volvo. (2019c).Innovation labs.Retrieved from:
https://www.volvogroup.com/en-en/innovation/innovation-labs.html
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