Chevy Volt – An American Revolution in Energy Independence This paper begins by analyzing the marketing environment of the GM/Chevrolet Volt and then discusses the target market for this electric extended range vehicle along with a proposed marketing strategy and recommendations.
Marketing Environment The market environment refers to all of the forces that affect marketing management’s ability to build and maintain successful relationships with target customers. It consists of both a macro-environment and a micro-environment. Some of the forces can be controlled by the company and some of the forces cannot. The micro-environment at Chevrolet includes such things as departments within the company, suppliers, dealerships,
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The Chevy Volt claims 230 miles per gallon for city driving and up to 50 miles per gallon using generator assisted operation. From a technology and energy efficiency standpoint, the Chevy Volt has some good marketing possibilities. The main detractor for the Volt is the price which is estimated to be around $40K. Another important topic in the microenvironment is publics, which is any group that has an interest in or impact on the organization’s ability to meet its goals. Examples of publics include financial data about the company, media reports that can influence customers’ opinions, and citizen actions groups in support or against the product. Chevrolet is currently under the public microscope as they have recently accepted government bailout money which gives 60 percent ownership to the US taxpayer. Most media reports have good things to say about the Chevy Volt, but also include a small level of skepticism about Chevrolet being able to deliver the Volt on time and capture enough of the market share to succeed. The market share of Chevrolet is estimated to be 22 percent in 2009 with a continued drop to 19.7 percent by 2014 (General Motors Corporation, 2008). Marketing managers must also look at the macro-environment to come up with a coherent marketing strategy. Demography is important for the marketer to try and determine the population size, location, race, and occupation of the customers.
The U.S. electric passenger car industry in 2011 was described as being in its infancy, because it is still a new concept to buyers. However there are signs of growth from 2011-2015. Buyers do not consider the car because of price, travel range and vehicle size, along with other secondary concerns.
The 1920 's were a time where North America became modernized. Whether it was the music, the culture or the growth in technology, this time era is known to most people as the point where America advanced itself to become a world renowned country. An advancement that will be focused on is the Ford Model T. During this time owning a car was a symbol of wealth. Henry Ford, the creator of the Model T, made a system that revolutionized the automobile industry as we know it today. Henry Ford made it possible for people with an average income to own a motor vehicle by creating the assembly line and the theory of mass production. "The horse, which had been the chief means of land transportation for 3,500 years, had given way to the automobile, and
The Nissan leaf has been positioned differently for different market segments. According to Solomon, though the job of the marketer is to create value, build customer relationships and satisfy their needs, it is difficult, as in todays’ complex society people have different needs and therefore it is important to segment markets and target them individually, therefore markets are segmented into different segments on the basis of demographics; age and gender, family structure, income, race, ethnicity and social class (Solomon, 2013). Using these different criteria, marketers segment their markets, according to particular characteristics, which they share, and then target them accordingly. Targeting is evaluating
Problem Statement: Disruptors of domestic and international competitors are expanding upon the alternative fuel vehicle market and can offer a wider variety of products ranging from hybrid, plug-in hybrid, and fully electric vehicles due to the access to more resources available to them.
| * Increasing price of gas has driven customers to alternative energy vehicles * Increased consumer interest in family vehicles * New consumer segment, AEV value seekers, is a very
The macro environment is defined as the major external of uncontrollable factors which dramatically influence to the business strategies and impact its performance by Gupta (2013). The external environment scanning states to assist the organization realize the issue and understand the dynamic market. The interesting external environment analysis model is Porter’s Five Forces Model which consist of new entrants, buyer power, supplier power, treat of substitutes and rivalry (Julius, 2014). According to Holden, in term of rivalry, the extremely higher fuel consumption of Holden alert to the organization to lose its market share which causes to reduce the number of customers and its competitive advantage. At that time, the poor car’s performance
The car provides you with a smooth ride, so you don’t have to worry about those big bumps in the roads. It is economically safe and healthy, the electric power uses electricity so you don’t pollute the air with unnecessary exhaust gas fumes. The milage is very nice cause you don’t have to worry about running out of gas, or having to stop for gas, plus you have your electric power to rely on once you run out of gas. Many cities already do have charging stations and many more cities are getting them, this is nice so if you go on a road trip, or just to work you can charge up and be ready to drive many more miles. With the EV the car will keep going if you run out of electric power, it will switch over to engine power, how cool is that? The Volt’s complex powertrain helps it get better gas milage, because of the way it is designed. There are so many unique things the Volt has to offer, why wouldn’t you want your next car purchase to be a Volt? If you were a smart person you would buy the Chevrolet Volt as your next
| * Losing an opportunity to place itself at the forefront of marketing a luxury plug-in electric vehicle * Lose the opportunity to add reputation * Losing the increasing market of hybrid plug-in electric vehicleSee Exhibit 1
The mission at Chrysler is to reduce the environmental footprint, focus on safety and the efficiency of the vehicle, and remain competitive in the industry (Mission, 2014). By utilizing the adhocracy framework, Chrysler is focused on the creation of vehicles that are good for the environment. Chrysler also relies on innovation to keep up with the changing safety regulations as well as making new smaller vehicles to meet consumer demands. In order for Mr. Marchionne to have a sustaining competitive edge he also has to look at the market framework to gauge the demands of their customers (Kreitner & Kinicki, 2013). With gas prices on the rise, Mr. Marchionne has to remain competitive by building smaller fuel efficient vehicle (Muller,
The Chevrolet Malibu has some of the best ratings a car can get with a 4/5 on Edmunds.com, a 8.8/10 on U.S. News Best Cars and a 9.3/10 on Kelley Blue Book. It’s a really respected car in the world of motor vehicles and I think it earned that respect.
Identifying influencing factors of a company’s macro-environment helps in the strategic development and management within a company. The macro-environment outlines an industry and the competitive environment as seen in figure 3.1, (Gamble, Peteraf, Thompson, 39). Within the macro-environment there are the political factors, economic conditions, sociocultural forces, technological factors, environment forces, and legal/regulatory factors. All of these factors blanket the habitat an industry and its competition thrive in. Inside the industry and competitive environment there are five factors that influence an individual company. The five factors are suppliers, rival firms, new entrants, buyers, and substitute products. The biggest impact on a company are these five factors. For example, Under Armour focuses on their industry and competitive environment to survive and grow. Their strategy to win over the market share from Nike and Adidas consists of expanding a stable and original brand within record time, taking an innovative approach to their product line-up and brand-name appeal where the market seemed to be barren, and lastly, the company enters in the foreign market early on to establish its brand and influence markets outside of the US.
The market environment consists of both the macro environment and the micro environment. On macro environment the firm need to follow it and they can’t to control it. It consist variety of external factors that is economic, social, political, legal and technological. In the macro environment the firm should analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society. The microenvironment refers to the internal environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in
Because most markets will include customers with different characteristics, lifestyles, backgrounds, and income levels, it is unlikely that a single marketing mix will attract all segments of the market. Thus, if a marketer wishes to appeal to more than one segment of the market, it must develop different marketing mixes.
Marketing environment is in relation to the marketing organization, its internal environment, microenvironment, and macro-environment. In the macro- environment, we identified several forces at play – political, economic, sociocultural, technological and legal (commonly referred to as the PESTL model).
Microenvironment- microenvironment surrounds the factors that are close a company that affects their ability to serve their customers, this would include; Customers, suppliers, competitors, other departments within the company, general public, marketing intermediaries and finally members of the distribution channel. These are all forces that closely influence the company and they have a direct affect on the organizations relationship. The suppliers of a company are a part of the microenvironment as even if there is a slight delay in receiving any supplies off the suppliers can result in the customers not being satisfied. Marketing intermediaries are the people that are helping to promote and sell the companies products. Competitors include companies that are offering the same or similar products, for example; Morrisons, Tesco and Asda are all in competition with each. It is in the company’s best interest to develop a strategic advantage over their competitors, encouraging customers to come to them not their competitors. This would include Tesco giving you vouchers for any price difference with their competitors ( if your total bill comes to more than it would in one of the competitor stores then you are given the