Answer the Question as described.Read the instructions carefully.You have 8 hours to complete it.
Final Group Presentation for Professor
Chevy Onix Volt Edition
Presented by Robert Gauna
Presentation to Dr. Jose Torres
PRODUCT BACKGROUND
Product Information
COUNTRY BACKGROUND
Country Information
MARKETING SEGMENT
Chevy Onix Volt Edition
Introduction
Presentation to Dr. Jose Torres
2
TARGET SEGMENT
Strength, Weaknesses, Opportunities &
Threats
BRAND POSITIONING
And Logo
Chevy Onix Volt Edition
Introduction
CHANNEL STRATEGIES
Presentation to Dr. Jose Torres
3
COMMUNICATIONS
And Advertising Campaign
PRICING STRATEGY
Chevy Onix Volt Edition
Introduction
BIBLIOGRAPHY
And Works Cited
Presentation to Dr. Jose Torres
4
This is CHEVY VOLT
The Award Winning car of 2011 for Europe and America. Winner of several industry awards.
Presentation to Dr. Jose Torres
Concept car presented in 2007
Designed a new EV-1 engine, built to adhere to California’s Zero Emission regulations
Radically different than most automobiles because of the use of a battery instead of gasoline
Considered an extended range electric vehicle equipped with an all-electric, 161 horsepower, 45KW motor
CHEVY VOLT
Presentation to Dr. Jose Torres
The largest country in South America
Brazil
Presentation to Dr. Jose Torres
7
BRAZIL
BACKGROUND
3,290,000 square miles, bordering 10 other countries and with 4,650 miles of coastline
The largest country in Latin America and fifth largest in the world
Latin America's largest economy with unlimited potential within the near future
202 million makes Brazil the world’s sixth-most populous nation
Presentation to Dr. Jose Torres
BRAZIL
BACKGROUND
Gross Domestic Product (GDP) in 2013 of US$2.3 trillion and 7th largest economy in the world
By 2020, Brazil is projected to be the fifth-largest consumer market in the world
Close proximity of Brazil to the United States and other countries
Open and welcoming market for U.S products and services in Brazil
Presentation to Dr. Jose Torres
MARKET SEGMENT
Analysis. Strengths, Weaknesses,
Opportunities and Threats
Presentation to Dr. Jose Torres
10
BRAZILIAN MARKET SEGMENTS
14%
A/B Market
Segment
34%
C Market Segment
52%
D/E Market Segment
2005
2010
22%
A/B Market
Segment
52%
C Market Segment
26%
D/E Market
Segment
Growing Middle Class
Presentation to Dr. Jose Torres
Sales 1st Qtr 2nd Qtr 3rd Qtr 0.22 0.52 0.21
Sales 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 14 34 52
MARKET SEGMENT AND TARGET GROUP
TARGET MARKET
Middle Class Consumers with disposable income
Consumers with environmental concerns
Focus on South Eastern Region (San Paulo, Rio de Janeiro)
Presentation to Dr. Jose Torres
Among the top five in electric vehicle sales since 2012
STRENGTHS
Chevrolet’s experience in the electric vehicle market
Great driving experience with modern electric technology
Top speed over 100 mph with 273 lbs-ft of torque and can get 380 miles with a full charge and full tank of gas
Presentation to Dr. Jose Torres
US base price of the Volt is $33,995 which is R$106,429.85
WEAKNESSES
Chevrolet would lose out on consumers looking for entry-level cars
Frost & Sullivan suggest pricing to be between R$40,000 and R$60,000
Current pricing is 37% more expensive than the suggested retail price for electric vehicles
Presentation to Dr. Jose Torres
Brazil has the fourth largest auto market in the world
OPPORTUNITIES
A market that Chevrolet has experienced success in
Chevy has the second highest market share in Brazil
Brazil looking to offering tax incentives to help lower the cost of production
Chevrolet already has the infrastructure in place to build and sell vehicles in Brazil
Presentation to Dr. Jose Torres
Renault-Nissan has the intention to produce and electric car in Brazil
THREATS
Brazilian government put an exemption on the importation of electric and hybrid vehicles until 2017
The Brazilian government has concerns about their electrical grid
There may be a limit on how many electric vehicles can be sold
Customers fear that they won’t be able to charge their electric vehicles
Presentation to Dr. Jose Torres
Analysis. Product, Place, Promotion, Price
Target Segment
Presentation to Dr. Jose Torres
17
Chevrolet Volt has earned awards in only four years of product life
PRODUCT
One of the top selling electric cars in the US
Chevrolet has to be in position to capitalize on their successful brand
Top speed over 100 mph with 273 lbs-ft of torque and can get 380 miles with a full charge and full tank of gas
Presentation to Dr. Jose Torres
Brazil is the fourth largest auto market in the world
PLACE
Chevrolet has the second highest market share in Brazil
Brazil is investing in the infrastructure to support electric cars
Tax incentives are growing for electric cars to reduce costs
Chevrolet can leverage existing infrastructure and distribution channels to sell the Chevy Volt
Presentation to Dr. Jose Torres
Chevrolet has a well-established operation in Brazil
PROMOTION
The Chevrolet Volt has earned more accolades than its competition in Brazil for “best buy” awards
Consumers need to understand the value in the Volt and owning an electric car
Presentation to Dr. Jose Torres
US Chevy Volt is priced at $33,995
PRICE
Brazilian electric vehicle market calls for prices between R$40,000 and R$60,000
Target 25-40% reduction in battery prices
Tax incentives are growing for electric cars to reduce costs
Presentation to Dr. Jose Torres
POSITIONING STATEMENT
Presentation to Dr. Jose Torres
22
BRAND POSITIONING STATEMENT
CHEVY ONIX Volt Edition
The Chevy Onix Volt Edition is the car for upper middle class Brazilians who are tech-savvy and environmentally conscious to satisfy their demands to be ahead of their peers.
Presentation to Dr. Jose Torres
BRAND POSITIONING STATEMENT
Differentiation
Nissan's Leaf and the BMW i3 are the choice cars in EV market in Brazil
Nissan's marketed the Leaf to operate as Taxis in Rio de Janeiro
BMW i3 is extremely prohibitive with the prices starting at R$225,000
Onix Volt Edition targets the upper middle of the market and familiar with Tesla Motors
Position as an affordable alternative to the high-priced EV vehicles from BMW and Tesla
Presentation to Dr. Jose Torres
BRAND POSITIONING STATEMENT
Product Lifecycle
US-version of the Chevy Volt can be trimmed with Onix-style emblems and contours to be consistent with the Onix branding and looks
Volt already features connectivity available to the Brazilian market already.
Localize User Interface to Brazilian Market
Presentation to Dr. Jose Torres
Logo
Chevy Onix Volt Edition
A mix of both existing brands
O in Onix is trimmed with a leaf and the color green to signify the Amazon and the forests of Brazil
Volt branding to introduce the brand to Brazilians
The blue letters signify blue color of the Brazilian flag and the skies of Brazil
Presentation to Dr. Jose Torres
Channel Strategy
Presentation to Dr. Jose Torres
27
CHANNEL STRATEGY
Brazilian Channels
472 Dealerships
3 Distribution Centers
Online Retail
Channels sold 150,841 Chevy Onix cars in 2014
Presentation to Dr. Jose Torres
Communications
And Advertising Campaign
Presentation to Dr. Jose Torres
29
COMMUNICATIONS
Advertising
Campaign
1
2
3
4
Targeted ads to Male and Females from 25-30 years of age
Use social media
Dedicated Landing Page
Online Video Ads
Presentation to Dr. Jose Torres
Pricing Strategy
Presentation to Dr. Jose Torres
31
PRICING STRATEGY
CHEVY ONIX Volt Edition
US version priced at $33,995, which converts to R$106,429.85
Brazilian Import Tax of 0 to 11 percent
If taxed at 2%, the product can be sold at $34,674 or R$108555.63
Presentation to Dr. Jose Torres
PRICING COMPARISON (in Brazilian Real)
130K
Toyota Prius
106K
Chevrolet Onyx Volt Edition
237K
BMW i3
120K
Ford Fusion
Presentation to Dr. Jose Torres
Bibliography
Presentation to Dr. Jose Torres
34
References:
Cateora, P. R., Gilly, M. C. & Graham, J. L. (2015). International Marketing. New York: McGraw-Hill Irwin.
GM-Volt.com (2007) What is the Volt. Retrieved June 2, 2015. Retrieved from: http://gm-volt.com/about/
Export.gov (2014) Doing Business in Brazil. Retrieved June 6, 2015. Retrieved from http://export.gov/brazil/doingbusinessinbrazil/index.asp
PWC.com (2013) Doing Business and Investing in Brazil. Retrieved June 6, 2015. Retrieved from: www.pwc.de/de/international-maerkte/asset
Corrêa, H., Nogueira Jr, D. (2001). Radical change in the supply chain management in the automotive spare parts business: The case of General Motors Brazil.
BRAZIL: BRAZIL, A MIDDLE CLASS COUNTRY (2010). Info-Prod (Middle East) Ltd.
Pezzini, M. (2012). An emerging middle class - OECD Observer. Retrieved June 28, 2015, from http://www.oecdobserver.org/news/fullstory.php/aid/3681/An_emerging_middle_class.html
Brook, L. (2011) “Chevrolet Volt – Development Story of the Pioneering Electrified Vehicle” Retrieved June 6, 2015. Retrieved from:http://www.presidio.edu/userfiles/file/Case%20Study/Chevrolet%20VOLT%20Case%20Study,%20rev_%208-27-2013,%20incl%20JLL%20comments.pdf
Bibliography
Presentation to Dr. Jose Torres
Bain, D. (2013). The Deadly Impact Of Brazilian Made Chevys, Fiats, Fords, Nissans, and VWs. Retrieved May 25, 2015 from http://www.torquenews.com/397/deadly-impact-brazilian-made-chevys-fiats-fords-nissans-and-vws
Burden, M. (2015). GM Sells Record 9.92M Cars In 2014; Chevy Sales Fall. Retrieved May 25, 2015 from http://www.detroitnews.com/story/business/autos/general-motors/2015/01/14/gm-record-sales-chevy-sales-fall/21767247/
Gasnier, M. (2015). Brazil April 2015: Honda HR-V And Jeep Renegade Take Off. Retrieved May 25, 2015 from http://bestsellingcarsblog.com/category/brazil/
Gasnier, M. (2015). Brazil 1st Quarter 2015: Once-In-A-Decade Market Shifts Occurring. Retrieved May 25, 2015 from http://bestsellingcarsblog.com/2015/05/brazil-1st-quarter-2015-once-in-a-decade-market-shifts-occurring/
Inside EVs Staff. (2013). Brazil Gears Up For Plug-In Vehicle Sales Boom. Retrieved May 25, 2015 from http://insideevs.com/brazil-gears-up-for-plug-in-vehicle-sales-boom /
Possato, M. (2015). Top 20 Car Brands In Brazil. Retrieved May 25, 2015 from http://thebrazilbusiness.com/article/top-20-car-brands-in-brazil
Bain, D. (2013). The Deadly Impact Of Brazilian Made Chevys, Fiats, Fords, Nissans, and VWs. Retrieved May 25, 2015 from http://www.torquenews.com/397/deadly-impact-brazilian-made-chevys-fiats-fords-nissans-and-vws
Blount, J. & Nogueira, M. (2015). Brazil’s Fuel Prices Seen Facing Little Pressure From Cheap Imports. Retrieved June 2, 2015 from http://af.reuters.com/article/energyOilNews/idAFL1N0UM21920150107
Bibliography
Presentation to Dr. Jose Torres
Chevrolet. (2015). Chevrolet Volt. Retrieved May 25, 2015 from http://www.chevrolet.com/volt-electric-car.html
Costa, E. (2013). Brazil May Be The One To Open The Doors To Electric Vehicles. Retrieved June 2, 2015 from http://electriccarsreport.com/2013/07/brazil-may-be-the-one-to-open-the-doors-to-electric-vehicles/
Edelstein, S. (2014). Brazil’s Green-Car Incentive Surprise: Electrics, Plug-In Hybrids Omitted. Retrieved June 2, 2015 from http://www.greencarreports.com/news/1095107_brazils-green-car-incentive-surprise-electrics-plug-in-hybrids-omitted
Inside EVs Staff. (2013). Brazil Gears Up For Plug-In Vehicle Sales Boom. Retrieved May 25, 2015 from http://insideevs.com/brazil-gears-up-for-plug-in-vehicle-sales-boom/
The 30 Best-Selling Car Models In Brazil. (n.d.). Retrieved June 5, 2015, from http://thebrazilbusiness.com/article/the-30-best-selling-car-models-in- brazil
Brazil Destination Branding. (n.d.). Retrieved June 5, 2015, from https://prezi.com/0bg82lfzpxc7/brazil-destination-branding/
New Chevrolet Onix is GM's Answer to the VW Gol and Hyundai HB20 in Brazil. (n.d.). Retrieved June 5, 2015, from http://www.carscoops.com/2012/10/new-chevrolet-onix-is-gm-answer-to-vw.html
GM Annual Report 2012. Retrieved June 5, 2015, from http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Stockholder_Information/PDFs/2012_GM_Annual_Report.pdf
Bibliography
Presentation to Dr. Jose Torres
NISSAN | NISSAN AT SÃO PAULO MOTOR SHOW: BRAZIL IS A KEY MARKET FOR COMPANY´S GROWTH. (n.d.). Retrieved June 5, 2015, from http://www.nissan-global.com/EN/NEWS/2012/_STORY/121022-01-e.html
Electric Car Use By Country (Brazil). (n.d.). Retrieved June 5, 2015, from http://en.wikipedia.org/wiki/Electric_car_use_by_country#Brazil
Onix 2015. (n.d.). Retrieved June 6, 2015, from http://www.chevrolet.com.br/carros/onix.html
McCann, L. (2013). Chevrolet Challenges Traditions in Onix Launch | LBBOnline. Retrieved June 28, 2015, from http://lbbonline.com/news/chevrolet-challenges-traditions-in-onix-launch/
Inside EVs Staff. (2014). General Motors Explains Why Marketing The Chevy Volt Is So Damn Difficult. Retrieved May 25, 2015 from http://insideevs.com/general-motors-explains-marketing-chevy-volt-difficult/
Woodall, B., Leinert, P. & Klayman, B. (2012). Insight: GM's Volt: The ugly math of low sales, high costs. Retrieved May 25, 2015 from http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910
Europe Autonews (2013). Audi's return to Brazil coincides with leasing revival. Retrieved May 25, 2015 from http://europe.autonews.com/article/20130929/ANE/309279981/audis-return-to-brazil-coincides-with-leasing-revival
Bibliography
Presentation to Dr. Jose Torres
Richard, M. G. (2015). All-new 2016 Chevy Volt gets $1,175 price cut, now $26,495 after federal tax credit. Retrieved June 28, 2015, from http://www.treehugger.com/cars/2016-chevy-volt-gets-1175-price-cut-now-26495-after-federal-tax-credit.html
Roberts, G. (2014). BRAZIL: BMW i3 range extender now on sale at US$100,000. Retrieved June 28, 2015, from http://www.just-auto.com/news/bmw-i3-range-extender-now-on-sale-at-us100000_id150503.aspx
Dezem, V. (2014). Brazil’s Reduced Tax on Hybrid Cars Won’t Boost Imports. Retrieved June 28, 2015, from http://www.bloomberg.com/news/articles/2014-09-23/brazil-s-reduced-tax-on-hybrid-cars-won-t-boost- imports
Media:
Chevy Volt (2015). Retrieved from http://images.thecarconnection.com/hug/2015-chevrolet-volt_100472781_h.jpg
SWOT Analysis (2015). Retrieved from http://rpihub.org/wordpress/wp-content/uploads/2012/11/SWOT-Analysis.jpg
Chevy Volt (2015). Retrieved from http://gmauthority.com/blog/wp-content/uploads/2012/11/2013-Chevrolet-Volt-720x340.jpg
Chevy Volt (2015). Retrieved from http://www.jeffcom.com/Volt/2011%20Volt%202.jpg
Bibliography
Presentation to Dr. Jose Torres