Institute of Management Studies

Devi Ahilya Vishwavidyalaya, Indore.

A Project Report

“To study Car Launching By GM as Product Positioning and

Differentiation. Positioning on Specific Product features,
Positioning on benefits, Positioning on customer needs,
Positioning for specific usage occasions.”

Submitted in the partial fulfillment of

Masters of Business Administration
(2009-2011)

Submitted To: Submitted by:

Shishir Jain Ravindra Rathore

MBA III sem (MM)
IMS, DAVV, Indore IMS, DAVV, Indore
Roll no. 43494
 SELF DECLARATION

I have tried my level best in making this project report useful,

pragmatic & successful. I have tried to provide the accurate
information to the best of my knowledge. The data collected is
primary, secondary, authentic & analyzed by me.

I have got the Information which is asked to Sales manager. All other
information has also been gathered from reliable sources.
I hereby declare that project entitled “ To Study the reasons behind
the Positioning of a product in reference to Portable car
SPARK(GM)” is authentic. I have put in my efforts meticulously to
make this project to come up to the expectations and pragmatically
viable.

Ravindra Rathore
Roll no. 43494
 ACKNOWLEDGEMENT

I express my sincere thanks to Mr. Bhurcharan Singh (Head of

Purchase in GM) to give me an opportunity to do this research .
I would like to express my sincere
gratitude to Sales Executive (GM) who always made themselves
available for guiding me in my endeavors. His inspiration is immense.
Indeed working with him was a memorable experience.
I am grateful to Sales Manager (GM) for their timely suggestions,
constructive criticism and constant supervision during project. I also
thanks my family and friends for their valuable support and guidance
in carrying out the project.
I hope that my energy will create a positive sign through my
project report in the concern.

Thanks

Ravindra Rathore
MBA(MM) Sec.-B
 INDEX

Definition 1
Positioning strategies & value proposition 2
Positioning by benefits & brand positioning 3
Positioning by usage & why positioning is 4
important
Positioning by user & environment 5
Positioning by competitor/against competition & 6
competitive advantage
Positioning by corporate identity & 7
differentiation and positioning
Positioning by brand endorsement & developing 8
and communicating
Product class positioning & differentiation 9
strategies
Price equity positioning & problem 10
General Motors- Introduction 11
SWOT analysis 12
Methodology 13
Conclusion 14
Definition:

• It is the act of developing the company’s offerings and image to occupy a

distinct place in minds of customers.

• It is the position in the perceptual space of the consumer’s mind that the
product takes in relation to competitor’s product.

• It helps Brand Manager in identifying the core meaning of brand and

communicates them as unique to brand.

• End result of Positioning: it gives customer a value proposition – a reason

to buy the product Positioning also involves developing and
implementing marketing strategies to achieve the desired position in
market.

• Product, price ,distribution and promotion are the potential tools for
positioning a company and its offerings.

• Market segmentations and positioning are interrelated.

• One can select target market first and then develop positioning or visa
versa.

• Positioning is needed because of intense competition in many product

categories(clutter)

• E.g. : Maggi – Convenience food to solve frequent food demand for

growing kids.

• Dove – Premium brand with high moisturizer content.

• Mahindra Scorpio: hybrid positioning- luxury car & thrill of SUV.

• Indica : more space with no extra cost. “more car per car”.

• Virgin, Vodafone, Pepsi, ICICI- Jeetey raho .

• Raymond “The Complete Man”.

Positioning Strategies:

1. Positioning by product features / unique attributes:-

 Reference to specific features.

 Indicate product superiority.

 Telling the customers what the features mean to them(benefits achieved).

 E.g. front loading, semi automatic washing machine, power steering of

the car.

 medimix ayurvedic soap – 24 different herbal ingerdiant .

 J&J no tears shampoos, Lava mobile phone.

 Titan raga-fashion accessory.

Value Proposition:-

• The result of positioning is the successful creation of

a customer focussed Value Proposition.

• Value Proposition:

– A cogent reason why the target market should

buy the product. For eg.

• The value proposition of Dominos Pizza whose target market is the

Convenienc minded Pizza lovers, looking for benefits like
delivery, speed and good quality is:

– A good, hot pizza delivered to your door within 30 minutes of

ordering.
2. Positioning by benefits :-

 Closely related to product-feature adds.

 Product bought for their benefits, choosing a unique benefit to position.

 Close-Up fresh breath and opposite sex appeal.

 Colgate total fights 12 oral problems.

 Anchor & Dabur babul-strong teeth.

 Car buying- economy, luxury, esteem & safety.

 Fructis shampoo- long & strong hairs.

 All clear shampoo-anti dandruff.

Krack , itchguard.

Brand Positioning: Remember

This

What seven concepts are critical to

positioning?

1. Perception (their’s, not your’s)

2. Differentiation

3. Competition

4. Specialization

5. Simplicity

6. Leadership
 7. Reality
3.Positioning by usage and use time:-

 Product sold on the basis of their consumer usage.

 Brand’s associations with a particular usage or situation

 E.g. knorr soups- used in evening.

 Britania marie.

 After bath cream- used after bath.

 Comfort fabrics .

 Livon hair lotion.

 Milkmaid-Usage for making sweets.

Why Is Positioning Important

Nobody is waiting for our product/service. Nobody really wants to

Listen to us.

Thousands of messages fight every day

Why Is Positioning Important for consumers’ attention.

If you can stand out with a unique benefit, you have a chance of getting
Attention.
4.Positioning by users :-

 Associates the product with the users or the class of users.

 Products intended for use by a particular group.

 E.g. J&J products, amul paneer.

 Super active-health supplement for middle age.

 Women Horlicks.

 Complan.

 Sunsilk shampoo.

Environment

• The marketing environment is the external environment. Few things to

consider:

 How is the market now satisfying the need your product satisfies?

 What are the switching costs for potential users for your market?

 What are the positions of the competition?

5. Positioning by competitors/ against competition:-

 Positioning a product in comparison to competitor’s brand.

 Reference of competitor n giving an argument in favor of own brand.

 Looking for weak points in other brands n launching own product against
those weak points.

 Direct and indirect comparison with competitors

E.g. Thumps up v/s Pepsi and Complan v/s Horlicks

 Tata salt, tide, vim etc

Competitive Advantage

• The competitive advantage is an internal question. What do you have that

gives you advantage over your competitors. Some things to consider:

Is your company small and flexibile?

Do you offer low cost and high quality?

Does your product offer unique benefits?

Are you the first on the market with this

product (First mover advantage)?, etc.
6. Positioning by Corporate Identity:-

 Brand draws a direct connection with the corporate identity (benefit of its
credentials).

 Use corporate name to label their names in various product category. E.g.
LG, Samsung.

 In other cases, a separate brand launched revealing corporate connection

e.g. Dabur HUL, Nestle etc.

Differentiation & Positioning

• Process of creating favorable relative position:

– (1) Identification of target market

– (2) Determination of needs, wants, preferences and benefits desired
– (3) Examination of competitors characteristics and positioning
– (4) Comparison of product offerings with Competitors
– (5) Identification of unique position
– (6) Development of a marketing program
– (7) Continual reassessment

• Differentiation Strategies
– Product Descriptors

• Product features

• Advantages

• Benefits
– Customer Support Services
– Image

• Positioning Strategies
– Strengthen the Current Position
– Repositioning
 – Reposition the Competitio

7. Positioning by brand endorsement :-

 Successful brand is used as an endorser of a new entry. E.g. Dabur used
vatika to promote its shampoo.

 Nestle used Maggi to promote catch-up, pickles & soups.

 Raymond’s park Avenue endorses soaps, after shaves, perfumes &

deodorants.

Developing and Communicating a

Positioning Strategy

• Positioning: How many ideas to promote?

• Unique selling proposition (USP)

– Choosing an attribute and presenting yourself as number one
in benefits such as quality, superiority, price etc. This
becomes the Point of Difference.
Eg. Nike, Sugarfree, Lux, etc.

• Points of Parity:
It refers to the associations that are not necessarily unique to
the brand but may infact be shared with other brands.
Category- Necessity
Competitive-Negate competitors POD.
Eg. Dettol and Savlon

• There are some popular positioning strategies that

can be pursued:
– Product Attributes: What are the specific product
attributes?
– Benefits: What are the benefits to the customers?
– Usage Occasions: When / how can the product be used?
– Users: Identify a class of users.
– Against a Competitor: Positioned directly against a
 competitor.
– Away from a Competitor: Positioned away from competitor.
– Quality/Price Positioning.

8. Product class positioning:-

 Positioning brand with respect to a product class by developing class

related association.

 E.g. Nescafe- instant coffee.

 Bru brand filter coffee.

 Cadbury bytes-sweet snacks.

Differentiation Strategies

• Product Differentiation
Eg. A lawnmower manufacturer

• Personnel Differentiation
Eg. Singapore Airlines.
MC.Donalds people are courteous, IBM
people are professional, etc.
• Channel Differentiation
Eg. Eureka Forbes, Avlon, etc.

• Image Differentiation

 Identity and Image needs to be distinguished.

 Identity is the way a company aims to identify or position itself or its

product.

 Image is the way the public perceives the company or its products.

 Eg. Hyatt Regency hotels developed a distinctive

  image through its atrium lobbies.

9. Price-quality positioning:-

 Some brands occupy “single economy position” like Nirma and Hamam.

 This is low quality low price position for price conscious customers.

 Other brands occupy a “premium position” like Surf excel and dove.

 This is high quality high price position for price quality conscious
customers.

 Madura Garment’s – Peter England- lower end brand and Louis Philippe
at top end.

 Big Bazar is Value for Money- “isse sasta aur accha kahin nahin”

Problems

– Four major positioning errors

• Underpositioning – vague idea of

Brand

• Overpositioning – too narrow an image

• Confused positioning – company

makes too many claims or changes
brand positioning frequently

• Doubtful positioning – hard to believe

brand claims in view of product
qualities
 General Motors

Type Limited liability company

Industry Automotive

Founded 1908 reestablished 2009

Founder(s) William C. Durant

Headquarters Renaissance Center Downtown Detroit, Michigan, USA

Area served Worldwide

Key people Edward Whitacre(Chairman)Daniel Akerson(CEO)

Products Automobiles

Owner(s) -United States Department of the Treasury (61%)

-United Auto Workers Union Voluntary
Employee Beneficiary Association (17.5%)
-Canada Development Investment
Corporation (7.9%)
-Government of Ontario (3.8%)
-Bond holders of Motors Liquidation
Company (9.8%)

Employees 204,000 (2009)[1]

Divisions Chevrolet , Buick, Cadillac,GMC

Subsidiaries AC Delco,General Motors Canada,General Motors do Brasil,GM

Financial
General Motors India, General Motors Truck & Coach Division
General Motors Ventur, Global Hybrid Cooperation
General Motors South Africa,GM-AvtoVAZ
GM Daewoo (70.1%),GM Holden Ltd
GM Performance Division,OnStar
Opel, Vauxhall
Website GM.com

Introduction

General Motors is the world’s largest automaker with 386,000 employees in

over 50 years. Despite this sheer size, its auto sales have declined from about 60
percent of the U.S. vehicle market in the 1970’s to only 28.3 percent today. This
decline is attributed to stiff competition from Ford, DaimlerChrysler and the
Japanese all of whom enjoy lower production costs, have a reputation for cars
with better styling and quality than General Motors.

General Motors adoption of a vertically integrated corporation which at one

time manufactured up to 70 percent of its parts, as a power source of
competitive advantage, enabled the company to build cars at lower costs than its
rivals. However, over time, these policies worked in favour of General Motors
competitors who were then able to make motor vehicles at much lower costs
because they could purchase their vehicle parts from outside vendors and also
bargain on pricing.

For the past 15 years, General Motors has struggled to overcome the above
legacy, inefficient product processes and thousands of outdated information
systems that could not communicate with each other. Although the company has
now become much leaner and more efficient by shedding off tens of thousands
of workers, closing dozens of plants and squeezing costs of motor vehicle parts
by scouring the globe for the lowest prices much still needs to be done.

It is our recommendation that General Motors use Internet and other leading-
edge information systems technology to reconstruct its entire value chain,
transforming itself into a customer-focused business that provides many
different electronic services to consumers as well as motor vehicles.
 S.W.O.T. Analysis

Strengths:-

o World’s largest vehicle manufacturer with production in 32

countries
o World’s sales leader since 1930’s with a 15% global vehicle
market
o Leadership in America controlling a third of the entire US market
o Trucks and SUVs vehicles sales record in North America -
increased market share
o Sales in over 190 countries with a strong position in emerging
economies
o Technological potential, global partners and ventures with other
automakers
o GMAC – Major GM’s subsidiary specialising in financing GM
vehicle purchases
o Averages a profit of US $ 701 per vehicle up by 108 % from 2001

Weaknesses:-

o GM’s share of the automobile market has fallen. (Automaker’s

stock has stumbled
 70% in the last five years)
o Second lowest productivity average with 24 labour hours per
vehicle
o Under utilisation of its plants and technology
o Cost structure – Pension liabilities and cost of health care for all
employees
 currently stands at US$24 per hour at GM compared to $12 at foreign
factories
o Peace with the labour union (United Auto Workers) has decimated
GM’s pension
 fund since the GM family of 7.5 million is comprised of employees,
retirees and
 their respective family members
 o Bureaucratic culture where each unit markets to the same consumer
separately and
 differently with almost the same product
o Low profitability due to inefficient production processes
o Inefficient investments – addressed emission standards cost GM
US $ 2.2 Billion
 compared to Honda’s US $ 53 Million

Opportunities:-

o Use of knowledge gained from its subsidiaries, partnerships,

buyouts, joint
 ventures – Daewoo, Saab, Isuzu, Fiat, Opel, Vauxhall, Toyota (Nummi)
o Expansion of their global presence - having their own European
model operation
o Expand in emerging economies especially Eastern Europe

o Use of substitutes in the production (plastic and fiberglass) and

component
 manufacturing operations in countries with cheap labour cost
o Leadership in environmental investigation and safety
o Product differentiation through options and name recognition
o Lead on growing light truck sector
o GMAC financing to increase US sales
o Create new model types and styles to change consumer’s demand
o Reduce costs of inventory and sales incentives by finding ways to
make cars that
 customers have actually ordered. Build to order can generate production
cost
 savings of US $ 20 billion per year

Threats

o Future cost have environmental and safety regulations – US

Federal Legislation
 and Regulations as well as Foreign Legislation and Regulation
o Declining quality of the infrastructure in the country
o Stiff competition from domestic and foreign automakers that enjoy
lower costs
o Global economy which affects customers’ purchasing power
 o Macro economy – Incomes, unemployment, inflation, interest
rates, recession
o The permanent increase in oil prices force potential customers to
venture into
 buying other motor vehicles with less fuel consumption
 Industry Analysis
o New technology is changing manufacturing process and product
design
o There is a worldwide stagnation in demand which leads to a
decline in sales
o Create mega dealers and auto supermarkets to bring services closer
to consumers
o Demand for excellent world class product in every respect is high
o Evident worldwide overcapacity of different models of vehicles

Competitor Analysis:-

o Sheer size and market share make new entrants an unlikely to be a

threat
o Vertical integration of GM does not encourage purchases from
suppliers hence
 they lose out on price bargaining
o Ford, DaimlerChrysler and Japanese manufacturers have better
styling and
 quality; an approach which GM should consider adopting to sustain its
 competitive edge

o Cost of GM motor vehicles is perceived as being too high

o Buyers are nowadays inclined to buy sport utility and pickups
which are not
 manufactured by General Motors
o GM enjoys a healthy product line and segmentation in pricing and
functions
 INDIAN FOUR WHEELER INDUSTRY

De-licensing in 1991 has put the Indian automobile industry on a new growth
track, attracting foreign auto giants to set up their production facilities in the
country to take advantage of various benefits it offers.

 This took the Indian automobile production from 5.3 Million

Units in 2001-02 to 10.8 Million Units in 2008-09.

 In 2008-09, the Indian automotive industry provided direct

employment to more than 300,000 people, exported auto
component worth around US$ 2.87 Billion, and contributed
5% to the GDP
 GM India Product launches

Launched On Model Rate (Rs. In Lakhs) Competitor

2003 Chevrolet Optra 7.81-10.29 Honda Civic,Skoda
Octavia,Maruti Verna

2004 Chevrolet 7.66-9.4 Toyota Innova,Tata

Tavera Safari,Mahendra
Scorpio

2006 Chevrolet Aveo 5.99-7.05 Honda City,Maruti

Swift Dzire, Ford
Fiesta
 Chevrolet Aveo 3.8-4.25 Maruti Swift,Skoda
2006 U-va Fabia, Hyundai I20

2007 Chevrolet Spark 3.09-3.70 Maruti WagonR, Tata

Indica,MarutiWagonR

2008 Chevrolet 17.40-19.22 Ford Endeavour,

Captiva Honda CR-V,
Mitsubishi Pajero

2009 Chevrolet Cruze 10.93-12.56 Honda Civic,Skoda

Octavia, Skoda Laura

2010 Chevrolet Beat 3.42-4.03 MarutiRitz,FiatGrande

Punt,Hyundai I10

Product Positioning

Chevrolet Spark Small Size

Chevrolet Beat Small Size
Chevrolet U-VA Small Size
Chevrolet Optra Mid Size
Chevrolet-Aveo Mid Size
Opel Corsa Mid Size
Opel Astra Mid Size
Chevrolet Tavera SUV
Chevrolet Tavera Neo SUV
Chevrolet Captiva SUV

GM India Product Line Up

 Advertising and Promotion:-

 Media use for advertising mainly;

 Print media including newspaper ,magazine,brochures etc;

 Outdoor media such as billboard, hoardings;

 Appoint Saif Ali Khan and RaniMukharajee as brand ambassador to

promote the brand Chevrolet AVEO U-VA brand;

 They also take part in various auto expo and exhibition for trader oriented
sales promotion;

 In customer oriented sales promotion they offer special seasonal

discounts , gift vouchers, special offers, Product warranties .
 Marketing strategy of GMI

3 pillars to create high impact and recognition

for brands:

 1.Integrations and Innovations•

 2.Strategic Partnerships•

 3.Sustenance and Continuity

Chevrolet Marketing Campaign

 GM’s Chevrolet breaks Bluetooth marketing

campaign in mall

 A Bluetooth-based campaign to promote the

Chevrolet Spark LPG in a shopping mall activity
achieved close to 11,000 downloads in two days
in Banglalore alone.

 Customers needed to switch on their mobile

Bluetooth and accept messages from
"BluFi@forum" to participate in the campaign in a
mall.

 "The strategy is to make Chevy talk to customers

and provide them an opportunity to potential
customers to get closer to the Chevy,"
 Dealership

 General Motors India is now appointing more dealers and

authorized service outlets in urban, semi-urban and other cities
to widen its network and reach out to its valued customers
across the nation.

 GMIPL currently has 250 dealerships in 178 cities across India .

 GM India’s rapidly growing network of Chevrolet dealerships

and service centres in the pipeline to support the increasing
demand for GM products.
It has also entered into financing arrangements with some of the
public and private sectors banks to offer low EMI schemes to its
valued customers.

 General Motors India has rolled out an aggressive integrated

marketing campaignrevolving around its best-selling mini car,
the Chevrolet Spark. This campaign revolves around a once-in-
a-lifetime, limited period special offer to prospective mini car
buyers.

 The marketing communication strategy takes a holistic, 360

degree approach and encompasses print, electronic, radio,
digital, outdoor, cinema, CRM, showroom support,direct
marketing, mall display activity and rural activation.

“ The Road is tough, but the ultimate goal – a leaner , stronger

, viable GM –is one we share.”
 Fritz Henderson ( CEO )
General Motors

METHODOLOGY
 SAMPLE UNIT: Distributors, Sales Executives and Middle
Manager.

 SAMPLE SIZE: 25

 SAMPLE TECHNIQUE: Personal Interview

 CONTACT METHOD: personal contact

 DATA ANALYSIS: Interpretation on the basis of responses given by

interviewees.

Result of Interpretation:
In result for positioning of car’s they applying below
following strategies-

Positioning strategies revolved

Around

•Who am I?
•What am I?
•For whom I am?
•Why me?

Six basic question to create a

Positioning

•What position do we have in prospect’s

mind?
•What position do we want to own?
•What companies must be outgunned if
we are to establish that position?
•Do we have enough money to occupy
and hold the position?
•Do we have guts to stick with one
Consistent positioning strategy?
•Does our creative approach matchour
Positioning strategy

Six steps taken to reach a

Decision

•Identify competitors

•Assessment of consumers'
perception of competition

•Determining competitor’s position.

•Analysing the consumers’
preference.

•Making the positioning decision

Conclusion

Now a days positioning of a new product is very difficult task for a

company, Market is change in each an every second, Customer
choices are also change with their view. Four Wheeler is also having
new aspect from old to now a days market is small customer taste
change day by day, competitors are many so that GM follows a
specific strategy for positioning of his product.