Chevrolet EuropeChevrolet Europe

By: Stefan Petre, Jerzy Blaszkiewicz, By: Stefan Petre, Jerzy Blaszkiewicz, Zachary Ross, & Matt Colletti Zachary Ross, & Matt Colletti

Project MidasProject Midas

Assembled in early 2004 by Patricia MessarAssembled in early 2004 by Patricia Messar It was the strategy to introduce the General Motors It was the strategy to introduce the General Motors

Chevrolet brand of passenger cars into Europe in Chevrolet brand of passenger cars into Europe in 20052005

The Chevrolet brand would replace the Daewoo The Chevrolet brand would replace the Daewoo brand in Europe.brand in Europe.

Daewoo was introduced to Europe in the mid Daewoo was introduced to Europe in the mid 1990s by Daewoo Motor Company of Seoul, 1990s by Daewoo Motor Company of Seoul, Korea.Korea.

LimitationsLimitations

Chevy brand launch had to be accomplished with Chevy brand launch had to be accomplished with the existing GM Daewoo product line, carry-over the existing GM Daewoo product line, carry-over names for individual product models, and the names for individual product models, and the same dealers and operating policies and same dealers and operating policies and practices. practices.

Project Midas’ market share goal was 1% of the Project Midas’ market share goal was 1% of the European car market.European car market.

Project Midas was given a 75 million euro media Project Midas was given a 75 million euro media budget. (1 euro = U.S. $1.13)budget. (1 euro = U.S. $1.13)

Positioning StatementPositioning Statement

1.1. Resonate with European car buyers;Resonate with European car buyers;

2.2. Complement General Motors’ multi-Complement General Motors’ multi-brand portfolio in Europe;brand portfolio in Europe;

3.3. Be consistent with the global perception Be consistent with the global perception of the Chevrolet brand.of the Chevrolet brand.

Chevrolet Brand in EuropeChevrolet Brand in Europe

POSITIVEPOSITIVE The lack of The lack of

awareness provided awareness provided a clean slate upon a clean slate upon which to position the which to position the Chevrolet brand in Chevrolet brand in Europe.Europe.

NEGATIVENEGATIVE European car buyers European car buyers

might believe might believe Chevrolet brand cars Chevrolet brand cars “were not for them “were not for them due to due to preconceptions of preconceptions of American cars as American cars as gas-guzzlers.” gas-guzzlers.”

In early 2004, Chevrolet brand name was known to less than 1% of In early 2004, Chevrolet brand name was known to less than 1% of European car buyersEuropean car buyers

European Buyer European Buyer PerceptionPerception

American CarsAmerican Cars

Big/huge/largeBig/huge/large Bulky/big boxesBulky/big boxes Less appealing designLess appealing design Too showyToo showy Very comfortableVery comfortable Automatic transmissionAutomatic transmission High fuel consumptionHigh fuel consumption Big enginesBig engines Designed for the highwayDesigned for the highway Not practical in citiesNot practical in cities

Korean CarsKorean Cars

Well equipped (as standard)Well equipped (as standard) Less expensive/economicalLess expensive/economical Copies of European carsCopies of European cars Less refined interiorLess refined interior Proven techProven tech DistinctiveDistinctive InexpensiveInexpensive Less reliableLess reliable

Chevrolet EuropeChevrolet Europe

Very comfortableVery comfortable Well equipped (as standard)Well equipped (as standard) Less expensive/economicalLess expensive/economical Proven techProven tech DistinctiveDistinctive InexpensiveInexpensive

GM Daewoo EuropeGM Daewoo Europe

Unit sales increased to 132,200 passenger Unit sales increased to 132,200 passenger cars in 2003. cars in 2003.

Sizeable portion of sales came from southeast Sizeable portion of sales came from southeast European countries.European countries.

Project Midas should heavily advertise in Project Midas should heavily advertise in southeast European markets since these southeast European markets since these countries are growing financially.countries are growing financially.

““We need to focus on the strengths of the We need to focus on the strengths of the brand and avoid selling on price.” GM brand and avoid selling on price.” GM executive.executive.

GM Daewoo CustomersGM Daewoo Customers

Loyal to the brand.Loyal to the brand.We need to raise awareness of existing customers We need to raise awareness of existing customers that we are now Chevrolet and not Daewoo.that we are now Chevrolet and not Daewoo.

Spend less of their disposable income on a car purchase.Spend less of their disposable income on a car purchase.Show these customers that the Chevrolet brand Show these customers that the Chevrolet brand

has has vehicles at very good prices.vehicles at very good prices. Potential GM Daewoo customers want something Potential GM Daewoo customers want something

distinctive and of good quality.distinctive and of good quality.Show customers the positive things that they Show customers the positive things that they

perceived from American cars and the positive things perceived from American cars and the positive things from Korean cars.from Korean cars.

GM Daewoo PositioningGM Daewoo Positioning Study was performed after GM Daewoo Study was performed after GM Daewoo

Europe was formed. Europe was formed. Primary objective of study: to determine which Primary objective of study: to determine which

positioning territory was most appealing, positioning territory was most appealing, relevant, unique, important, and credible.relevant, unique, important, and credible.