Chevrolet Cruze in India

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    Chevrolet Cruze InChevrolet Cruze In

    IndiaIndiaBusiness Case StudyBusiness Case Study

    Submitted by:

    Aditya MahwarKushal Vig

    Punit SethiaSaurabh DugarVaibhav

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    GENERAL MOTORSGENERAL MOTORS

    Founded 16Founded 16thth September 1908September 1908

    Headquarters Detroit, MichiganHeadquarters Detroit, Michigan

    Led in global car sales for 77Led in global car sales for 77consecutive years(1931-2007)consecutive years(1931-2007)

    Bankrupt on June 1,2009Bankrupt on June 1,2009

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    GENERAL MOTORS INDIAGENERAL MOTORS INDIA

    Based in Halol, GujaratBased in Halol, Gujarat

    2008- 66,000 cars sold2008- 66,000 cars sold

    3.3% - Market share3.3% - Market share

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    PRODUCT PORTFOLIOPRODUCT PORTFOLIO

    Chevrolet SparkChevrolet Spark

    Chevrolet Aveo U-VAChevrolet Aveo U-VA

    Chevrolet AveoChevrolet Aveo

    Chevrolet Optra MagnumChevrolet Optra Magnum

    Chevrolet CaptivaChevrolet Captiva

    Chevrolet TaveraChevrolet Tavera

    Chevrolet SRVChevrolet SRV

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    Passenger vehiclesPassenger vehicles

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    Background & SituationBackg

    round & Situation

    analysis:analy

    sis: Continuous decrease in sales, and inability to cater toContinuous decrease in sales, and inability to cater to

    the lower segment of the market.the lower segment of the market.

    GM made 70% of its own parts, which led to higherGM made 70% of its own parts, which led to higher

    operational costs.operational costs.

    Inefficient production and testing processInefficient production and testing process Lots of legacy methodologies carried out, which isLots of legacy methodologies carried out, which is

    outdated in the current scenariooutdated in the current scenario

    Heavily invested and focused in the home marketHeavily invested and focused in the home market

    rather than developing or under-developed economyrather than developing or under-developed economy Bankruptcy of GMBankruptcy of GM

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    Other Factors Leading toOther Factors Leading to

    GM DownfallGM Downfall Strong global competitors with lower operating &Strong global competitors with lower operating &

    legacy costs.legacy costs.

    GM intended to buy stakes of chrysler but thatGM intended to buy stakes of chrysler but that

    also ultimately failedalso ultimately failed

    Spike in oil prices along with the worst economicSpike in oil prices along with the worst economic

    downturn...since the Great Depressiondownturn...since the Great Depression

    The run-up in gasoline prices, plummetingThe run-up in gasoline prices, plummeting

    consumer confidence spelled the end by lateconsumer confidence spelled the end by late

    September 2008.September 2008.

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    Possible SolutionPossible Solution

    Divest some brands but keep rich model portfoliosDivest some brands but keep rich model portfoliosfor remaining brands and reform the companysfor remaining brands and reform the companys

    structure to provide each brand division with morestructure to provide each brand division with more

    autonomyautonomy Restructuring in to a decentralized organization inRestructuring in to a decentralized organization in

    order to put more emphasis on individual brandsorder to put more emphasis on individual brands

    rather than regional divisionsrather than regional divisions

    Market research, internal and external analysisMarket research, internal and external analysis

    required in order to make this alternativerequired in order to make this alternative

    successfulsuccessful

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    Particulars of PossibleParticulars of Possible

    SolutionSolution BenefitsBenefits

    Focused resources on less brandsFocused resources on less brands

    Distinct target markets which define brand equityDistinct target markets which define brand equity

    More capital to invest in R&D for each specific brandMore capital to invest in R&D for each specific brand

    More autonomy to brands which decrease decision making timeMore autonomy to brands which decrease decision making time

    Feasibility of implementing the solutionFeasibility of implementing the solution

    To divest some brands is a quite good strategy for GM, thereforeTo divest some brands is a quite good strategy for GM, therefore

    it will be able to cater to more market segments in proper wayit will be able to cater to more market segments in proper way

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    Future TargetsFuture Targets

    10% market share by 201110% market share by 2011

    Sell 2,00,000 cars by 2010Sell 2,00,000 cars by 2010

    Making GM India a key production & R&D baseMaking GM India a key production & R&D base

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    CRUZECRUZE

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    CRUZECRUZE

    Price LT- Rs 12,45,000Price LT- Rs 12,45,000

    LS- Rs 10,99,000LS- Rs 10,99,000

    4 cylinder VCDi 16v SOHC 1991cc engine4 cylinder VCDi 16v SOHC 1991cc engine

    150ps , 327nm torque150ps , 327nm torque

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    CRUZECRUZE

    Dynamic & aggressive stylingDynamic & aggressive styling

    Comfortable InteriorsComfortable Interiors

    Class leading featuresClass leading features

    Refinement & versatilityRefinement & versatility

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    CRUZECRUZE

    PEPS- passive entry passive startPEPS- passive entry passive start

    Cruise ControlCruise Control

    Rain sensing wipersRain sensing wipers

    Smart ScreenSmart Screen

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    HONDA CIVICTOYOTA

    COROLLA

    COMPETITORS

    SKODA LAURA

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    Cruze Civic Laura Corolla

    Engine 2.0L Diesel 1.8L

    Petrol

    1.9 Diesel 1.8L Diesel

    Power 148 bhp 125 bhp 105 bhp 132 bhp

    Price 10.9/12.45lakhs

    14.25 lakhs 10.5-14.25 lakhs

    Features

    PEPS Yes No No No

    Rainsensingwipers

    Yes No No No

    CruiseControl

    Yes No No No

    Smart

    screen

    Yes No NO No

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    HOW CRUZE WOULD HELPHOW CRUZE WOULD HELP

    GM INDIAGM INDIA

    Change Consumer perception about GM products

    Increase Brand Image & Brand Value

    Provide a standard for future quality of GM vehicles

    Help to Increase Market Share & Revenues

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    Positive effectsPositive effects

    GM India has reported 50% growth in salesGM India has reported 50% growth in sales

    Sold 7,654 units in September 2009Sold 7,654 units in September 2009

    Chevrolet Spark sold 4,706 units ,double its usualChevrolet Spark sold 4,706 units ,double its usual

    monthly salesmonthly sales

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    THANK YOUTHANK YOU