Download pdf - Chevrolet Cruze in India

8/14/2019 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outdated in the current scenariooutdated in the current scenario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