50th Anniversary Corvette Case Study

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    13-Sep-2014

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<p> 1</p> <p>50th Anniversary CorvetteJenniferChiangEddie HuangQiang Zhang</p> <p>Background </p> <p>Chevys U.S. car sales continually decreased in 2002Down 13.1% for the first 6 months</p> <p>Automotive industryEconomy started to fall in 2001Car sales decreased in the short run and expected to increase after 2003 General Motors$ 175 billion in sales a yearBuick, Cadillac, Chevrolet, GMC2001 GM re-established its position as the worlds best automakerRanked as #1 in advertising expenditures Background </p> <p>ChevroletNamed from a famous French racerIn 2002, Chevy produced 19 different models.Ranked high in initial quality CorvetteA remarkable, high-performance American sports car was first produced in 1953.2003 the 50th Anniversary Special EditionProduce a limited number (up to 10,000) of special model vehicles as demanded.Special edition has some special ornaments.</p> <p>Background </p> <p>Target Audiences</p> <p>Who are the target audiences for Corvette? How about Chevy?Target Audiences</p> <p>What are the strength/ weakness of Corvette/Chevy?</p> <p>Discussion Questions </p> <p>1. What is the role of advertising and promotion in the automobile purchase decision? How useful is the traditional hierarchy of effects model in this market?</p> <p>Discussion Questions </p> <p>Advertising: The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media.Promotion: Informational displays at the point of purchase (e.g. Sales people)</p> <p>Advertising and promotion plays three main roles:1. Exposure : awareness, attitudes=&gt; an extensive decision making (automobile: high involvement product):search behavior, find several alternative choices, long period 2. Trigger: customer responses3. Education:=&gt; New information, Building emotional attachmentsWhen consumer receive new information, they are not only at first confused and disordered in mind, but they also try to categorized the brand association with their existing memory.</p> <p>8</p> <p>Discussion Questions </p> <p>The traditional hierarchy of effects model</p> <p>Discussion Questions </p> <p>2. What is the role of Corvette for the Chevrolet brand? What should it be? How does your answer affect Corvettes advertising strategy?</p> <p>Discussion Questions </p> <p>In the past, weve kind of hidden Chevrolet from Corvette. Kurt Ritter, Chevrolets general manager.High-performance American sports car/ luxury sports car/ dream machine/ race carLow connection between Corvette and Chevrolet</p> <p>It should be a flagship model that produce halo effect to benefit the whole Chevy brand.Increase overall Chevrolet brand image/ awarenessTransfer the special emotion (connection?) from Corvette to Chevy</p> <p>Link Corvette with Chevrolet. No longer hide Chevy from Corvettes advertising. Intentionally lead customers to build connection between Chevy and Corvette: emotion, performance</p> <p>Discussion Questions </p> <p>3. Why has Corvette not received strong advertising support in the past? Should the level of support (budget) be increased for the 50th anniversary of the vehicle?</p> <p>Discussion Questions </p> <p>Not top-selling model. The Impala and Malibu enjoyed more advertising dollars, since they are among Chevys top-selling cars. They already became the leader in luxury sports car market, hence Chevy doesnt need to spend too much effort. Corvette had 28% of the U.S. luxury sports car market, which was more than twice the share of the second largest brand.</p> <p>Howeverthey already received strong advertising supports compare to other brands within the same class.</p> <p>YES! We need to increase the budget support, becauseIt is an unique opportunity to arise brand awareness/ reinforce brand loyaltyBuild up the emotional and quality (performance) connections between Corvette and Chevy </p> <p>Discussion Questions </p> <p>4. What would you recommend to Corvette regarding advertising objectives, message strategy, and creative tactics for the 50th anniversary?</p> <p>Discussion Questions </p> <p>Advertising Objective</p> <p>For the whole Chevys product line, reinforce the connection between Chevrolet and Corvette in order to create brand preference and maintain brand loyalty.</p> <p>Differentiate Corvette from other competitors (Sports Car) by establishing the brand and positioning it in a particular way.</p> <p>Discussion Questions </p> <p>Message strategy Affective Strategies</p> <p>Dream Machine, Dreams Continue. Corvette is not only an automobile; it is also a dream in the past, on the road, and in the future</p> <p>Discussion Questions </p> <p>Creative Tactics High-involvement/Transformational </p> <p>Emotional Authenticity for the target audience </p> <p>Overclaimed the transformational key benefits Historical American Dream Machine Public Image</p> <p>Presenter with ideal-similarity. Run a Contest about sharing your dreams Winner Racing Driver </p> <p>Discussion Questions </p> <p>"We want to reinforce the fact that it is a halo product and tie it closely to the Chevrolet brand," said Chevy vice president for marketing Chris Perry. </p> <p>"Every Chevy dealer should try and sell at least one Corvette or they are missing an opportunity," said Steve Hurley owner of Stingray Chevrolet in Plant City, Fla. "It is a piece of history."</p> <p>Discussion Questions </p> <p>5. What recommendations would you make regarding other promotional activities and public relations?</p> <p>Discussion Questions </p> <p>Relationship management:Stakeholders relationships (customers, dealers, employees..)Corporate Social Responsibility (CSR):education, blood donationsPromotion: customer loyalty program e.g. free race trail driving experiences</p> <p>Thank You!</p>