General Motors Marketing Mix.
General Motors is among the leading automobile brands in the world with a strong global presence. The company is also a leading player in the US market where it enjoys the highest market share of all the auto brands. It builds and sells trucks, crossovers, cars and automobile parts worldwide. GM has divided its automotive business into two segments including General Motors North America and General Motors international.
In the North American region, General Motors mainly markets and sells Buick, Cadillac, Chevrolet, and GMC brands. Internationally, the company markets and sells Buick, Cadillac, Chevrolet, GMC, and Holden brands. Apart from these, the company also equity ownership stakes in entities (mainly in China) which market and sell products under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. The company achieved total sales of 7.7 million vehicle units in 2019. However, the automobile industry entered a difficult phase in 2019 which led to reduced auto sales in key markets including China.
The sales of General Motors fell to 7.7 million units from 8.4 million in 2018. General Motors is focusing on technological innovation to grow its sales and market share. It has continued to retain a strong market share in the US in 2019 at 16.5%. The spread of Coronavirus has given rise to a new set of challenges before the automobile firms including General Motors. Demand is continuously falling and there is heavy uncertainty in the market. For businesses like General Motors, their marketing mix will play an important role in helping them find growth again once the situation is stable.
Target Market of General Motors:
The target market of General Motors lies in the middle class, upper-middle-class, and upper-class consumers. General Motors has brought an extensive range of vehicles in various price segments. Apart from the competitively priced cars targeted at the average middle-class consumers and families, it has also introduced an excellent range of luxury cars. The luxury cars made by General Motors are targeted at affluent families and wealthy professionals. Another critical customer segment that General Motor targets are the fleet customers, including businesses of various sizes. Chevrolet has introduced an excellent range of luxury sports cars that target young urban affluent consumers. The company targets multiple customer segments, including individuals and families, through its large selection of crossovers, SUVs, and small cars priced along a spectrum that ranges from affordable to luxury.
In this marketing mix of General Motors, you will read about the four Ps including Product, Place, Price, and Promotion.
The company sells a wide range of vehicles including cars, trucks, crossovers, and SUVs. Its vehicle brands include Chevrolet, Buick, GMC, Cadillac, SGMW, Holden, and Baojun. The company has brought a large range of vehicles to cater to the various market segments. Apart from small family cars, it has also brought a large range of SUVs and vans. The company also provides financial services to its customers and dealers through GM financial. Cruise, formerly GM Cruise, is the global segment of General Motors responsible for the development and commercialization of autonomous vehicle technology. In 2017, General Motors sold its Opel and Vauxhall businesses to Peugeot, S.A.
General Motors is a global brand whose headquarters are located in Detroit, Michigan, United States. The company has maintained its global presence through a large network of dealers.
Vehicle Assembly locations of General Motors in the United States
- Bowling Green
- Fort Wayne
- Lansing Delta Township
- Lansing Grand River
- Spring Hill
Apart from these, the company has also established several more plants and manufacturing facilities engines and transmission components as well as other plants in the United States.
However, the production and assembly locations of General Motors are not limited to just the United States. It has also established manufacturing and assembly plants in Canada and Mexico. In South America, the company has established production and assembly plants in Brazil, Argentina, and Ecuador.
Internationally, also the company has established several plants in countries including China, Japan, Korea, Vietnam, and Egypt. In this way, the company has maintained a strong global presence through its manufacturing, supply chain, and distribution network.
The pricing strategy of General Motors is focused on serving various market segments. The products built and sold by the company fall in a varied price range starting from affordably priced small family cars to SUVs in the mid-range as well as larger cars in the premium range.
Chevrolet, one of the leading brands in the portfolio of General Motors has introduced product models in varying price ranges from affordable models to mid-level as well as a few premium models. In this way, the brand caters to the needs of various segments of customers including small families looking for affordable mobility as well as those that want both style and performance and are willing to pay a premium price.
Buick mainly caters to the premium consumers and has brought a large range of sedans, SUVs, and crossovers that cater mainly to the higher end of the market. Cadillac caters to the premium and luxury segments mainly with vehicle models in the price range starting from $33,000 and up to $95,000. Competition in the automobile industry has kept growing intense and to cater to the changing preferences of customers worldwide, GM brought a large range of SUVs. The demand for electric vehicles has also grown and GM is also catering to this segment.
General Motors uses a wide mix of promotional strategies to promote its products before its customers worldwide. It is a well-established brand that already enjoys strong brand recognition worldwide and continuously focuses on strengthening brand awareness through marketing and promotions. Apart from focusing on product quality and consumer experience, the company also invests in advertising and promotions to grow sales.
The company uses digital promotions widely to reach its customers worldwide and engage them. Apart from its own website/s, the company also uses a mix of other digital channels like paid online advertising and social media to grow sales and customer base. Social media has become the favorite channel of automobile brands for marketing and customer engagement. It affords extensive reach to customers worldwide irrespective of their location and also offers a cost advantage that is not available using the other channels. Most automobile brands use Facebook and Twitter to engage their fans.
GM’s individual brands have their own social media accounts that they use to reach their customers and engage their fans. For example, Chevrolet has more than 22 million followers on Facebook alone. General Motors also uses media publicity, events and other types of outreach programs to strengthen brand awareness. Worldwide the company has also won several awards and promotions for product innovation and consumer experience including the JD power awards for quality, dependability, and performance. In 2019, Chevrolet won eight JD power awards in various categories including 4 JD Power awards for quality, 3 awards for dependability and 1 for performance.