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Marketing plan for chervelot small car

Paper Type: Free Essay Subject: Marketing
Wordcount: 2857 words Published: 1st Jan 2015

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Marketing plan for chervelot small car


This term paper is dedicated to my parents, my teacher, my friends and God who helped me to complete this term paper. I am thankful to my mentor Mr. Manish Rajput for his support.

I tried my best to make this paper unbiased and effective.

I have used primary as well as secondary data to make this report.

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I am thankful to the gratitude for all those who helped me to prepare this report.

General Motors (Chevrolet India)

Chevrolet is among the newest brands in India launched by GM’s India operations. Until June 6, 2003 (the official birthday of Chevrolet), GM India (which was originally a joint venture with Hindustan Motors) sold the Opel Corsa, Opel Astra, and the Opel Vectra. Since then, Chevrolet currently sells the Chevrolet Cruze, Chevrolet Optra, Chevrolet Aveo, Chevrolet Tavera, Chevrolet SRV , Chevrolet Captiva SUV,Chevrolet Aveo, U-VA.The Chevrolet launched in India .The latest model launched by Chevrolet is the Cruze.

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General Motors Corporation (GM) is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. GM is the world’s largest automaker as measured by global industry sales and has been the global sales leader for the last 77 years. As of 2008, General Motors employs about 266,000 people around the world. It manufactures its cars and trucks in 35 different countries and sells them under the brands of Buick, Cadillac, Chevrolet, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling. As of 2008, General Motors is the ninth largest publicly traded company in the world. In recent years the company has endured significant financial turmoil, including a 38 billion dollar loss in 2007.

Chevrolet needs a sense of urgency regarding revising a strategic plan that incorporates the next generation of vehicles. In today’s global economy and highly competitive auto industry Chevrolet has no time to dillydally. As stated, Chevrolet has just too much at risk in not becoming an industry leader in alternative fuel technology. Fuel-economy lawmaking is activating the race. This is a critical time in auto industry with many threats, but opportunities as well. The next several years will redefine Chevrolet.

Vision Statement

The GM vision is as follows: GM’s vision is to be the world leader in transportation products and related services. GM will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people.

The proposed new vision for GM is as follows: For GM to become the automotive industry leader in alternative fueled vehicles and providing superior quality products that global consumers call to mind when they think of quality and innovation.

Mission Statement

The current Chevrolet mission statements are as follows: Drive improvements in market share, revenue, brands, people, responsiveness, and cost effectiveness through the implementation of global common metrics and best practice sharing.

The new proposed mission statement will be as follows: Chevrolet will become an industry leader, not a follower. To regain lost market share that was lost to foreign competition, and once again be the auto industry leader in sales and market share in today’s global market.

Values Statement

The auto industry just like the global economy is going through tremendous change, due to rising fuel prices, and environmental worries, such as global warming. Chevrolet must use these threats as opportunities, and take advantage of changing consumer buying habits. Chevrolet needs to change consumer perception of the company, from a dull, poor quality, vehicles to innovative, quality, and environmentally friendly company. To do this Chevrolet must portray an image that states that Chevrolet values what the consumer wants and what the environment needs. Listen to what consumers are saying directly and indirectly about Chevrolet’s current products, and create innovative, green, vehicles that turn consumers into customers. At the same time provide Chevrolet stakeholders pride and financial incentives to remain with Chevrolet.

Automobile industry in India:

Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the foreseeable future. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the auto-component and auto ancillary industry then the number goes even higher.

The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd. and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., and Yamaha etc.

In the initial years after independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a transformation as a result of the liberalization policies which initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian automobile sector consisted of just a fistful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world.

Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player’s future plan. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

  • The first automobile in India rolled in 1897 in Bombay.
  • Fourth largest commercial vehicle market in the world.
  • 11th largest passenger car market in the world
  • Expected to become the world’s third largest automobile market by 2030, behind only China and the US
  • Foreign players are adding to their investments in Indian auto industry.
  • Within two-wheelers, motorcycles contribute 80% of the segment size.
  • Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
  • India is the fifth largest commercial vehicle manufacturer in the world.
  • India is the fourth largest car market in Asia – recently crossed the 1 million mark


The SWOT analysis is a very simple but effective means of carrying out an analysis of a product.

The SWOT analysis is probably the first step in putting together a marketing plan or business plan for any product


What are the strengths of our product? What makes it better than other products? Are these strengths being sufficiently exploited?


What are the weaknesses of your product? What makes it inferior to other products? Are there strategies you should be adopting to offset these weaknesses? Should you be removing these weaknesses completely?


What external factors are there those could be embraced if appropriate resources were allocated?


What external factors is there that threaten to reduce your market share?


  • Subsidiary of GM
  • Huge pool of capital
  • Strong R & D
  • Enough experience of Indian market
  • Growing customer base


  • Not accepted widely as a trusty small car manufacturer
  • No experience of hatchback cars
  • Very small customer base in this sector


  • Can be a major player in this sector
  • Immense growth opportunities in small market


  • Major players like Maruti & Hyundai..holds a great deal of threat
  • Should create a brand image in terms of small car
  • Global players are knocking the doorsteps of Indian customers.

Marketing plan:-

A marketing plan is for the development of a successful foray. The marketing plan is the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels: strategic and tactical. The strategic marketing plan lays out the target market s and value proposition that will be offered, based on an analysis of the best marketing opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channel, and services.

The most successful, efficient and profitable companies are those that have a very clear vision of what they are trying to achieve and how they will achieve it.

Objectives of the Cheverelot:

The objective of the company can be divided into two parts:

  1. Short term objective
  2. Long term objective

Short term objective:

  1. There must be acceptance of the small car.
  2. The customer should take trial of the product.
  3. To capitalize on the growing customer demand for energy efficient cars and secure 10 per cent of the small car market by 2012.


  • By building a new 800 cc engine at our Midlands plant.
  • By distributing direct to consumers and bypassing the traditional dealers and showrooms.


  • PR campaign
  • Targeted radio, TV, print, outdoor advertisement campaign
  • Produce leaflet

Industry Analysis

The question comes up is what Chevrolet should do to return to profitability and increase market share. An analysis of the automotive industry will perhaps identify strategies that would help Chevrolet in interest of its goals.


Since the entry of global car makers 18 years ago, there have been few entrants into the Indian automobile sector. The only manufacturers that have able to establish themselves in the Indian market have been Hyundai and Honda. However, new entrants may be able to find success in developing countries where there is no market saturation.

Buyer Bargaining Power

Individual car buyers have little power over large manufacturers such as Chevrolet, as each car purchase represents only a negligible fraction of a car maker’s total revenue. However, when viewed as a collective entity, consumers have a great deal of bargaining power as the cost of switching to rivals is usually nominal. In certain parts of the world, the consumer can also credibly threaten not to buy at all, as car ownership may not be a necessity.

Supplier Bargaining Power

Car manufacturers are fairly vertically integrated, thus most input supplies are raw materials or basic parts, of which there are generally multiple suppliers. While material goods suppliers may have little bargaining power, employees of car companies can have quite a great deal of leverage in extracting profits from car companies.

Substitute Products

There are a lot of substitutes available in the market in Indian automobile industry. In tier-1and tier-2 cities where public transportation is better supported and more widely used, and the distance of travel is generally less, thus allowing for alternate modes of transportation, such biking or walking.


Price competition in the automotive industry varies around the world. Rivalry is intense in the India, where the product similarity between companies has led to direct competition. The level of rivalry varies in foreign markets, as it is dependent on numerous factors including market saturation, government protection of domestic manufacturers, and cooperation between competing firms.

Long Term Objective of Chevrolet:

1. The long term objective of the CHEVROLET is to become a major force in Indian automotive sector and become the second largest producer of the cars.

Chevrolet Small car marketing campaign:

Chevrolet will roll out an integrated marketing campaign revolving around its mini car.

The strategy takes a 360 degree approach and encompasses print, electronic, radio, digital, outdoor, cinema, CRM, showroom support, direct marketing, mall display activity and rural activation.

“The initial arsenal includes 25,000 cc of print, over 5,000 TV spots, 60,000 seconds of radio, 45,000 spots in cinemas and multiplexes, SMS blasts, etc. Further activities are planned that will leverage cross-promotions with brands that have similar quality and value propositions for the customer.”

Chevrolet’s network expansion drive for service centers is in full swing and 117 locations across India have now been covered with the state-of-the-art, customer-friendly, quick-response service points. By the end of this year, Chevrolet intends reach out even better to its valued customers with a total of 125 sales points and 135 service outlets in place across the country.

Focusing in on the Small Car Market

Despite the slowing growth of the Indian automotive market, a quick look at sales for specific segments reveals that growth is still strong, and substantially increasing, in the one particular segment of the market, the micro car.

All signs seem to indicate that the Indian market’s preference for the smaller vehicles will continue. Even as India’s economic rise creates a sustainable middle class, only smaller cars are within the realm of affordability for these potential first-time car buyers. The fuel efficiency of smaller cars would make these vehicles even more appealing amidst rising gas prices. In addition, most of this middle class still reside in urban areas where traffic is severe and space is limited. Thus, larger sedans or SUVs are impractical even if these vehicles become affordable. Like other foreign manufacturers, Chevrolet has attempted to offset the price advantage of domestics with higher quality.


The marketing mix models analyze data from a different variety of sources. It focuses on incremental growth instead of baseline sale.


The product of the Chevrolet is a small car. That is below 900cc,DOCH, multi jet engine, named as NOVA. It will be available in two variants with the same engine, but different features. We have adopted a product-differtiation strategy.


The price of the car will be around 3.28 lakhs to 4.12 lakhs. Car loan facility will be available for the consumers. The price is selected after a long and tiring marketing research, this price is suitable for the middle class consumers that are the largest chunk of the small car buyers.


The car will be launched on a pan-India basis and the car will be available to all the sales point and sales service at one go.


The promotion part is the most important part of the marketing mix. Because promotion is that tool that aware the consumers that we are here in the market. We have different kind of promotion strategies viz. sales promotion, advertising, sales force, public relation, direct marketing.






the times of india

the hindu


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