Evaluate the diversity of vehicle types and sizes that are sold under the Chevrolet brand name. What strengths and weaknesses are evident in Chevy’s product mix?
Chevrolet offers an extensive variety in the company’s product mix. Besides, the wide range of cars is inspired the owner’s belief that the best way to provide competition to Ford, the chief competitor, was through offering a broad variety of vehicles. In agreement with exhibit 9.1, Chevy markets seven cars, four trucks, four crossovers and one vehicle that is powered by electricity in the United States. Moreover, the vehicles are a collection that includes the large suburban as well as the sporty Corvette (Chang 1). Chevrolet sells the Camaro and the Corvette to a class of buyers that would desire a sports car and can afford to purchase one. Also, Chevy offers vehicles that are safe and comfortable to an average family while saving on the cost of fuel. Such vehicles include the Cruze and the Impala that are provided by the company as sedans for the families (Ferrell and Michael 405). Further, Chevy offers to their clients their pickup trucks which are more popular than the cars sold by the firm. For example, the Silverado, which is the company’s most common vehicle. Further, the company introduced the Volt to the product mix to expand further the variety of vehicles it offers. The Volt uses the battery as well as gasoline in the event the electrical charge is consumed.
Chevy introduces a new vehicle model each year. As such, this helps the company deal with the problem of product obsolescence and gain a competitive advantage in the market.
Chevy made a mistake of attempting to drop the nickname “Chevy” in the year 2010. As a result, the company received serious adverse reactions from the Customers which challenged the management to continue using the nickname.
A bankruptcy of GM- Affiliation to brands could adversely affect and eventually ruin the reputation of Chevy.
How has Chevrolet strategically managed its brand and reputation over the last 100 years? What opportunities and threats will affect Chevy’s branding and reputation in the future?
The Chevrolets brand has changed over the years the company has been in operation. However, the company still maintains and uses some themes that it began with, such as the subject of creating quality vehicles that have deep roots in the history of America. Also, Chevy tries to preserve their brand as a central part of the culture of America (Chang 1). Chevy achieves that by associating themselves with sporting events in America. Also, the company makes use of tag lines integrating the name America with an aim to reiterate the relationship.
International markets- Chevy sells more than 4 million cars in over 140 countries (Ferrell and Michael 406). Further, the number is expected to continue growing due to increase in investments by Chevy in additional foreign markets.
The Electric car market provided a good opportunity for the company to make the Volt.
The regulations by the government, especially on fuel efficiency, might force the business to make lighter vehicles as well vehicles that are more efficient.
Secondly, the rivalry with its main competitor, Ford, may intensify because Ford did not accept to be bailed out by the government (Ferrell and Michael 407). As such, Ford will have more advantage especially in the area of combative advertising.
Finally, the rise in the fuel prices and the increase in the use of public transportation may adversely affect the sales figures of Chevy and eventually the profit figures.
What specific marketing strategies would you recommend that might help Chevrolet last another 100 years? How important is Chevy’s legacy of innovation to the brand’s future?
Chevy markets itself as a component of the culture and history of America. However, the company should be more cautious in future when it comes to making such conclusions because the American brand changes extensively in universal value. According to Ferrell and Michael (410), the company should continue to grab market opportunities and continuously modify its products. Finally, Chevy should be adaptive to the changing needs and tastes of its customers and should strive to achieve customer satisfaction. The legacy of the company is critical to the future success of the business because Chevy is one of the companies that is respected in the industry and whose products are loved by a majority of the customers.
Chang, Andrea. “Carmakers show off tech innovations at CES.” Los Angeles Times, January 7, 2016, http://www.latimes.com/business/technology/la-fi-0107-faraday-ces-20160107-story.html. Accessed 16 March 2017.
Ferrell, Odies C., and Michael Hartline. Marketing strategy, text and cases. Nelson Education, 2012.
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