Marketing plan for Chevrolet

Leopard

Team members

Ahmed Mohamed Labib

Basem Sayed

Samah Abd El-Hakam

Ibrahim Sayed

Agenda
Executive Summary.
Vision and Mission.
Situation Analysis.
SWOT Analysis.
Goals and Objectives.
Marketing Strategy.
Marketing Implementation.

Executive Summary
We introduce a market plan for a new car product Leopard
from Chevrolet Automotive Company.
History about Chevrolet and its supplier.
Situational Analysis of the market in Egypt.
SWOT Analysis and Strategy.
Product Implementation.

Vision
Our vision is to make Chevrolet the top
automotive brands within the foreseeable
future.

Mission
Officially there are Five Principles which the
newly reorganized post-recessionary General
Motors company uses to guide its business,
decisions and daily activities..

Safety and Quality First.

Create Lifelong Customers.
Innovate.
Deliver Long-Term Investment Value.
Make a Positive Difference.

Situation analysis
Internal Environment
Micro environment
Macro environment

Situation analysis (cont.)

Internal Environment
Company
In 1911 American Chevrolet was founded by Louis Chevrolet and took the city of
Detroit Michigan as headquarters, the company has one of the first American companies
that fought in the industry of cars and engines.
Chevrolet is the core of the American company General Motors, Chevrolet brand is the
key to the parent company with the competitive price and medium-sized compared to
other brands, they produce different models of different types of vehicles within the
United States and many of them are exported abroad.

Situation analysis (cont.)

Founded in 1983 General Motors Egypt to become the only
authorized agent of the company's General Motors of America and in
the following year opened its first factory in Egypt to manufacture
auto parts to begin production in 1985 the first local car.

Situation analysis (cont.)

Event

Ye a r

The beginning of the production of the Chevrolet

Frontera, Isuzu and Rodeo.

1998

The launch of Chevrolet Aveo and Optra to the

importers.
The launch of a Chevrolet Pick-UP.

2005

The start of local production of the car Aveo.

2007

The start of production and the launch of the Chevrolet

Lanos.

2008

The launch of the Chevrolet Cruze.

The launch of the Chevrolet N200.
The start of production and the launch of the
Chevrolet Captiva.

2009

The beginning of the production and launch of the new

2010

Situation analysis (cont.)

According to a report by the Council of cars during the
first half of year 2015 , Chevrolet first rank on the list
with sales of 31,000 units.

Situation analysis (cont.)

According to a report by the Council of cars in July
2015 ,
Chevrolet is second rank on the list with sales
of 3861 units.

Situation analysis (cont.)

Micro Environment
1.

Customer Consumer Market

Demographic Segment:
Age: Ranges from 25 and it could reach 50 year old people.
Economic status: People and Small families that have salary equal or more than 5000 LE.

Geographic Segment:
All across Egypt.
Behavioral Segmentation:
People who like to have a sedan car.

Situation analysis (cont.)

2. Competitors
Direct Competitors:
Renault Company
strength:
-Experienced business units.
-Skilled workforce.
-High growth rate.
-Barriers of market entry.
-High profitability and revenue.
-Existing distribution and sales networks.
weakness:
-Costs
-Tax structure
-Future profitability

Situation analysis (cont.)

2. Competitors

Direct Competitors:
Renault Logan(Comfort Line)
strength:
Cruise control.
Parking sensors.
LED Day time light.
Low Price.

weakness:
Difficulty with handling power steering wheel.
High price of car spare parts.

Situation analysis (cont.)

2. Competitors
Direct Competitors:
Nissan Company
Strength:
-Strong financial performance
-Strategic partnerships
-Innovative culture
-Growing brand reputation
Weakness:
-Product recalls

Situation analysis (cont.)

2. Competitors
Direct Competitors:
Nissan Sunny(High Line)
strength:

Full Electric power steering

Wide Interior
High from ground
weakness:

No Heat Indicator in Dashboard

Bad air conditioning
High Price

Situation analysis (cont.)

2. Competitors
Indirect Competitors:

Motor Bikes
strength:
Faster, Cheaper.
Weakness:
Not safe, Dont useful for families.

Situation analysis (cont.)

3. Suppliers
General Motors Egypt S.A.E(GME)

is anAmericanmultinational corporationheadquartered inDetroit,

Michigan, that designs, manufactures, markets and distributes vehicles
and vehicle parts and sells financial services.
General Motors produces vehicles in 37 countries under thirteen
brands. General Motors employs 212,000 people and does business in
more than 120 countries.
General Motors Company LLC, ("new GM"), was formed in 2009, after
the bankruptcy of the General Motors Corporation ("old GM"). The new
company purchased the majority of the assets of "old GM", including
the name "General Motors.

Situation analysis (cont.)

Macro Environment
1. Economic Factors:
-Global

Ranking: 125th.

-Regional Ranking: 12th in the Middle East/North Africa

Region.
-Notable Successes: Trade Freedom and Investment
Freedom.

Situation analysis (cont.)

-Changes

in Income

Situation analysis (cont.)

- Changing customer spending patterns.

Situation analysis (cont.)

-Gross Domestic Product(GDP)

Situation analysis (cont.)

- Exchange Rate

-Major Exports:
Crude oil and petroleum products, cotton, textiles, , chemical products,
metal products and agricultural products

-Major Imports:
Machinery and equipment, auto parts, foodstuffs, chemicals, wood products,
plastics, metal products fuels and industrial oils.

Situation analysis (cont.)

-Unemployment Rate:
13.1%( July. 2015)
13.4% (July- Sep 2013)
12.7% (2011/2012)
12% (2010/2011)
9 % (2009/2010)

-Inflation rate:
7.88%( July 2015)
11.5% ( End of August 2014)
6.9% (2012/2013)
8.6% (2011/2012)
11 % (2010/2011)
11.7% (2009/2010)

Situation analysis (cont.)

2-Political / Legal Factors:
- Governmental regulations & rules
The Arab Republic of Egypt is a sovereign, united, indivisible State, where no part may be
given up, having a democratic republican system that is based on citizenship and rule of law.
The Egyptian people are part of the Arab nation seeking to enhance its integration and unity.
Egypt is part of the Islamic world, belongs to the African continent, cherishes its Asian
Dimension and contributes to building human civilization. Sovereignty belongs only to the
people, who shall exercise and protect it. The people are the source of powers, and safeguard
their national unity that is based on the principles of equality, justice and equal opportunities
among all citizens, as stated in the Constitution.
The President of the Republic is the head of State and the head of executive power. He shall
care for the interests of the people, safeguard the independence of the nation and the
territorial integrity and safety of its lands, abide by the provisions of the Constitution, and
assume his authorities as prescribed therein.
The political system is based on political and partisan pluralism, peaceful rotation of power,
separation and balance of powers, the inevitable correlation between powers and
responsibilities, and respect for human rights and freedoms, as stated in the Constitution.

Situation analysis (cont.)

- Tax regime
Income from movable capital: Earnings from interest, executive fees, et cetera,
taxed at 30%
Income from immovable capital:Earnings from land and other real estate
investments, taxed at a rate between 20%-48% depending on the nature of the
properties
Commercial and industrial profits: Earnings from business enterprises that are
not covered under the corporate tax system, taxed between 20%-48%
Professional fees:Simply a term used to describe the earnings of professionals
such as lawyers and engineers. These, too, are taxed at a rate between 20-40%.
Salaries:Earnings from a salary paid to you in Egypt or from abroad for services
you perform in Egypt. Housing allowances provided by companies for foreigners
living in Egypt are exempt from this tax. LE50,000 of salaries are taxed at a flat
rate of 20%.

Situation analysis (cont.)

- Trade policies
The responsibility of trade policy formulation continued to be under the
supervision of the Ministerial Economic Committee, under the chairman
Egypt's foreign trade policy encompasses:
-Import, export and foreign exchange policies
-The customs tariff policy, which is laid down by the Ministry of Finance in
collaboration with
the Ministry of Trade and Supply and in
consultation with the productive sector.

Situation analysis (cont.)

The Government of Egypt has taken wide steps in its policy reform and it
has liberalized price controls totally; they are now market-based except for
an international price for pharmaceuticals, which are progressively raised to
their market value.
There are no pricing restrictions and the policy of cost plus pricing is not
applicable any more.
Egypt does not have any quantitative import restrictions. All quantitative
restrictions have been abolished since 1992, except for clothing items, which
are under conditional prohibition within Egypt's rights under its Schedule
LXIII.
Egypt does not impose import bans in any of its sectors. No import items
are subject to a tariff quota

Situation analysis (cont.)

3-Technological factors
-R&D activity
-Automation
-The internet
-Hybrid engines

4-Natural Factors:
-Shortage of raw materials as iron
-Energy Sources: Natural Oil

Situation analysis (cont.)

5-Socio-Culture Factors
Family structure
The family is the center of social organization.
The father is the head of the household and is responsible for providing for the family.
The mother is primarily responsible for managing the household and is the primary
care- giver of the children.
Girls tend to help their mothers with housework while boys learn a trade, especially
those of poor families.
Children of wealthy families have the luxury of focusing primarily on their education.
In general, men and women have equal legal rights.

Situation analysis (cont.)

Attitudes
Public modesty in dress and deportment is valued in Egypt.
Greetings must precede all forms of social interaction.
To address someone, precede its name with a title of some kind("Amy"=uncle, "Hajj"=a
pilgrim returned from Mecca or simply for an older man, "Duktor"=a person with a
doctorate, and "Muhandis"=an engineer).
Dealing with guests cordially and hospitably. An offering, usually tea or a soft drink.
People have a long tradition of voluntary associations. Currently there are over
fourteen thousand associations, most of which are devoted to charitable purposes.
They are mostly small and local.
Egyptians have loyalty in general.

Situation analysis (cont.)

Ethnic values
The Arab world is tied together by shared language and culture, including shared
Islamic values and practices, and by a sense of shared political problem, even when
countries and people take different positions, they focus on the same problems. Arab
unity is concretized in the Arab League, whose headquarters is in Cairo.

Classes and Castes

In Egypt there is an enormous gap between the very wealthy and the very poor.
Different style housing, transport, dress, language, education, music, and the like
between classes.
The increasing prosperity of Egypt means that the middle class is increasing in
relative size, while the gap between the top and the bottom is increasing.

Situation analysis (cont.)

Child rearing practices
In all parts of Egypt and among all social classes, having children is
considered the greatest blessing of all.
Caring for children is primarily the women's responsibility.
Many Egyptian women (both Copt and Muslim) abide by the Religious
directive
Families invest their children a lot in the education, even low-income families
try to educate their children as much as possible.
Also there is many families cannot afford to educate their children beyond
the elementary level. In addition, many children have to work at an early age
to help support their families.

Situation analysis (cont.)

Religious Beliefs

Egypt is a country of "everyday piety.

Egyptians focus on God as all-powerful, religious practice involves seeking
God's help in over-coming problems and seeking favorable outcomes.
Visiting shrines, often where individuals believed to be beloved of God are
buried, to seek their intercession with God.
Friday is the day for the main Religious practicing for Muslims and Christians.
After a death, both Muslims and Christians try to bury the body the same day.
Condolences are paid immediately, and again after forty days and after a
year.

SWOT Analysis
Strength of the company
Global Presence.
Product innovation & technological advancement.
Parent company General Motors is a renowned brand in automotive industry.
Workforce.

Weakness of the company

Controversies of recalled cars.
Expensive after sales services.

SWOT Analysis
Strengths:
Quality and Safety.
High Specifications.
Low price.
Warranty and Services (we have more than 26 service center in about 16
governorate ).

Weakness:
Lack of car spare parts as its a new make.
Weakness of car painting due to exposing to the sun.

SWOT Analysis (cont.)

Threats:
Dollar value against Egyptian pound value(1 Dollar = 9 Egyptian Pounds).
Instability of customs lows.
Rising unemployment rate.

Opportunities:
Establishing new cities far away from big cities that will open a chance to sell to those
customers like El-Shrok city or 10 th Ramadan city or 6th October city .
New Product.

Marketing Goals and

Objectives
Goals:
Making a car with confidence and high reliability for the Egyptian consumers.
Be one of the highest sales in the Egyptian market.

Objective:
5000 vehicle sales rate in the first year.
With a low sales during the first half of 2000 car.

Marketing Strategy

Marketing Implementation
Differentiation
Form: physical structure e.g. middle sedan car.
Features: satisfy most of consumer needs with sporty design.
The Marketing Mix

Product name: Chevrolet Leopard.

Marketing Implementation
(cont.)
The Marketing Mix

Product

1.6 M/T

( ) 1600

Basic
Engine capacity
Transmission
Transmissions number
Shape

16

Valves number

yes

Electronic fuel injection

128/5000 (./.)

Cylinders number

Torque

(./ )7500/116

Engine Power

Traction type

Seats number

Doors number

yes

Airbags for the driver

yes

Airbags for the front passenger

Marketing Implementation
(cont.)
Product

ABS

yes

Anti-lock braking system

EBD

yes

Electronic brake force distribution

ESP

yes

Electronic stability control

yes

Car immobilizer system

( )

16

Rim size (Sports Rims)

yes

Fog headlights

yes

Fog rear lights

yes

Electronic side mirrors

yes

Side mirrors signal lights

yes

Headlights control

yes

Spoiler

yes

Audio system

AUX

yes

AUX port

USB

yes

USB port

yes

Bluetooth

Marketing Implementation
(cont.)
Product

yes

Front headrests

yes

Back headrests

yes

Electronic front glass

yes

Electronic rear glass

yes

One-touch glass control

yes

Remote control door locks

yes

Driver seat height control

Electricyes
Hydraulic

Panorama Sunroof
Computer
Steering wheel type

yes

Controllable steering wheel

yes

Front doors storage

yes

Fold back rear seats

yes

Cigarette lighter

yes

Moving cigarette extinguisher

yes

Central doors lock

Marketing Implementation
(cont.)
Product

yes

Voice Alert when not locked

yes

Cup holder

yes

Front armrest

yes

Back trunk cover

yes

Back truck light

yes

Multi-function steering wheel

Price
One category with total cost 120000 Egyptian pound.

Marketing Implementation
(cont.)
Promotion
The companys promotion will be divided into four stages and will include the
following:
1.

TV Advertisements

2.

Facebook Advertisements

3.

Google AdSense search result Advertisements

4.

Discount

5.

Charity

6.

Free test drive day

Marketing Implementation
(cont.)
Stage One:
In order to promote our brand awareness we will start by TV
shows ads, and ads that comes with the TV series and films.
This stage will begin one month earlier before offering the car
at the market and itll be shown daily for the first three months.
Stage Two:
In this stage we will target Facebook ads system. One main
advantage of using Facebook ads is its ability to show our ads to
our target audience very fast and they well know our product in
details.

Marketing Implementation
(cont.)
Stage Three:
Google AdSense ads provide amazing methods in order to target what
audiences are looking for right now. This means we can use it to display our
ads immediately to anyone who is looking for cars.

Stage Four:

Ability to exchange most 50 loyal customers' cars with discount up to 5000

LE.

First 500 buyers well get the car with price 115000 LE instead of 120000
LE.

Marketing Implementation
(cont.)
Stage Five:
Give Resala organization 5 cars to celebrate the wedding parties with people
who this organization helps.

Stage Six:
We make a free test drive day to make our audiences know much and test
the car.

Marketing Implementation
(cont.)
Place
It should be available wherever, whenever. This could be achieved by having
as much outlets as possible

Thank you