Guideline of Marketing Plan Report

The marketing plan must be typed (one-inch margins, single-spaced, 12-point font) and follow the format below.

1. Cover (1 page): Team number, members’ legal names, company name2. Executive Summary (1 page): Overview of the entire plan3. Table of Contents (1 page)4. Project Description and Industry Definition (0.5 page): Provide: (a) company name; (b)

why you selected this company.

GENERAL MOTORS MARKETING PLAN

Marketing Management

Spring I 2020

Section 36, Team 6

Damilola Oladeru

Faddimatou Zebou

Jessica Michael

Pallavi Shettigar

Executive Summary

Table of Contents

Project Description

CompanyGeneral Motors (GM) Marketing ChallengeGM is facing a challenging period of decreased sales, shrinking profit margins, and dropping market shares across the Americas, Asia, and the Middle East. This marked decline in performance coincides with the economic slowdown across the United States and globally. This further compounds the challenge GM faces to recover to their previous performance levels. Altogether, these factors place GM in a very critical position to deliver an effective, memorable and convincing marketing platform that varies geographically and is culturally diverse. Recent setbacks experienced by GM include:

● $194 million loss in the fourth quarter attributed to the 40-day strike by autoworkers.● Temporary factory shutdown in Chinese provinces impacted by the coronavirus outbreak and where sales had fallen by 15% in the last year.● Plunge in demand for small and mid-sized cars in the United States.● Tesla’s market value surpassed the combined value of GM and Ford.

Why is the challenge important to study?

● Despite being the world’s largest automaker, GM went bankrupt in 2009. It is critical to study how the company made its rebound and how GM can prevent a recurrence of similar crisis.● How can GM stand by its vision “to become the world's most valued automotive company” and reclaim its position as the world’s largest automaker?● What strategy can GM adopt to attract consumers who are environmentally conscious?● How can GM compete with Tesla in the electric car market?

Situation Analysis: a. Industry Factor

General Motors (GM) Company is a multinational company founded in 1908 serving six continents with its headquarters in Detroit, Michigan. Mary Teresa Barra is the current Chief Executive Officer and GM’s market includes sales of financial services, full spectrum of vehicle and vehicle parts manufacturing including design and distribution. As of 2019, GM’s reported production output was 7,718,000 vehicles[1] with a revenue of US$137.237 billion and 164,000 employees. Its auto divisions include GMC, Chevrolet, Cadillac and Buick. In addition, GM distributes and sells vehicles under Baojun, Holden, Jiefang, Wuling, Maven and OnStar brands.

The corporate vision of GM is to “become the world’s most valued automotive company’. This vision has been criticized as idealistic at best due to high pressure in a globally competitive automobile market and its undefined metric of “value” which could range from perception of its products to financial performance. In addition, GM’s corporate mission is “to earn customers for life by building brands that inspire passion and loyalty through not only breakthrough technologies but also by serving and improving the communities in which we live and work around the world.” Its comprehensive mission includes a loyal customer base, a defined approach to gaining such customers through its products and organization’s commitment to communities and its stakeholders.[2]

General Motors company offers automotive products under twelve brands which includes automobiles, its parts and commercial vehicles, in addition to a fourth product line of financial services such as loans. The business diversification of its products is considerably fair for its marketing mix. The association of its automobile products and financial services such as auto-loans from GM financial aides the company in generating revenue.[3] Presently, it has a Sedan category which includes Cruze and Sail, Hatchbacks includes Sail-UVA and Beat, and SUVs include Enjoy, Tavera and Captiva. Customers are offered opportunities to customize vehicles to their taste. GM is also known as the first company to release an all-electric automobile and feature a hydrogen fuel cell. As such, the company has a strong reputation for using quality engineering and advanced technology in its product development.

GM’s products are offered at automotive shows and exhibits, dealerships and its websites, all of which provide a competitive advantage through market penetration. Its products are promoted through direct marketing, public relations, social media, celebrity endorsements, and primarily advertised in a variety of media outlets including television and online. Direct selling to customers is also employed by GM dealerships along with promotional deals. GM promotes its products through Discounts during graduations and sponsorship of charitable events or supercar championships as a part of its branding and corporate social responsibility.3 In addition, GM sponsors environmentally conscious initiatives such as recycling product wastes. Currently, GM vehicles are sold in thirty-seven countries and the company has extensive assembly and manufacturing plants in various countries.[4]

GM utilizes cost leadership as its competitive strategy by investment in research and development of energy efficient vehicles. By offering its products at low prices to attract customers, GM promotes a particular perception of its value to the public. Its price points are established using premium and market-oriented pricing strategies. Using its competitors prevailing price range, GM sets its own price accordingly or higher based on the desired

branding of its product such as the 2020 Cadillac XT5 set at $65,895 compared to the 2019 Buick Enclave set at $53,519. GM invests heavily in product development as it gives the company an advantage of improving market presence and in turn, opportunity to maximize sales in the automotive market. Beyond quality and automobile type, prices are influenced by the geography of its market.

The most influential factors in the market plan for General Motors Company are its products, place and price. As the automotive market becomes saturated with competition from Tesla and Hyundai, GM must be flexible in its ability to adjust its marketing mix. For example, GM North America’s break-even point was 10-11 million units which is lower than previous decades. However, GM’s hourly labor cost is $5 billion in comparison to 2005 when its was $16 billion, largely due to cost-saving measures with voluntary employees’ beneficiary association and plant closings in favor of international production.[5] This approach has positioned GM for positive earnings in the future, and decreased pressure to overproduce or convert unsold vehicles into rental markets. Instead, GM can meet the demands of its consumers directly through production of energy efficient vehicles such as light trucks while simultaneously saving on labor costs.

[1] "General Motors Company 2019 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 5, 2020. Retrieved February 16, 2020.[2] Kissinger, Daniel. “General Motors’ Vision Statement & Mission Statement (Analysis).” Panmore Institute, 1 June 2017, panmore.com/general-motors-vision-statement-mission-statement-analysis.[3]Young, Justin. “General Motors Company’s Marketing Mix (4Ps) Analysis.” Panmore Institute, 1 June 2017, panmore.com/general-motors-company-marketing-mix-4ps-analysis.[4] Bhasin, Hitesh. “General Motors Marketing Mix.” Marketing91, 7 Dec. 2018, www.marketing91.com/marketing-mix-general-motors/.[5] Whinston, David. “GM Should Rebuild Its Cash in 2020 While Resuming Share Buybacks.” Morningstar Research Inc., 4 Mar. 2020, caaws.morningstar.com/stock/sAnalystReport?rtc=false&t=GM®ion=USA&culture=en-CA&cobrandid=71&instid=CAAWS.

b. Competitive Set: SWOT General Motors Company has a reputable global presence in the automobile market and

approximately holds 17% of the market share.[1] Based on production, as of 2017, General Motors was ranked as the 4th largest manufacturer behind Toyota, Hyundai and Volkswagen which are currently leading in the global auto industry. [2] (Appendix A, Figure 1) Partnership with China’s automotive industry is a major strength of General motors as it has expanded its global footprint and China accounts for where the majority of its vehicles are sold. Presently GM employs more than 58,000 companies in China and has ten joint ventures with the country under its brands including Chevrolet, Wuling, Baojun, Buick and Cadillac. Access to Chinese local brands have also limited GM’s competition in Asia’s market. A second strength of GM is its market share in the U.S. which is currently the highest at 16.9% as of 2019 (Appendix A, Figure 2). This has translated into significant revenue from the U.S. market. A third strength of General Motors is its variety of brands such as Chevrolet, Cadillac, Opel (Germany), Baojun (China)

which attracts a variety of consumers. Furthermore, GM’s engineering and focus on eco-friendly vehicles is a significant strength in the industry along with its clean-energy patents. This also ties into its sustainability and corporate social responsibility activities which has been applauded as a strength and leader in energy reduction challenge. Finally, GM is leading in battery technology to ensure reliability of its electric vehicles which is on track to roll out by the end of this year in China and its commitment to the “Road to Zero Emission”.[3] Despite GM’s strengths, its weaknesses impact its potential gains and are noteworthy. This includes its dependence on pickup trucks and SUVs which currently drives its sales due the high profit margin. In addition, majority of General Motors revenue depends on markets in the United States and China (Appendix A, Figure 3) which renders it vulnerable to trade wars, unprecedented economic impact of epidemiological threats such as the current COVID-19 pandemic and varying demands by region-specific customers. The dependence on these two major countries’ market has also hindered its presence in other countries such as India. Thirdly, despite the variety of brands in GM’s portfolio, interestingly, none of them are sold using the company name which greatly harms the awareness of its brand as General Motors product. In comparison to its competitors such as Tesla, Nissan or Toyota whose cars are known by the company’s name, GM’s brand recognition is low and attracts high cost of advertising and marketing. Beyond its strengths and weaknesses, General Motors has opportunities in the automotive market including the increasing demand for trucks and SUVs as they are fuel-efficient and prices of fuel are relatively low in the United States. Second, the demand for autonomous or self-driving cars in the world is a great opportunity for General Motors to be a leader or strong competitor to companies such as Tesla. Its OnStar assistant technology makes this opportunity a reality and GM is primed to have a strong market share of this next generation of vehicles. Third, General Motors is a leader in electric vehicles development and its increased global demand is an opportunity to expand its markets and grow its profits. Nevertheless, General Motors faces threats in the fiercely competitive and saturated automotive industry. The major competitors of General Motors include Toyota, Volkswagen, Hyundai and Ford. There is ongoing direct competition in the pick-up truck, electric vehicle and autonomous market from Chevrolet and Tesla respectively. Within China, other brands are indirectly competing with General Motors through their low entry market price of similar vehicles. Secondly, it has been suggested that the volatile dollar exchange rate can impact General Motors profitability as a significant revenue is generated in markets outside the United States.[4] Third, the first major labor action in the U.S. automotive industry in almost a decade was the General Motors strike which began in September 2019. This strike involved 48,000 GM employees and severely impacted its third and fourth quarter earnings. The strike was a result of an expired contract between GM and United Automobile Workers who demanded for increased job security, higher pay and maintained healthcare benefits. This 40-day strike translated to a $4 billion loss for General Motors in 2019 and repeat of such in the near future poses further threats to its reputation and position in the automotive industry.[5] Finally, there are predictions of global decline in vehicle sales over the next three years as customers are lured to the used-car market.

This is a major threat to General Motors revenue and ability to invest in research and development for future products.[6]

[1] Wagner, I. (2019) General Motors’ U.S. market share from 2000 to 2018, based on vehicle sales, available at: https://www.statista.com/statistics/239607/vehicle-sales-market-share-of-general-motors-in-the-united-states/[2] Sawe, Benjamin Elisha. (2019, June 7). The World's Biggest Automobile Companies. Retrieved from https://www.worldatlas.com/articles/which-are-the-world-s-biggest-automobile-companies.html[3]General Motors CSR Milestones. (n.d.). Retrieved March 9, 2020, from https://www.gmchina.com/company/cn/en/gm/csr/milestones/2018.html?id=1583857047907 [4] Jurevicius, O. (2016, December 8). SWOT analysis of General Motors. Retrieved March 9, 2020, from https://strategicmanagementinsight.com/swot-analyses/general-motors-swot-analysis.html[5] Wayland, M. (2019, October 29). UAW strike cost GM up to $4 billion for 2019, substantially higher than estimated. Retrieved March 9, 2020, from https://www.cnbc.com/2019/10/29/uaw-strike-cost-gm-about-3point8-billion-for-2019-substantially-higher-than-estimated.html[6] Eisenstein, P. (2019, June 26). Edmunds warns of a tough 2019 for US auto industry as sales slide for second time since Great Recession and profits shrink. Retrieved March 10, 2020, from https://www.cnbc.com/2019/06/26/edmunds-warns-of-a-tough-2019-for-us-auto-industry-as-sales-slide.html

c. Industry Forecast (1 page): Using secondary data and your knowledge of the industry, estimate what will likely happen in the industry for the next five years. A simple extrapolation method is sufficient, although you should feel free to use a more sophisticated approach if you have the data. -- Pallavi

The automotive industry is slowing down faster than anticipated and threatening the economy. According to the International Monetary Fund, automotive production and sales have been declining since 2018. International car sales were expected to reach 80 million in 2019 but the demand is shrinking based on the current economic outlook (Statista). The decline seems to be the result of some markets reaching their maximum automobile saturation, also referred to as “peak car”. In light of “peak car”, automakers in countries such as the United States and Germany have tried to increase global sales by tapping into growing Asian markets. However, Chinese automobile sales fell as well and there are fears of a possible recession. Since the automobile industry relies heavily on China, this could be hazardous.

The recent coronavirus epidemic that originated in China is impacting the already

struggling automobile industry. China has faced the biggest impact so far with car sales dropping by 80% in February of 2020 compared with the same month of 2019 (WSJ). Outside of China,

production plants were impacted in Japan and South Korea because of shortages in auto parts. That meant temporary shutdown for some automakers including GM (CNBC). This blow to the supply chain is expected to cause widespread disruption in production, costing millions. Automakers are therefore scrambling for auto parts and trying to find alternatives. Moody’s Investor Service forecasted global sales to be down 2.5% this year instead of the original 0.9% drop before the coronavirus epidemic.

GM’s North American production could be impacted by the coronavirus as early as the end of this month. GM’s CEO says that there are enough parts to continue production until then. There may be a threat to the production of GM’s most profitable full-size pickups and SUVs. Specifically vehicles most likely to be impacted are Chevrolet Silverado, Tahoe, and Suburban, GMC Sierra pickup trucks and Yukon, and Cadillac Escalade SUVs (CNBC).

Future Trends

Automobiles are expected to become increasingly electric (Appendix B). Vehicles are also expected to move more towards autonomous capabilities. The digital disruption of the automobile industry has the senior representatives talking about digitalization of technology to keep pace with future trends. GM anticipates spending more on research and development of electric cars over the next five years. GM and LG Chem are starting a joint venture to build an electric vehicle battery plant in Ohio (Paul, 2019). Moving the battery production plant onshore will help minimize supply chain interruptions - as in the impending parts shortage related to coronavirus - but the construction is not set to begin until mid 2020.

5. Marketing Strategy: This section consists of the following 3 sections.a. Market Research (1 page): Try to better understand what your current and/or

potential customers would want from your company by collecting information. You can read articles (from credible sources) on consumers of your chosen company/industry, analyze secondary databases on consumers of your chosen company/industry (if such dabatases are available), adopt field observation (i.e., observing consumers and their behaviors during store visits), or use netnography (i.e., observing and analyzing consumers’ online behavior, comments, and reviews). Specify where (what journals, websites, databases, retail stores, social media sites, etc.) and how you collect data. Specify your sample size if applicable. -- Pallavi

The 2020 Global Automotive Consumer Study conducted by Deloitte, surveyed 35,000 consumers across 20 countries to find out their preferences about autonomous vehicles, electric vehicles, connectedness, ridesharing and more. The survey found that 41% of consumers in the United States are interested in having an alternative engine in their next car with 27% of those interested in hybrid cars. Main drivers for the shift in interest from internal combustion engine to alternative powertrain technology are lower emissions and lower consumer operating costs.

At the same time, consumer interest in autonomous vehicles has stalled since 2019 in most markets. Consumer perception of self-driving cars are significantly impacted by safety concerns. In 48% of the US consumers’ opinion, fully autonomous cars are unsafe.Consumers are undecided about the advantages of increased connectivity of their cars over privacy. They are cautious about their vehicles collecting and sharing consumer data. Survey shows that the US consumers trust the government the least with their data.Although global consumers unanimously support the use of mass transit to reduce traffic congestion, their behavior does not correlate with this ideology. Fewer than one in five people use multi-modal transportation in the US, making Americans the hardest group of consumers to make the shift.

GM’s Consumer Affairs reviews draw attention to several customer service issues. Unavailability of parts seem to be the overwhelming concern and cause of frustration among many customers. Some say that production of new cars with these exact parts should be paused until current customers are taken care of. GM blames the shortage of parts on the six-week long union strike that ended in October of 2019. GM is still unable to meet the demand for parts. Consumers are also angry about GM’s lack of concern for their situation and providing limited support while their cars are indefinitely in the shop waiting on parts.

b. STP (1 page): Provide your benefit segmentation of the market in which you compete and indicate which segment(s) you now serve (if any). Develop positioning strategy. -- Jessica:

Segmentation, Targeting & Positioning

Currently, GM segments their consumer market using demographic, psychographic, and geographic bases, focusing specifically on gender, age, level of income, marital status, and region of residence. Due to the nature of this critical juncture in GM’s performance outlook, it must use trend analysis to more specifically pinpoint the profitable consumer base of the future. The EV market is a smart place to target market share because changing regulations in fuel efficiency standards are mandating legislative pushes to shift the entire automotive market toward greater fuel economy over the next five years. Additionally, the infrastructure required to support wide adoption of these vehicles, like widespread access to charging stations, have significantly improved across the country.

GM needs to understand how it can leverage and target environmentally conscious consumers who are eager to purchase electric cars and can be easily swiped from their customer base by competitors like Tesla, who specialize so deeply in this arena. GM has embraced the potential to make a name for itself in this new environmentally conscious market share, creating 20 electric models by 2023 and hoping to sell over one million electric cars per year in the US and China by 2025. GM needs to apply its typical standard – creating diversified lines of products that are suitable to the needs of many different target consumer groups – to its new line of electric vehicles. GM has historically made a name for itself by allowing customers sufficient options to choose a vehicle that meets their unique personal taste/desire but also fits within their spending range. In order to compete with companies like Tesla, boasting a range of luxury electric vehicles at increasingly affordable prices, GM has to offer a line of diverse electric products that meet the target demographic of more than just one broad, environmentally conscious, consumer group.

Though GM has made an international name for itself in over thirty countries, the target of this electric vehicle marketing strategy is to focus on the US domestic market – the area that GM has made the strongest historical impact and has the most loyal consumer base. In the face of highly volatile international markets, this allows GM to target North American buyers who already make up a core segment of the current GM buyer base. This domestic strategy helps GM avoid volatility in global markets, especially in such an uncertain period during a looming international epidemic, and streamline focus to capitalize on transformations taking place in domestic markets. Within this region, the electric market specifically offers GM market opportunity from consumers with a marked desire to shift their behaviors to be more environmentally focused. GM signed a deal with Honda in 2018 to work toward enhanced development in hydrogen cell technology and battery components. This allows GM to fuel an integrated marketing system of mutual benefit – GM getting access to Honda’s electric expertise and Honda receiving access to GM’s extensive battery manufacturing capabilities.

Within the domestic market, millennials provide the greatest opportunity for GM to capitalize on electric profitability. Millenials are more in tune with developments in technology than other audiences and typically meet the general income and age requirements to purchase an electric vehicle. GM’s initial electric vehicle, the Bolt, is thought to offer high consumer value because of its low price point. GM can continue to build off of this already established, high-value, low-cost perception, in developing its wider range of EV offerings.

With Tesla as its most immediate competitor, GM needs to leverage the areas where it already achieves market skew to target and position themselves with the audience most likely to purchase their EV products. Unlike Tesla, which has a disproportionate amount of male purchasers, GM almost equally attracts both male and female buyers. Additionally, GM has a significantly larger market share for purchasers that are suburban and middle income while Tesla’s main audience is urban and high income. GM needs to develop further EV marketing

content, stressing the advanced offerings it is bringing in its EV line, to millennials of both genders who live in suburban areas and can be considered middle income. GM should capitalize on what it has done well in its EV line thus far by earning the attention of this group and enticing them with the huge range of expansions being offered through its Cadillac brand, specifically.

c. Objectives & Strategy (1 page): State marketing objectives in terms of sales volume, market share, return on investment or any other objectives for your marketing plan. If you are not yet certain of numbers, provide your best estimates. -- Jessica:

Objectives & Strategy

GM’s market focus in North American will continue to serve its core market of truck and SUV buyers, who choose GM for its luxury, high-end and durable product offerings. Due to behavioral and regulatory influences, and a firm commitment by GM to transform to new efficiency standards, GM expects the majority of its Cadillac cars and SUVs to be electric by 2030. They have also stated a public goal of selling one million electric vehicles, per year, by 2025. Projecting that Cadillac will be its leading electric vehicle brand over the course of the next ten years, GM can use the segmented target market of young, suburban millennials, described above, to drive Cadillac-centric marketing campaigns to the 18-34 year olds in these regions classified as middle income. This strategy will position Cadillac to drive major expansion in their own personal EV line but also in the overarching market share for electric vehicle manufacturers.

GM’s first line of electric vehicle expansion will be through multiple SUV offerings. To penetrate this market, GM needs to compete with Tesla, which sold just over 19,000 of their SUV model in 2019. Incorporating projections for steady growth and market competition, GM can target sales of 25,000 of their Cadillac Escalade series or SUV alternatives in their first year of production. Looking at sales of all of their EV offerings, GM’s EV specific marketing plan can allow them to grow their sales to 15-20% of the overall domestic market by 2023. This could account for up to $2.81 billion in annual revenue for GM EVs alone.

As a result of substantial capital investments in the electric space, including joint ventures with battery and technology companies, GM is in a position to deliver new standards of electric capabilities to meet the evolving needs of middle income, suburban millennials. By offering the future EV Cadillac series alongside its existing product offerings, GM can capture an established group of buyers who are prepared for the evolution of the Cadillac brand into a new age of electric vehicles. In order to accomplish this sales volume and begin trending toward its 2025 EV goals, GM must provide the Cadillac EV series at a competitive price compared to other EV leaders, namely Tesla.

GM is producing a wide range of EV SUV offerings through its Cadillac brand and has the potential to surpass its competitor, and win a notable amount of the EV market share, by attracting mainstream buyers who want to see a line of high-performing EVs at a lower price. Though Tesla is highly popular and boasts the highest EV sales volume in the US currently, it is critical to note that Tesla has not had a profitable year since 2003. In contrast, GM predicts that

its line of Cadillac electric vehicles will generate a profit shortly after they are first introduced to the market. There are few other automotive manufacturing companies that have developed a robust electronic vehicle plan that rivals or even compares to GM’s strategy. GM has proven that it has done the research and provided the infrastructure needed to support this new electric extension of its core service offering.

Electric vehicle manufacturers have been growing their business lines significantly in recent years. Based on past performance, GM can reasonably expect to grow its own line by 50-60% between now and 2025. US market revenues from electric vehicles reached almost $16 billion in 2019. Tesla accounted for nearly 80% of these sales but GM is looking at an open door to penetrate this market. It is already positioned as the second performing EV producer and can be the first company to generate notable EV profits as a result of its strategic partnerships and nuanced market segment. This would enable GM to hit its target of nearly $3 billion in US revenues for electric vehicles and expect a consistent year over year growth rate looking over the next decade and beyond.

6. Marketing Mix (2 pages): In this section, you develop a marketing mix (product, price, promotion, and place) to solve the marketing problem and to achieve the objectives. Apply digital marketing techniques (online, social media, and mobile) along with traditional methods. -- Faddima

Marketing Mix

The marketing mix of General Motors helps in the growth and development of the business in the automotive industry. A company's 4Ps, that is, Product, Promotion, Place and Price or marketing mix specifies the strategies and approaches that address the potential target market. This target market is based on the details of marketing plans developed with the help of these 4Ps. A detailed explanation is provided below.

Explanation: The marketing mix of General Motors follows the multi-tiered approach. This approach addresses the differences between the product lines and its regional automobile markets. The aim of the company is to maximize the sales and thus improve its market presence.Following are the marketing mix or 4Ps of General Motors:

1. PRODUCT

This pertains to the product or outputs of General Motors. Each of its product lines always represents a group of products or outputs. The whole set of products is known as the product mix. General Motors offers a wide variety of the product, which includes various brands, models

and types of automobiles. The following are product line available in the product mix of General Motors:

a. Automobiles, that include GMC, Chevrolet, Buick and many more to its target market worldwide.b. Automobile partsc. Commercial vehicles4. Financial services, that is operated as the company's subsidiary.

2. PLACE

The physical locations and virtual locations of the transactions are taken into account under this aspect of the marketing mix. It is important because it enables and ensures the company is reaching its target market and customers. This also allows the customers to access information and the company's products available from its automotive business. The company uses the following places in its products and services distribution:

a. Official websitesb. Dealershipc. Automotive exhibits and shows

3. PROMOTION

Activities which involve the promotion of the company's products and services are considered under this aspect. It is also known as marketing communication tactics. The promotional activities used by the company are as follows:

a. Advertisingb. Direct marketingc. Personal sellingd. Sales promotione. Public relations

Advertising is the primary method of promotion. The company uses various methods of media which also includes online media and traditional outlets like magazines and televisions. These methods help the company is targeting a large population or range of target customers in the regional, global and domestic market of the automobile.

4. PRICE

Setting the price range and points of the products is the main discussion point under this aspect. The values of products and its brand are affected by its pricing and thus, influences its sales. The following are the pricing strategies of General Motors:

a. Market-oriented pricing strategy, under which the company sets the prices according to the prevailing prices in the global market of automobiles.b. Premium pricing strategy, under which the company sets a relatively higher price corresponding to its premium branding. The Digital marketing technique is used by the company in the promotion aspect of the marketing mix. It includes online social media for the purpose of advertising its products and services.

The Traditional method of marketing includes magazines, newspapers, personal selling and so on for the purpose of advertising its products and services.

7. References (maximum 2 pages)

8. Appendix (maximum 4 pages): Attach any information that will support your arguments. For example, you may include an income statement for the product and some promotional material, or you may attach a hypothetical print advertisement.

Appendix AU.S. Light Vehicle Sales Forecast

Source: Historical data – Ward’s Automotive Intelligence; Forecast – Center for Automotive Research

Appendix B

Appendix B

Figure 1: Ranking of Car Companies by Units Produced. Source: https://www.worldatlas.com/articles/which-are-the-world-s-biggest-automobile-companies.html

Figure 2: Estimated Market Share in the U.S. 2019. Source: https://www.statista.com/statistics/249375/us-market-share-of-selected-automobile-manufacturers/

Figure 3: General Motors Global Sales – Q4, 2019. Source: https://investors.gm.com/static-files/6eccfabf-49f6-4c38-928b-052dcf5ce314