Strategy for Corvette
In considering the assessment of the marketing strategy employed by Corvette, the factors that need to be taken into account are the automobile market segmentation, Corvette’s target market along with the brand’s positioning, and the company’s orientation towards new technology. Considering the segmentation of the automobiles market, ‘GM has designed specific models for different income and age groups. In fact it sells models for segments with varied combinations of age and income’.
Thus, GM practices segmented marketing, where the Corvette targets the elite requiring high-performance and the competitive sports industry. Furthermore, American Le Mans Series President and CEO, Scott Atherton has been quoted as saying that competing in the racing series, “confirms GM’s recognition of the importance racing has to the Corvette brand. Without question the Corvette Racing program is the best example of GM racing what it sells in the most relevant way possible.
There is a direct link from the Corvette race car and the Corvette for sale in the showroom that no other form of racing can match. ” (Corvette Racing back for more in 2009, 2008). With regards to the positioning of the brand, Corvette is considered to be the gold standard in GM cars. The latest 2009 Chevrolet Corvette ZR1 with a 620-horsepower engine is worth $100,000 is positioned as a powerful car meant for those with a need for thrilling rides.
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Proposed Marketing Strategy for Corvette Considering the marketing strategy employed GM for Corvette, the technological orientation and the financial position of GM, it can be advised that GM continue to make the Corvette as sales figures show that it has taken market share from competitors indicating that customers are purchasing the car albeit at a lower rate due to the economic turndown and are replacing other cars with the Corvette.
With regards to a strategy to reverse the trend of negative Corvette sales in the future, Corvette needs to take a 360 degrees approach in its marketing communications along with some tactics that the Company can employ in the short run as well as the long run to ensure profitability and viability respectively. In the short run, the pricing policy of the care should be revised in tune with the economic scenario, along with the marketing communications strategy that speaks of the revised price, as well as an environment friendly and technologically advanced machine.
The pricing policy of the Corvette, per se, should be revised downward taking in view the cost-cutting measures and the fall in demand. The communication strategy should indicate to consumers that “we are interested in your benefit and as a result of our cost cuts we are able to transfer some of the advantage to you. ” Further, with regards to the communication strategy, Corvette is seen as a gas-guzzler which is high-performance but uneconomical and low quality compared to the foreign brands.
Thus the marketing strategy should indicate that the new technological advancements have made the Corvette compliant to EPA laws and that the company is constantly innovating to achieve a higher standard and serve consumers better. In the long term; however, GM should pull back its endorsement of the Corvette and gradually make it stand alone as a brand rather than General Motors’ brand which it is currently perceived as. The reasons for this are that GM is a local company and given that local companies have an image of low quality among the consumers, it also tarnishes the Corvette’s image.
Secondly, GM manufactures many brands for various segments of which all are endorsed strongly by GM. Thus, if one brand doesn’t perform well, or if customers are dissatisfied with one brand, it translates into negative goodwill for the entire company and all the brands, including Corvette, which might not even be serving the same market. Given these pointers, GM should be able to continue producing Corvette profitably and serve the needs of its consumers well.
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