WAPA09

A MARKETING PLANAcharya, Green, Kas-Osoka, Rondez, Tran and Turner

Marketing Strategy 57102/10/11

Special Guest: Kathy Klotz

OnStar Rearview Mirror

OnStar

Roadmap

Mission

• To keep you safely connected in ways you never thought could be possible driving an non-General Motors cars.

Product Description

• OnStar Rear-view Mirror • Traffic Update:– Will provide live traffic updates

• Accidents• Weather-related issues• Slowdown spots• Will suggest alternative route

• Weather:– Will provide live weather

updates• Direction• Within a 100 miles• Wind speed• Possibility of rain or storm• Snow fall

Targeting Market

• Families• Safety• Efficiency• Stability • Brand growth

• Young Adults New Drivers

• Aware of surroundings Expansion

• Economic and Social Value

• Big cities like Shanghai

Market Needs

United StatesContinued consistencyNew Technologycapabilities Easier useProvide consumers withcentralized supportGive weather and trafficupdates in an instant

China• Tremendous success as an

upscale marque• Change in public perception• Information-gathering

ability• Use of new tech factors

such as smart phone capabilities

• Strengths– Strong GM brand name– Excellent reputation– Safety 1st

– Connections– Globally in 32 countries

• Weaknesses– Weak GM brand name– Lack of patent protection– Lack of customer’s

connections– Innovation of new product

• Opportunities– New technology– Selling product international– Adding safety to the road

• Threats– Consumer not adapting– Blue Link technology– Changes in regulations– Cost of plans and services

Competition

• Hyundai’s Blue Link Systems– For low and mid-range

customers– Telematics system for safety– One-on-one assistance– Entertainment– Charges between $100

annually

• GM OnStar Rear-view Mirror– For low and mid-range

customers– Telematics system for safety– One-on-one assistance– Charges between $200 to

$300 yearly– Operates Global Positioning

System (GPS)

Marketing objectives

• Motto “Safety, Security and Communication”.• Rear view-mirror in the US and China.• Lunch as a new product( add in).

Traffic Update and Weather bottom.• Inter into the international market with new product.

China-Beijing• Identify the target markets and Buyer motivation

points Younger generation

Marketing Strategy

• SWOT analysis• Sell Rear view to Non GM cars also.• Find local business partners at China.• China’s Monetary policy for microeconomic management.• Follow the 5 M’s

• Mission, Money, Message, Media and Measurement. price stability, full employment, international balance of payments,

and growth

• Communication plan personal selling, events and experiences, sales promotion,

advertising, public relations and publicity, and direct marketing

Pricing

United States

Service Only Safe and Sound $199?year or $18.95/Month Direction and Connection$299/Year or $28.90/Month

$ 299 –Rear view Mirror

China Service Only Direction and Connection$75/Year or $7/Month

$50- Rear view Mirror

OnStar Pro-forma in the U.S.

OnStar Pro-forma in the U.S.

Service Only - $199/year

(in thousands)

2012 2013 2014

Revenue 1,094,500 1,422,850 1,849,705

COGS 437,800 569,140 739,882

Gross Profit 656,700 853,710 1,109,823

General, Selling, Administrative Costs 394,020 512,226 665,894

Income Taxes 110,326 143,423 186,450

Net Income 283,694 368,803 479,444

OnStar Pro-forma in the U.S.

Rear-View Mirror - $299

(in thousands)

2012 2013 2014

Revenue 2,549,872 3,314,834 4,168,060

COGS 1,529,923 1,988,900 2,500,836

Gross Profit 1,019,949 1,325,933 1,667,224

General, Selling, Administrative Costs 611,969 795,560 1,000,334

Income Taxes 171,351 222,757 280,094

Net Income 440,618 572,803 720,241

OnStar Pro-forma in the U.S.

OnStar Pro-forma in the U.S.

Rear-View Mirror - $50

(in thousands)

2012 2013 2014

Revenue 511,800 511,800 511,800

COGS 102,360 102,360 102,360

Gross Profit 409,440 409,440 409,440

General, Selling, Administrative Costs 163,776 163,776 163,776

Income Taxes 45,857 45,857 45,857

Net Income 117,919 117,919 117,919

OnStar Pro-forma in the U.S.

OnStar Pro-forma in China

Service Only - $75/year

(in thousands)

2012 2013 2014

Revenue 22,500 30,000 37,500

COGS 4,500 6,000 7,500

Gross Profit 18,000 24,000 30,000

General, Selling, Administrative Costs 7,200 9,600 12,000

Income Taxes 2,016 2,688 3,360

Net Income 5,184 6,912 8,640

OnStar Pro-forma in China

OnStar China

Market Research Plan

Population• China – 1,331,460• U.S. – 310,788,625

Trend• 35 cars per 1,000 people in China• 850 cars per 1,000 people in the U.S.

Market Share

China – 14.7% U.S. – 18%

Culture• China: Aspirations focused to own a car• U.S.: Necessity in daily life

QUESTIONS ?