Final Project Lesley Hobbs

An Integrated Marketing

Communication Plan for Chevrolet

Volt

Lesley Hobbs IMC 601 02.25.2016

Lesley Hobbs IMC 601 Final Project February 23, 2016

Table of Contents • 1 Introduction • 2 Table of Contents • 3 Brand Strategy and IMC Objectives • 4 Plan Overview • 5 Competitive Analysis • 6 Communication Opportunity Analysis • 7 Communication Opportunity Analysis • 8 Target Market Analysis • 9 Target Market Analysis • 10 Customer Analysis • 11 Customer Analysis • 12 Customer Analysis • 13 SWOT Internal Strengths (Continued) • 14 SWOT: Internal Strengths) • 15 Internal Weakness • 16 Internal Weakness (Continued) • 17 External Opportunities • 18 External Opportunities • 19 External Threats • 20 External Threats • 21 Market Segmentation Strategy • 22 Market Segmentation Strategy • 23 Brand Strategy • 24 Breakdowns Of Marketing Communication Expenditures • 25 Digital Advertising Strategies • 26 Customer Incentives through Promotions • 27 Interactive and New Media • 28 The Fiesta Movement: A Social Media IMC Success Story • 29 Public Relations • 30 Summary • 31 Sources



Volt : A Brand Independent from Chevy Will Charge Sales, Brand Loyalty, Customer Interactions, Recognition and Market Share

Branding Strategy

Our IMC Objective is to increase brand awareness, market share, interest and customer interactions about the Volt leading to sales through consistent messages in Volt’s products, prices, distribution systems and promotions.

IMC Marketing Communication Goals


An integrated marketing strategy with the Volt as its own brand will combine advertising campaigns with a progressive E-Commerce platforms, social media channels, and alternative marketing. The new promotional tools will include auctions and tours with augmented realities to experience the cars features and benefits. Live Feeds on social networks will be a communication gateway for real time feedback. These tactics will be measured through the use of metrics supported by Google AdWords, Google Think and social media tracking software such as “Hootsuite.” The implementation of these marketing efforts with effective ways to measure these efforts will help the Volt gain additional market share and become America’s truly all-purpose electric vehicle.

Plan Overview


Competitive Analysis

In the EV category, the Toyota Prius is the best seller with excellent brand recognition. The Nissan Leaf is in second place and associated with “innovation” and dedicated green consumers. Chevy Volt currently much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.1


In late 2014, the Nissan Leaf was outselling the Chevy Volt at a 2:1 ratio. 1

There will be continued introduction of key hybrid and electric vehicles. Nissan Honda, Kia and Infiniti will are releasing new EV’s. The Nissan Leaf and Prius is refreshing its models. As the hybrid and electric vehicle market grows, it will become more competitive.2

Competitive Analysis (continued)


Communication Opportunity

Analysis Gen Y trends such as augmented reality, gamification and telematics will redefine user experience and open new opportunities for remote support and logistics. Using “beacons”, wireless digital transmitters located at trade shows can track the movements of show visitors and communicate with them through their smartphones via Bluetooth. The technology is growing in popularity as auto show organizers and manufacturers seek more ways for brands to interact potential and current customers. 3


The Volt can leverage social media, as the marketers behind the Ford “Fiesta Movement” did when they gave 100 free cars to social media influencers. The campaign generated more than 40 million views. The Volt can run a similar campaign since the products have the same target market and segmentation. Such a campaign would be a low-cost way to create a high return on brand recognition, as the Volt’s target demographic primarily views advertisements online.1

Communication Opportunity Analysis


Target Market Analysis

The Volt’s advanced EV technology appeals to an urban, educated and liberal demographic—one that is concerned about climate change.1

Most Millennials are earning between $25,000 and $74,999 in a year, with 23% in the $25,000 to $49,999 range and 14% under $25,000 per year (21% are between $50,000 and $74,999 per year). 4


Millennials are deal with student-loan debt and high city rent. These factors can impact their purchasing power. 47% of Millennials live in urban areas . It’s likely that fewer of those in urban areas need cars than those who live in suburban or rural areas4Millennials account for nearly one quarter of the US population, or about 80 million people—by far the largest adult generation. According to Accenture, by 2020, Millennials will spend about $1.4 trillion annually in the US and account or 30% of retail sales. 4

Target Market


Customer Analysis

Market Factors

1. Urbanization – 47% of Millennials live in urban areas . It’s likely that fewer of those in urban areas need cars than those who live in suburban or rural areas – depending on which city they live in, there might be plenty of easily accessible public transportation. Even the 42% of Millennials and 48% of Gen Xers who live in suburban areas may be close to a transit line that gives them access to the city or another suburb for commuting to work.2


Customer Analysis Market Factor #2

Smartphones and tablets are also a market factor . That may seem unlikely when it comes to cars, but the instant communication provided by smartphones and tablets could quell the need for driving to a friend’s house for maintaining friendships and exchanging information. Selling affordable, practical, fun to drive and fuel efficient cars that fit well in the city and offer of smartphone network connectivity will help work hand in hand with IMC efforts. 2


SWOT Analysis

Internal Strengths: The Chevrolet Volt is not only a groundbreaking vehicle, but consumers are also more aware of the Volt than of the Nissan Leaf. In just four years; Volt has earned more accolades and more “best buy” awards than any other electric cars on the planet. No wonder it’s America’s best-selling plug-in, according to the official Chevrolet website. Traditional customers have trusted Chevrolet to embrace the trend of developing more environmentally friendly products. 5


Chevrolet has several fuel-efficient technologies already on the market, and many more in development. Research shows 2 that the general market demands fuel-efficient vehicles .However, the value difference consumer groups place on the benefits of fuel efficiency varies from target group to target group (for example personal financial benefit of fuel economy versus environmental benefit of fuel economy) so, each target must be approached differently. Chevrolet has five main fuel technologies (Fuel Efficiency, E85 Ethanol, Hybrid, Electric, and Fuel Cell) and they are perceived quite differently among buyers. 2

SWOT Internal Strengths (Continued)


Internal Weaknesses

Price is an issue that can divert potential buyers from purchasing a Chevy Volt. Chevrolet did decrease their price by 6%. Among those not interested in purchasing a hybrid, plug-in hybrid, or all-electric, expense was the number one concern, with 45% saying this is the case. Eighteen percent of respondents also said these types of models are too costly compared to what is saved on gasoline. Seven percent of respondents also say they don’t think they qualify for tax credits for these vehicles. 6


Internal Weaknesses (Continued )

There is a conflict of branding messages between Chevrolet and the Volt. There is dissonance between the two in imaging and messaging. A main competitor is the Chevrolet brand itself. Chevrolet should consider separating Volt from Chevy and re-inventing itself as its own brand. It seems that despite overwhelmingly positive customer reviews and distinguishing performance features, consumers were not resonating with the brand. Major reasons for the Volt’s poor sales include ineffective advertising and communication of the value proposition, as well as a tension with the Chevy parent brand.1


Millennials are valuable customers in several dimensions. They have a substantial amount of buying power when purchasing new cars and they indirectly influenced the purchase decisions of others within their family, circle of friends, and society in general. Consequently, the goal is to understand the motivations and behaviors of car buyers 18 to 30, and how they perceive Chevrolet in their environmentally friendly needs and preferences, and how to best communicate a meaningful green message in order for them to purchase or consider in a vehicle from Chevrolet.

External Opportunities


Providing the youth market with rationale for considering a new fuel efficient or environmentally friendly vehicle from Chevrolet presents the opportunity, to not only analyze how these consumers view the Chevrolet product, but how the younger generation is motivated to purchase a new environmentally friendly vehicle.7

Millennials were far more interested in alternative powered vehicles, such as hybrids and plug-in electrics, when compared to Baby Boomers. Millennials were nearly twice as likely to say they were very likely to purchase a hybrid vehicle, plug-in hybrid vehicle, or all-electric vehicle compared to Generation X, which is the second most enthusiastic group for alternative powertrains. Outside of hybrids and electrics, Millennials show stronger-than-average support for other forms of alternative power, such as compressed natural gas, diesels, and dual-fuel vehicles.2 .

External Opportunities


Industry leader Toyota Prius has the highest overall awareness among all reviewed brands, with just 12% of adults surveyed unaware of the brand (compared with 59% for the Ford C-Max). While sales of hybrids, plug-in hybrids and all-electric vehicles are expected to grow faster than the general new car market over the next five years, competition from natural gas, diesels, and hydrogen fuel cell vehicles could slow down, or endanger growth in this segment. Fuel cells could pose a powerful competitor to hybrids and plug-in electrics, especially as it appears federal regulations and regulations in the state of California are shifting toward supporting this tech solution over others .2

External Threats


Chevrolet’s market research data suggests that individuals’ perception towards Chevrolet is that the company is lagging behind other manufacturers, and has a “gas guzzling” image. Despite overwhelmingly positive customer reviews and distinguishing performance features, consumers were not resonating with the brand. Major reasons for the Volt’s poor sales include ineffective advertising and communication of the value proposition, as well as a tension with the Chevy parent brand.1

External Threats


Market Segmentation Strategy

Automakers can capitalize on Millennials needs and wants for value with small, practical vehicles.6Given their cash-strapped financial situations and tendency to live in urban locations, Millennials will likely be considering small, practical cars that offer safety and good fuel economy without being boring . As a result, today’s subcompact and compact car classes are popular, and there is an opportunity for subcompact and compact crossovers. Automakers that offer enticing products in this space are likely to capture the millennial market.


Price and safety trump tech, but it still matters Somewhat surprisingly, less than one-fourth (23%) of respondents of Mintel Research between the ages of 21-38 said the latest technology enhancements mattered most to them when planning to purchase a vehicle, with price, fuel economy, safety, and lifestyle fit mattering more. Still, nearly one quarter of respondents between the ages of 21-38 say the latest technology enhancements matter the most when it comes to car buying. 2Automakers who can create products that fit their needs and market them effectively stand a very good chance of success with this segment, especially as Millennials age and expand their families and perhaps move to the suburbs. 2

Market Segmentation Strategy(continued)


Brand Strategy

There is a conflict of branding messages between Chevrolet and the Volt. There is dissonance between the two in imaging and messaging. A main competitor is the Chevrolet brand itself. Chevrolet should consider separating Volt from Chevy and re-inventing itself as its own brand. Consumers are not resonating with the brand. Major reasons for the Volt’s poor sales include ineffective advertising and communication of the value proposition, as well as a tension with the Chevy parent brand.

With a new brand, The Volt will be in a better position to use more modern communication channels such digital media and social media enhancing the Volt experience. For example, a customer can “tour "the various features of physical cars using augmented reality, including live social feeds that capture global consumer feedback. 1


41.1%

Marketing Expenditures

Advertising

TradePromotions

ConsumerPromotions

Other27.5%

27.9%

3.3

Breakdown Of Marketing Communication Expenditures 8

Includes Digital


Digital Advertising Strategies SEO Volt Website

Pure online advertising, consisting primarily of search, is the largest digital automotive channel. BIA/Kelsey projects all growth in local advertising for the automotive vertical category will occur on online/digital media, reaching 30 percent of total local advertising by 2019, up from 12 percent in 2015. 3 Industry subcategories featured in BIA/Kelsey's automotive vertical forecast include auto dealers, other motor vehicle dealers, auto parts and accessory stores, tire dealers, and gas stations. The data featured in the report is drawn from BIA/Kelsey's Annual Local Media Forecast and Media Ad View plus Reports, the company's local market ad forecasts that track ad spending across media categories, ad categories and verticals. 3


Customer Incentives Through Promotions Online Contests and Price Reductions

Online Contest/Auction to win a Volt will increase search results and Google algorithms and increase traffic into dealerships . Writing about the auctions on the website will build quality content thereby increasing search results in the Google algorithm . Other IMC benefits of this promotion include attracting more customers , brand awareness; market share and incorporating one of the new ways people form their opinions about a brand . Effective IMC strategies on should be long term. For example, online auctions on Chevrolet.com/Volt could be an annual event and gather potential leads.9

Price Reduction : Employee Level Discounts: Car buyers love a break on price, especially in this market of price driven purchasers. A Dealer Volt promotion with a range of incentives is effective because this market is very price driven. One of the main motivators for Gen Y with fuel-efficient cars is price. 9 This would also create increased traffic, sales and compliment other IMC efforts in advertising, PR and digital media.


Interactive and New Media

Evidence shows that Millennials often look to peers for purchase-related information and this information-seeking behavior is facilitated by their digital connectedness .12 Social networks are where people are consuming content, and educating them on the Volt is working. The strategy is built around engaging and updating people and informing potential customers about the product and thereby increasing positive sentiment about vehicle. 11

Results(January through September): 85 percent positive-to-neutral sentiment towards the Volt. In July 2015 media talk went from 13 percent to 30 percent. The Chevy Volt Facebook page, now has 41,000 fans and is growing everyday. 11

● The Use of Social Networks Can Influence Purchasing Opinions on the Volt Brand ● The Use Of Social Networks Can Educate Consumers on the Volt


Ford Motor Company knew it had to find a way to reach young consumers after redesigning the Fiesta in 2009. The company anticipated the compact would appeal to a generation of drivers who were buying their first car and figured a giveaway would create buzz. Strategy: Ford launched a contest and chose 100 drivers from thousands of entries to drive a Fiesta for a year. They also got free gas, insurance, and video cameras to record honest reviews about the car and were asked to tweet and post videos along the way. Called the Fiesta Movement, the campaign sparked chatter on social media, and the driver-generated content became the basis for the company’s TV spots and print ads. The social media component of the campaign, which helped Ford gain more than 1.8 million fans on Facebook and 206,000 followers on the company’s Twitter page. General Motors, in comparison, has 479,000 fans on Facebook and 91,000 followers on Twitter. 13 A similar Campaign for the Volt will also result in a winning story for the brand!

The Fiesta Movement: A Social Media IMC Success Story With The Similar Comparable Factors :New Brand, First Cars for Young Buyers


Public Relations Public Tours at the Plant How They Will Successfully Integrate Marketing Messages

• Activity will affect internal and external stakeholders from employees to potential customers

• The media used on the tour can help implement consistent IMC messages and reinforce IMC Objectives through augmented reality, for one. A potential customer can test drive the car, right there on the tour!

Video presentations, tour guide narratives and routed tours through different stops along the assembly process will connect the company to the community in a visceral way that will last long after the tour is over. The Volt can integrate its advertising messages and even broadcast a live feed on social media! Public tours can be fashioned to appeal to different groups of car buyers and include components that make the entire experience an event. A tour tailored to families(young, urban and affluent) can include fun fare-like carnival rides, food trucks, fun contests and prizes. In whatever way is chosen, by opening their doors, automakers can use their assembly plants to show just how engrained they are in the community and therefore foster goodwill in the region. 9


Summary : The implementation of these innovative and proven IMC marketing methods and strategies will significantly assist the Volt gain additional market share, brand recognition, brand awareness and sales by becoming America’s truly all-purpose electric vehicle.


1 Youngs, R., Mulligan, G, Zhang. J. Brand Channel (April 21, 2015) Yale on Sustainability: A New Marketing Strategy for

Chevy Volt 2 Healey , T. (June 2015) Marketing Cars to Millennials and Gen X Mintel Market Research Report. Retrieved from Mintel Database 3 BIA/Kelsey estimates automotive businesses will spend $15.1 billion on local advertising in 2015. (2015, May 11). Retrieved from PR Newswire 4 O’Donnell, F. Marketing To Millennials (February 2014) Retrieved from Mintel Database 5 Chevrolet Corporation Website (January 25, 2015) Company Information. Retrieved from http://www.chevrolet.com/2015-volt-electric-car.html 6 Bird, C. (January 2012) Hybrid and Electric Cars Mintel Market Research Report. Retrieved from Mintel database. 7 Chevrolet EdVenture partners directed to manage the writing of the case. Original case developed by Lois Olson PhD

copyright 2007 EdVenture partners. 8 Clow & Baack 7th Edition Pearson Textbook 9 Guarino, M. Imports Versus Domestics - US – (May 2010) Market Research Report. Retrieved from Mintel Database 10 Warc Website GM Backtracks on US 'Fire Sale' Promos, Goes Electric in Europe(August 20, 2008)Data sourced from USA

Today and Financial Times; additional content by WARC staff 11 Splash Media Corporation web Site (October 26, 2010) Retrieved from http://splashmedia.com/blog/the-social-media-

minute-for-october-26-2010/ 12 W. Yilin Mangold, Katherine Taken Smith, Selling to Millennials with online reviews, Business Horizons, Volume 55, Issue 2, March–April 2012, Pages 141-153, ISSN 0007-6813, http://dx.doi.org/10.1016/j.bushor.2011.11.001. (http://www.sciencedirect.com/science/article 13 Laskowski ,A. (October 2013)How Ford Became a Leader in Social Media http://www.bu.edu/today/2013/how-ford-became-a-leader-in-social-media/

Sources

http://www.chevrolet.com/2015-volt-electric-car.html








http://splashmedia.com/blog/the-social-media-minute-for-october-26-2010/
















http://www.sciencedirect.com/science/article

http://www.sciencedirect.com/science/article

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Final Project Lesley Hobbs