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How does it [GM's Brand Strategy] compare to what the competition does by segment? (As part of your answer diagram what segments they compete in compared to the original Sloan Strategy and competitors.)
GM’s competitors have more distinct market segmentations between products or operate within niche segments. GM’s brands overlap gaps in segmentation and offer the lower differentiation we have identified. competitors like Toyota and Honda have their brands distinctly segmented between value and prestige brands, like Lexus and Acura respectively. Analyzing the image on the left, you will notice the variety of brands and where they fall relatively on the pricing line. One of GM's issues was the overlapping of brands. When analyzing the pricing objectives, GM’s competitors have positioned themselves to achieve the four most common.
They are distinctively priced to achieve a target return on investment
There is a stabilization of price in margin through defined segments
Competitors are priced to achieve specific target market shares
GM’s competitors are priced to meet competition
The lack of clarity in GM’s segmentation strategy today creates an environment prohibitive to achieving these common pricing objectives.
In the scope of the six step general pricing model, GM found itself stuck in a frivolous loop between changing prices as needed and analyzing potential for profit. (pause for review) In doing so, GM created egregious overlap in its segmentation strategy and in the general market. Especially compared with foreign competition.
GM Brand Strategy Case Study Assessment
The Big Three in the automotive industry have long held onto their brand strategies because that is what has traditionally worked for them. GM has not had to make difficult decisions or changes because they have always stayed at par or above the competition. However, as other companies in the global market began to show success, results utilizing historical methods began to erode GM’s position in the automotive market. GM became increasingly scattered throughout its General Pricing Model. We have explored several of GM’s efforts to reposition itself to adapt compete in the global market through endeavors with international companies like Daewoo and Fiat. Ultimately these strategies failed falling into the same thematic problems with GM’s pricing model that resonated their on-going issues lacking focus.
Moving forward from these failures, GM needs to reassess its approach to brand strategy, especially stemming from one statement in particular from CEO Richard Wagoner’s strategy: “Clarifying the roles of each of GM’s eight brands”;. This statement alone epitomizes GM’s lack of focus and teetering on the precipice towards failure in the modern market. Major competitors like Honda, Nissan, and Toyota established success utilizing strategies isolating their brands between “Value/Premium” and “Prestige” pricing segments. (Honda/Acura, Nissan/Infiniti, Toyota/Lexus). Based on the competitive success, GM has a second mover advantage to take a step back to improve its brand focus and follow suit from the proven successful strategies and restructure itself within the market. Eight brands is extremely too many. GM should concentrate its portfolio into two brands modelling this segmentation. The most ideal brands are Chevrolet and Cadillac. Chevrolet has a track record of success and has long been the company’s successful premium brand. Cadillac on the other hand has a budding reputation for quality and prestige that GM can utilize to maximize its potential in the “Prestige” pricing segment. Then the company can use this established focus to offset the burgeoning costs elsewhere in the organization.
By concentrating on two primary brands, GM can bring successful models under a focused pricing strategy between two market identified segments. This will in turn help consolidate and intensify marketing efforts while potentially reducing marketing spend, another of Wagoner’s target efforts to reduce costs and improve quality while ultimately positioning GM in a proven strategy to maximize their potential for success.
Assessment of Kodak's Weakened Brand Equity
Prompt: An example of a product that has weak/inferior brand equity. Why does the product that you have selected fit these definitions? Please explain and post an ad or image, and the link of website.
A product that displays a weak and inferior brand equity is Kodak film cameras. Once a household name by way of its Kodachrome film and disposable cameras, Kodak failed to adapt to the digital transformation. Kodak was a laggard as digital platforms for photography emerged and found their way into consumers’ everyday lives. Kodak attempted several product redesigns and creative marketing by tapping into nostalgia, but ultimately failed to maintain its relevancy.
Today, Kodak has lost its position relative to its competitors and has not maintained consistency. Its consumer brand portfolio is full of extended products ranging from its traditional cameras to t-shirts and thermometers. Overall Kodak has lost support of the market. From the mid-2000s to present, Kodak’s sales have fallen from nearly $10B on average to just over $1B annually ($1.029B according to its 2020 10-K).
Corona USA's 'Foreign' positioning in advertising
Prompt: An example of a company or product that uses a 'foreign' positioning advertising/branding strategy (in the U.S.). Please explain and post an ad or image, and the link of website.
Corona USA (the alcohol line of products) is an example of a company or product that uses foreign positioning for its products. The company imprints a sense of “exotic” that one could find and associate with Mexico, where the original company was founded. The company that we know today in the United States is owned by New York based Constellation Brands. Anheuser-Busch owns the brand outside of the United States.
In much of its advertising, the company utilizes two major components to draw its foreign positioning: Spanish language and beaches. The Spanish language component is overtly present in the products from the naming convention to the brand’s tagline, “La Vida Mas Fina”. The product is also frequently referred to as a cerveza, Spanish for “beer”, throughout the company’s website and advertising material. The second component, beaches, is a little more worldly. However, the utilization of the beach image paired with Spanish language component draws an inflection to Mexico.
One perpetuality solidifying this position is the company’s use of the same core Christmastime holiday advertising since 1990. Instead of using imagery of snow and traditional holiday images in its advertising, the company plays understated holiday music while lighting a “Christmas palm tree,” wishing viewers “Feliz Navidad”. This is the most endearing compelling evidence of the company’s intent to utilize foreign positioning in its advertising.
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