The United Kingdom has left the EU. Let us assume you are… The United Kingdom has left t
The United Kingdom has left the EU. Let us assume you are… The United Kingdom has left the EU. Let us assume you are responsible for marketing GM’s Chevrolet (Case #9) in the UK. How does Brexit affect your next 5-year strategic planning? Discuss the implications of the new EU (without UK) on your regional product and pricing strategies. CASE 9 Chevrolet: 100 Years of Product Innovation* Synopsis: This case examines Chevrolet’s history of product innovation, branding strategy, and successful product mix in connection with its relationship to parent General Motors and its rivalry with Ford. Chevrolet has a long history of success in developing and marketing cars, trucks, and SUVs that are practical, sporty, and affordable. The brand’s relationship with General Motors is both a strength and a weakness, especially in the aftermath of the federal government’s financial bailout of General Motors in 2008. Government demands for improved fuel economy and ever-changing customer needs and preferences will be constant challenges as Chevrolet looks toward its next 100 years. Themes: Product innovation, product mix, branding, product strategy, competition, corporate reputation, evolving technology, customer loyalty, government regulation, international marketing General Motor’s (GM) Chevrolet brand celebrated its 100th anniversary in 2011. Throughout its history, Chevrolet has launched many different vehicle models, some of them widely successful and others deleted from the product mix shortly after introduction. Over the years, the company has transitioned from an American icon into a worldwide brand known for quality and durability. Despite numerous successes and failures in its history, including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going strong after a century of product innovation. A History of Product Innovation Ironically, Chevrolet exists because of its top competitor, Ford Motor Company. William Durant founded Chevrolet in 1911 to compete for head on with Ford’s popular Model T. Durant had formed General Motors in 1908 but was ousted from the company three years later. To compete against Ford’s single model of vehicle, Durant realized that GM would need to create several different models. He applied this idea to his new company, Chevrolet. The brand was named after Louis Chevrolet, a top racer who was hired to design the first Chevrolet. Chevrolet’s initial model cost $2,000. This was a high-priced vehicle at the time, which Durant disliked because he wanted to compete directly against Ford on price. A disagreement between the two men resulted in Chevrolet leaving the company, but the name of the brand stuck. In 1915, Chevrolet released a less expensive model priced at $490, the same price as a Ford Model T. The company was acquired by General Motors in 1918 after Durant gained controlling shares in both companies, and Chevrolet went on to become one of GM’s most popular brands. Durant once again became GM’s president but was ousted a final time in 1920. With the Chevrolet brand, GM was able to give Ford a run for its money. In 1912, Chevrolet sold 2,999 vehicles, a mere 1 percent market share in the United States. By 1920, Chevrolet was selling over 100,000 vehicles, and in 1927, it surpassed Ford in a number of cars sold. Five years later, one-third of cars sold in America were Chevrolets, although the Great Depression significantly weakened company sales. Over the ensuing decades, Chevrolet attempted to position its products as cutting-edge, equipping its vehicles with innovative technologies and even forming a joint venture with competitor Toyota in 1984 to learn more about Toyota’s famous production system (in turn, Toyota was able to gain entry into the U.S. market). The partnership, called New United Motor Manufacturing Inc., lasted until 2010. From its beginning with namesake Louis Chevrolet, the company had a penchant for racing. Chevrolet continued courting racecar drivers as endorsers, and racing greats Junior Johnson, Mark Donohue, Tony DeLorenzo, Dale Earnhardt, and Jeff Gordon all won races driving Chevrolet models. More recently, the Chevrolet Cruze, one of the company’s most popular models, won the Driver’s Championship and Manufacturer’s Championship in the 2010 World Touring Car Championship races. Chevrolet’s association with racecar driving has established many of its models as sporty, high-quality vehicles. Chevrolet also provided engines for the 2012 Indy Racing League. By reentering the Indy Racing League, Chevrolet has reinforced its racing heritage and brand image. Chevrolet’s Product Mix Over the last 100 years, the Chevrolet brand has been associated with almost every type of vehicle on the road. The company has developed large trucks; delivery vans; full-size, midsize, compact, and sub-compact automobiles; sports cars; and even racecars. This broad portfolio of products falls under the Chevrolet brand because of the strong brand equity that Chevrolet has developed over the last century. A vehicle’s brand provides many intangible attributes related to quality, design, utility, and self-image for the buyer. It is not uncommon for consumers to have extreme brand loyalty to either Chevrolet or Ford, especially in the purchase of light trucks. Therefore, most of the vehicles sold under the Chevrolet brand name start with a competitive advantage over many other existing brands of vehicles. This is why General Motors uses the Chevrolet brand name on a broader diversity of their vehicles than any other brand. For instance, Cadillac, Buick, and GMC have much narrower portfolios of vehicles and more distinct brand images. Consequently, the Chevrolet brand is an asset to the launch of a new vehicle such as the Volt, an electric vehicle. Over the years Chevrolet has had many models, and not all of those models are discussed in this case. Case Exhibit 9.1 shows the entire portfolio of Chevrolet vehicle models sold in the United States. Here, we look at a number of models that represents the diversity of the Chevrolet product mix that exists today. Chevrolet is credited with being the first carmaker to create the idea of planned product obsolescence. Based on this concept, Chevrolet introduces a new car model each year, a type of product modification. This marketing strategy allowed Chevrolet to overtake Ford in sales. Many consumers look forward to each new model and are often encouraged to trade in cars every year. Chevrolet Models Sold Within The United States:CarsSUVs/CrossoversTrucks/VansElectric VehiclesSonicEquinoxColoradoVoltCruzeTraverseAvalanche MalibuTahoeSilverado CorvetteSuburbanExpress Impala Spark Like all established companies, Chevrolet vehicles underwent several successes and failures. Some vehicles that Chevrolet thought would succeed failed miserably. The 1962 Chevy Corvair was a popular Chevy vehicle until Ralph Nader published Unsafe at Any Speed, which pointed out safety issues with the Corvair’s steering. The car was eventually deleted from Chevrolet’s product mix. The Chevy Vega was another product failure after complaints of the car’s poor quality and product recalls created negative publicity. On the other hand, many Chevrolet vehicles became immensely popular, and some, such as the sporty Corvette, still exist today. The following vehicles helped cement Chevrolet’s reputation as an icon. Chevy Corvette The Chevy Corvette is one of Chevrolet’s most important milestones. The Corvette, first revealed at a car show in 1953, was GM’s initial foray into the sports car world. Despite initial enthusiasm for the Corvette, the first ones were not very popular. The introduction of the small-block V8 engine in 1955 changed that. GM engineer Zora Arkus-Duntov began to work with the engine to turn the Corvette into a racing vehicle. One year later, Arkus-Duntov raced the revamped Corvette at the Pikes Peak Hill Climb race. Arkus-Duntov won the race for his class and set a new record for stock cars. The 1957 Corvette achieved a reputation for speed, achieving 60 miles per hour (mph) in 5.7 seconds. The Corvette had embarked upon its reputation as “America’s sports car.” Chevrolet attempted to position the Corvette as a combination of sportiness and luxury. For instance, one of its early taglines was”looks like a sports car…feels like a sports car…performs like a sports car…how come it’s a luxury car?”The Corvette has gone through six generations, with each successive model undergoing additional modifications in quality and style. The Corvette has attracted many fans over the years, both on and off the racetrack. Corvette owners have included Alan Shepard (astronaut), Johnny Carson, Jeff Gordon, Jay Leno, and Vice President Joe Biden. The Corvette’s fame has made it into a prestigious product with models selling from $50,000 to over $100,000. To celebrate its 100 th birthday in 2012, Chevrolet announced the release of the Corvette Centennial edition, available only in carbon flash metallic. Although the Corvette is still going strong, it has likely reached the maturity stage due to product innovations on newer Chevrolet models and changing customer tastes. The maturity stage occurs when growth begins to slow. In the case of the Corvette, the average owner is in his or her fifties, which means that younger people are not purchasing CASE EXHIBIT 9.1 Chevrolet Models Sold within the United States Cars SUVs/Crossovers Trucks/Vans Electric Vehicles Sonic Cruze Malibu Corvette Camaro Impala Spark Equinox Traverse Tahoe Suburban Colorado Avalanche Silverado Express Volt Source: Based on Chevrolet website (http://www.chevrolet.com), accessed July 25, 2012. Case 9: Chevrolet: 100 Years of Product Innovation 407 Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). them as much, perhaps because they perceive the Corvette as the car that their parents or grandparents drove. In 2009, Corvette sales were the lowest they had been since 1961, and Corvette sales had decreased 48.3 percent since the year before. Some speculated that interest in sports cars was waning. However, this does not necessarily mean the Corvette is going away anytime soon. Whereas it looked as if the model might be declining in 2009, Corvette sales reached a 19-month high in 2011. Loyal fans and the Corvette’s reputation as America’s sports car could keep the Corvette going strong for many more years. Chevrolet Camaro The Camaro is the story of a car model that would not be conquered. GM released the Camaro in 1967 to directly compete against the Ford Mustang. The competitive intent behind the Camaro was soon clear; when asked what the name of the small sportster meant, product managers stated that it was the name of an animal that ate mustangs. The model has gone through five generations and many ups and downs in popularity over its 35-year run. Toward the turn of the century, it became clear that GM was considering discontinuing the Camaro, as new lineups did not have significant changes in design from previous ones. In 2002, the Camaro line was officially discontinued. Eight years later, due to the pressure from dedicated fans, GM resurrected the Camaro with the release of the 2010 model. The new Camaro blended design elements from the 1960s with modern features, including Bluetooth connectivity, USB connectivity, and OnStar. It also took advantage of car lovers’demands for speed. The car went on to win the 2010 World Car Design of the Year award. In fact, the Camaro was attributed to keeping the sports car industry from floundering. The recently released car sold well even in the midst of a recession, with sales of over 60,000 vehicles. When the new Camaro was announced in 2009, demand was so high that GM strived to create enough supply. Enthusiasts were paying $500 to $2,500 above the sticker price. Although demand has stabilized somewhat, the Camaro seems to be in the growth stage of the product life cycle. In 2009, when convertible sales were at a low, the Chevy Camaro sold well. Two years later it was outselling the Ford Mustang. Resurrecting the Camaro appears to be a smart move on Chevrolet’s part, but fierce competition and rapidly changing consumer tastes will require the company to continually modify its product in order to maintain its competitive advantage. Chevrolet Impala The Chevrolet Impala was introduced in 1958 and went on to become one of Chevrolet’s best-known brand names. As a full-size family sedan, the Impala is one of Chevrolet’s larger car models. The Impala experienced extreme growth during the 1960s. Its 1963 model, with its small-block V8 engine and front bucket seats, is now considered to be a collector’s item. The Impala’s best-selling year occurred in 1965 with sales of 1 million vehicles. Its popularity continued throughout the 1970s, and it was named the bestselling car in 1973. The Chevy Impala has undergone ten generations of new models. Its 1994-1996 models have also become collector’s items largely due to their luxurious design and strong horsepower. The Impala is a common sight in the NASCAR races after it replaced the Monte Carlo, a car model discontinued by GM. However, the Impala has encountered a number of challenges during its long life span. The Impala began losing sales to midsized cars in the 1980s and continues to contend with its smaller rivals to this day. In addition, a suspension problem in Impala vehicles sold in 2007 and 2008 caused a class-action lawsuit to be filed against GM. Despite these challenges, the Impala remains an industry leader in its segment. The Impala sold over 170,000 vehicles in 2010, an improvement of almost 4 percent from the year before. The amount of space the Impala offers and its better fuel efficiency gives it a competitive advantage. Yet its 2012 model received lackluster reviews and was criticized for using”cheap interior materials and construction.”Whether consumers perceive the vehicle similarly will largely determine if sales of the newest Chevy Impala will grow or stagnate. Chevrolet Cruze The 2010 Chevrolet Cruze was a risk that paid off for Chevrolet. This five-seat sedan designed to replace the unpopular Chevy Cobalt jumped almost immediately from the introductory to the growth stage. The success of the Cruze shocked industry experts. Within its first year of sales, the Cruze ranked as the tenth most popular vehicle within the United States. In June 2011, it became the nation’s best-selling car. The Cruze was released as a global vehicle. It was introduced in Europe in 2009 and has since expanded to the United States, India, China, Mexico, and Russia. Approximately 270,000 vehicles have been sold in over 60 countries. The sedan combines safety, technology, speed, and greater fuel efficiency, sporting 10 airbags and a 1.8-liter four-cylinder engine. The 2012 version of the Cruze, the Cruze Eco, can get 42 miles per gallon (mpg) on the highway, currently the highest mileage for traditional gas powered vehicles within the United States. Improved fuel economy is particularly important in light of impending federal legislation mandating that vehicles get better mileage. To promote the Cruze, Chevrolet released a series of advertisements voiced by actor Tim Allen that tell viewers to”get used to more”while touting the Cruze’s technological advances and price tag of $17,000. The company chose to take an adversarial approach to the competition; its”Dear Corolla”advertisements subtly criticize the Toyota Corolla for not offering the latest technology in its vehicles. Such an approach recognizes the highly competitive industry the Chevy Cruze occupies. In spite of its initial success, analysts believe that the Ford Focus or Hyundai Sonata could easily supplant the Cruze. In many ways, the increasingly competitive nature of the auto industry has shortened the life cycles of many vehicle brands; whereas vehicles such as the Corvette have experienced long periods of growth, a competitive environment and increased government regulation could significantly shorten the Cruze’s growth period to a small number of years. It remains to be seen whether Chevrolet will be able to maintain the Cruze’s competitive advantage over the long-term or quickly lose it to betteradapted rivals. Chevrolet Silverado Chevrolet’s pickup trucks are even more popular than its cars. After introducing its first truck in 1918, sales of Chevrolet pickup trucks surpassed car sales in 1989. Chevrolet positions its trucks as strong and durable, using the successful ad slogan”Like a Rock” in all its truck commercials for a decade. Its most popular truck is the Silverado. According to USA Today, sales of the Silverado surpass the gross domestic product of several countries. Successive models of the Silverado have been manufactured to ensure a smoother ride, increase towing capacity, and improve fuel economy. For instance, the newer Silverado HD increased fuel efficiency by 11 percent. Improvements to the Chevrolet Silverado pickup have resounded with consumers. The Silverado is available as three different types of pickup truck: light duty, heavy duty, and hybrid. Chevrolet’s heavy duty (HD) Silverado pickup truck won automobile magazine Motor Trend’s Truck of the Year award for its ability to tow 21,700 pounds, its reduced vibrations, and its smoother ride. The ability to haul or tow large loads seemed to gain importance during the recession. For those who love big trucks but hate the large amounts of emissions they generate, the Silverado HD comes equipped with a new system that reduces nitrogen-oxide emissions. Chevrolet is trying to discover the right blend between America’s love for big trucks (the two best-selling vehicles in 2011 were trucks) and being environmentally friendly. As a result, it began manufacturing a hybrid Silverado. The hybrid Silverado has many of the same characteristics of a traditional Silverado, including high torque and horsepower, yet it can get 20 mpg in the city and 23 mpg on the highway (versus 15 mpg in the city and 20 mpg on the highway for the light duty Silverado). By making the Silverado greener, Chevrolet is not only preparing itself for tougher emissions regulations, but also appealing to the market’s demand for less-polluting trucks. Chevrolet SUVs/Crossover Vehicles SUVs, or sports-utility vehicles, became a hit during the 1990s as they provided owners with a sense of prestige and power. To meet this demand, GM created several SUV lines such as the Hummer. However, because SUVs require so much fuel, rising gas prices and greater concern for the environment contributed to their decline. As a result, GM discontinued its Hummer line along with several of its Chevrolet SUVs, including the Trailblazer. Although SUVs seemed to be on the decline, they appear to be gaining in popularity once more. In 2008, when fuel prices were high, many consumers began switching to hybrid vehicles and smaller cars with greater fuel efficiency. However, when gas prices dropped to under $4 a gallon, SUVs made a comebackwith some slight modifications. Auto companies such as GM began manufacturing SUVs with better fuel efficiency. The safety of SUVs has also improved. Thanks to the addition of stability control within SUV models, studies indicate that drivers of SUVs are less likely to die in a crash than those driving smaller cars; the death rate for SUV drivers dropped 66 percent after newer models were introduced. This is good news for Chevrolet’s SUVs, which include the Suburban and the Tahoe. First emerging in 1936, the Suburban is the oldest surviving vehicle model in the United States. Today the Suburban appears to be in the growth stage as a favorite among families and was nominated by Kelley Blue Book as one of the Top 10 Family Cars for 2011. One likely reason is due to its safety features, which include six airbags and traction control. In contrast, the Tahoe is targeted more toward those who need lots of space and who travel in more rugged terrain. The Tahoe has been one of the most popular SUV models since the 1990s. To attract eco-conscious consumers, Chevrolet also has a hybrid Tahoe model that gets 20 mpg in the city and 23 mpg on the highway. Chevrolet also combines features of smaller cars with those of SUVs through its crossover vehicles. One of its most recent successes is the Chevrolet Traverse. Released in 2008, the Chevrolet Traverse is targeted toward families. Kelly Blue Book also nominated it as one of the Top 10 Family Cars for 2011. The Traverse can seat eight and received high scores in crash safety from the National Highway Traffic Safety Administration. Sales of the Traverse grew 17 percent in 2010 from the previous year. The Chevrolet Equinox crossover vehicle is unique as it is powered by hydrogen fuel cells, making it more fuel-efficient than its contemporaries. Combined with its spacious interior, the advantages of the Equinox led to its nomination by Auto Press to the highest place on its list of Affordable Compact SUVs for 2012. Chevrolet Volt Chevrolet’s product mix would not be complete without venturing into the electric vehicle industry. Its Chevrolet Volt, unleashed in 2010, runs on a battery but also uses gasoline once the electrical charge is depleted. The Volt’s battery allows the vehicle to travel 35 miles on electricity; it can then travel 37 more miles using gas. Initial views of the Volt seemed positive. In 2011, it was named as the winner of the World’s Green Car award. However, the Volt may take longer than anticipated to go from the introductory to the growth stage of the product life cycle. GM’s plans to sell 10,000 Volts in 2011 were too optimistic; only approximately 8,000 Chevrolet Volts were sold. Many Chevrolet dealers were hesitant to sell the Volt due to a perceived lack of local demand. Such obstacles are not uncommon with new products, as both dealers and consumers need to learn more about the product before making a commitment to purchase it. The high price tag of $41,000 also increases the risk of purchase. While the current interest in electric vehicles is high, demand may take longer to catch up due to the high level of perceived purchase risk. The Volt faced a more serious challenge when its lithium-ion battery proved to be problematic in crashes. The battery caught on fire after three government crash tests, but the fires themselves would not occur until days or weeks after the crashes. Further investigations revealed that the coolant line got damaged during the crash tests. Coolant leaked onto the battery wires, eventually causing a fire. After these safety issues came to light, GM took quick action to address the problem. It created a plan to increase the reinforcement surrounding the battery pack and issued a voluntary recall on the more than 7,000 Volts already sold as well as the more than 4,000 in its showrooms. It also provided loaner cars for consumers to use until their Volts were modified and offered to buy Volts back from customers who no longer wanted them. Although this quick action might have saved the Volt from an early demise, the initial safety challenges could still have a significant effect on demand. The safety issues have also provided threats and opportunities for the Chevy Volt’s prime competitor, the Nissan Leaf. Although both the Leaf and the Volt are electric vehicles, they are positioned differently. The Nissan is a truly electric car, whereas the Volt will run on gasoline if needed. GM’s VP of marketing saw this as a major advantage, using it to position the Volt as”a car first and electric second”and claimed that the Volt can give drivers the peace of mind that they will not become stranded if they use up the electricity reserves. However, the recent battery fires have reduced faith in the Volt and cast doubt on the electric vehicle industry as a whole. Nissan was quick to respond to these safety concerns by detailing the triple layer safety structure of its batteries. In 2011, the Nissan Leaf appeared to be taking the lead in the number of vehicles sold, but the Volt was catching up. With analysts predicting that only one will win in grabbing the majority of the U.S. market share, the stakes are high. Chevrolet’s Branding Strategy Although the Chevrolet brand has evolved over the years, it maintains Chevrolet’s Branding Strategy Although the Chevrolet brand has evolved over the years, it maintains many of the same themes that it started out with a century ago: a quality vehicle with deep roots in America’s past. When Durant first envisioned Chevrolet, his desire was to createan lowpriced vehicle that could compete head on with Ford. Therefore, one of its first slogans, “Quality at low cost”comes as no surprise. As Chevrolet vehicles became more popular with Americans, minus a dip during the Great Depression, the company wanted to firmly entrench the brand as a key part of American culture. It found part of this solution by associating itself with American sporting events. In 1935, Chevrolet started sponsoring the All-American Soap Box Derby, which it would continue to support for the next decade. Chevrolet vehicles driven by drivers such as Jeff Gordon and Jimmie Johnson would go on to become a common sight in racing circuits. On the promotional side, Chevrolet adopted a patriotic theme with taglines such as “America’s Best Seller, America’s Best Buy”and”Baseball, hot dogs, apple pie and Chevrolet.”One of its most popular taglines”Like a Rock”began in 1991 to describe its Chevrolet pickup truck. The tagline imbued the brand with a sense of strength and durability. Chevrolet would continue its American theme with its”An American Revolution”tagline adopted in 1994 and its most recent”Chevy Runs Deep.” The Chevrolet brand resonates with consumers, so much so that the company’s marketers must exert caution when implementing changes. For instance, in 2010 GM decided the company would stop using the popular American nickname Chevy and only use Chevrolet in corporate communications and advertising. Although American consumers were encouraged to still use the popular nickname, employees were not to use Chevy internally. The reasoning behind this was that international buyers of Chevrolet tended to get”Chevy”and”Chevrolet”confused, believing that they were different cars. However, consumer backlash and managerial changes convinced GM to drop this plan. Changing the tagline to”Chevy Runs Deep”has not been free from criticism either. Chevrolet fans did not feel that the slogan was as strong as previous ones, and others were unsure about what it meant. This confusion caused GM to begin overhauling its marketing to clear up the confusion. According to Chevrolet’s marketing director, the tagline is meant to have an emotional impact while tying Chevrolet to its American heritage. While Chevrolet modifies its taglines to fit certain countries, many of its taglines are used for multiple countries to create strong brand cohesiveness. Globally, the company positions its vehicles along four values: durability, value, practicality, and friendliness. In South Africa, Chevrolet commercials have emphasized familial values as well as excitement. Taglines include”Captiva. Made for Memories.”and”Where Will Chevrolet Take You?”Although Chevrolet has adopted more of a global brand strategy, it still customizes its branding to appeal to certain markets. General Motors’Rivalry with Ford General Motors is one of the”Big Three”carmakers in the United States, along with Ford and Chrysler. Although Ford and Chrysler are formidable competitors to Chevrolet, most view Ford as being the more serious rival. Ford and Chevy vehicles are both considered to be practical and affordable cars, and although Chevy is generally viewed as being sportier than Ford, Ford’s sports vehicles like the Mustang are direct competitors to Chevy’s sports cars. While Chrysler came onto the scene later during the 1920s, Ford and Chevrolet are closer in age and have been competing since the inception of Chevrolet. This highly competitive rivalry has challenged many of Chevrolet’s branding strategies. For instance, Ford is also deeply entrenched in American culture. Many view the Model T as the first American car, although it would be more accurate to say it was the first one produced for the masses. The unproven statement by founder Henry Ford regarding the Model T,”You can paint it any color, so long as it’s black,”is remembered nearly a century later. Ford also claims that its Ford Aerospace engineers and technicians helped place a man on the moon by helping to design and provide services for NASA’s Mission Control Center. Supporters of Ford are more likely to view Ford as a greater part of America’s heritage than Chevrolet. sponsoring the All-American Soap Box Derby, which it would continue to support for the next decade. Chevrolet vehicles driven by drivers such as Jeff Gordon and Jimmie Johnson would go on to become a common sight in racing circuits. On the promotional side, Chevrolet adopted a patriotic theme with taglines such as “America’s Best Seller, America’s Best Buy”and”Baseball, hot dogs, apple pie and Chevrolet.”One of its most popular taglines”Like a Rock”began in 1991 to describe its Chevrolet pickup truck. The tagline imbued the brand with a sense of strength and durability. Chevrolet would continue its American theme with its”An American Revolution”tagline adopted in 1994 and its most recent”Chevy Runs Deep.” The Chevrolet brand resonates with consumers, so much so that the company’s marketers must exert caution when implementing changes. For instance, in 2010 GM decided the company would stop using the popular American nickname Chevy and only use Chevrolet in corporate communications and advertising. Although American consumers were encouraged to still use the popular nickname, employees were not to use Chevy internally. The reasoning behind this was that international buyers of Chevrolet tended to get”Chevy”and”Chevrolet”confused, believing that they were different cars. However, consumer backlash and managerial changes convinced GM to drop this plan. Changing the tagline to”Chevy Runs Deep”has not been free from criticism either. Chevrolet fans did not feel that the slogan was as strong as previous ones, and others were unsure about what it meant. This confusion caused GM to begin overhauling its marketing to clear up the confusion. According to Chevrolet’s marketing director, the tagline is meant to have an emotional impact while tying Chevrolet to its American heritage. While Chevrolet modifies its taglines to fit certain countries, many of its taglines are used for multiple countries to create strong brand cohesiveness. Globally, the company positions its vehicles along four values: durability, value, practicality, and friendliness. In South Africa, Chevrolet commercials have emphasized familial values as well as excitement. Taglines include”Captiva. Made for Memories.”and”Where Will Chevrolet Take You?”Although Chevrolet has adopted more of a global brand strategy, it still customizes its branding to appeal to certain markets. General Motors’Rivalry with Ford General Motors is one of the”Big Three”carmakers in the United States, along with Ford and Chrysler. Although Ford and Chrysler are formidable competitors to Chevrolet, most view Ford as being the more serious rival. Ford and Chevy vehicles are both considered to be practical and affordable cars, and although Chevy is generally viewed as being sportier than Ford, Ford’s sports vehicles like the Mustang are direct competitors to Chevy’s sports cars. While Chrysler came onto the scene later during the 1920s, Ford and Chevrolet are closer in age and have been competing since the inception of Chevrolet. This highly competitive rivalry has challenged many of Chevrolet’s branding strategies. For instance, Ford is also deeply entrenched in American culture. Many view the Model T as the first American car, although it would be more accurate to say it was the first one produced for the masses. The unproven statement by founder Henry Ford rega
