Discuss the GM expansion decision by answering the following questions: (a) What

Question

Discuss the GM expansion decision by answering the following

questions: (a) What are the critical issues which must be taken into account in making decisions regarding the Saturn Module II expansion? (b) What decision criteria should the GM/Saturn management define in order to decide on the Module II expansion options outlined in the case? (c) How would you assign the weights reflecting the relative importance of these criteria? (d) Evaluate available options and calculate weighted scores. (e) Elaborate the results.

Explanation / Answer

The Saturn itself is branded as "different kind of car company" ie from GM but due to poor positioning strategy and lack of objective Saturn turn out to be a disaster.

During the module II expansion

Module II expansion the major 4 P’s of marketing has to be re designed in such a way that Saturn get more visibility and better reach than the module I. North America being the target market of module I GM has contrasted the potential of their own sub brand. It has to be promoted to the other parts of continents as GM is a world class brand

Critical issues would be. 1.Presence of competitors brand. 2; lack of prominent brand placement that arises dubious situation in buying behaviour of customer 3.Shift in demand away from compacts to sport utility vehicle

b. ) What decision criteria should the GM/Saturn management define in order to decide on the Module II expansion options outlined in the case?

Rebranding the whole Saturn and launch itself as a product that has the equal standard of other GM vehicles. Then customize it according to the requirements of region and market it as a whole subsidiary of GM. Ensure customer satisfaction through better CRM initiatives. Stream line the market flow through new initiatives and attractive offers. Maximize engagement strategies and document results.

c. How would you assign the weights reflecting the relative importance of these criteria?

Positioning has the major weightage followed by customer engagement and endurance. Achieve Margin enhancement through better product development and production strategy. Make Saturn as a unique product with same quality assurance of other GM brands.

d.) Evaluate available options and calculate weighted scores

Weighted score ( 40%) for market positioning , 25% Customer engagement ,20% for margin enhancement and remaining 15% for process stabilisation

(e) Elaborate the results

GM as an automobile company has a big brand name across the global. So rebranding Saturn through its moduleII is not a big deal as it is achievable if they are ready to do with full dedication.

Position the product across America as well as Europe in one stretch and make proper customisation as per the continent requirement.

As per the weighted score first preference has to be given to Market positioning. Once it is finalised them concentrate on target segmentation within the market. As Saturn is not a high ended car model, target segmentation or customer engagement can be start from middle class background. Promo shows and drive testing kind of marketing strategy using GM brand can definitely help in Europe or other continents

Margin can be enhanced through better supplier policies and procurement to logistics cost optimisation. After market penetration strategy they must aim for stabilisation though better customer base and improved product line. Customer service management through re sellers or dealers, quality after sales service and proper up gradation in technology and fuel efficiency can improve the endurance of the vehicle and will help in long run in the market.

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