Marketing Analysis for the Hummer (H1 & H2) GM Product Line
             General Motors seeks to increase sales for its Hummer line by introducing a new, high-priced, luxury Sport Utility Vehicle (SUV) – with military roots and traditional niche-market appeal – into a crowded market, as the economy sputters and international conflict places a premium on fuel economy.
             Based on the success of the Hummer, a multi-purpose vehicle originally designed for the military, AM General introduced a civilian version in 1992 to capitalize on the vehicle's mass exposure and celebrity appeal during the Gulf War. Although sales were less than brisk (only 1,000 units sold in 2,000), the Hummer hit a nerve with Americans who saw the vehicle as an embodiment of American patriotism and pride.
             As ugly as it was expensive ($100,000), the Hummer quickly established a small, fiercely loyal following, prompting General Motors (which acquired worldwide branding rights in 1999) to introduce the H2, a smaller, less expensive vehicle aimed squarely at the luxury SUV market. This market is already overcrowded, with high-end vehicles that include Mercedes-Benz G-Class, Porsche Cayenne, Lincoln Navigator, Land Rover, Lexus GX 470 and LX 470 dominating the landscape. The H2 is seeking to penetrate this market at a very uncertain time.
             SWOT Analysis for GM's Hummer Line
             Internal Factors Strengths Weaknesses
             Resources GM is a huge corporation with a wealth of expertise and financial resources. Marketing and promotion activities will receive the funding and support required to drive sales. GM lacks a strong dealer network for its Hummer line, so distribution is limited.
             Brand Hummer is a strong brand that inspires loyalty. It is well differentiated in the market place. Many see the product as too unique, too specialized. Some even see GM as being irresponsible for marketing a vehicle that gets only 11 miles to the gallon during a time when environme...