A Real "HUM-Dinger"
Marketing Analysis for the Hummer (H1 & H2) GM Product LineGeneral 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
conflict in Iraq has again placed the HUMVEE in the spotlight. The emotional appeal of the brand is strong, outdistancing other products in its category. "The Budget and Economic Outlook: Fiscal Years 2004-2013. Product:* Maintain product heritage* Develop a line of vehicles aimed at different market segments* Add interior refinements and other luxury upgrades* Appeal to new demographicsPrice:* Establish at least three price points for different segments: ultimate high-end ($100,000), luxury high-end ($50,000), luxury entry-level ($40,000)* Continue lower price-point movement over timePlace:* Create a unique buying experience that differentiates Hummer from other brands* Extend dealer distribution coverage with:* Increased Tier I Dealers (focused exclusively on Hummer)* Tier II Dealers (Hummer and other GM vehicles)* Improve on-line sales through improved e-commercePromotion:* Targetted marketing and advertising: CNN, CNBC, GQ, Wall Street Journal* Cross-promotion with NFL, WWF* Hummer merchandise, featuring the slogan: "Like Nothing Else . On the one hand, the war with Iraq has created a ground-swell of patriotism for all things American (for e. Performance comes at a price: the vehicle is not suited to urban driving. Many Americans view the Hummer as a symbol of all things American. Environmentalists in California are particularly influential, and California has stringent regulations concerning emissions, etc. The best alternative in this case is 2. Boasting a family tree that traces its lineage to the U. The consumer becomes more and more interested in SUVs, despite constant predictions that the love-affair will soon end. Environmentalists, however, have taken direct aim.
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