This document provides an integrated marketing communication plan for the Chevrolet Volt electric vehicle. It begins with an introduction and table of contents. The document then performs a situational analysis including a competitive analysis of other electric vehicles, opportunities for communicating to target markets, an analysis of the target market of millennials, and a SWOT analysis. It proposes strategies for market segmentation, establishing the Volt as its own brand, and allocating marketing expenditures. Finally, it outlines specific tactics for digital advertising, promotions, social media marketing, and public relations. The overarching goal is to increase awareness, market share, interest and sales of the Volt through consistent branding and promotional strategies.
2. Table of Contents
• 1 Introduction
• 2 Table of Contents
• 3 Brand Strategy and IMC Objectives
• 4 Plan Overview
• 5 Competitive Analysis
• 6 Communication Opportunity Analysis
• 7 Communication Opportunity Analysis
• 8 Target Market Analysis
• 9 Target Market Analysis
• 10 Customer Analysis
• 11 Customer Analysis
• 12 Customer Analysis
• 13 SWOT Internal Strengths (Continued)
• 14 SWOT: Internal Strengths)
• 15 Internal Weakness
• 16 Internal Weakness (Continued)
• 17 External Opportunities
• 18 External Opportunities
• 19 External Threats
• 20 External Threats
• 21 Market Segmentation Strategy
• 22 Market Segmentation Strategy
• 23 Brand Strategy
• 24 Breakdowns Of Marketing Communication Expenditures
• 25 Digital Advertising Strategies
• 26 Customer Incentives through Promotions
• 27 Interactive and New Media
• 28 The Fiesta Movement: A Social Media IMC Success Story
• 29 Public Relations
• 30 Summary
• 31 Sources
Lesley Hobbs IMC 601 02.25.2016
3. Lesley Hobbs IMC 601 02.25.2016
Volt : A Brand Independent from
Chevy Will Charge Sales, Brand
Loyalty, Customer Interactions,
Recognition and Market Share
Branding Strategy
Our IMC Objective is to increase brand awareness, market
share, interest and customer interactions about the Volt
leading to sales through consistent messages in Volt’s
products, prices, distribution systems and promotions.
IMC Marketing
Communication Goals
4. Lesley Hobbs IMC 601 02.25.2016
An integrated marketing strategy with the Volt as its own brand will
combine advertising campaigns with a progressive E-Commerce
platforms, social media channels, and alternative marketing. The new
promotional tools will include auctions and tours with augmented
realities to experience the cars features and benefits. Live Feeds on
social networks will be a communication gateway for real time
feedback. These tactics will be measured through the use of metrics
supported by Google AdWords, Google Think and social media tracking
software such as “Hootsuite.” The implementation of these marketing
efforts with effective ways to measure these efforts will help the Volt
gain additional market share and become America’s truly all-purpose
electric vehicle.
Plan Overview
5. Lesley Hobbs IMC 601 02.25.2016
Competitive Analysis
In the EV category, the Toyota Prius is the best
seller with excellent brand recognition. The
Nissan Leaf is in second place and associated
with “innovation” and dedicated green
consumers. Chevy Volt currently much more
expensive than its gasoline-fueled peers and will
likely need substantial reductions in
manufacturing cost in order to become
commercially viable.1
6. Lesley Hobbs IMC 601 02.25.2016
In late 2014, the Nissan
Leaf was outselling the
Chevy Volt at a 2:1 ratio. 1
There will be continued introduction of key hybrid and
electric vehicles. Nissan Honda, Kia and Infiniti will are
releasing new EV’s. The Nissan Leaf and Prius is refreshing
its models. As the hybrid and electric vehicle market grows,
it will become more competitive.2
Competitive Analysis
(continued)
7. Lesley Hobbs IMC 601 02.25.2016
Communication
Opportunity
Analysis
Gen Y trends such as augmented reality, gamification and
telematics will redefine user experience and open new
opportunities for remote support and logistics. Using
“beacons”, wireless digital transmitters located at trade
shows can track the movements of show visitors and
communicate with them through their smartphones via
Bluetooth. The technology is growing in popularity as
auto show organizers and manufacturers seek more ways
for brands to interact potential and current customers. 3
8. Lesley Hobbs IMC 601 02.25.2016
The Volt can leverage social media, as the marketers
behind the Ford “Fiesta Movement” did when they gave
100 free cars to social media influencers. The campaign
generated more than 40 million views. The Volt can run
a similar campaign since the products have the same
target market and segmentation. Such a campaign
would be a low-cost way to create a high return on
brand recognition, as the Volt’s target demographic
primarily views advertisements online.1
Communication
Opportunity
Analysis
9. Lesley Hobbs IMC 601 02.25.2016
Target Market Analysis
The Volt’s advanced EV technology appeals to an
urban, educated and liberal demographic—one
that is concerned about climate change.1
Most Millennials are earning between $25,000
and $74,999 in a year, with 23% in the $25,000
to $49,999 range and 14% under $25,000 per
year (21% are between $50,000 and $74,999 per
year). 4
10. Lesley Hobbs IMC 601 02.25.2016
Millennials are deal with student-loan debt and high city
rent. These factors can impact their purchasing
power. 47% of Millennials live in urban areas . It’s likely
that fewer of those in urban areas need cars than those
who live in suburban or rural areas4Millennials account
for nearly one quarter of the US population, or about 80
million people—by far the largest adult generation.
According to Accenture, by 2020, Millennials will spend
about $1.4 trillion annually in the US and account or
30% of retail sales. 4
Target Market
11. Lesley Hobbs IMC 601 02.25.2016
Customer Analysis
Market Factors
1. Urbanization – 47% of Millennials live in urban areas . It’s
likely that fewer of those in urban areas need cars than those
who live in suburban or rural areas – depending on which
city they live in, there might be plenty of easily accessible
public transportation. Even the 42% of Millennials and 48%
of Gen Xers who live in suburban areas may be close to a
transit line that gives them access to the city or another
suburb for commuting to work.2
12. Lesley Hobbs IMC 601 02.25.2016
Customer Analysis
Market Factor #2
Smartphones and tablets are also a market factor .
That may seem unlikely when it comes to cars, but
the instant communication provided by smartphones
and tablets could quell the need for driving to a
friend’s house for maintaining friendships and
exchanging information. Selling affordable, practical,
fun to drive and fuel efficient cars that fit well in the
city and offer of smartphone network connectivity
will help work hand in hand with IMC efforts. 2
13. Lesley Hobbs IMC 601 02.25.2016
SWOT Analysis
Internal Strengths: The Chevrolet Volt is not only a
groundbreaking vehicle, but consumers are also more
aware of the Volt than of the Nissan Leaf. In just four
years; Volt has earned more accolades and more “best
buy” awards than any other electric cars on the planet. No
wonder it’s America’s best-selling plug-in, according to
the official Chevrolet website. Traditional customers have
trusted Chevrolet to embrace the trend of developing
more environmentally friendly products. 5
14. Lesley Hobbs IMC 601 02.25.2016
Chevrolet has several fuel-efficient technologies already on the
market, and many more in development. Research shows 2 that
the general market demands fuel-efficient vehicles .However, the
value difference consumer groups place on the benefits of fuel
efficiency varies from target group to target group (for example
personal financial benefit of fuel economy versus environmental
benefit of fuel economy) so, each target must be approached
differently. Chevrolet has five main fuel technologies (Fuel
Efficiency, E85 Ethanol, Hybrid, Electric, and Fuel Cell)
and they are perceived quite differently among buyers. 2
SWOT
Internal Strengths (Continued)
15. Lesley Hobbs IMC 601 02.25.2016
Internal Weaknesses
Price is an issue that can divert potential buyers from
purchasing a Chevy Volt. Chevrolet did decrease their
price by 6%. Among those not interested in purchasing
a hybrid, plug-in hybrid, or all-electric, expense was the
number one concern, with 45% saying this is the case.
Eighteen percent of respondents also said these types of
models are too costly compared to what is saved on
gasoline. Seven percent of respondents also say they
don’t think they qualify for tax credits for these
vehicles. 6
16. Lesley Hobbs IMC 601 02.25.2016
Internal Weaknesses
(Continued )
There is a conflict of branding messages between Chevrolet
and the Volt. There is dissonance between the two in imaging
and messaging. A main competitor is the Chevrolet brand
itself. Chevrolet should consider separating Volt from Chevy
and re-inventing itself as its own brand.
It seems that despite overwhelmingly positive customer
reviews and distinguishing performance features, consumers
were not resonating with the brand. Major reasons for the
Volt’s poor sales include ineffective advertising and
communication of the value proposition, as well as a tension
with the Chevy parent brand.1
17. Lesley Hobbs IMC 601 02.25.2016
Millennials are valuable customers in several
dimensions. They have a substantial amount of
buying power when purchasing new cars and they
indirectly influenced the purchase decisions of
others within their family, circle of friends, and
society in general. Consequently, the goal is to
understand the motivations and behaviors of car
buyers 18 to 30, and how they perceive Chevrolet
in their environmentally friendly needs and
preferences, and how to best communicate a
meaningful green message in order for them to
purchase or consider in a vehicle from Chevrolet.
External Opportunities
18. Lesley Hobbs IMC 601 02.25.2016
Providing the youth market with rationale for considering a new fuel
efficient or environmentally friendly vehicle from Chevrolet presents the
opportunity, to not only analyze how these consumers view the
Chevrolet product, but how the younger generation is motivated to
purchase a new environmentally friendly vehicle.7
Millennials were far more interested in alternative powered vehicles,
such as hybrids and plug-in electrics, when compared to Baby Boomers.
Millennials were nearly twice as likely to say they were very likely to
purchase a hybrid vehicle, plug-in hybrid vehicle, or all-electric vehicle
compared to Generation X, which is the second most enthusiastic group
for alternative powertrains. Outside of hybrids and electrics, Millennials
show stronger-than-average support for other forms of alternative
power, such as compressed natural gas, diesels, and dual-fuel vehicles.2
.
External Opportunities
19. Lesley Hobbs IMC 601 02.25.2016
Industry leader Toyota Prius has the highest overall
awareness among all reviewed brands, with just 12% of
adults surveyed unaware of the brand (compared with 59%
for the Ford C-Max). While sales of hybrids, plug-in hybrids
and all-electric vehicles are expected to grow faster than the
general new car market over the next five years, competition
from natural gas, diesels, and hydrogen fuel cell vehicles
could slow down, or endanger growth in this segment.
Fuel cells could pose a powerful competitor to hybrids and
plug-in electrics, especially as it appears federal regulations
and regulations in the state of California are shifting toward
supporting this tech solution over others .2
External Threats
20. Lesley Hobbs IMC 601 02.25.2016
Chevrolet’s market research data suggests that individuals’
perception towards Chevrolet is that the company is lagging
behind other manufacturers, and has a “gas guzzling”
image. Despite overwhelmingly positive customer reviews
and distinguishing performance features, consumers were
not resonating with the brand. Major reasons for the Volt’s
poor sales include ineffective advertising and
communication of the value proposition, as well as a
tension with the Chevy parent brand.1
External Threats
21. Lesley Hobbs IMC 601 02.25.2016
Market Segmentation
Strategy
Automakers can capitalize on Millennials needs and wants
for value with small, practical vehicles.6Given their cash-
strapped financial situations and tendency to live in urban
locations, Millennials will likely be considering small,
practical cars that offer safety and good fuel economy
without being boring . As a result, today’s subcompact and
compact car classes are popular, and there is an
opportunity for subcompact and compact crossovers.
Automakers that offer enticing products in this space are
likely to capture the millennial market.
22. Lesley Hobbs IMC 601 02.25.2016
Price and safety trump tech, but it still matters Somewhat
surprisingly, less than one-fourth (23%) of respondents of Mintel
Research between the ages of 21-38 said the latest technology
enhancements mattered most to them when planning to purchase a
vehicle, with price, fuel economy, safety, and lifestyle fit mattering
more. Still, nearly one quarter of respondents between the ages of 21-
38 say the latest technology enhancements matter the most when it
comes to car buying. 2Automakers who can create products that fit
their needs and market them effectively stand a very good chance of
success with this segment, especially as Millennials age and expand
their families and perhaps move to the suburbs. 2
Market Segmentation
Strategy(continued)
23. Lesley Hobbs IMC 601 02.25.2016
Brand Strategy
There is a conflict of branding messages between Chevrolet and the
Volt. There is dissonance between the two in imaging and
messaging. A main competitor is the Chevrolet brand itself.
Chevrolet should consider separating Volt from Chevy and re-
inventing itself as its own brand.
Consumers are not resonating with the brand. Major reasons for
the Volt’s poor sales include ineffective advertising and
communication of the value proposition, as well as a tension with
the Chevy parent brand.
With a new brand, The Volt will be in a better position to use
more modern communication channels such digital
media and social media enhancing the Volt experience.
For example, a customer can “tour "the various features of
physical cars using augmented reality, including live social feeds
that capture global consumer feedback. 1
24. Lesley Hobbs IMC 601 02.25.2016
41.1%
Marketing Expenditures
Advertising
Trade
Promotions
Consumer
Promotions
Other27.5%
27.9%
3.3
Breakdown Of Marketing Communication
Expenditures 8
Includes
Digital
25. Lesley Hobbs IMC 601 02.25.2016
Digital Advertising
Strategies
SEO
Volt Website
Pure online advertising, consisting primarily of search, is the
largest digital automotive channel. BIA/Kelsey projects all growth
in local advertising for the automotive vertical category will occur
on online/digital media, reaching 30 percent of total local
advertising by 2019, up from 12 percent in 2015. 3
Industry subcategories featured in BIA/Kelsey's automotive
vertical forecast include auto dealers, other motor vehicle dealers,
auto parts and accessory stores, tire dealers, and gas stations.
The data featured in the report is drawn from BIA/Kelsey's Annual
Local Media Forecast and Media Ad View plus Reports, the
company's local market ad forecasts that track ad spending across
media categories, ad categories and verticals. 3
26. Lesley Hobbs IMC 601 02.25.2016
Customer Incentives Through
Promotions
Online Contests and Price Reductions
Online Contest/Auction to win a Volt will increase search results and Google
algorithms and increase traffic into dealerships . Writing about the auctions on
the website will build quality content thereby increasing search results in the
Google algorithm . Other IMC benefits of this promotion include attracting
more customers , brand awareness; market share and incorporating one of the
new ways people form their opinions about a brand . Effective IMC strategies on
should be long term. For example, online auctions on Chevrolet.com/Volt could
be an annual event and gather potential leads.9
Price Reduction : Employee Level Discounts: Car buyers love a break on price,
especially in this market of price driven purchasers. A Dealer Volt promotion
with a range of incentives is effective because this market is very price driven.
One of the main motivators for Gen Y with fuel-efficient cars is price. 9 This
would also create increased traffic, sales and compliment other IMC efforts in
advertising, PR and digital media.
27. Lesley Hobbs IMC 601 02.25.2016
Interactive
and New
Media
Evidence shows that Millennials often look to peers for purchase-related
information and this information-seeking behavior is facilitated by their digital
connectedness .12
Social networks are where people are consuming content, and educating them on
the Volt is working. The strategy is built around engaging and updating people
and informing potential customers about the product and thereby increasing
positive sentiment about vehicle. 11
Results(January through September): 85 percent positive-to-neutral sentiment
towards the Volt.
In July 2015 media talk went from 13 percent to 30 percent.
The Chevy Volt Facebook page, now has 41,000 fans and is growing everyday. 11
● The Use of Social Networks Can Influence Purchasing Opinions on the Volt Brand
● The Use Of Social Networks Can Educate Consumers on the Volt
28. Lesley Hobbs IMC 601 02.25.2016
Ford Motor Company knew it had to find a way to reach young consumers after
redesigning the Fiesta in 2009. The company anticipated the compact would appeal to a
generation of drivers who were buying their first car and figured a giveaway would
create buzz.
Strategy: Ford launched a contest and chose 100 drivers from thousands of entries to
drive a Fiesta for a year. They also got free gas, insurance, and video cameras to record
honest reviews about the car and were asked to tweet and post videos along the way.
Called the Fiesta Movement, the campaign sparked chatter on social media, and the
driver-generated content became the basis for the company’s TV spots and print ads.
The social media component of the campaign, which helped Ford gain more than 1.8
million fans on Facebook and 206,000 followers on the company’s Twitter page.
General Motors, in comparison, has 479,000 fans on Facebook and 91,000 followers on
Twitter. 13 A similar Campaign for the Volt will also result in a winning story for the
brand!
The Fiesta Movement:
A Social Media IMC Success Story
With The Similar Comparable Factors :New Brand,
First Cars for Young Buyers
29. Lesley Hobbs IMC 601 02.25.2016
Public Relations
Public Tours at the Plant
How They Will Successfully
Integrate Marketing Messages
• Activity will affect internal and external stakeholders from employees to potential
customers
• The media used on the tour can help implement consistent IMC messages
and reinforce IMC Objectives through augmented reality, for one. A potential
customer can test drive the car, right there on the tour!
Video presentations, tour guide narratives and routed tours through different stops along the
assembly process will connect the company to the community in a visceral way that will last
long after the tour is over. The Volt can integrate its advertising messages and even
broadcast a live feed on social media! Public tours can be fashioned to appeal to different
groups of car buyers and include components that make the entire experience an event. A tour
tailored to families(young, urban and affluent) can include fun fare-like carnival rides, food
trucks, fun contests and prizes. In whatever way is chosen, by opening their doors, automakers
can use their assembly plants to show just how engrained they are in the community and
therefore foster goodwill in the region. 9
30. Lesley Hobbs IMC 601 02.25.2016
Summary : The implementation of these
innovative and proven IMC marketing methods
and strategies will significantly assist the Volt gain
additional market share, brand recognition, brand
awareness and sales by becoming America’s truly
all-purpose electric vehicle.
31. Lesley Hobbs IMC 601 02.25.2016
1 Youngs, R., Mulligan, G, Zhang. J. Brand Channel (April 21, 2015) Yale on Sustainability: A New Marketing Strategy for
Chevy Volt
2 Healey , T. (June 2015) Marketing Cars to Millennials and Gen X Mintel Market Research Report. Retrieved from Mintel
Database
3 BIA/Kelsey estimates automotive businesses will spend $15.1 billion on local advertising in 2015. (2015, May 11). Retrieved
from
PR Newswire
4 O’Donnell, F. Marketing To Millennials (February 2014) Retrieved from Mintel Database
5 Chevrolet Corporation Website (January 25, 2015) Company Information. Retrieved from http://www.chevrolet.com/2015-
volt-electric-car.html
6 Bird, C. (January 2012) Hybrid and Electric Cars Mintel Market Research Report. Retrieved
from Mintel database.
7 Chevrolet EdVenture partners directed to manage the writing of the case. Original case developed by Lois Olson PhD
copyright 2007 EdVenture partners.
8 Clow & Baack 7th Edition Pearson Textbook
9 Guarino, M. Imports Versus Domestics - US – (May 2010) Market Research Report. Retrieved from Mintel Database
10 Warc Website GM Backtracks on US 'Fire Sale' Promos, Goes Electric in Europe(August 20, 2008)Data sourced from USA
Today and Financial Times; additional content by WARC staff
11 Splash Media Corporation web Site (October 26, 2010) Retrieved from http://splashmedia.com/blog/the-social-media-
minute-for-october-26-2010/
12 W. Yilin Mangold, Katherine Taken Smith, Selling to Millennials with online reviews, Business Horizons, Volume 55, Issue
2, March–April 2012, Pages 141-153, ISSN 0007-6813, http://dx.doi.org/10.1016/j.bushor.2011.11.001.
(http://www.sciencedirect.com/science/article
13 Laskowski ,A. (October 2013)How Ford Became a Leader in Social Media http://www.bu.edu/today/2013/how-ford-
became-a-leader-in-social-media/
Sources