Option A – Continue to promote the Daewoo brand in Europe
The first option was to revitalize the GM Daewoo brand and not to introduce Chevy to Europe. GM Daewoo sold the following models that were already recognized throughout Europe: Matiz, Lancetti, and Kalos. The GM Daewoo brand, which was associated with value, was recognized as an existing strength for GM. It would benefit their global positioning to leverage this reputation. Furthermore, value was a relevant characteristic to attract the target segment of low/middle class consumers.
Kerin and Peterson (2013) noted that Europeans attach attributes of the reputation of each nationality to their respective automobile brands (p.655). GM Daewoo would continue to be associated …show more content…
The following analysis further compares this recommendation to strengths and weaknesses of the company as well as external opportunities and threats.
Good Design. A good car design is one of the important factors European passenger car buyers consider while buying a car. Daewoo cars were distinctive but still satisfying the European tastes. The Daewoo product quality, styling, and design were one of the top strengths of the brand (Kerin & Peterson, 2013, p. 665). Product quality will remain the same after the rebrand to Chevy and continue to be a strength.
Great value for money. According to Quattroroute, an Italian automotive publication, “Those who drive a Daewoo know it as a good car, think it is reliable, and above all, very good value for the money (Kerin & Peterson, 2013, p. 662). Daewoo products were distinctive and of decent quality. Low price offered a competitive advantage by gaining customer base who wanted cost-effective products and choose to spend less on the car purchase. After rebranding to Chevy, the price point should remain the same, and marketing strategy should focus on maintaining this perception through the brand …show more content…
Lack of awareness about Chevy provides a clean slate upon which to position the brand in Europe (Kerin & Peterson, 2013, p. 667). Typically, low brand awareness would be a weakness, but given the possible negative perception of American brands in Europe, it can be leveraged as a strength. Europeans view American cars as too large, unappealing, and inefficient (Kerin & Peterson, 2013, p. 656). The company can choose the image of the brand that they want to show to the customers. Chevy and Daewoo share many of the same values, so the best aspects of Daewoo can be incorporated into shaping the Chevy brand in this new market. This also provides the opportunity for GM to market Chevy as more than just "An American Revolution," which was the moto released in 2004 to North America (Johnson,