General Motors Company (Essay Sample)

Marketing plan
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General Motors Company
Introduction
The general motors' company is the largest multinational company with its headquarters in America and deals with vehicle manufacturing, sale of vehicle parts and offers financial services. It has 13 vehicles brands and production of these vehicle brands takes place in 37 countries, but does business in many countries. It business segments comprise of the GM international operational, financial, Opel, north and South America segments. The company had government backed reorganization in 2009 and had to shed off some of its brands such as the hummer and Pontiac. It offered its shares to the public in 2010 and the IPO was very successful. In the recent past the company has been under investigation over manufacture of defective motor vehicle ignition system which was thought to be causing accidents and consequently leading to deaths, (Gm.com, 2015).
The company is seeking to investing more funds in plant upgrade in order to continuously improve their product and meeting customer expectations. It intends to spend 5.4 billion in 3 plants in modern technology acquisition, tools and equipment as well as the necessary human resources, (Gm.com, 2015). The company is facing various environmental issues as it conducts its business such as the economic and technological issues.
Implementation
The General Motors company marketing plan implementation phases will crucial if it is going to succeed. In order to achieve product improvement all activities will have to be done in a sequential manner. Continuous advertising by the company willing be crucial to ensure the company maintains its publicity. It is through this adverts that they will be able to communicate to their customers the upgrade they are undertaking as well as illustrating to them how they are improving their vehicle especially in the current time when they face defective ignition system. Time is of great essence as the longer the company takes in implementing the upgrade the greater the competition will be, (Slideshare.net, 2013).
Evaluation
The General Motors Company evaluation will be important to the success of the marketing plan. The company has undertaken changes to improve its performance through improvement by upgrading its plant. Evaluation measures will be undertaken through quantitative and qualitative metrics. The sales level and customer base statistics will be used as a quantifiable metric to evaluate the company objectives. The customer satisfaction level should be undertaken as a qualitative evaluation measure. It's from these results that the company will take unnecessary measures depending on the results, (Slideshare.net, 2013).
Control
The General Motors Company are used in marketing plan in determination the extent to which the goals of the firm have been achieved. The company budget will be used as a control tool as well as use the company's market share. The company's revenues and expenses both monthly and annual will be used as a control tool. Customer satisfaction surveys will be undertaken on monthly basis to determine the trend in which they are following. Market share statistics will also be crucial in this analysis, (Slideshare.net, 2013). Continuous monitoring will have been undertaken in order to ensure corrective measures are taken if deviation from the expected goal in the marketing plan is noted.
Financial objectives
The General Motors Company has financial objectives it seeks to achieve. The company intends to spend $5.4 billion for expansion and upgrading purpose. The company intends to increase its sales level as well increase its customer base through improved design, quality and technology, (Gm.com, 2015)
(Gm.com, 2015), indicates that the company's motive in investing in the new facilities is to increase its profitability. $783.5 million will be spent on upgrading three facilities of the company in Michigan. In the next three years the company will invest $ 5 million per day in its business plant in the United States of America. The company is yet to identify how it is going to invest the remaining 4.6 billion though it will be apportioned in the coming months among its plants worldwide.
Return on Investment (ROI)
The new investment in expansion of facilities, tools and equipment and people is expected to generate more returns to the firm in the future. The investment is expected to take place in the next three years. The company is targeting a return on investment of 20% by the end of the three years.
Marketing Expenditures
(Software, 2015) says that companies spend a substantial amount in marketing. These expenditures comprise of adverting, sales and marketing, promotions and after sales services. In order to correct the cars with defective ignition system a substantial amount will be spent towards recalling, compensating customers and repairing the vehicles. The company has budgeted for the marketing expenses to consume 3% of the allocated amount for promotion, advertising and after sale services, (Small Business - Chron.com, 2015).
R & D Expenditures
The company has invested heavily on research and development in order to continuously improve their product and deal with changing customers' tastes and preferences. With the current trend where customers are requiring customized cars to fit their specific needs. The company will spend 1% of the budgeted amount in research and development.
Key Success Factors in plan.
The key success factors of the General Motors Company undertaking will be indicated by the budget outcome on whether the budgeted amount has been achieved against the targeted. If the targeted revenue is achieved the business venture will be considered a success. If the customers taste and preferences change and the new investment fails to succeed then this will be a risk to the firm, (Small Business - Chron.com, 2015)
Game theory analysis
Game theory will be used to carry out market plan analysis by determining the behaviour of consumers. The general motor company customers tend to rely on the vehicle quality in order to make decisions on the model of vehicle to buy. We will hold this assumption will remain so in the foreseeable future or the three year period under which the investment is being made, (Marketing Science Institute, 2015).Scenario Building
Scenario building is essential in any marketing plan as the future of a business entity is uncertain. All forecast can be relied upon in their entirety. In order to fully understand the future of General Motors Company there is need to develop scenarios to assist in planning g by taking care of the future uncertainties. This will be the company make timely response to future occurrences. Decision makers in the marketing process will therefore be able to do strategic thinking before undertaking any venture. Scenario building involves five steps comprising of identification of tasks and analysis, appraisal of key decision factor, environmental analysis, ranking of these identified tasks and development of alternatives. The decision being here is that of investing in facility upgrade as well tools, equipment and people. The factors that will affect the success or failure of the investment include changes in economic conditions such as currency wars, government regulations,