Hummer Case Study
Case Study: GM: Downsizing the Hummer
Course Title: Marketing Strategy
Situation analysis:
When you think power or tough, think hummer; when you see yourself as a giant or a knight, ride a Hummer. These two sentences can be summarized the essence of what AM general and General Motors Corporation worked for.
Am general’s was created Humvee in 1979 which is an acronym for the formal designation “High Mobility Multipurpose Wheeled Vehicle (HMMWV).
General Motors Corporation and its subsidiaries engage in the development, production, and marketing of cars, trucks, and parts worldwide. It offers small, midsize, sports, and luxury cars; and pickup, van, utilities, and medium duty trucks in Canada, Europe, Latin America, and Asia Pacific. In addition, the company offers after sale services, such as maintenance, light repairs, collision repairs, and vehicle accessories. General Motors markets its products through distributors and dealers, as well as through retail dealers.
The contract between the two companies gives GM use of the Hummer brand name and responsibility for design, sourcing of components and tooling, production engineering, and marketing and distribution. AM General’s is responsible for manufacturing engineering, assembly and brand management. It also retains the right to market and distribute military vehicles such as the H1, known to the army as the "HUMVEE."
From a demographic standpoint, Hummer's target market segment cannot be very large because of the high price of the vehicle, which can be in excess of $200,000. AM General’s targeted for elite road warriors and for the average age of 50 years.
The problem of H1 is the size that is really disturbed its owners because it takes a lot of parking space.
Based on the research of GM, it made an agreement with AM General giving its right to produce H2 which is SUV for GM. It is narrower and lighter than Hummer. As a result, the brand-new H2 is smaller than past models and based on GM's full-size
Course Title: Marketing Strategy
Situation analysis:
When you think power or tough, think hummer; when you see yourself as a giant or a knight, ride a Hummer. These two sentences can be summarized the essence of what AM general and General Motors Corporation worked for.
Am general’s was created Humvee in 1979 which is an acronym for the formal designation “High Mobility Multipurpose Wheeled Vehicle (HMMWV).
General Motors Corporation and its subsidiaries engage in the development, production, and marketing of cars, trucks, and parts worldwide. It offers small, midsize, sports, and luxury cars; and pickup, van, utilities, and medium duty trucks in Canada, Europe, Latin America, and Asia Pacific. In addition, the company offers after sale services, such as maintenance, light repairs, collision repairs, and vehicle accessories. General Motors markets its products through distributors and dealers, as well as through retail dealers.
The contract between the two companies gives GM use of the Hummer brand name and responsibility for design, sourcing of components and tooling, production engineering, and marketing and distribution. AM General’s is responsible for manufacturing engineering, assembly and brand management. It also retains the right to market and distribute military vehicles such as the H1, known to the army as the "HUMVEE."
From a demographic standpoint, Hummer's target market segment cannot be very large because of the high price of the vehicle, which can be in excess of $200,000. AM General’s targeted for elite road warriors and for the average age of 50 years.
The problem of H1 is the size that is really disturbed its owners because it takes a lot of parking space.
Based on the research of GM, it made an agreement with AM General giving its right to produce H2 which is SUV for GM. It is narrower and lighter than Hummer. As a result, the brand-new H2 is smaller than past models and based on GM's full-size