akshay sharma - 03

8/4/2019 Akshay Sharma - 03

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Corporate Project Study

On

SPARK 1.0 &

OPTRA SALES ANALYSIS

At

General Motors India Pvt Ltd. 6th Floor, Global Business Park

M.G. Road, Gurgaon.

Submitted By:-AKSHAY SHARMA

MARKETING & FINANCE

Batch of [email protected]

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES



2



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Acknowledgement

I would like to express a deep sense of gratitude to General Motors India Pvt

Ltd, Gurgaon for extending me the opportunity for a company project studyand providing all the necessary resources and expertise for its successfulcompletion.

To begin with, I am very grateful to my project guide, Mr. Saurabh Vats(Regional Manager Sales – Northern India) w hose constant mentoring,encouragement, cooperation and teaching helped me complete this project

successfully. He made me work professionally and think in terms of amanager all the time. The credit also goes to the entire Sales & Marketing

Team who gave me excellent guidance and support. It was a good learning

experience to have worked under them.

Further, I am also grateful to all other employees of the organization for

their valuable insights during the training.

It was great, memorable and high quality learning experience at General Motors India.

Akshay Sharma



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INDEX

S.No TOPIC Page No1 Objective of the Project 5

2 Methodology 5

3 Executive Summary 6

4 Company Profile 7

4.1 History 8

4.2 Corporate Structure 8

4.3 Marketing 9

4.4 GM in the New Century 11 4.5 General Motors India 11

4.6 GM Difference 12

5 Spark 14

5.1 Spark In The Indian Auto Market 17

5.2 Spark 1.0 Vs Santro XK 23

5.3 Spark 1.0 Vs WagonR LX 28

5.4 Spark 1.0 Vs Estilo LX 33

5.5 Research Findings 38 5.6 Recommendations 41

6 Chevrolet Optra 42

6.1 Technical Specifications 44

6.2 Sales Figures 47

6.3 Possible Reasons for Decline of Sales 51

6.4 Recommendations 52

6.5 Conclusion 54



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1.Objective of the project: -

1. Study the market potential for the newly launched Chevrolet Spark ,

carry out a competitive analysis of the Spark 1.0, to try and find outwhy the variant is not selling much in the market and recommend

solutions to improve the sales of the Spark 1.0.

2. To carry out a Sales Analysis of Chevrolet Optra Sales since its

launch, to try and find out the reasons in the constant decline of itssales, and recommend solutions for the same.

2.Methodology

1. The pro ject started with the understanding of the entire sales process

that involves the pre-sales, the sale and the after-sales.2. A close study of the specifications of the product and a competitive

analysis in terms of features and pricing. 3. Understanding the dealership network in NCR and its dynamics. 4. Interactions with the General Managers of the various dealerships and

the Sales Representatives. 5. Interaction with the customers walking into the dealerships to try and

understand their wants and factors that affect their buying behavior.6. Feedback Analysis. 7. Recommendations.



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3. EXECUTIVE SUMMARY

Founded in 1906, General Motors has grown into the world’s largestautomotive corporation and full-line vehicle manufacturer. General Motors,

India was in incorporated in 1994 and ever since its just strengthened itspresence. GMI has a very wide range of product line and it constantly

innovates and comes up with newer and better vehicles to meet the everchanging demands of the customers.

Looking at the tremendous growth in the B segment, GMI decided to enter

that segment with its newly launched Chevrolet Spark. My first project wasto carry out a study of the market potential of the SPARK. The research was

carried out looking at the growth of the B segment in the past few years and

estimating the B segment share in the coming years. The project alsoinvolved carrying out a competitive analysis of the 1.0 variant of the Spark with the competitor variants in terms of features offered and their prices.Having done that my work involved interacting with the dealerships in NCR,

supervising the sales process there and interacting with both the customersand the Sales Representatives to try and understand the needs of the

customers and the factors that determined the buying behavior. Once thestudy was completed, based on my research findings and observations,

recommendations were given to improve the sales of SPARK 1.0

My second project involved the Chevrolet Optra, a C+ segment car launchedin July 2003. The sales of Optra have been declining over the past few years.

I was assigned to try and figure out the reasons for the same. The projectinvolved the Sales Analysis of Optra, and intergrating them with the 4 P’s of marketing to first try and narrow down the reasons for the decline in Sales.Having done that the project involved the understanding of the dealership

network and the sales process, interactions with customers, owners, and theGeneral Managers at the dealerships to determine the reasons and thecorrective measures. Based on my research findings and observations

recommendations were given.

Once both the projects were completed a project report carrying the detailsof both the projects along with the findings and recommendations was

submitted to Mr. Saurabh Vats.



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4.Company Profile:-

General Motors Corporation, also known as GM, is the world's second-

largest car manufacturer based on annual sales. Founded in 1908, in Flint,Michigan, GM employs approximately 284,000 people around the world.With global headquarters at the Renaissance Center in Detroit, Michigan,USA, GM manufactures its cars and trucks in 33 countries. Their European

headquarters is based in Zurich, Switzerland. In 2005, 9.17 million GM carsand trucks were sold globally under the following brands: Buick , Cadillac,

Chevrolet, GMC, Daewoo, Holden, Hummer, Opel, Pontiac, Saab,

Saturn and Vauxhall. The Chevrolet brand outsold its oldest domestic rival

Ford Motor Company's Ford brand in 2005 for the first time in over threedecades, closing at over a 700,000 unit sales gap.

GM is the majority shareholder in GM Daewoo Auto & Technology Co. of

South Korea and has product collaborations with Suzuki MotorCorporation, Toyota Motor Corporation and Isuzu Motors Ltd. of Japan.

GM also has advanced technology collaborations with Toyota MotorCorporation of Japan, DaimlerChrysler AG and BMW AG of Germany

and vehicle manufacturing ventures with Shanghai Automotive Industry

Corporation of China, AutoVAZ and Avtotor of Russia and Renault of France.

GM Parts and accessories are sold under the GM, GM Performance Parts,GM Goodwrench and ACDelco brands through GM Service and PartsOperations, which supplies GM dealershipsand distributors worldwide. GM engines and transmissions are marketedthrough GM Powertrain. GM's largest national market is the United States,

followed by China, Canada, the United Kingdom, and Germany. GMoperates a finance company, GMAC Financial Services, which offers

automotive, residential and commercial financing and insurance. GM'sOnStar subsidiary is a vehicle safety, security and information service

provider.

http://en.wikipedia.org/wiki/General_Motors_Acceptance_Corporation

http://en.wikipedia.org/wiki/General_Motors_Acceptance_Corporation

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Canada

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Renault

http://en.wikipedia.org/wiki/Russia

http://en.wikipedia.org/wiki/AutoVAZ

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Shanghai_Automotive_Industry_Corporation

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/BMW

http://en.wikipedia.org/wiki/DaimlerChrysler

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Toyota_Motor_Corporation

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Isuzu

http://en.wikipedia.org/wiki/Toyota_Motor_Corporation

http://en.wikipedia.org/wiki/Suzuki

http://en.wikipedia.org/wiki/GM_Daewoo

http://en.wikipedia.org/wiki/Ford_Motor_Company

http://en.wikipedia.org/wiki/Vauxhall_Motors

http://en.wikipedia.org/wiki/Saab_Automobile

http://en.wikipedia.org/wiki/Pontiac

http://en.wikipedia.org/wiki/Opel

http://en.wikipedia.org/wiki/Opel

http://en.wikipedia.org/wiki/Hummer

http://en.wikipedia.org/wiki/Holden

http://en.wikipedia.org/wiki/Daewoo

http://en.wikipedia.org/wiki/GMC_%28General_Motors_division%29

http://en.wikipedia.org/wiki/Cadillac

http://en.wikipedia.org/wiki/Buick

http://en.wikipedia.org/wiki/Michigan

http://en.wikipedia.org/wiki/Detroit%2C_Michigan

http://en.wikipedia.org/wiki/Renaissance_Center



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4.1 HISTORY

General Motors was founded on Wednesday, September 16, 1908 in Flint,

Michigan, as a holding company for Buick , then controlled by William C.Durant, and acquired Oldsmobile later that year. The next year, Durant

brought in Cadillac, Elmore, Oakland (later known as Pontiac) and severalothers. In 1909, General Motors acquired the Reliance Motor Truck

Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Durant lost control of

GM in 1910 to a bankers trust, because of the large amount of debt taken onin its acquisitions around 1.0 million dollars.

Durant left the firm and helped establish the Chevrolet Motor Company in

1911 with brothers Gaston and Louis Chevrolet. After a brilliant stock buyback campaign, he returned to head GM in 1916, with the backing of Pierre

S. du Pont. Chevrolet entered the General Motors fold in 1917; its first GMcar was 1918's Chevrolet 490. Du Pont removed Durant from management

in 1920, and various Du Pont interests held large or controlling shareholdings until about 1950.

4.2 Corporate Structure

General Motors is structured into the following groups:

· GM Automotive

· GMAP - Asia Pacific

· GME - Europe· GMLAAM - Latin America Africa Mid-East

· GMNA - North America· GMAC Finance and insurance services

· Other Operations

http://en.wikipedia.org/wiki/Pierre_S._du_Pont

http://en.wikipedia.org/wiki/Louis_Chevrolet

http://en.wikipedia.org/wiki/Chevrolet

http://en.wikipedia.org/wiki/Chevrolet

http://en.wikipedia.org/wiki/GMC

http://en.wikipedia.org/wiki/Pontiac%2C_Michigan

http://en.wikipedia.org/wiki/Owosso%2C_Michigan

http://en.wikipedia.org/wiki/Oakland_automobile

http://en.wikipedia.org/wiki/Elmore_%28automobile%29

http://en.wikipedia.org/wiki/Cadillac

http://en.wikipedia.org/wiki/Oldsmobile

http://en.wikipedia.org/wiki/William_C._Durant

http://en.wikipedia.org/wiki/Buick

http://en.wikipedia.org/wiki/Flint%2C_Michigan



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4.3 Marketing

At one time, each of GM's automotive divisions were targeted to specificmarket segments and despite some shared components, each distinguished

itself from its stablemates with unique styling and technology. The sharedcomponents and common corporate management created substantialeconomies of scale, while the distinctions between the divisions created an

orderly upgrade path, with an entry-level buyer starting out with a practicaland economical Chevrolet and moving through offerings of the different

divisions until the purchase of a Cadillac. The divisions were not competingwith each other as much as passing along the same customer who would thus

always be buying a GM product.

The postwar automobile industry became enamored with the concept of

"planned obsolescence", implemented by both technical and stylinginnovations with a typical 3-year product cycle. In this cycle, a new basic

body shell is introduced and then modified for the next two years with minorstyling changes. GM, Ford, and Chrysler competed vigorously in this newrestyling environment.

Distinguishing the brands

By 1958, the divisional distinctions within GM began to blur with the

availability of high-performance engines in Chevrolets and Pontiacs. Theintroduction of higher trim models such as the Chevrolet Impala and Pontiac

Bonneville priced in line with some Oldsmobile and Buick offerings wasalso confusing to consumers. By the time Pontiac, Oldsmobile and Buick

introduced similarly styled and priced compact models in 1961, the old"step-up" structure between the divisions was nearly over.

Compacts Arrive

The 1960s saw the creation of compact and intermediate classes. TheChevrolet Corvair was a 6-cylinder answer to the Volkswagen Beetle, theChevy II was created to match Ford's conventional Falcon and the Chevrolet

Camaro/Pontiac Firebird was GMs counter measure to the Ford Mustang.Among intermediates, the Oldsmobile Cutlass nameplate became so popular

during the 1970s that Oldsmobile applied the Cutlass name to most of its



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products in the 1980s. By the mid 1960s, most of GM's vehicles were builton a few common platforms and in the 1970s GM began to use nearly

identical body panel stampings, differing only in internal and external trimitems.

The 1971 Chevrolet Vega was GMs launch into the new subcompact class.Problems associated with its innovative aluminum engines would damage

GMs reputation more than perhaps any other vehicle in its history. Duringthe late 1970s, GM would initiate a wave of downsizing starting with the

Chevrolet Caprice which was reborn into what was the size of the ChevroletChevelle, the Malibu would be the size of the Nova, and the Nova wasreplaced by the troubled front-wheel drive Citation.

Rebadging Era

By the 1980s, GM frequently "rebadged" one division's successful vehicle

into several models across the divisions, all positioned close to one anotherin the market place. Thus a new GM model's main competition might beanother model spawned off the same platform. This led to market"cannibalization" with the divisions spending time stealing sales from oneanother. Even today, the company's GMT360 mid-sized light truck platform

has spawned the basic Chevrolet Trailblazer, Oldsmobile Bravada, GMC

Envoy, Isuzu Ascender, Buick Rainier and Saab 9-7X. Though each modelhad a more or less unique mission, the trucks can hardly be discerned fromone another.

In the late 1990s, the U.S. economy was on the rise and GM and Ford gainedmarket share producing enormous profits primarily from the sale of light

trucks and sport-utility vehicles. From 2000 to 2001, the Federal Reserve ina move to quell the stock market, made twelve successive interest rate

increases. Following the September 11, 2001 attacks, a severe stock marketdecline magnified the effect of GM's history pension and benefit fund

underfunding, precipitating a crisis. At the same time, this crisis happened atother U.S. companies with similar histories, such as Ford, DaimlerChrysler,

and United Airlines. GM began its Keep America Rolling campaign, whichboosted sales, and other auto makers were forced to follow suit. The U.S.automakers saw gross margins deteriorate.



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4.4 GM in the new century

In 2004, GM redirected resources from the development of new sedans to an

accelerated refurbishment of their light trucks and SUVs for introduction as2007 models in early 2006. Shortly after this decision, fuel prices increasedby over 50% and this in turn affected both the trade-in value of used vehicles

and the perceived desirability of new offerings in these market segments.The current marketing plan to extensively tout these revised vehicles as

offering the best fuel economy in their class (of vehicle). GM claims itshybrid trucks will have gas-mileage improvements of 25%, besting thecurrent fuel-economy leaders, Toyota and Honda.

In the summer of 2005, GM announced that its corporate chrome emblem

"Mark of Excellence" will begin appearing on all recently introduced andall-new 2006 model vehicles produced and sold in North America. Themove is seen as an attempt by GM to link its name and vehicle brands more

closely.

In 2005, GM promoted sales through an employee discount to all buyers.

Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup.

While the promotion was a temporary shot in the arm for sales, it did nothelp the company's bottom line. GM has since changed its marketing

strategy to a no haggle sticker policy in which all vehicle prices are lowered,but incentives are reduced, if not eliminated.

4.5 GENERAL MOTORS INDIA

General Motors India, incorporated in 1994 as a 50-50 joint venture

company with the C.K. Birla Group of Companies, became a fully ownedsubsidiary of GM in 1999 when GMOC bought the remaining shares. The

company was restructured in 1999 and was converted from a Public Limitedcompany to a Private Limited company. GM APH LLC currently holds 86percent of voting shares, and Holden (Australia) holds 14 percent.

The SPO business was integrated with the main business in the samecompany in 2000.



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In India, GM strengthened its presence with new product launches Chevrolet Optra in2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2004, GM India

is expected to register a growth of 90% over 2003. With sales volume going up, themarket share of GM India has gone to nearly 2%. The sales volume in 2003 was 15,155

units while 2004 figure is expected to be around 27,000 units. In 2004, the company solda total of 26,166 cars as against 15,155 cars in 2003 registering a growth of 73% whileoverall passenger car growth during the year was only around 23-24%. These included

9191 Chevy Optras in Entry 'D' Luxury sedan segment, 8369 Opel Corsas and 8417 unitsof the new generation premium multi-utility vehicle (MUV) Chevrolet Tavera. General

Motors believe in differentiation itself from the rest. The goal is to create value in theGM name. GM believes in creating a difference that is real, that is tangible and that candrive traffic into the showrooms.

4.6 10 COMMANDMENTS OF GM DIFFERENCE

1. Customer is King.

2. Provide a Convenient and Comfortable Environment.

3. Be Professional and Well Groomed.

4. Welcome customer like a guest at your home.

5. Identify and Anticipate needs

6. Present your product professionally and selectively.

7. Test Drive.

8. Provide efficient purchase consultation and hassle free paperwork.

9. Deliver vehicle on time with Respect.

10. Ensure religious post sales follow up and take corrective actions as

required.



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Chevrolet

Type Division of GM

Founded 1911

Headquarters Detroit, Michigan, United States

Industry Automobile

Chevrolet is among the newest brands in India launched by GM's Indianoperations. Until June 6, 2003 (the official birthday of Chevrolet), GMIndia (which was originally a joint venture with Hindustan Motors) sold the

Opel Corsa, Opel Astra, and the Opel Vectra. The Corsa and Astra were

built at a plant in Halol, Gujarat. Since then, Chevrolet currently sells theChevrolet Optra, Chevrolet Aveo, Chevrolet Tavera, and Chevrolet SRV.The Chevrolet Forester, a rebadged Subaru, was imported directly fromFuji Heavy Industries in Japan until 2005. The Optra and Tavera are built at

the Halol plant.

General Motors recently launched its small car, Chevrolet Spark on the 17th

April 2007. The Car is targeted to hit the volumes and increase the sales

numbers by a huge margin.

http://en.wikipedia.org/wiki/Fuji_Heavy_Industries

http://en.wikipedia.org/wiki/Subaru

http://en.wikipedia.org/wiki/Subaru_Forester

http://en.wikipedia.org/wiki/Daewoo_Lacetti

http://en.wikipedia.org/wiki/Chevrolet_Tavera

http://en.wikipedia.org/wiki/Chevrolet_Aveo

http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/Opel_Vectra

http://en.wikipedia.org/wiki/General_Motors_Astra

http://en.wikipedia.org/wiki/Hindustan_Motors

http://en.wikipedia.org/wiki/2003

http://en.wikipedia.org/wiki/June_6

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Division_%28business%29



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5. CHEVROLET SPARK

The all New Chevrolet Spark was launched in India on the 17th

April 2007 inthe small car segment. The Spark is the reason GM expects to nearly doubleits sales in India this year. It is undoubtedly the company’s biggest stride in a

race to win over drivers in the world’s second fastest growing economy,where new jobs and low interest rates have created generations of new car

buyers. Chevy Spark is going to compete with Zen Estilo, Santro Xing andWagon R for market share.

The 995cc, 8valve engine competes with Maruti Zen estilo and HyundaiSantro. It gives a maximum power of 48.5KW and a maximum torque of

87.3Nm. The car has completely new pedal box design with durable plasticmolded pedals. It has a noise-insulating mat between the engine

compartment and the dashboard improves the sound insulating effect. The

car claims a mileage of 17.85kpl with a top speed of 156Km/hr.



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Chevrolet Spark has a monoform design, which maximizes the wheelbase,and in turn improves cabin space.Its body is made of high strength steel,

which makes the car lighter and gives the required stability. Chevrolet Spark has a completely new torsion beam rear axle, which is coupled to angled

shock absorbers and semi trailing arms. This results in greater precisionw h e e l c o n t r o l .

Chevrolet Spark has precisely defined load paths with an energy absorbinghexagonal profile protect the passengers in the event of a head-on or rear

collision. Optimized links between the B-pillar and the sills provideadditional protection in the event of a side impact. ABS (anti lock brakingsystem) and driver-passenger airbags is offered as optional in 995cc variant.

Chevrolet Spark is available in 4 variants namely Spark 1.0 E, Spark 1.0,Spark LS and Spark LT. Spark LT is available with an option pack.



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5.1 SPARK IN THE INDIAN AUTO MARKET

Indian Passenger Car Market – 2006

Approximate Figures

Number of

Manufacturers.

13

Annual Passenger

Car Sales

10.2 Lacs

Number of Models

44



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Car Segmentation

With the expansion of Indian Automotive Market over a period of time the

segmentation of car models came in to existence based on cars definingcharacteristics, namely:

§ SIZE § PERFORMANCE

§ PRICE

Popular Segmentation of Cars

Following is the most popular segmentation of the cars in India.

A Segment : Maruti 800, Alto

B1 Segment : Zen Estilo, WagonR, Santro, Indica and NOW SPARK

B2 Segment : Aveo U-VA, Swift, Getz, Palio

C1 Segment : Esteem, Indigo, Ikon, Accent

C2 Segment : Aveo, Fiesta, City, Lancer, Verna

D1 Segment : Optra, Corolla, Octavia, Civic

D2 Segment : C Class, Accord, Camry, Sonata, Mondeo



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A SEGMENT

Ø The segment has two models i.e. Maruti 800 & Alto.

Ø

The segment grew very fast in the initial years of expansion of automotive industry in India. Ø The segment started shrinking when new segments came into existence

and is almost becoming stagnant now. Ø Sooner or later with the implementation of safety regulations the A

segment will disappear and B will become the first buy for new carcustomers.

27.8

27.928

28.1

28.2

28.3

28.4

28.5

28.6

28.7

28.8

2004 2005 2006

% SegmentContribution

B SEGMENT

§ The B segment is growing continuously and accounts for 47% of the totalcar market today.

§ There are more than 50 lacs of A Segment users who can be upgraded to

B segment.



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Market Potential for Spark – 76%

B Segment Players

COMPANY NO OF MODELS MODELS

GM 1 Aveo U-VA, Spark

Maruti 3 WagonR, Swift, ZenEstilo

Hyndai 2 Santro, Getz

Fiat 1 Palio

Tata 1 Indica

Total 8

Market Share - 2006

47%

29%

24%

A Segment

B Segment

C Segment and Above



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Segment B Growth

§ B Segment Market has grown 17.6% in 2006 over 2005. Trends indicate

the similar growth this year also.

2003 2004 2005 2006

286679

355047

399550

485095

0

100000

200000

300000

400000

500000

600000

1 2 3 4

Years

Sales

Key Players & Segment Contribution(2006)

Key Players Volume Segment Contribution Zen/Zen Estilo 19817 4.10%

WagonR 112668 23.20% Santro 140679 29.00% Indica 138580 28.60% Getz 14796 3.10% Swift 57023 11.80% Palio 1532 0.30% Total 485095 100.00%



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B Segment Sales Forecast

B SEGMENT

280 286355 399

485609

672 724 771 821 862

0

200

400

600

800

1000

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

Years

i n

' 0 0 0 s

u n i t s

B Segment

Forecast

§ Huge opportunities to sell cars exist in the B Segment. This segment willdominate the market in the years to come.

B Segment – Food for Thought

§ Within the industry the B Segment sales till year 2006 is approximately1.75 times more than A segment sales this year.

0

50000

100000

150000200000

250000

300000

350000

400000

A Segment B Segment

Unit Sales

Perfect time to be in the segment with such a superior product.



23

5.2 CHEVROLET SPARK 1.0 Vs HYUNDAI SANTRO XING XK

2007 Chevrolet Spark 1.0 2007 Hyundai Santro Xing XK

Ex-ShowRoom Price (Delhi) Rs. 332542 Rs. 327067 SPECIFICATIONS

Engine No. of Cylinders 4 4

Valves per Cylinder 2 3

Valve Confirugation / Valvetrain SOHC SOHC

Fuel Supply System SEFI MPFI

Engine Displacement 995 cc 1,086 cc

Maximum Power 63@5,400 PS@rpm 63@5,500 PS@rpm

Maximum Torque 9.2@4,200 kgm@rpm 9.8@3,000 kgm@rpm

Turbocharger No No

Supercharger No No

Transmission

Transmission Type Manual Manual

Gearbox 5 Speed 5 Speed

Overdrive Unknown Yes (in 4th and 5th)

Suspension System

Front Suspension Independent McPherson strut Independent McPherson strut

Front Suspension Springs Torsion Bars Coil Springs

Front Suspension Shockers Gas Filled Unknown

Rear Suspension Torsion Beam Axle Torsion Beam Axle

Rear Suspension Springs Not Available Coil Springs

Rear Suspension Shockers Gas Filled Hydraulic

Front Suspension Extras Anti-roll bar Anti-Roll bar

Rear Suspension Extras Not Available Unknown



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Steering

Steering Type Manual Manual

Turning Radius (wheel base) 4.6 m 4.4 m

Brake System

Front Brake Type Ventilated Disc Ventilated Disc

Rear Brake Type Self-Adjusting Drum Drum

Performance

Top Speed 150 km/hr 141 km/hr

Acceleration (0-100 kmph) 16.1 seconds 16.9 seconds

Fuel

Fuel Type Petrol Petrol

Fuel Tank Capacity 35 litres 35 litres

Mileage-City 13 kmpl 11.8 kmpl

Mileage-Highway 18 kmpl 16.8 kmpl

Emission Norm Compliance Bharat Stage III Bharat Stage III

Tyres

Tyre Size 155/70 R13 155/70 R13

Tyre Type Tubeless Radial Radial

Exterior Dimensions

Length 3,495 mm 3,565 mm

Width 1,495 mm 1,525 mm

Height 1,518 mm 1,590 mm

Wheelbase 2,345 mm 2,380 mm

Kerb Weight 840 kg 8,54 kg

Other Specifications

Max Seating Capacity 5 5

No. of Doors 5 5

FEATURES

Exterior

Adjustable Headlights Unknown Stan

Fog Lights - Front Not Available Not Available

Fog Lights - Rear Not Available Not Available



25

Power Adjustable Exterior Rear View Mirror Not Available Not Available

Manually Adjustable Ext. Rear View Mirror Standard Not Available

Electric Folding Rear View Mirror Not Available Not Available

Rain Sensing Wiper Not Available Not Available

Rear Window Wiper Not Available Not Available

Rear Window Washer Not Available Not Available

Rear Window Defogger Not Available Not Available

Wheel Covers Hubcaps Not Available

Alloy Wheels Not Available Not Available

Power Antenna Not Available Not Available

Tinted Glass Standard Standard

Rear Spoiler Not Available Not Available

Removable / Convertible Top Not Available Not Available

Roof Carrier Not Available Not Available

Sun Roof Not Available Not Available

Moon Roof Not Available Not Available

Side Stepper Not Applicable Not Available

Interior

Air Conditioner Standard Standard

Heater Standard Standard

Adjustable Steering Column Not Applicable Not Available

Leather Seats Not Available Not Available

Leather Steering Wheel Not Available Not Available

Glove Compartment Standard Standard

Digital Clock Not Available Not Available

Outside Temperature Display Standard Not Available

Fabric Upholstery Standard Not Available

Cigarette Lighter Not Available Not Available

Comfort & Convenience

Power Steering Not Available Not Available

Power Windows - Front Not Available Not Available

Power Windows - Rear Not Available Not Available



26

Rear Seat Headrest Not Available Standard

Rear Seat Centre Arm Rest Not Available Not Available

Cup Holders - Front Standard Standard

Cup Holders - Rear Not Available Not Available

Automatic Climate Control Not Available Not Available

Air Quality Control Not Available Not Available

Remote Trunk Opener Standard Standard

Remote Fuel Lid Opener Standard Standard

Low Fuel Warning Light Standard Standard

Accessory Power Outlet Not Available Not Available

Rear A/C Vents Not Available Not Available

Vanity Mirror Standard Not Availa

Heated Seats - Front Not Available Not Available

Heated Seats - Rear Not Available Not Available

Seat Lumbar Support Standard Not Available

Multi-function Steering Wheel Not Available Not Available

Cruise Control Not Available Not Available

Safety Anti-Lock Braking System Not Available Not Available

Brake Assist Not Available Not Available

Central Locking Not Available Not Available

Child Safety Locks Standard Standard

Anti-Theft Alarm Not Available Not Available

Day & Night Rear View Mirror Standard Standard

Passenger Side Rear View Mirror Not Available Standard

Xenon Headlamps Not Available Not Available

Halogen Headlamps Not Available Not Available

Rear Seat Belts Standard Standard

Seat Belt Warning Not Available Not Available

Door Ajar Warning Standard Not Available

Side Impact Beams Standard Standard

Front Impact Beams Standard Not Available



27

Vehicle Stability Control System Not Available Not Available

Traction Control Not Available Not Available

Keyless Entry Not Available Not Available

Tyre Pressure Monitor Not Available Not Available

Crash Sensor Not Available Not Available

Entertainment

Cassette Player Not Available Not Available

CD Player Not Available Not Available

CD Changer Not Available Not Available

DVD Player Not Available Not Available

Radio (AM/FM) Not Available Not Available

Audio System Remote Control Not Available Not Available

Speakers - Front Not Available Not Available

Speakers - Rear Not Available Not Available

Maintenance

Warranty (distance) 100,000 kms Unlimited kms

Warranty (time) 3 years 2 years

Offers

Discounts Not Available Rs 15000 + Free Insurance



28

5.3 CHEVROLET SPARK 1.0 Vs MARUTI WAGON R LX

2007 Chevrolet Spark 1.0 2007 Maruti WagonR LX

Ex-ShowRoom Price (Delhi) Rs 332542 Rs 328054

SPECIFICATIONS

Engine

No. of Cylinders 4 4


Valve Confirugation / Valvetrain SOHC Unknown

Fuel Supply System SEFI MPFI


Maximum Power 63@5,400 PS@rpm 65@6,200 PS@rpm


Turbocharger No Not Available

Supercharger No Not Available

Transmission



Suspension System


Front Suspension Springs Torsion Bars Torsion Bars

Front Suspension Shockers Gas Filled Not Available

Rear Suspension Torsion Beam Axle R igid Axle


Rear Suspension Shockers Gas Filled Gas Filled

Front Suspension Extras Anti-roll bar Anti-roll bar

Rear Suspension Extras Not Available 3-link, isolated tr. arms

Steering




29


Brake System

Front Brake Type Ventilated Disc Unknown

Rear Brake Type Self-Adjusting Drum Unknown

Performance

Top Speed 150 kmph 154 kmph


Fuel


Recommended Fuel Unknown Unknown




Emission Norm Compliance Bharat Stage III Bharat Stage III

Tyres

Tyre Size 155/70 R13 Unknown


Exterior Dimensions


Width 1,495 mm 1,475 mm



Front Tread Unknown 1,295 mm

Kerb Weight 840 kg 825 kg



No. of Doors 5 5

FEATURES

Exterior

Adjustable Headlights Unknown St





30


Manually Adjustable Ext. Rear View Mirror Standard Standard






Wheel Covers Not Available Not Available


Power Antenna Not Available Not Available

Tinted Glass Standard Standard

Rear Spoiler Not Available Standard




Moon Roof Not Available Not Available Side Stepper Not Applicable Not Applicable

Interior Air Conditioner Standard Standard

Heater Standard Standard Adjustable Steering Column Not Applicable Not Available

Electronic Multi-Tripmeter Not Available Standard





Outside Temperature Display Standard Not Available

Fabric Upholstery Standard Standard







31



Rear Seat Centre Arm Rest Not Available Not Available





Remote Trunk Opener Standard Standard


Low Fuel Warning Light Standard Not Available

Accessory Power Outlet Not Available Not Available


Vanity Mirror Standard Not Avai






Safety

Anti-Lock Braking System Not Available Not Available

Brake Assist Not Available Standard

Central Locking Not Available Not Available

Power Door Locks Unknown Not Available



Day & Night Rear View Mirror Standard Not Available

Passenger Side Rear View Mirror Not Available Not Available


Halogen Headlamps Not Available Standard

Rear Seat Belts Standard Standard

Seat Belt Warning Not Available Not Available




32


Front Impact Beams Standard Standard






Entertainment









Maintenance

Warranty (distance) 100,000 kms 40,000 kms

Warranty (time) 3 years 2 years

Offers

Discounts Not Available Rs 16000



33

5.4 CHEVROLET SPARK 1.0 Vs MARUTI ZEN ESTILO LX

2007 Chevrolet Spark 1.0 2007 Maruti Zen Estilo LX

Ex-ShowRoom Price (Delhi) Rs 332542 Rs 320686

SPECIFICATIONS

Engine

No. of Cylinders 4 4


Valve Confirugation / Valvetrain SOHC Unknown

Fuel Supply System SEFI Unknown


Maximum Power 63@5,400 PS@rpm 64.9@6,200 PS@rpm


Turbocharger No No

Supercharger No No

Transmission



Suspension System


Front Suspension Springs Torsion Bars Unknown

Front Suspension Shockers Gas Filled Unknown

Rear Suspension Torsion Beam Axle Unknown


Rear Suspension Shockers Gas Filled Gas Filled

Front Suspension Extras Anti-roll bar Anti roll bar

Rear Suspension Extras Not Available 3 link rigid and isolated



34

Steering



Brake System

Front Brake Type Ventilated Disc Ventilated Disc

Rear Brake Type Self-Adjusting Drum Drum

Performance

Top Speed 150 kmph 160 kmph


Fuel





Emission Norm Compliance Bharat Stage III Euro III

Tyres

Tyre Size 155/70 R13 145/70 R13


Exterior Dimensions


Width 1,495 mm 1,475 mm


Ground Clearance Unknown 165 mm


Kerb Weight 840 kg 855 kg



No. of Doors 5 5

FEATURES

Exterior

Adjustable Headlights Unknown Un




35



Manually Adjustable Ext. Rear View Mirror Standard Standard






Wheel Covers Not Available Not Available


Power Antenna Unknown Not Available

Tinted Glass Standard Not Available

Rear Spoiler Not Available Not Available




Moon Roof Not Available Not Available

Side Stepper Not Applicable Not Available

Interior

Air Conditioner Standard S

Heater Standard Standard

Adjustable Steering Column Not Applicable Not Available





Outside Temperature Display Standard Unknown

Fabric Upholstery Standard Standard







36



Rear Seat Centre Arm Rest Not Available Not Applicable





Remote Trunk Opener Standard Not Available


Low Fuel Warning Light Standard Not Available

Accessory Power Outlet Not Available Unknown


Vanity Mirror Standard Not Available






Safety

Anti-Lock Braking System Not Available Not Available

Brake Assist Not Available Not Available

Central Locking Not Available Standard



Day & Night Rear View Mirror Standard Not Available

Passenger Side Rear View Mirror Not Available Unknown


Halogen Headlamps Not Available Not Available

Rear Seat Belts Standard Not Available

Seat Belt Warning Not Available Unknown





37

Front Impact Beams Standard Standard






Entertainment









Maintenance

Warranty (distance) 100,000 kms Unknown

Warranty (time) 3 Years 2 years

Offers

Discounts Not Available Rs 10000



38

5.5 RESEARCH FINDINGS

1. Chevrolet Spark has been able to develop a level of curiosity in the

minds of the customers in a very short period and there has been a goodresponse to the new launch.

2. The customers feel that Spark 1.0 is overpriced in accordance to the

features that it has got to offer. There is a difference of Rs 3427, Rs 6167and Rs 13892 between the on road prices of Chevrolet Spark and Santro

Xing XK, Wagon R LX and Zen Estilo LX respectively which are thecompetitor variants for Chevrolet Spark 1.0. The customers do not see

tangible features in addition to the competitors that justify the difference

in price.

3. Power Steering as a feature is very important for a customer planningto buy a car in the B-segment or in other words, spend close to Rs 3.5

lakhs on a car.In a survey carried out with a sample size of 50 customers in the B

segment, 81.1% customers said that power steering is a must for them,10.4% said that they would still prefer a power steering even if the drive

without one is comfortable and the rest opted for a Non-power steering.

0

10

20

30

40

50

60

70

80

90

%age of

customers

P.S Must

Prefer P.S

Non P.S

4. At the dealerships, customers are made to drive Chevrolet Spark LT

for a test drive and hence, they are not able to experience the comfort and



39

the low resistance level even in the Chevrolet Spark 1.0 without thepower steering.

5. According to the research carried out the features that a customer looks

for in a car in order of preference and importance is given below –a) Power Steering,

b) Central Locking,c) Power Windows,

d) Body Colored Bumpers, e) CD Player / Music System,

f) Tubeless Tyres.

6. When the sample customers of the B segment were asked which car

would they prefer to buy following was their response

05

10

15

20

25

30

35

40

45

%age of

Customers

Spark

Zen Estilo

Wagon R

Santro Xing



40

7. The sample of 50 customers were also asked which company

according to them was best in terms of pre-sales, sales and after sales.

29

30

31

32

33

34

35

36

37

%age of

customers

GM

Maruti Suzuki

Hyundai



41

5.6 RECOMMENDATIONS

In view of the research carried out and the findings from the same followingare my recommendations to improve the sales of Chevrolet Spark 1.0

1. The Spark 1.0 should be targeting the customers of segment A who

can be pulled into segment B. 70% of the segment A customers can bepulled into Segment B and thus, there is a huge market potential. Tobe able to attract these customers the pricing of Spark 1.0 should be

reviewed and set at something in the range of an Ex-showroom priceof Rs 325000. This would lead to less profit margin but would bring

in the volume. 2. General Motors India should ensure that all the variants are readily

available for a test drive at the dealerships so that the customer canchoose which car to drive depending on his choice and budget. Also

by doing this, the customer will realize that Spark 1.0 has a verycomfortable steering as compared to the other competitor variants

available in the market. 3. General Motors could also incorporate a power steering in Spark 1.0

and price it at an ex-showroom price of about Rs 340000. Accordingto the research carried out I believe that customers will be willing topay this extra price since a power steering is the most looked out for

feature in a car and none of the other competitor variants have to offer

that. This also will not affect the sales of Spark LS since the marketfor both the variants are different. Spark LS should be targetingcustomers who already own either 1 or 2 cars and they are looking for

luxury in a small car i.e power windows, body colored bumpers etc.However, Spark 1.0 as mentioned above, should be targetingcustomers of Segment A who can be pulled into Segment B byproviding them a more value for money package.

4. General Motors should ensure that there are no discounts whatsoeveroffered atleast in the first 4 months from the launch date. Cash

discounts and other discounts offered by the company to pep up thesales in the very recent stages of the car introduction aren’t taken too

well by the customers. 5. Spark LT because of its pricing overlaps with Aveo UVA. Thus, I

believe that the top end model of Spark i.e Spark LT should carry a

CD player as a standard feature at the same price to create a differencein the price to feature ratio.



42

6. THE CHEVROLET OPTRA

The Chevrolet Optra was introduced in India in July 2003with a 1.8L

engine. The product in the wake of the competition evolved and was

launched in a 1.6L engine variant. The Chevrolet Optra is GM India's secondstep towards extending the brand's sweep in the segmented Indian passengercar market and is also a furtherance of the company's plans to offer moreaffordable vehicles. This will also ensure that the Opel brand can be given

an even more premium positioning in future. That done, hopefully we willalso be able to see some of the more recent, upmarket Opel models on Indian

roads soon.

The new C2 or C+ segment (as the company would like to call it) ChevroletOptra has been developed by GM on a combined

GM-Daewoo platform, according to company officials. Visually, the car'sclose resemblance to the Daewoo Nubira is partly explained by the new

platform's lineage. The frontal view of the car gives away the Koreaninfluence.

But the side and rear profile are clearly GM. The strong, gradually risingshoulder lines and the angular, wrap around, attention grabbing tail-lamp



43

cluster are easily the most striking Chevy traits of the car. When GM Indiadecided to launch the next Chevy after the Forester, which is as yet to berolled out in the Western markets, the Optra would have looked like a goodchoice, especially as the company was losing market share in the C/ D

segments to new entrants. The Optra is being positioned as a luxurious,upmarket option in the C segment, while it also more than caters to thestiffer demands of the entry-level D-segment car buyer. The Europeanstyling of the car, the crystal lens head and tail lamps and the small luxury

imprints, such as the radio antenna, being printed onto the rear windscreenare all meant to attract this kind of a customer. The Optra's aerodynamic

body is complemented by such stylish embellishments as contemporarychrome radiator grille and five-pointed alloy wheels, the "jewel effect" dualbulb headlamps and sparkling rear lamps and an electronically controlled tilt

and slide sunroof.To establish the Optra's luxury positioning, GM has come up with a richly

appointed, spacious, wood-finished cabin. The interior of the car featuresplush seats, fully upholstered in leather and an extremely silent cabin thanks

to GM's TNRS (Total Noise Reduction System) technology. To play yourfavourite music the Optra sports an in-dash five-CD changer with six

speakers.

The car's audio controls are conveniently mounted right on the steering for

ease of use even if the Optra is owner driven (which may be a rarity in

India). The glove compartment is cooled and could double as a refrigeratorespecially useful on those long drives. Cup holders on the armrests add tothe convenience of storing and handling drinks on the move. More storage

space has also been provided in the form of a tray under the co-driver's seat.Offering the C+ or the entry level D segment car buyer more power andrefinement in the Optra, GM has brought in a 1.8 litre, 4-cylinder

powerhouse.

The six-valve, D-TEC, DOHC high-compression engine responds by

pumping out 115 PS of power.

The other driver friendly features on the Optra include the tilt and height

adjustable power steering system, a driver's seat that can be adjustedvertically and horizontally, according to convenience and the all-wheelindependent suspension which is specifically designed for the Indian roads.

The safety features that the Optra comes with include a high-tension steel

safety frame, strategically located steel crash bars, front and rear crumple



44

zones, collapsible steering and height adjustable three-point safety belts forall passengers, including a driver seatbelt warning chime. The company also

offers a driver's side airbag on the top-end variant of the Optra.

6.1 Technical Specifications of an Optra

Chevrolet Optra 1.6 Elite 1.6 LSElite

1.6 LTRoyale

1.8 LT 1.8 LT AT

Dimensions

Kerb weight

(kgs) 1230 1230 1265 1265 1300

Wheel base (mm) 2600 2600 2600 2600 2600

Overal Length(mm)

4515 4515 4515 4515 4515

OveralWidth(mm)

1725 1725 1725 1725 1725

Overal Height(mm)

1445 1445 1445 1445 1445

Trunk Volume(Ltr)

405 405 405 405 405

Ground Clearance(mm)

173 173 173 173 173

TRANSMISSION 5 SpeedManual

5 SpeedManual

5 SpeedManual

5 SpeedManual

5 SpeedManual

TYRE 185/65

R14Tubeless

185/65R14

Tubeless

185/65R14

Tubeless

185/65R14

Tubeless

(Optional195/55

R15Tubeless)*

185/65R14

Tubeless

(Optional195/55

R15Tubeless)*



45

Engine 4 Cyl, 1.6L,

16V DOHC,VGIS

4 Cyl, 1.6L,

16V DOHC,VGIS

4 Cyl, 1.6L,

16V DOHC,VGIS

4 C y l ,

1.8L, 16VDOHC

4 C y l ,

1.8L, 16VDOHC

Volume(cc)

1598 1598 1598 1799 1799

Max. Power(PS/rpm)

104/5800 104/5800 104/5800 115/5800 115/5800

Max.Torque(Nm/rpm)

148/4000 148/4000 148/4000 158/4000 158/4000

EXTERIOR

Outside DoorHandles

Black Body

coloured

Body

coloured Chrome Chrome

Wheels Full-

wheelcover

Full-

wheelcover

14”

Alloys

14”

Alloys(15”

Alloys)

14”

Alloys(15”

Alloys)

INTERIOR

Wood finishinterior

Wood finish oncentre panel

- - -

Upholstery Soft feel

beige Soft feel

beige Plush

Leather Plush

Leather Plush

Leather

Electric Sunroof - -

SEATING

60*40 SplitFolding Rear

Seats



46

Front and Rearcentre arm rest

with storage boxand cup holders

Front Only

Height AdjustableDriver Seat

-

COMFORT AND CONVENIENCE

Cooled

Tilt Steering -

Leather wrapped

steering wheel

- - -

Automatic airconditioning

system

Manual Manual Manual

Electrically

foldable outsiderear view mirror

- - -

Audio

System

Premium

RadioCassette

Player with4 speakers

Premium

RadioCassette

Player with4 speakers

2 DIN

Radio,Cassette &MP3 player

with 4speakers

2 DIN Radio,

Cassette &CD player

with 6speakers + 5CD changer

2 DIN Radio,

Cassette &CD player

with 6speakers + 5CD changer

Safety and Security

Dual Airbags - -

Front fog lamps - - Optional* Optional*



47

6.2 SALES FIGURES FOR CHEVROLET OPTRA

FOR NCR

2004 2005 2006 2007

January 169 102 85 24

February 190 71 65 19

March 419 246 114 97

April 109 79 46

May 152 97 77

June 179 116 68

July 192 89 77

August 129 170 55

September 281 152 71

October 195 159 -

November 64 81 27

December 284 194 132

TOTAL 2363 1556 817 140



48

Optra Sales for NCR

0

50

100

150

200

250

300

350

400

450

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Months

S a l e s

2004

2005

2006

2007



49

Optra Sales for 2004 (NCR)

0

50

100

150

200

250

300

350

400

450

1 2 3 4 5 6 7 8 9 10 11 12

Months

S a l e s

Series1

Optra Sales for 2005(NCR)

0

50

100

150

200

250

300

1 2 3 4 5 6 7 8 9 10 11 12

Months

S a l e s

Series1



50


0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12

MonthS

S a l e s

Series1


0

20

40

60

80

100

120

1 2 3

Months

S a l e s

Series1



51

6.3 POSSIBLE REASONS FOR THE DECLINE OF

SALES

1. Heavy cash discounts given to customers in order to attract themtowards the car has infact discouraged them to buy the car. Huge cash

discounts make the consumers feel that either the car is not sellingwell or is being phased out, thus hampering the sales.

2. The resale value of the car after 3 years is 50% of the original amount

as compared to about 70% for its competitor Honda City.

3. The general perception of a General Motors vehicle among the

customers is not too good because of Opel. Since Opel Astra was oneof the fist cars of GM in India, its high maintenance tag hassled thecustomers to form a view point that all GM cars are high maintenance.

4. Customers who are happy with the car are not conveying the positivesto the peers.

5. Cannibalization due to Aveo : Since the launch of Chevrolet Aveo in

March 2006, the sales of Optra have dropped further. This is due tothe fact that a customer planning to buy the base model of Optra

prefers to buy an Aveo, since for approximately the same price he getsmore features in the car.

6. The product planning in terms of the Product Evolution carried outhasn’t been timely. Modifications in the car have been made but onlyafter the competitors have taken away the customers.

7. Optra 1.6 Base and Optra 1.6 LS have a cassette player in them. Acustomer buying a C+ segment car expects at least a CD player.

8. The extra features in Optra 1.6 LS does not justify the additional priceover the Optra 1.6 Base.

9. The Silver panel on the dash board stands out and looks out of place.



52

10. A customer of the C+ segment car expects a free pick and dropfacility for the After Sales service which again is not provided by General

Motors.

11. The GM incentives does not reach the employees who are actually outthere selling the cars directly to the customers, thus affecting their zeal

to sell more cars.

6.4 RECOMMENDATIONS

1. There should be a control on the cash discounts given by the company.Instead of huge cash discounts, GM could give discounts in the form of

accessories. For Eg: Accessories worth some amount free with the car. TheAccessories as desired by the customers in order of their preference

according to my study are: a) Autocop

b) Gear Lock c) Seat Covers

d) A Music System. Another possible way of attracting customers could be to give out a package

deal. A free gift or a free trip to some holiday destination for 2 with thepurchase of an Optra, would cost less than giving a huge cash discount andalso would be an Eye-catcher.

2. Own an Optra for Rs 6.99 Lakhs. This was a successful promotional

offer, which probably should be used again to increase the sales. The priceof Rs 6.99 Lakhs is Ex-Showroom and includes a cash discount of Rs50,000 from the company and Rs 35000 from the financer.

3. The customers should have a sense of Pride in owning an Optra. It shouldbe positioned as a car for the Elite. A customer should have a sense of

difference and superiority when he owns an Optra. Thus, an Optra OwnersClub should be formed which could meet up once in a month, havenewsletters etc. This club like the Harley Davidson Club should be one thatpeople should aspire to get into.



53

4. The additional features in Optra LS over Optra Base does not justify forthe difference in prices of the two models in the mind of the customers.

Hence, I recommend that Optra 1.6 LS should be phased out or stopped andinstead Optra 1.6 Platinum should be a made a permanent model instead of a

limited edition. Optra 1.6 Platinum has features that are easily identifiable bythe customers like Alloys, MP3 player, Rear Spoiler etc and customers do

not mind paying that little bit extra if they are getting extra. In other words,Optra 1.6 Platinum is more value of money than Optra 1.6 LS from thecustomer’s point of view.

5. General Motors should focus more on Lease Companies than what they

are doing now.

6. Chevrolet Optra and Chevrolet Aveo overlap each other in terms of price,because of which customers of Optra have shifted to Aveo since for around

the same price of Optra Base, they are getting the high end model of Aveo,thus resulting in Cannibalization. I, thus, recommend that some morefeatures should be added to Optra Base and the price increased to create agood enough differentiation between the two.

7. All models of Optra should come equipped with a CD player.

8. The GM incentive meant for the Salesmen should be directly written outto them instead of the dealer.

9. A strict standardization rule must be followed between all the dealers.

They should have all the rules laid down in front of them in clear termswhich also include the maximum cash discounts that they can give. In case

of non abatement of any of the rule they should be severely dealt with.

10. A close tab on all the owners of an Optra must be kept and simplegestures like sending them a Birthday Card on their Birthdays and Free

Invitations to any special GM event exceeds their expectations and result inCustomer Delight. This will lead to the best form of publicity i.e Word Of

Mouth.



6.5 CONCLUSION

Partially because of Opel and its failure on the Indian Roads, GeneralMotors haven’t been able to gain the trust and the confidence of the Indian

Market. Though the perception is now changing. People have begun to seethe difference between an Opel and a Chevrolet. They do realise thatChevrolet is a sturdy and a stable car, a car that rules the roads and is a low

maintanence car. The message is being passed on within the Market and theroad ahead for Chevrolet and Chevrolet Optra looks good. Though it will

take some time before the numbers start pouring in. The process can behurried up by coming up strategies and continuous modifications in the car

according to the needs and wants of the customers. If General Motors is able

to do that, then without doubt Chevrolet Optra will have the largest MarketShare in the C+ segment in the near future.

akshay sharma - 03

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