Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Case 9 Lecture Notes
Chevrolet: 100 Years of Product Innovation
Case 9 Chevrolet: 100 Years of Product Innovation*
Synopsis: This case examines Chevrolet’s history of product innovation, branding strategy,
and successful product mix in connection with its relationship to parent General
Motors and its rivalry with Ford. Chevrolet has a long history of success in
developing and marketing cars, trucks, and SUVs that are practical, sporty, and
affordable. The brand’s relationship with General Motors is both a strength and a
weakness, especially in the aftermath of the federal government’s financial
bailout of General Motors in 2008. Government demands for improved fuel
economy and ever changing customer needs and preferences will be constant
challenges as Chevrolet looks toward its next 100 years.
Themes: Product innovation, product mix, branding, product strategy, competition,
corporate reputation, evolving technology, customer loyalty, government
regulation, international marketing
Case Summary
General Motor’s (GM) Chevrolet brand celebrated its 100th anniversary in 2011. Throughout its
history, the Chevrolet brand has been associated with almost every type of vehicle on the road.
The brand’s broad portfolio of products falls under the Chevrolet brand because of the strong
brand equity that Chevrolet has developed over the last century (see Case Exhibit 9.1). The case
discusses several Chevrolet models that represent the diversity of the Chevrolet product mix that
exists today.
Case Exhibit 9.1 Chevrolet Models Sold within the United States
Cars
SUVs/Crossovers
Trucks/Vans
Electric Vehicles
Sonic
Cruze
Malibu
Corvette
Camaro
Impala
Spark
Equinox
Traverse
Tahoe
Suburban
Colorado
Avalanche
Silverado
Express
Volt
Over the years, the company has transitioned from an American icon into a worldwide brand
known for quality and durability. Despite numerous successes and failures in its history,
including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going
strong after a century of product innovation.
* Michael D. Hartline, Florida State University, prepared this teaching note for classroom
discussion rather than to illustrate effective or ineffective handling of an administrative situation.
Case 9 Lecture Notes
Chevrolet: 100 Years of Product Innovation
Although the Chevrolet brand has evolved over the years, it maintains many of the same themes
that it started out with a century ago: a quality vehicle with deep roots in America’s past. As
Chevrolet vehicles became more popular with Americans, minus a dip during the Great
Depression, the company wanted to firmly entrench the brand as a key part of American culture.
It found part of this solution by associating itself with American sporting events, such as auto
racing. On the promotional side, Chevrolet adopted a patriotic theme with taglines such as
“America’s Best Seller, America’s Best Buy” and “Baseball, hot dogs, apple pie and Chevrolet.”
One of its most popular taglines “Like a Rock” began in 1991 to describe its Chevrolet pickup
truck. The tagline imbued the brand with a sense of strength and durability. Chevrolet would
continue its American theme with its “An American Revolution” tagline adopted in 1994 and its
most recent “Chevy Runs Deep” campaign.
Teaching Overview
This case provides a history of Chevrolet, a review of its product line and marketing program,
and a discussion of Chevrolet’s competitiveness against its rivals. There are many ways to
approach this case: branding, product portfolio management, promotion, bankruptcy, etc. One
SWOT Analysis
Internal Strengths
• Strong brand image connected to U.S. culture
• Large portfolio of products
Internal Weaknesses
External Opportunities
• Strong market potential in foreign markets, especially Asia and South America
Case 9 Lecture Notes
Chevrolet: 100 Years of Product Innovation
• Increasing U.S. government regulations on fuel economy
• Slowly growing market for electric vehicles
External Threats
• U.S.-based competition is vastly improved, especially Ford
Problem/Decision Statement
How can Chevrolet continue to seize market opportunities, constantly modify its products, and
adapt its brand to changing customer tastes in order to succeed for another century?
Strategy Alternatives
1. Chevrolet should drop some of its products and rededicate those efforts toward better
Strategy Recommendations
All three alternatives are viable options for Chevrolet. Politically, however, GM is not likely to
adopt the first alternative as it would mean restructuring plant operations and could lead to
Implementation Issues
Chevrolet’s key implementation issue is controlling costs and how executive leadership can work
with its unionized workforce. When compared to foreign manufacturers, GM (and other U.S.
Case 9 Lecture Notes
Chevrolet: 100 Years of Product Innovation
Teaching Questions
1. Evaluate the diversity of vehicle types and sizes that are sold under the Chevrolet brand
name. What strengths and weaknesses are evident in Chevy’s product mix?
2. How has Chevrolet strategically managed its brand and reputation over the last 100
years? What opportunities and threats will affect Chevy’s branding and reputation in the
future?
3. What specific marketing strategies would you recommend that might help Chevrolet last
another 100 years? How important is Chevy’s legacy of innovation to the brand’s future?
Some strategies are discussed in this note. Many students will argue that Chevrolet’s
legacy of innovation is not that important to the brand’s future. Rather, cost control,
