The sixth generation Malibu was redesigned for model year 2008. “The new model has won critical praise from newspapers, magazines and other media outlets, with referring to it as being "like a super , but from GM" and magazine declaring, ", Beware." It also garnered high praise from MotorTrend Magazine, being rated higher than the Honda Accord in the magazine's 2008 Car of The Year competition. Kelly Blue Book has named it the "2008 best redesigned vehicle". Car and Driver stated that while it would not be "enough to steal the top-dog sales title from the perennial Honda and Toyota mid-sizers", they noted "for the first time since Chevrolet revived the storied nameplate in 1997, it has enough of what it needs to sell in significant numbers to the public, not just rental fleets. Additionally, in January 2008, the new Malibu received the at the in Detroit in voting among a panel comprised of fifty automotive journalists in a field of entries including the 2008 Cadillac CTS and the 2008 Honda Accord” (wikipedia.org, 2008).
The Malibu’s sales have been up and down throughout the last four years. Top sales for 2004 were $4.3 million, for 2005 they were $4.7 million, for 2006 sales dropped to $4.4 million, for 2007 they went back up to $4.6 million, and in 2008 thus far we’re at $4.1 million. The Chevy Malibu’s market share is approximately 1.8% of the market. Previous advertising campaigns include “like a rock” and “American Revolution”.
The Chevy Malibu’s top three competitors are the Toyota Camry, Honda Accord, and Nissan Altima. Honda Accord positions them as “Exercise your freedom of choice,” Toyota positions themselves as “moving forward,” and Nissan positions themselves as “luxury now available to all.” All three have very effective ways of positioning themselves in the market.
The demographics for the Chevy Malibu are an age range of 23 and up with an income level of $25,000 per year and up. This car is marketed to both male and female with a high school diploma. These types of consumers can be found in the USA, Canada, Mexico, and in the Middle East. The top of mind awareness of Chevy Malibu is high to neutral and consumers generally have a favorable to neutral attitude towards the brand. Consumers are very likely to use the brand in the near future. Generally, consumers of this product category tend to be very loyal to the brand and do not often switch brands. The Chevy Malibu has three media contacts. Internet banners, newspaper advertisements, and magazine articles. The Chevy Malibu consumer segment prefers the “name, price, and miles per gallon benefit.”
Some strengths the Chevy Malibu has to offer are extensive sound deadening features which results in an incredibly quiet interior, an average of 32 miles per gallon, and OnStar is standard with turn by turn on every model. Some of Chevy Malibu’s weaknesses are the hybrid model has a very limited availability, air conditioning is not standard on the first 3 models, and the hybrid model boosts fuel economy by a mere 2 miles per gallon high way and city and it costs $4,000 more. The opportunities to improve are in the hybrid model. The Chevy Malibu Hybrid costs $4,000 more and doesn’t give much return on investment. The biggest threat is the hybrid model. With today’s stress for fuel efficient cars, The Malibu hybrid fuel performance needs to be increased.
Goals and Objectives
Marketing Objectives
The Marketing Objectives for the 2009 Chevrolet Malibu will consist of our customers' needs; our company's long and short term sales targets, communication objectives and the following objectives.
Need Satisfying Objectives
The most satisfying objectives for our target market, in relation to the Chevrolet Malibu would be to provide "transportation revolved around lifestyle". In today's world, our target market stays busy and needs to get to their destination when they are ready and without any setbacks.
Reliability, value, ride quality, overall comfort and safety remain the top purchase motivators for need satisfying objectives. The reliability of the Malibu comes consistent with the 5 year/100,000 mile fully transferable power train limited warranty, plus the roadside assistance program and courtesy transportation program. The value of the Chevrolet Malibu is standard with our brand and our name. The brand in turn comes with the value of our Brand Loyal customers who like to buy our brand. The need to our target market is satisfied with the value for our customers because they prefer to purchase our product of the Chevy Malibu and we do not have to "sell" them on purchasing out products. Our ride quality is satisfying for customers from the long-wheelbase version of GM's front-drive Epsilon platform and 169-horsepower 2.4-liter four-cylinder engine or its 3.6-liter 252-hp V6 engine. The inline-4 comes paired to a four-speed automatic, while the V6 drives like a six-speed automatic. The overall comfort and safety All Malibu trims feature 4-wheel disc and ABS brakes with electronic brake force distribution and brake assist, front and rear stabilizer bars, traction control, and dual front-side and side curtain airbags for both rows. Stability control is standard on all trims but the LS. Automatic headlights contain halogen lamps, and the LTZ adds standard fog lights. OnStar includes its own navigation system (a separate navigation system is not offered, even as an option, for the 2009 Malibu). Earning five stars from the NHTSA in both frontal and side impact tests and a good rating from the Insurance Institute, the 2009 Malibu offers security as well as comfort for family needs. Chevrolet Malibu retrieved from (2008)
All Malibus come with side curtain air bags for both rows and side seat-mounted air bags for the front. Electronic stability control is a valuable accident-avoidance feature. It is standard on all of the Malibu models except the LS, where it is not available even as an option. Malibu received a five-star rating in both front and side crash test by the National Highway Traffic Safety Administration. The Malibu prides itself on its upscale interior, it is designed to improve overall comfort. Creating a sporty cockpit-like feel, a dual-pod dash wraps around both front seats, dividing them with a center console that contains storage units. Chrome outlines the instrument panels.
Communication Objectives
Perceived Need
It is not only a perceived need to our consumer to have and own the Chevy Malibu, it is a need. In today's economy, it is imperative to purchase GM vehicles. It is also imperative to purchase vehicles made in the USA. One of our biggest competitors is the Toyota Camry. Although it has been perceived that the Camry may not be as desirable as the Malibu, it may have a winning proposition against one of its main competitors. (NYSE: ) has announced that it will spend $100 million this year to advertise the Chevy Malibu as a suitable alternative to the best-selling (NYSE: ) Camry. Although GM , this advertising bet sound a little hokey to me. Can GM really convince Americans that an aging nameplate like the Malibu can compete against the rock-solid image of the Camry? Although it's an all-new design, that may not be enough for most customers. General Motors (GM) pits new Chevy Malibu against Toyota (TM) Camry (2008) retrieved from (
Brand Awareness
"The new Malibus are selling faster than we can put them on dealers' lots." Chevrolet estimated it would need to ship approximately 85,000 units, but dealers have requested nearly 200,000 units. That's awesome! Is a quote from Chevrolet General Manager, Ed Peper. 2008 Chevy Malibu Makes the Grade retrieved from (May 21st, 2008)
Advertising Budget
Total campaign budget
For our particular campaign budget we used the percentage of sales technique to establish an accurate campaign budget that our company will use. We have arrived at a total campaign budget of 37 million dollars. This budget is divided up into three particular categories, promotion and merchandising, media buying, and public relations. Promotion and merchandising is consisting of 45% of the campaign budget. Media Buying is also responsible for 45% of the campaign budget. Public relations make up a small portion of the campaign budget but will play a significant role consisting of 10% of the total campaign budget.
Media budget
Our media budget consists of 45% of the total campaign budget, giving us 16,650,000 dollars. This money will be used to purchase time on the radio and television; it will also pay for newspaper, magazine, and outdoor ad space. Along with those above, the internet is another viable source for advertisement that would account for part of our media budget.
How budgets were set
Budgets have been set by calculating a certain portion (10%) of the most recent sales revenues. After deriving at this campaign budget, the budget is broken down into three categories. First the promotion and merchandising category is responsible for 45% of the budget. Then the media buying category is also responsible for 45% of the budget and the remaining 10% is used for public relations.
Creative Strategies
Creative Brief
The creative brief is a simple written statement of the most important issues to consider in the development of the ad, who, why, what, where, and when. In our case, the who, is someone involved in a career or job making a minimum of 25,000 dollars a year, living within there means. Our prospects personality is an individual that is looking for advanced new technology, is environmentally conscious, is in need of a fuel efficient vehicle, and lives within there means while getting the most for their money.
The why, this is someone who has specific wants or needs that the ad should appeal towards. The rational appeals the consumer will be looking for are, an affordable vehicle, fuel efficient, and safe transportation from point A to point B. The emotional appeals that the consumer will be looking for, is a stylish totally redesigned automobile that will provide the consumer with a desired personal image. Also the added value that comes with a Chevrolet automobile fulfills a certain symbolic need for the consumer.
The what, our product has multiple features that will satisfy the consumers needs. Our product is positioned as being a totally re-designed luxurious vehicle with top of the line safety features. The image that has been created for our vehicle is one of utmost prestige. Our vehicle is “An American Revolution”.
The where and when, our vehicle and our message will be communicated through internet banners, magazine advertisements, and newspaper advertisements. Our message will be communicated during the months of November through January, Malibu’s top selling months. Our advertisements will only be aired here in the United States.
Creative Concepts
First we will talk about the internet banner advertisement we came up with for the Chevrolet Malibu. The creative concept behind the internet banner is the fact that it will pop up on certain web pages informing potential customers of the all new re designed Chevrolet Malibu. This advertisement will reach a majority of consumers in our target market, considering the internet is one of the most abundant resources that people will use for gathering information when making any major purchase such as an automobile.
Our second type of advertisement is a magazine ad. The underlying creative concept behind this particular advertisement is that the ad displays the Chevrolet Malibu as a sporty/luxurious family sedan suitable for a family or even an individual looking for a stylish new vehicle with impeccable safety features. This advertisement accentuates the unique features offered by the newly designed Malibu and educates the consumer on the product that is on the market today.
The final type of advertisement is a newspaper advertisement. The creative concept behind this advertisement is the Copy, the words that make up the headline and message. We are delivering the message that our vehicle is totally redesigned to fit the styles of almost anyone from the family man to the single working man. With attractive features for the Malibu keying in on the special offers that will intrigue the interests of the consumer.
Media Plan
For this advertising campaign, frequency will be our number one priority. Frequency is the number of times the same person or household is exposed to a vehicle in a specified time span. Our customers aren’t necessarily in the market for a new vehicle at the moment but when they are, we want them to pick Chevrolet Malibu. The Chevy Malibu is a fuel efficient, semi luxurious, family sedan that is marketed to anyone 23 years old and up with an income level of $25,000 per year and up.
Given the target market for this vehicle, we’ve selected the following media choices: Internet banner advertisements, magazine advertisements, and newspaper advertisements. We will advertise in these mediums during the moths of November through January, which is usually the peak sales times for the Chevrolet Malibu.
The Internet Banner media will be placed on popular websites like Google.com, Yahoo.com, MSN.com, AOL.com, and Comcast.net. By placing our Internet Banners on sites like these, we will be able to reach the majority of our target market who use the internet. According to Internetworldstats.com, as of June 30th, 2008 there are 913,258,921 people in the Americas, which is 13.7% of the world’s population. Of those people, there are 387,251,178 people who use the internet. We would like to achieve a reach of 10 for this media. Our target market for the internet is 387,252,178, if you divide that into 10 you get 2.58, 2.58 multiplied by 10 is 25.8%. The gross rating points (GRP’s) for this media for the Chevrolet Malibu is 25.8.
The magazine advertisement for the Chevrolet Malibu will be placed in popular magazines like Automobile Magazine, Better Homes and Gardens, People Magazine and Business Week. By placing our advertisement in magazines of this nature, we will be able to reach our target market of people 23 and up with the income level of $25K per year and higher. To calculate the GRP’s, we will use People Magazine as an example. According to People.com, People Magazine has a huge reach, over 11.5 million users per month. We would like to target a reach of 15 for this media. If you take 15 and divide it into 11.4 million, we get 1.3. 1.3 multiplied by 10 is 13. So the GRP’s for this media is 13.
We will be also advertising in The Grand Rapids Press. According to gr-press.com, the Grand Rapids Press has a readership of 137,323 on weekdays and 185,041 on Sunday’s. We would like to achieve a reach of 20, therefore we divide 20 into 137,323, and get 1.45. We then multiply that by 10 to get a GRP of 14.5 for weekdays. For Sunday’s, divide 20 into 185,041 to get 1.08, then multiply that by 10 to get a GRP of 10.8.
The media calendar for the Chevy Malibu is as follows. For Internet Banners, the ads will run from November to January on the common web sites we listed earlier. For the magazine advertisements, there will be one Chevy Malibu Advertisement in every edition of the magazine from November to January. As for advertising in the Grand Rapids Press, there will be one large ad in Thursday- Sunday’s paper, and in Sunday’s paper, there will be one ad in the Business section, and one ad in the Automobile section, all running from November to January.
Testing and Evaluation
In short, we think the Chevy Malibu stands up well when held against the Toyota Camry and Honda Accord gold standards. Choosing among them largely comes down to nitpicking, splitting hairs and personal preference. Camry and Accord may have an edge on resale value, but they're also likely to come with higher price tags. In any case, we don't see the gap between this Chevrolet and the imports that we used to see. 2008 Chevy Malibu Review (2008)
When test driving the Malibu for myself, I was very impressed. I drove the vehicle at nighttime so I had the opportunity to see the blue highlighted buttons on the door handles, window lever power buttons, the cup holders, mid-section counsel, dashboard, gearshift and visors. These are features you may not find normal on your other mid-sized vehicles. That is a feature that I find very handy during night time driving and anyone staying busy on the go.
References
Automotive Industry. (n.d.). Wikipedia. Retrieved October 12, 2008, from http://en.wikipedia.org/wiki/Automotive_industry
Chevrolet Malibu. (n.d.). Retrieved October 12, 2008, from chevrolet.com/malibu
Chevrolet Malibu. (n.d.). Wikipedia. Retrieved October 12, 2008, from http://en.wikipedia.org/wiki/Chevy_Malibu
General Motors (GM) pits new Chevy Malibu against Toyota (TM) Camry. (n.d.). BlogginStocks. Retrieved October 12, 2008, from http://www.bloggingstocks.com/2007/08/21/general-motors-gm-pits-new-chevy-malibu-against-toyota-tm-ca/
Internet Users in The Americas. (n.d.). Internet World Stats. Retrieved October 12, 2008, from http://www.internetworldstats.com/stats2.htm
Readership and Distribution. (n.d.). The Grand Rapids Press. Retrieved October 12, 2008, from http://www.gr-press.com/main/readership/index.html
2009 Chevrolet Malibu. (n.d.). Retrieved October 12, 2008, from http://www.cargurus.com/Cars/Overview-c21035-2009-Malibu.html
