Cruising its way to the top

Cruze’s successful launch helped Chevrolet gain back the consumer’s confidence in a brand that faced an uncertain future over a year ago

General Motors India launched the Chevrolet Cruze, and the Chevrolet Beat, at a time when its credibility was at stake. General Motors, its parent in the US, had filed for bankruptcy. Customers in India were worried what would happen to service and spares. But the company had an action plan ready. On June 1, when news broke out that General Motors had filed for bankruptcy, General Motors India President & Managing Director Karl Slym gave almost a dozen television interviews. Phone calls from the media, dealers and vendors kept pouring in right through the day. By the end of the day, Slym was tired but unruffled. For several weeks he had prepared himself and his team for such an eventuality.

Apart from telling one and all that it will be business as usual for the company, General Motors India launched an advertisement campaign with the tagline, ‘There for you, there for India’, along with a picture of Slym. Trying to explain the nitty-gritty of the bankruptcy to customers will not click, Slym felt. What was needed was an assurance that the Indian company won’t down its shutters. The company did have a brand ambassador, film star Saif Ali Khan, but this was a serious situation and it was decided that Slym alone will be able to drive the message home.

In the days after the bankruptcy announcement, General Motors India sales team called up prospective customers who had come to the dealerships but had not made any purchase. Ten per cent said that they had decided against it because of the news from the US. Immediately, the company stationed 35 key people at critical dealerships that get the company 70 per cent of the sale volumes. These people were asked to address any query that the prospective customer may have. It was also decided to ramp up the dealership network so that people notice the seriousness of its intent.

This was also the time that Slym started to talk about the new launches planned by the company. In the first week of June, the company launched the LPG version of the Spark. Full-page advertisements in top national dailies, in fact, showed two cars under blankets ready to hit the tarmac! The first of these was the Cruze. “We wanted to tell that we are not a fly-by-night operator,” says Slym. “We have invested $1 billion (Rs 4,800 crore) in India in two plants which can produce up to 225,000 cars and the power-train.” But Slym and his team knew that a me-too product wouldn’t be good enough. If General Motors had to grab attention, it had no option but to come out with a car that was dramatically different from others in the category.

Thus, says General Motors India Vice-president (sales, marketing and after-sales) Ankush Arora, the Cruze was chosen for its breakthrough exterior styling, segment-leading interior design, best-in-class quality, safety features and competitive fuel economy. The inspiration for the car came from the Cheetah. The key objectives of the launch were to announce the resurgence of Chevrolet in India and make the Cruze the segment leader.

“The Chevrolet Cruze is a dramatic return to form for one of the world’s iconic automotive brands. It is a car destined to make an impact the world over. This car breaks stereotypes, while staying true to its DNA. It is bold, stylish, aggressive, faster, stronger and safer,” said the Cruze manifesto. “It embodies the spirit of Chevrolet’s legendary muscle cars. In fact, the design of the Cruze is inspired by one of the most revered Chevrolets ever, the Corvette. It is a car that’s value without compromise.” Like the Corvette, the Cruze featured push-button start, twin-cockpit sports car interiors and an exhilarating drive.

The launch plan, according to Arora, was staggered into three stages: Pre-launch (test drives by experts, internal communication, dealer training, sneak previews and a teaser campaign), launch (communication and display) and post-launch (feature-driven communication and display at the Delhi Auto Show). The conceptual target for the car was the everyday achiever, the role of the product was communicated as “value meets refinement” and the brand promise was advance/redefine. To go with the bold new face of Chevrolet, the bowtie of the car was kept bold. A special campaign with some Punjabi music was also started. This was done, according to Arora, because Punjabi music is popular all over India.

What is the end result? For the first four months of 2010, Chevrolet’s market share was 4.6 per cent — small, though double of the 2.2 per cent in January-April 2009. It may still be short of the original target of 10 per cent by 2010, but it is a remarkable recovery by a brand that faced an uncertain future a little over a year back. On the positive side, India has become the fourth-largest Chevrolet market in the world after the United States, China and Brazil.