Natalie Albert Esten Peirce Michelle Curran Chauncey Schwendeman Amy Ferguson

Situation Analysis About Chevy Sonic Marketing Strategy Advertising/Promotion Financials Monitors and Controls Contingency Plans Questions

Compact Car, AKA Small Car

4 wheels Less than $20,000 Less than 3,000 pounds About 161 inches long

Main competitors
Ford Fiesta Honda Fit Hyundai Elantra

Prices increasing by 1% per year Over 2.5 million compact cars sold per year $37 million of revenue per year 4.73% of all cars sold are compacts Compact car sales growing by 5%

Demographics:
Ages 18 24 Minorities Income under $25,000

Attitudes:
Had trouble with old cars so

they want to buy new

Need to get from point A to

Live in metropolitan areas

Buying their first car

point B (luxury & extras dont

matter)
Attracted to 0% financing Believe large cars are safer Think foreign cars are better

quality

Compact car buyers value:

Safety Longevity

Miles per gallon

Service contracts and warranties Low price Reliability Trunk/cab space

Worlds largest automaker

Third largest company in the world Biggest spender on advertising in the industry

Market share declining compared to foreign

manufacturers College discount program offers the highest discounts of

all manufacturers, averaging $1,900 and up to $5,000

Compete with primarily with Hyundai, Ford, Toyota, Honda, and Kia

40 MPG
$14,495 base price Replaced the Chevy Aveo (worse quality but lower price)

Edgy and sporty

Designed with the feel of a motorcycle Only U.S. subcompact car made in the U.S.

Designed globally but fine-tuned for American tastes

10% profit margin

50 largest public universities

Access to 100,000+ people on game days Tailgate with Sonic Like on FB Spin the wheel Free prizes Take your picture with a decked out Sonic 50% off an oil change at GM Dealer with a test drive GM College Discount Program

Biggest Fan Competition

25 winners selected Free sonic for one year Become brand representatives 1 Grand Prize Winner Free customized Sonic Featured in commercial

Alternative commercial for non-football season

Radio Ads
One per day, for entire year, in 50 biggest college

towns Emphasize College Discount Program

Print Ads
In school newspapers Offer 50% off oil change promotion

Tailgates
Travel to Universities Tailgating Space Giveaways Booths, banners, and decorations Flyers and brochures 300,000.00 1,250,000.00 105,000.00 25,000.00 10,000.00

Biggest Fan
Depreciation on Giveaway Cars Car Given to winner Biggest Fan Social Media Expert 123,750.00 20,000.00 65,000.00

TV
Production Media Buying 400,000.00 1,350,000.00

Radio
Media Buying 195,000.00

Total

3,843,750.00

PERIOD ENDING Total Revenues Cost of Sales Gross Operating Profit Selling, Gen. & Administrative Expense 2012 Sonic Marketing Campaign Depreciation Operating Income Interest Income Other Income, Net Total Income Avail for Interest Expense (EBIT) Interest Expense Pre-tax Income (EBT) Income Taxes Minority Interest -

12/1/10 135,592,000 111,706,000 23,886,000 11,716,000 7,086,000 5,084,000 1,555,000 1,634,000 8,273,000 1,098,000 7,175,000 672,000 331,000

12/1/11 150,276,000 123,627,000 26,649,000 12,163,000

12/1/12 182,055,300 147,600,030 34,455,270 14,735,145 3,843,750

7,544,000 6,942,000 851,000 3,430,000 11,223,000 540,000 10,683,000 110,000 97,000

7,544,000 8,332,375 1,030,963 4,155,352 13,518,691 654,195

12,864,495
133,262 117,513

Total Net Income

6,172,000

10,476,000

12,613,720

Sell 112,720 Sonics in 2012

Increase operating profit by $7.8 million
Despite 30% cannibalization of other compact cars Make additional profit from both increased

penetration and higher margins

Increase net profit by $2.1 million

Increase Chevys compact market share by 5%

Count measurement
Number of blog posts and comments on our Facebook page Number of likes on our Facebook page Count the number of attendees at the tailgates (clicking

people in and giving them wristbands)

Long-term metrics
Measure how many people stay in the Chevy family after

buying a Sonic (loyalty)

Focus groups
Measure opinions, product knowledge, and taste preferences

Redirect links when consumers go into our tailgate websites

See how many people go build their own car online and book

an appointment to test drive

Quantify how many people are being redirected

Surveys
Calculate brand awareness Measure number who use the discount program

Use same campaign but reposition slightly for young professionals ages 25 to 34 Emphasize gas efficiency for metropolitan commuters Change media placement to reflect TV channels, radio stations, and websites with high usage indexes for the new market Continue to capitalize on college spirit since they are relatively recent graduates