Abstract
The company has to invest massively in the luxury car segment because it is lagging in this particular segment. Therefore it has to launch new products in it. The most important luxury brand is Cadillac, which is targeted for the urban individuals in Tier 1 cities where there are lots of millionaires. Secondly, Saab is positioned in the upper premium. GM has to introduce new models in this two existing product lines to keep up with the prediction of 15 percent growth in the luxury segment, and to increase its market share in this segment.
It has to launch also luxury large sedans in the Buick product line. In fact, Buick does not have yet any upper premium model to offer.
GM has to launch also its first gas-electric hybrid cars in China to cope with the high emission vehicles problem.
Concerning Wuling Sunshine which is on the growth stage, we can notice a rapid increase of sales because the Wuling Sunshine is a best-seller in China and there is a high growth of the small rural businesses segment. The company has also to focus on the best selling models such as Wuling sunshine and the Buick Excelle to increase sales.
All products existing in the mainstream segment are in the high growth stage, such as Buick small and mid-size sedans and Chevrolets low cost and compact cars. There is a very high growth of urban middle class families in China who are searching these vehicles. That's why, GM has to focus on these products positioned in the mainstream segment: Buick small and mid-size sedans and Chevrolet models except spark, in order to increase its sales and market share to maximize its profit. Moreover, the company wants Chevrolet to be its high volume in China.
Concerning Cadillac products, there are in the growth stage too. There is a growth of urban high class individuals. The company has to develop and promote this product line which proposes products for these people.
Finally, Saab products and new Cadillac's and Buicks premium models are in the introduction stage. The company has to promote efficiently these new products in order to target the upper class and VIP's.
