Morgantown Chevy Cavalier Presents

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Morgantown Chevy Cavalier Presents

• Cavalier Celebrity Endorsements!

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James Bond - 007

• Even though I like my martinis to be shaken, I
  prefer that my body not be stirred.

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Queen Elizabeth II

• It makes me feel like Royalty!

4
William J. Clinton

• I like all the extra room in the backseat!

5
Monica Lewinsky

• I like all the extra room in the backseat!

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Donald Trump

• I need all that extra headroom for my very large
  ego!

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Dan Quayle

• The name Cavalier is a lot easier to spell than
  Protégé!

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Saddam Hussein

• Ive bought one for each of my wives!

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O.J. Simpson

• I like the peppy engine. It comes in handy for
  those times that you need a quick get-a-way!

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The Cavalier
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Morgantown Cavalier vs. The Industry
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Morgantown Cavalier vs. The Industry
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COMPARISIONS

• MARKET SHARE
• CAVALIER 15
• CIVIC 14.2
• ESCORT 13.7
• CONTOUR 10.9

• ADV/PROMOTION
• (in millions)
• CAVALIER 62.1
• CIVIC 28.8
• ESCORT 43.4
• CONTOUR 42.4

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AVERAGE SELLING PRICE

• ESCORT 12,294
• CAVALIER 13,340
• CIVIC 14,636
• CONTOUR 14,877

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AGE GROUP

• MARKET CAVALIER CIVIC
• 25-34 (24.3) 22.4 27.3
• 35-44 (19.2) 23.6 25.2

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INCOME LEVEL

• MARKET CAVALIER CIVIC
• 35,000- 49,999
• 21.5 23.8 22.1
• 15,000- 24,999
• 18.3 17 18.5

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PROFILES

• COMMUTERS CAVALIER CIVIC
• 18.9 14.8 17.4

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Summary of Decisions

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Overall Strategy

• Dont sacrifice Net Contribution
• Cost Containment -
• production, promotion,advertising.
• No drastic changes in operation.
• Cyclical nature of the industry
• Maintain leadership position

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Tactics

• Customer
• Financing just below market rates.
• Rebates only for specific models.
• Dealer
• Reduce incentives and increase sales goals.

• Advertising
• Target just the Suburban buyers.
• Gradually reduce.
• Publicity
• Eliminate after 1st decision.

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Decision 1

• Dealer incentive reduced
• Dealer sales goal increased
• 350 rebate on convertibles
• Introduced outdoor advertising.
• RESULT MS 14.8 NC 281.3 M

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Decision 2

• Reduced advertising
• Eliminated publicity
• Squeezed dealers
• 150 on LS model only
• RESULT MS 14.1 NC 280.4 M

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Decision 3

• Reduced advertising further
• Increased financing rate to 7.9
• 150 rebate on LS and Base models
• RESULT MS 13.1 NC 221.3 M

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Decision 4

• Changed targeting
• Increased Production
• 250 Rebate on convertibles
• RESULT MS 14.0 NC 230.9 M

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Decision 5

• Reduced Financing Rate
• 250 Rebate on Luxury model
• RESULT MS 15.2 NC 308.3 M

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Net Contribution
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Market Share
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AutoSims Conclusion

• Morgantown Cavalier Team,
• Your decisions seem quite reasonable!