Chevrolet Camaro Situational Analysis

Product Description

Chevrolet Camaro relates to a diverse class of automobiles produced by Chevrolet. Chevrolet Camaro is a high performance car and in the category of pony cars due to its sporty image – the carmaker produces the range of Chevrolet Camaro cars with a sporty dimension. As such, Chevrolet Camaro features in a number of auto races around the world. The first model of Chevrolet Camaro went up for sale in 1966. Over the years, the carmaker has introduced different series of Chevrolet Camaro, each generation of the car featuring unique additional features than the preceding one. The improvements over the past 50 years have led to the production of a superior car in terms of advanced performance technology, engineering mastery, and breathtaking designs. The sixth-generation Camaro is the latest series introduced into the market earlier this year. The Chevrolet Camaro model has been able to maintain its presence in the market owing to its high performance and promotional activities conducted by the company.

Company Description

Chevrolet Camaro is a product of General Motors. General Motors (GM) delivers a wide range of vehicles designed to suit personal consumer needs. The company started operations in 1908 as a holding company associated with Buick Stocks and McLaughlin (General Motors, 2016). GM has its headquarters in Detroit, Michigan, United States. Over the years, the company has expanded operations to 35 counties around the world. The company produces a variety of brands, which includes cars and trucks. Currently, GM produces and sells a variety of brands including Chevrolet, Vauxhall, Pontiac, Cadillac, Buick, Wuling, Opel, GMC, and Holden. GM is one of the largest employers globally, with 215,000 employees working in different parts of the country (GM, 2016). General Motors has diversified operations in other sectors as well, which includes Terex (construction and other heavy equipment), military vehicles, aircraft engines, information technology, and other industrial sectors. The diversification plan is part of the company’s efforts to spread risks.

The product life cycle gives a vivid description of the stages that a particular product follows, starting from when the product is first introduced into the market to the final phase when the producing company withdrawals it from the market. It is important to note that not all products complete the entire life cycle process. Some of the products may continue to grow as the company rebrands or introduces new improved models. Chevrolet Camaro is one of the GM brands that underwent all phases of the product life cycle, including decline and the eventual phase out of the brand in 2002 (Ferrell & Hartline, 2013). Towards the beginning of the new century, GM advanced plans to phase out the Chevrolet Camaro brand after the company realized that the progressive generations lacked any significant changes from the preceding ones. As such, sales were on a decline and the model was slowly heading for obsolescence in the market.

In 2010, GM reintroduced the Chevrolet Camaro brand into the market. The reintroduction decision was based on pressure from Camaro fans Ferrell & Hartline, 2013). GM made several changes to the Camaro brand, which was an attempt to modernize the car. The 2010 model features new and modern accessories such as USB connectivity, Bluetooth connectivity, OnStar, and other features related to speed. Owing to the reintroduction of Camaro in 2010, the brand is currently in the growth stage of the product life cycle. High increment in sales characterized the growth stage. By the end of 2012, Chevrolet Camaro had outsold one of its greatest competitors, the Ford Mustang. Following its reintroduction, over 60,000 units went on sale, indicating the high demand for the Camaro brand among consumers (Ferrell & Hartline, 2013). The demand for Camaro has since increased over the past 5 years, marking sales growth. GM may however not be able to maintain increasing sales as the product is approaching the maturity stage.

Sales History and Market Share

Following the reentry of the Chevrolet Camaro brand in the market in 2010, the brand has realized enormous sales. In 2010, GM sold 81,299 units. In 2011, sales figures increased by 8.5% to reach 88,249 (GM Authority, 2016). The sales increase was driven by the positive uptake of the reintroduced brand by consumers in the market. In 2012, the company experienced a slight dip in sales to 84,391 units, and a further decline in 2013, selling 80,567 units. In 2014, sales figure went up to 86,297 units. In 2015, the company recorded the lowest number of sales at 77,502 units since the reintroduction of the Camaro brand in 2010 (GM Authority, 2016). Over the last two years, Camaro’s closest competitor, Ford Mustang has outsold Camaro to become the brand with the highest market share. In 2014, Ford Mustang sold 82,635 units while Camaro sold 86,297 units. In 2015, Ford Mustang sales shot up to 122,349 and ultimately becoming the dominant player in the market.

The Consumer Purchase Processes

The consumer purchase processes refer to a series of steps that consumers take while making a purchase decision. The first step involves identification of needs and wants. Need recognition occurs when the consumer perceives differences between the actual situation and a desired one (Lamb, Hair, & McDaniel, 2011). The second step in the process entails information search. Once the consumer identifies a need, he or she engages in a frantic search for possible solutions to the problem. For instance, the consumer may search for the best brand or model of car that can solve the problem. The next step is evaluation of various alternatives. Here, the consumer identifies a number of suitable alternatives for which he must make a choice. For instance, a consumer may evaluate the decision to purchase a Ford Mustang or Chevrolet Camaro. After evaluating various alternatives, the consumer makes the purchase decision. For instance, consumer may purchase Camaro brand based on the evaluation he/she made. The last step is post-purchase behavior (Lamb, Hair, & McDaniel, 2011). This involves examining whether one made the right choice.

External Demand Factors

1.Consumer tastes and preferences

Consumer tastes and preferences have a huge impact in determining the demand of a product, including the brand and model of cars purchased. When the consumers’ tastes and preferences change in favor of a product, the demand for the product grows while the demand curve shifts to a higher level (Carbaugh, 2016). Factors such as advertisement by other producers and changes in fashion influence the consumers’ tastes and preferences and thus the demand. Demographic factors also affect the demand for products. Demographic factors such as per capita income influence the demand for products. Increase in the level of per capita income among consumers may increase the demand for products especially those that were previously out of reach for consumers (Carbaugh, 2016). This will only apply to normal goods. The number of buyers also determines the demand of a product. When the number of buyers increases, demand for a product also increases.

2.Economic factors

Economic factors also affect the demand for vehicles. Economic factors are those that affect the performance of a country’s economy. Some of the economic factors include consumer spending trends, currency exchange rates, inflation rates, cost of borrowing, income distribution, and among others. When economic conditions are favorable (low cost of borrowing, low inflation rates, positive spending trends, and others), the demand for products increases. This causes an upward shift in the demand curve. Natural factors such as climate and weather affect the demand of certain products such as clothes. For instance during winter, the demand for warm clothing increases. Technological factors often affect the supply side of the equation. When technology improves, producers are able to provide more of a particular product and at a cheaper cost.

3.Political factors 

Political factors can also influence the demand of products. Political instability may shift the demand curve downwards. The social/cultural factors relate to the beliefs, values, morals and cultures held by individuals. These have no impact on the demand for vehicles. Competitors greatly influence the demand for vehicles. Competitors look for ways to gain a larger market share through a number of ways such as promotions, discounts, after sale services, and other ways. This may influence the demand for a product depending on what the competition does. Substitute products also affect demand of products. When the price of a substitute product increases, the demand for the given commodity increases (Carbaugh, 2016). This may shift the demand curve upwards.


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Fleming, C. (2016, March 18). 2016 Chevrolet Camaro turns up the heat during a drive to Death             Valley. Los Angeles Times.

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Lamb, C. W., Hair, J. F., & McDaniel, C. (2011). Marketing 5: Student edition. Mason, OH:        South-Western Cengage Learning.