A recent flurry of promotional and incentive activity has not been able to hotwire sales and market share for General Motors.
The automakers market share in North America was 25.2% in the first-quarter, down from 26.3% in the year-ago period, and the GM North America division reported a loss of $1.3 billion, compared with earnings of $401 million a year ago. It is the company’s worst quarterly loss since the first quarter 1992.
“We have well thought-out plans to address GM North America’s poor performance, starting with aggressive product introductions this year, value-focused marketing initiatives, and further reductions in our cost structure,” said GM Chairman and CEO Rick Wagoner in a statement. “While most of our business units exceeded expectations, the results at GM North America were clearly disappointing.”
However, Wagoner said the company is encouraged by improved March sales, and said that GM’s “revenue strategy is clear and has already begun to play out.”
GM brands have done their share to raise brand awareness since the holiday season, though the initiatives have not translated into higher sales or market share.
On the incentive side, its GM Red Tag Sale (PROMO P&I Dec. 22, 2004) offered consumers cash bonuses up to $7,000, deals on leases and discounts for buyers who made purchases through General Motors Acceptance Corp.
This month, GM relaunched its popular Hot Button promotion to generate traffic in its showrooms and build awareness of its product line. Consumers press the OnStar button in a designated vehicle at a participating dealership to see if they won one of 1,000 new vehicles. The promotion, which runs through May 31, also gives consumers an added incentive this year—$1,000 cash back on a new vehicle purchase.
In addition, GM’s Pontiac brand has been heavily involved with interactive campaigns. The most recent debuted last Thursday, when its new Solstice Roadster was launched on the NBC hit reality show The Apprentice. In February, GM and Buena Vista Studios partnered to give away Pontiac Montana SV6 Sport Vans to Regis & Kelly viewers. And in March, Pontiac dangled $1 million to get consumers to use their camera phones to snap a picture of a G6.
Other marketing highlights include the Oprah Winfrey Pontiac giveaway and the Chevrolet brands sponsorship deals with Major League Baseball (PROMO Xtra, March 30) and the 2005 Country Music Association Awards (PROMO Xtra, April 7).
