Excerpt from the Wall Street Journal
“For decades, GM has believed a key to making money in North America was maintaining market share … and having different brands helps the company reach more potential customers and gives it more tools in fighting (competitors).
The company currently sells vehicles under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers despite offering new models that cost GM billions of dollars to develop.
Critics have said keeping so many brands is a drain on resources and leaves many of its divisions competing with each other.
The company will continue to reconsider its mix of brands. All but Cadillac and Chevrolet (60% of GM sales; 12.5% market share), which GM considers core to its business, are undergoing close scrutiny,
The company has already decided to put its Hummer division up for sale.
(Another brand) under examination is Saturn, a maker of economy cars that analysts believe has never made money in its nearly 20-year history.”
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Observations:
1. I always say that product is the heart of marketing strategy. Branding can only boost strong products, not perpetually cover up for weak ones.
2. In highly segmented markets (such as autos), a multiple brand strategy makes sense — as long as each brand has the potential to reach critical mass, and duplication of efforts and spending is tightly managed.
3. Remember when Saturn was GM’s star brand — a “new kind of car company” with a cult-like following? Hmm … sound familiar?
4. How can we expect struggling auto makers — whose highest priority is just staying alive — to lead the movement to more energy efficient cars?
See the full article at
http://online.wsj.com/article/SB121539865693931653.html?mod=hps_us_whats_news
The Homa Files 
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