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OnStar

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					OnStar
Jeff Schoenle
CSR 631
November 4, 2008
Topics
• OnStar
 ▫ Company Overview
 ▫ Technology
 ▫ Product Services
• Consumer Behavior Theories
 ▫ Theory
 ▫ Marketing Strategies
• Conclusion
Company Overview
• Owned and operated by             • Formed in 1995 through
  General Motors Corporation          partnership between GM,
  ▫ OnStar services are optional      Hughes Electronics Corp., and
    on approximately 50 different     Electronic Data Systems
    GM vehicles                       ▫ Companies worked together
     Chevy, Buick, Pontiac, GMC,       in designing software and
      Hummer, Saab, Cadillac,           hardware in order to bring
      Saturn                            the OnStar service online
• Paired with Verizon Wireless
  cellular service
  ▫ Can tie in OnStar service to
    your wireless plan
Technology
• Works with GPS and cellular       • Three Button System
  communication technology            ▫ White button on left controls
• Cellular antenna is located in        hands-free calls
  vehicle                                If You Need To Make An
  ▫ Sends signal to OnStar Center         Important Phone Call
  ▫ Can talk with representative      ▫ Blue button in middle
    at center 24/7/365 via              connects you with an OnStar
    microphone located in cabin         representative
• GPS determines location of the      ▫ Red button on right signals
  vehicle to aid in response            an emergency
Product Services
• Vehicle Diagnostics               • Crisis Assist
  ▫ Monthly reports on your           ▫ Can help you in case of poor
    vehicle’s diagnostics               weather or natural disaster
  ▫ Reports available on demand     • Stolen Vehicle Assistance
• Turn-By-Turn Navigation             ▫ Can help locate your vehicle if
  ▫ Voice-guided directions from        stolen
    one location to a destination     ▫ Stolen Vehicle Slowdown
• Automatic Airbag Deployment           Technology
  Response                          • Remote Door Unlock
  ▫ Representative will try to        ▫ Locking keys in your car
    contact you in vehicle if       • Roadside Assistance
    airbags deploy                    ▫ Flat tire, out of gas, blown
• Emergency Services                    engine – NO PROBLEM!
  ▫ Can notify emergency            • Accident Assist
    services if accident occurs       ▫ For fender benders
Product Services (cont.)
• Ride Assist                         • Virtual Advisor
  ▫ Can help you find a ride if you     ▫ Local traffic and weather,
    are unable to drive                   stock updates
  ▫ If This Looks Like You            • Driving Directions
• Information/Convenience               ▫ Connect with a real person
  Services                                for directions to your
  ▫ Hotel or restaurant                   destination
    recommendations
• Remote Horn and Lights
  ▫ Locate your vehicle if you
    forgot where you parked it
Marketing Strategies
• Target Market              • Impacts of Consumer
  ▫ Car owners/buyers or       Behavioral Traits
    prospective car            ▫ Want to feel secure
    owners/buyers              ▫ Want to feel like part of
  ▫ On-the-go population         community
     Families                 ▫ Want to feel important
     Working adults           ▫ Want to feel like they are
     Sales reps                 receiving more value than
  ▫ Travel enthusiasts           they are giving up
     Those taking long or         Cost/Benefit basis
      frequent trips
Marketing Strategies
• Possible New Markets               • Reduce Cost
  ▫ Small businesses                   ▫ Price currently set at
     Pizza/Food delivery                $18.95/month or $199/year
     Package Delivery Services        ▫ Affordability
     Possibly work with computer      ▫ Luxury Item
      companies to develop             ▫ Economic Troubles
      transitional software for
      these businesses
  ▫ Other Car Companies
     Currently only available on
      GM vehicles
     Sell services to competitors
Consumer Behavior Theory
• Consumer Value                      • Interactive
  ▫ Consumer value is defined as         ▫ Involves an interaction between
    an interactive relativistic            the consumer and the product
    preference experience (Hilliard   • Relativistic
    1950)                                ▫ Consumer value is comparative,
  ▫ These four aspects are                 personal, and situational
    interrelated                         ▫ “It was nice, but just wasn’t for me.
                                           I suppose it would be good for
  ▫ Each aspect can influence the          people who get in accidents or get
    others                                 lost easily or have car problems,
                                           but it wasn’t for me and wasn’t
                                           worth the price.” – Shelley Poznic
                                           (Portage, IN)
                                      • Preference
                                         ▫ Consumers have preferences based
                                           on value judgments
                                      • Experience
                                         ▫ Consumer value resides in the
                                           consumption experience
Consumer Value
• Extrinsic vs. Intrinsic              • Active vs. Reactive
  ▫ Receive value from                   ▫ A physical or mental
    consumption results,                   interaction with the object or
    achievement of goals                   product
  ▫ Receive value from the act of        ▫ Responding to something
    consuming                              done or caused by the object
• Self-Oriented vs. Other-                 or product
  Oriented
  ▫ Value the consumption for
    the benefit it gives to yourself
  ▫ Value the consumption for
    the benefit it gives to another
    party
What Do You Think?


                     • What category (categories)
                       do you believe OnStar will fit
                       into?
My Thoughts
• Efficiency                       • Excellence
  ▫ Convenient one touch             ▫ Can give you hotel and
    buttons                            restaurant recommendations
  ▫ Hands free dialing               ▫ Search for quality
  ▫ Directions to get you where    • Spirituality
    you need to go quicker           ▫ Stolen Vehicle Slowdown
  ▫ Notices about traffic and        ▫ Emergency Assist
    weather                             Feeling of safety and
  ▫ Diagnostic checks on vehicle         security for family or other
    condition                            passengers
Conclusions
• OnStar is classic example of the aspects of
  consumer value
• May also be viewed using consumer choice
  theory
 ▫ Against competitors or similar products
   (TomTom)
Sources
• Information about OnStar can     • Information pertaining to
  be found at the OnStar website     Consumer Value was found in
  or on the General Motors           the article “Consumer Value: A
  website                            Framework for Analysis and
                                     Research”; Morris B.
                                     Holbrook, 1999.

				
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