Environments in Planning
For this project, groups will create an advertising plan for General Motors (GM), a company that is
resuscitating and rebuilding its image in the wake of bankruptcy and a controversial government loan. In
order to complete this project, the group will have to demonstrate an understanding of the consumer’s
perspective of GM and, perhaps, of the modern automobile industry in general, divide the potential
market into segments to be targeted, and develop a positioning statement that will allow GM to restore its
standing, to some extent, with that particular target market or markets.
You may need to think about the various approaches to advertising that GM can take with this
particular endeavor as well as the different audiences that are involved. For instance, GM may need to
address the farmers and construction workers in a way that is different than they would address
environmentalists or a general audience. Furthermore, they might address the main issue directly or they
might simply go about the business of extolling the benefits of GM and its products. Regardless, the
completed project will include a paper and/or a presentation that demonstrates your understanding and
integration of the material as outlined in Part 2 of this text.
This project is designed to help you learn the basics of an advertising plan, particularly as it pertains
to developing a sophisticated situation analysis and your recommendations based upon that analysis. This
project is also designed to help you develop your research skills as well as your ability to make and justify
recommendations for budgeting, strategy, and promotions implementation.
The Scenario
In the wake of the economic downturn and the collapse of the American auto industry, GM is looking to
restore its image with the American public. Congratulations, your advertising agency has been selected by
GM to develop an advertising plan that will assist in the clarification of the organization’s objectives and
the strategy by which it will meet those objectives. The organization has the funds and management in
place to mount an advertising campaign that they hope will counter the bad press and unfortunate
circumstances that has befallen the company. Your goal is to help GM formalize their value proposition
in the wake of the disaster and extend that into an advertising plan that they can then use to develop the
advertising campaign itself.
In order to do this, you will need to conduct research into how consumers feel about the company and
the product it sells. You will also need to investigate the situation surrounding the need for this particular
advertising push from GM in order to understand the market it faces as well as the various segments the
company may need to address in order to effectively counter negative press, anti-GM sentiment, and the
“conventional wisdom” that GM built too many trucks and SUVs. Due to the pressing need of this
advertising in the wake of its bankruptcy and of falling profits, GM has set aside an operating budget of
$10,000,000 with which to conduct an advertising campaign during the coming year. This includes
paying for your company’s services as well as the media formats selected for this campaign, so you will
have to be conscious of the overall budget.
Your group has been brought together to complete the advertising plan, which has been broken into
several distinct parts.
Introduction
Situation Analysis
Objectives
Budgeting
Strategy
Execution
Evaluation
The final plan should not only contain these components, but it should also demonstrate the quality of
your company’s professionalism and marketing skills. In other words, your group has not only been
tasked with demonstrating your understanding of how to build an advertising plan but with your ability to
market the company within the context of this advertising plan so that you could use it as an example for
future clients.
Introduction
For the introduction, you will provide a brief encapsulation of the entire advertising plan in no more than
two or three pages. This will include the executive summary, which is intended for executive review, and
should contain all of the most important information you cover in the paper, including—but not limited
to—summaries of the advertising objectives, the advertising strategy, and budget.
You will also provide an overview of the paper that provides the purpose for writing the advertising
plan as well as an overview of the structure of the advertising plan. The purpose statement should be clear
and concise, beginning in the following fashion: “The purpose of this advertising plan is to…” followed
by the reason this advertising plan is being constructed.
The introduction should also be directed at a particular audience. Remember, your group will address
the company (GM) that will be implementing this plan. Given this, you will need to address GM and its
executives as your audience. You may also need to determine exactly who will be reading this document,
which may require finding a copy of the annual report online at www.gm.com.
Situation Analysis
The situation analysis provides a condensed review of all the pertinent contextual elements that will guide
the development of any advertising plan. This includes the historical situation in which GM finds itself,
an analysis of the industry and how it has dealt with recessions or negative press in the past (i.e., the
Chrysler loan in the 1980s, Toyota’s recent recall, the backlash against trucks and SUVs, etc.), an analysis
of the market for this product, and a competitor analysis. The group will need to conduct the necessary
research that will provide the information that will enable it to accomplish this portion of the advertising
plan.
As the authors of this textbook explain, there is no exhaustive list of situational factors that go into the
creation of a situation analysis. With this in mind, the following components of the situation analysis are
suggested; however, the group should feel empowered to provide additional components or subtract from
this list as deemed necessary. Regardless, the group should conduct the appropriate developmental
research, drawing from both primary and secondary data to provide as clear a picture of the environment
as possible.
Historical Context: advertising campaigns are not created in a vacuum. This section demonstrates that
the group understands the historical context of the advertising campaign to be planned. This may include
such items as GM’s history, the basic history of their bankruptcy, the cultural context of the bankruptcy in
terms of the “Great Recession” in American and other Western countries, a timeline of GM’s collapse and
bankruptcy itself, and any other historical nuances that may be deemed necessary.
Product Analysis: An analysis of the product that GM offers may also be useful to the development
of the advertising campaign. Here, the group may focus on the attributes and benefits that make up the
value proposition of the product as well as the physical description of the product and its components. It
is also useful to understand how consumers use the product in question and their perception of the
product, so conducting research via focus groups, real usage techniques, projective techniques, and field
work would also be useful. In addition, the group may explore the various ethical and social issues that
surround the product in its current state, and it may provide and explain any regulations that control the
development, sale, and usage of the product. In short, the group wants to demonstrate that it understands
the product and the issues surrounding the product. Furthermore, the group should not fall victim to
marketing myopia when it comes to determining what GM’s product is.
Industry Analysis: In this section, the group will focus on the industry itself, answering several basic
questions. First, what is the size and makeup of the industry? Second, what are some of the important
trends in that industry? For instance, anyone examining the auto industry would be interested in
understanding the effects of the “Green Revolution” and the “Great Recession” on other players in the
industry and what kind of regulations may befall the industry in the aftermath of the government bailout
of the auto industry. In addition, the group may need to explore the direction the industry is heading as
other issues such as peak oil, resource depletion, and others arise.
Market Analysis: As the authors of this text point out, the market analysis discusses the demand side
of the equation, focusing on who is using the product and why. As such, it is important to understand the
size of the market, how it is segmented, and what target groups are focused on within the industry. In
short, it allows the group to uncover who GM should be targeting with this advertising campaign and
potentially how it should position itself within that segment. The group may also explore where the
product is sold, how consumers acquire knowledge about the product, and any other market information
that may be important for the development of the advertising campaign.
Competitor Analysis: The competitor analysis for this project provides an interesting opportunity for
the group because there are essentially two types of competitors in this situation. First, there are those
competitors that are actively advertising the consumption of the same or similar product that GM also is
selling. In other words, there are other auto companies out there that may be taking advantage of GM’s
missteps in recent years. Second, there are a number of ecologically minded organizations that are
attempting to reduce consumption of the product and lambast GM as an environmental killer and a
resource waster that should have been completely dismantled before being bailed out. Understanding both
is important in the development of this advertising campaign. In the former, the group will develop an
understanding of what GM is working against in terms of direct competitors. In the latter, the group will
develop an understanding of what GM is working against in terms of direct naysayers. Ultimately, the
competitor analysis discusses the strengths and weaknesses of the GM’s competitors, culminating in an
understanding of the opportunities and threats that may be exploited by not only GM but by those
individuals actively working against GM and the automobile industry.
Company Analysis: Finally, it would be beneficial to all involved to understand the strengths and
weaknesses of GM itself. It would also benefit the group to understand potential issues that GM faces by
going forward with this advertising campaign. For example, Oprah Winfrey famously spoke out against
the beef industry, which attempted to sue the talk show host. They eventually lost; however, in defending
herself, Ms. Winfrey spent a great deal of time, effort, and money. In another example, Exxon is still
dealing with issues related to the Exxon Valdez spill that occurred more than 20 years ago both as a
public relations issue as well as a litigation issue. In other words, it is important to understand the
potential ramifications of mounting a campaign to support a company that has directly affected the
livelihood of American workers who have been laid off, of communities that have been decimated as a
result of the collapse, and even the American taxpayer who has footed the bill for GM’s resurrection.
Objectives
The group will provide an analysis and statement of what the advertising and other communication efforts
are expected to accomplish. In a nutshell, this is the heart of the advertising plan in that it outlines what
GM wants to do, and it extends from a sound situational analysis. For each objective discussed here, the
group will provide a quantitative benchmark, measurement methods, criteria for success, and a timeframe
for success as necessary. Be sure to be realistic with the objectives. An advertising campaign with the
expressed goal of informing the public that GM is giving away 10,000 free cars and devoting all resources
to developing a solar-powered automobile is most likely an unrealistic (and unbelievable) objective. On
the other hand, an advertising campaign that is designed to increase awareness of ecologically related
issues and GM’s involvement with them during the course of the coming year is something that may be a
bit more realistic.
Budgeting
As stated previously, GM has set aside $10,000,000 to mount this advertising campaign, which will be
used to develop, implement, and measure the campaign in total. The group will need to discuss the
method for budgeting, the amounts to be used in particular areas (including how much the advertising
agency should be paid) as well as a justification for those amounts. If the overall budget that the group
proposes is greater than the $10,000,000, then the group will need to justify the overage and attempt to
convince GM that the advertising campaign requires more money.
Strategy
The group will then develop the intended blend of the creative mix for the campaign as a whole. In other
words, the group will provide an overview of the strategic communications efforts that will be used to
meet the objectives previously set forth. Remember that the resources the group has available to it may
limit what it can implement within the time allotted. In addition, the plan should outline the positioning of
the product to be achieved by the advertising campaign, and it should provide a detailed description of the
target audience to be address.
Execution
In this section, the group will discuss how the advertising message or messages will be set into motion as
well as the media strategy that will be used to get those messages to the target audience. The advertising
message strategy will include what the company wants to say and how it wants to say it, both verbally
and nonverbally; and the communications media strategy will include the justification for selecting the
various media vehicles that will communicate the advertising message. The group may also want to
include examples of the message that may include—but are certainly not limited to—printed ad design,
storyboards, radio scripts, etc.
Evaluation
Finally, the group must provide an overview of how the effectiveness of the communications efforts will
be tested. This will include the criteria and the methods that will be used to measure the effectiveness of
the plan as well as an overview of the consequences and contingencies of how the plan measures up to the
objectives that have been established. Be sure to mention the starting point for whatever variables you are
seeking to measure. In other words, if you are selecting a measure of GM’s brand image favorability with
the public, what is it at this point and how do you expect it to change during the course of the campaign?
Final Paper
Again, you will want the final product to address the appropriate audience as outlined here. You will also
want to construct the advertising plan in a way that markets your advertising agency by demonstrating
both the breadth of your knowledge on the material and your ability to wield the tools available to you.
Include any actual advertisements, charts and graphs, or other images that are pertinent to your work in a
neat and organized fashion. Use appropriate headings, font, margin sizes, etc. Make sure you include an
executive summary, a table of contents, and appendices as well as any other sections deemed necessary.
In short, make the paper look professional and ready to submit to the client who has requested this
proposal.
Final Presentation
The client may have also requested a presentation of your work. You will want to discuss the high points
of your work, focusing on what will distinguish your advertising agency as the most suitable to GM’s
needs. As with the final paper, you will want to create a presentation that showcases not only what you
know but also how you present what you know. Remember, ice skaters and gymnasts are not simply
judged on technical skill but on artistry as well. Here is your opportunity to demonstrate your artistry in
motion.
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