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International Marketing Study Program 2007
GM (Al Yousef Motors), Dubai
11th January 2007
After meeting with Al Yousef Motors Managing Director Bill Ryan, GM Network Development Manager, Des Young, and Al Yousef Motors Group Marketing Manager, Ananth James, great insight into the Dubai car market was gained. The following information was covered in relation to General Motors (GM) and one of their major dealers, Al Yousef Motors.
General Motors import motor vehicles into the United Arab Emirates (UAE) from manufacturing plants located in North America, South Korea and Australia and sell them via authorised dealers such as Al Yousef Motors. The key operations of Al Yousef motors are New Vehicle Sales, Service, and Spare Parts. They retail a total of 13 car models, which are branded under Chevrolet and Corvette. GM also re-badge Daewoo and Holden cars into the Chevrolet brand.
Current market share for GM in the UAE is approximately 8% and the Middle East is viewed as one of the highest growth opportunity markets in the world for new car sales. Al Yousef Motors has current sales of approximately 6500 cars per year and is one of GM’s biggest dealers worldwide and the largest in the Middle East. Car consumers in Dubai are largely ex-pats from around the globe. Key market segments include luxury cars (Corvette), family (SUVs & Chevrolet sedans), 2nd car buyers (smaller fuel efficient cars), first car buyers (youth market) and tourist operators (4WDs & Caprice as hotel cars). The segments are often divided culturally, and communication imagery aims to reflect the self image of the targeted segments.
GM advertising campaigns distinctively emphasise brand development, awareness and positioning to attract target consumers. The advertising spend is largely focussed on outdoor and print advertising. In addition to this activity, Al Yousef develops its own campaigns, which often utilise GM supplied templates for localised campaigns for model launches, sales and specific periods such as Ramadan.
General motors are experiencing challenges in selling vehicles in Dubai, including setting a competitive market price for the vehicle which would also ensure maximum profitability for the dealer and satisfaction for the consumer. Furthermore, cycle time is proving to be a significant problem when importing cars into the UAE. Once placing an order, any given car model can take up to 180 days to arrive, which places additional pressure on accurate forecasting and optimal inventory levels for dealers.
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