marketing strategy of volkswagen beetle

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Insta Exhibitions PowerPoint Presentation

The New Beetle Case StudyGROUP - 7

One of the worlds leading automobile manufacturer and the largest car maker in Europe is in a financial crisis in 1998 in the US automotive market due to declining sales.

Volkswagen , a German car company in a little turmoil in 1998.The situation is:Sales have been decliningJapanese Players ( Honda & Toyota) , US Players (Ford , GM , Chrysler) have penetrated.

THE PLOT -

Lets see how Volkswagentranslate this problem into an opportunity

Liz Vanzura , the Marketing Director of Volkswagen has a meeting with Charlie Waterhouse , Director of product development (VW) and Steven Keys , Director of Public Relations Liz Vanzura has to propose an innovative marketing Strategy to boost up the sales of VW Beetles thereby leading to an increase in revenue for Volkswagen.THE CASEMISSION CALLED BY MEDIA MISSION IMPOSSIBLE

TIMELINE

Next up: ISSUESQ1 . Lets see how the Advertising Campaign worked ? Was it a Success ?

Toy car to real drivable car

Mission impossible

Vintage yet modern

Baby boomers to Gen X

People car to personal car

Focus on public relation

Low advertising budget compared to competitors

Q2 . Elucidate on the Appeal of the New Beetle.

Q3 . Why the positioning decision has been termed as Mission Impossible ?

Positioning Decision: Mission ImpossibleThe new Beetle needs to take two important factor into consideration in order to leverage them while positioning the product:Play on the nostalgiaAppeal to the new generationThese two factors make the positioning strategy for beetle a cumbersome task.

The main factor of this positioning dilemma is the target segment.

The target segment for the new Beetle is 18-34 years olds and baby boomers. Both the segment may have different perspective towards the car.

For baby boomers the Beetle is a practical car

For new generation it is a fun to drive car.

While the major chunk of buyer for the Beetle will be new generation buyers in long run, the value proposition of the new Beetle which is nostalgia of old good days does not associate with this segment of customers.

All the other value being promised by the new Beetle like being fun car, German Technology, drivers delight etc are not the best differentiators for the Beetle though these may be the differentiator for Volkswagen.

Another major challenge at the hands of marketing team and the agency is to keep the positioning of the Beetle and the positioning of Volkswagen as the corporate brand in sync.

The positioning of the new Beetle will have significant affect on the corporate brand positioning of VW.

Thus the Drivers Wanted campaign was aimed at strengthening the corporate positioning of VW which is affordable German technology automobile which is also best in its class with respect to drivers delight.

Q4. Discuss the PROS and CONS of various positioning options.

POSITIONING STRATEGIESTarget the younger,GenX audience:

PROSCONS1. Design1. Pricing 2. Fun aspect of the car3. Emotional Connect4. Drivers Wanted Campaign

2. Target the baby boomers:

3. Target both Gen-X and Baby Boomers:

PROS

CONS

1. Financially stable1. Change in preference2. Strong emotional connect3. Can be approached through print media 4. German Engineering ConceptPROS

CONS

1. Target market becomes broader1. Increased Advertising costs2. Advertising message could get drowned

Q5 . How would the Pricing and Media Selection Choices be affected by the positioning of the car?

Pricing and Media Selection ChoicesTarget market : 18-34 years old & baby BoomersPricing OptionsTwo or more versions of New Beetle with different configuration for two different generations of consumersDifferent pricing strategy as per different positioningBasic and cheap model will appeal to younger generation of consumers who will be more budget conscious.Enhanced model with popular options will be catered to Baby Boomers

Media Channels

Campaign to attract Young Generation consumers and appeal to their mentality, behaviour and attitude.A campaign for Baby Boomers would be by using nostalgic images to bring back good memories from the past and renew their interest in the BeetleUse Positive media coverage to Volkswagens advantageGet the media involved to spread the word about the Beetle!Print Advertising in magazines and showcasing various big events.Automobile Magazines : Car and Driver , Motor Trend, Automobile digest etc

Volkswagen Global Marketing Mix234 Brand portfolio Volkswagen Audi Seat koda Bugatti Bentley Lamborghini Commercial vehicles1 Unique brand identity for each nameplate Complete product range Mostly standardized products with minor adaptations

Setting prices with regard to competitors Price discrimination across regions No price competition in emerging markets Strict cost controlling Localized communication Emphasis on the European market Brand advertising Emotionalization Development of distribution partners Separated distribution channels for each brand International standardization of dealersGlobal Marketing Mix

THE CURRENT SCENARIO - 201324

Mil. VehiclesFiat/Ferrari PSA Nissan VolkswagenDaimlerChryslerFord/Volvo GMToyota/Daihatsu

8.26.84.76.75.2

3.42.9BMW Honda 1.23.0Renault 2.51.9

Car Sales According to Groups, Worldwide 2013Source: manufacturer`s data, JAMA*Numbers in millions.

25Weitere:Hyundai Konzern: 1,93 Mio.Suzuki Konzern: 1,21 Mio.Mazda Konzern: 1,10 Mio.Mitsubishi Konzern: 1,03 Mio.Volkswagen Global Marketing Mix234 Brand portfolio Volkswagen Audi Seat koda Bugatti Bentley Lamborghini Commercial vehicles1 Unique brand identity for each nameplate Complete product range Mostly standardized products with minor adaptations

Setting prices with regard to competitors Price discrimination across regions No price competition in emerging markets Strict cost controlling Localized communication Emphasis on the European market Brand advertising Emotionalization Development of distribution partners Separated distribution channels for each brand International standardization of dealersGlobal Marketing Mix

26

The Volkswagen Exhibit Space at the Frankfurt Auto Show 2013

Volkswagen Beetle

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YearTotal VW

Sheet1YearTotal VW19492195033019514171952980195312141954891319553585119564955019577255519588598519591293151960162037196118626019622266491963270788196431342619653571441966411956196744351019685692621969551366197056969619715226551972485645197347629519743345151975267730197620167019772607021978239300197929201919802935951981278513198217128119831669151984177709198521804219862172311987191705198816880019891336501990136357199196736199275873199349533199497043199511511419961359071997137885

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YearTotal VW

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