Volkswagen

Volkswagen

Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labour Front (Deutsche Arbeitsfront)

In 1933, Adolf Hitler declared his intentions for a state-sponsored "Volkswagen" program. Hitler required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph).

Hitler chose to sponsor an all new, state owned factory. The engineer chosen for the task was Ferdinand Porsche.

Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle known today. It was one of the first to be evolved with the aid of a wind tunnel, in use in Germany since the early 1920s.

Factory started @ Wolfsburg in 1938.

World War 2 (1939-44)

The war years-

VW began building military vehicles for Germany.

Type 62 Kübelwagen

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Post War

1945: British Army, Major Ivan Hirst, unclear future

1945 to 1948: survival in Allied-occupied Germany

1948 onwards: icon for the West German regeneration

The Rise and Fall of VW in US

1st VW in US-1949 In 1955 VW was incorporated to VW of America, a

subsidiary of VW AG. Dr. Carl Hahn, head of VW America, decided that

the company needs a unified corporate image and began the first Ad campaign for VW.

Campaign done by DDB- First Ad came on New York Times in 1959, which would eventually help VW become one of the most known brands in US.

1960- the one millionth VW arrived in US. Beetle –Rabbit – Flower Power By 1970 VW sold half a million cars in US.

The Rise and Fall of VW in US

ISSUES Appreciation of Mark against USD.1970 Dealers began defecting for Japanese brands.1975 To insulate prices from exchange rates, VW acquired

an unfinished factory from Chrysler1976 First US produced Rabbit came out in 1978, but its

fortune was short lived. In 1982 sales declined due to- recession and declining popularity of hatchbacks. Beetle stopped production unable to comply with new environment norms.

1990’s sale was only 20% of 1970….! By 1993 , VW was in the verge of pulling out from the

US market.

Fahrvergneugen Campaign

Ad campaign during 1993-94. “ Pleasure of Driving” Flop

Relaunching VW in America.

In 1994, Marketing team of VW planned a strategic recovery plan to reinvigorate VW Franchise.

“ Doing Things Differently” Most significant change- VW ended 35

yr old relation with DDB(Doyle, Dane & Bernbach) and hired Arnold Communications

Arnold Communications

Task in hand- “Make VW brand important and relevant to the 90’s car buyer.”

VW’s strengths Affordable “German Engineering” Fun, pleasurable driving experience.

Arnold Communications undertook its own research & extensive cx interviews.

Agency personnel lived and breathed the product

Visited top 100 dealers Drove VWs for over 50,000 miles to

experience the car for themselves.

What Arnold Comm. Found out...

VW customers were

Younger Slightly Affluent More Educated Enjoyed Active role in driving Enjoyed driving in

challenging conditions Didn’t always obey traffic

rules Had a unique attitude

towards life. Adventurous, confident,

experimenters. Wanted to make & Take most

out of life

In comparison with other European brands like BMW & Mercedes, VW was perceived as “People’s Car” and found appealing for its affordability.

VW offered a more unique and individualistic driving experience versus Japanese car brands.

With this fresh insights about the target market, Arnold Team recommended a new “ Product positioning” and “Brand Essence” that would become the foundation for “ DRIVERS WANTED” campaign. (1995)

Volkswagen drove a wedge between the Japanese and German automakers to create a category of one—a German-engineered car that was fun to drive yet affordably priced.

Under the slogan “Drivers wanted,” VW launched a breakaway campaign in 1995.

The slogan is the most recognized in the automotive industry, and the campaign is one of the most admired in advertising.

“On the road of life there are passengers and there are drivers.”

The “Drivers wanted” campaign drives a brand identity that permeates all Volkswagen advertising and promotional efforts. From television and print ads, to brochures and billboards, to direct mail and online advertising, to dealer support and special events, there is a persona that emanates from the “Drivers wanted” tag line that always appears with the VW logo—a look and feel that is distinctly, recognizably, consistently Volkswagen. It is one of the best examples of a breakaway campaign introduced in the past decade.

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This 2002 print ad for Volkswagen’s New Beetle dramatized its singular shape by comparing it to “squares.”

In June 1995, Arnold launched its new ad under “ Drivers Wanted” campaign…

One of the early Ad’s featured young executives trapped in their busy workday, escaping in Jettas and Golfs for the after work exhilaration.

The voiceover: “On the road of life there are passengers and there are drivers” and the tagline “ Drivers Wanted” aptly captured what VW wanted to convey to its customers.

Result

1995 and 1996 experienced a 16% increase on previous year sales…

To woo the youth, VW paired with Trek (Mountain Bike) & K2 ( Ski Products).

Launch of “New Passat” - 1997

VolksWagen - Drivers wanted

Volkswagen Commercial - Cornering

By the end of 1997, Vw was selling 137,885 cars, a whooping 178% increase from its 1993 sales….!

VW was back on track in US market..

The Reincarnation of Beetle

By 1990, J. Mays ( Head of VW’s newly established Simi Valley CA Design Centre and Freeman Thomas ( Chief Designer) began toying with the idea of designing a new Beetle.

Basic Beetle Shape + New Technology The Team identified 4 basic design principles: Honest,

simple, reliable & original By 1993, final design was conceived: Concept 1 First shown in 1994 “ North American Intl Auto Show,

Detroit ” Concept 1 was the darling of the show. VW decided to make a real car out of the concept. The New Beetle was born.

The New Beetle

Marketing a Classic

Marketing a Classic

The marketing team of VW and Arnold Comm. conducted extensive surveys to identify the Target market and to develop a compelling value proposition for the car.

The Beetle fans were from a wide spectrum.. ( 18-34yr – Baby boomers).

VW had to determine whether or not to introduce NB under Drivers Wanted campaign.

Competition & Pricing

NB came in small car segment with competition from Chevy Cavalier, Ford Escort, Toyota Corolla, Nissan Sentra

Introduced with a base price of $15,200

Dealers

600 VW dealers in US. To Improve relations

with dealers, they were flown to Wolfsberg, Germany.

The Launch

The New Beetle was launched in 1998 NAIAS, Detroit. New Beetle Stole the show. As a part of PR, journalists were given opportunity to

drive the car for a day to get the first hand exp of car and also to see reaction of people.

Ad Campaign : Targeted both Baby boomers and youth. 80% on TV, 15% on Print med & 5% on

Radio and Billboards. ( $25m ) VW expected NB to contribute 25% of its 1998 target

sales by selling its entire first yr production of 55,000 cars.

Ad Campaign

1998 New Beetle Launch Commercial - Past Life

Volkswagen Black Beetle 2012

1998 New Beetle 'What Color do you Dream In' Commercial

VW Smile Commercial

Questions

What were the factors which helped VW to re-invent itself in US….?

Hiring Arnold Communications. Drivers Wanted Campaign. Launch of the New Beetle.

In which year and where was the New Beetle launched?

The New Beetle was launched in 1998 NAIAS, Detroit.

What do you see if you spin the VW logo?

Hakenkreuz (the swastika) 

Thank You…..

VW India.

Founded 2007

Headquarters Pune, Maharashtra

Manufactured/Assembled Locally Volkswagen Passat (Launched 2007) Volkswagen Jetta (Launched 2008) Volkswagen Polo (Launched 2010) Volkswagen Vento (Launched 2010)

Imported

Volkswagen Touareg (Launched 2009) Volkswagen New Beetle (Launched 2009) Volkswagen Phaeton (Launched 2010)

In the year 2010, VIPL recorded sales of 32,627 vehicles against 3,039 vehicles sold during the year 2009 and registered a sales growth of over 1,000%