Positioning Strategies for the New Beetle

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The New Beetle

Q1. What positioning alternatives were available to Liz Vanzura and her team? What were the advantages and disadvantages of each?

Arnold group’s research reveals that the target market for the new Beetle encompassed both Baby Boomers and the younger 18 to 34 year olds (Gen X’ers). This includes a very diverse group of people, but their research also showed that potential drivers shared some common characteristics like confidence, individualism and a desire to be the center of attention.

This means that there are two primary positioning strategies available to Vanzura and her team.

1.Target the younger, Gen X audience:
The New Beetle target market encompasses young people (18-34), who are single or married without children, who having unique and active lifestyles. Advantages:
The design of the new Beetle (honest, simple, reliable, original, safe and high performance car) appeals to the Gen X audience. •They connect with the “fun” aspect of the car with its unique design cues like the use of circular shapes (representing human forms like the eyes, heads and the “smiling face” stance). They make the car “personable”, human” and “individual” – the Gen-X’ers can relate to that. •The car’s heritage in spirit should also connect emotionally with the Gen X audience. •The “Drivers Wanted” campaign applies directly to this audience. VW can continue promoting this car to the Gen X’ers under this umbrella. Promotions like the Trek/K2 are very apt for this audience and the features of the Car

The pricing of the car ($15,000+) may put the car out of the “affordability” range of the Gen X’ers.

2.Target the Baby Boomers:
The Baby Boomers are financially stable, so they will be able to afford the higher price tag ($15,000+) of the new Beetle. •They have a strong emotional connection with the previous Beetle. The new Beetle rekindles their cherished memories of the old Beetle (their “first...
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