Critical Issues / Background Data: Volkswagen’s challenge is to launch the “New Beetle” with a smaller than typical budget , identify target market segments, and determine the unique value proposition and positioning of the “New Beetle” with effective pricing in the small car category to determine the most effective strategy for the market launch.
VW & Beetle Brand Perceptions: The VW brand has had issues, including customer perception of poor quality and reliability, low brand awareness, and eroding dealer confidence due to poor sales. The strength of the brand appears to be the combination of German engineering and a fun driving experience. Newer research shows that folks that purchase VWs cut across demographic lines. The common theme amongst beetle drivers is confidence, quest for individuality, a love of driving, and an appreciation for German engineering. The beetle is viewed with nostalgia and positive memories by the Baby Boomer generation. It is therefore up to Volkswagen to take this research and apply it to their marketing campaign to attract their desired target market.
Target Market: Volkswagen wants to optimize their market while targeting specific Various venues appeal to different demographics and one of the demographics Volkswagen is hoping to attract are the baby boomers that have fond memories of the original beetle. For the baby boomers the price tag is not likely to be a deterrent as they will likely be in their peak earning years. Volkswagen’s responsibility is to recreate this nostalgia towards the beetle while creating a new edge that makes the baby boomers feel young again. That feeling can be recreated by focusing on its superior handling ability and the driver that pushes the boundaries of driving. The younger generation of 18 – 34 year olds represents the other target market Volkswagen needs to usher in a new era of Volkswagen drivers.
Recommendations: Volkswagen should limit their advertising budget towards the baby boomers...
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