1. The New Beetle Case Study
GROUP - 7

2. 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.

3. Volkswagen , a German car company in a
little turmoil in 1998.
The situation is:
Sales have been declining
Japanese Players ( Honda & Toyota) , US
Players (Ford , GM , Chrysler) have penetrated.
600000
500000
400000
Year
300000
Total VW
200000
100000
0
1
3
5
7
9
11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49

4. Lets see how Volkswagen
translate this problem into an opportunity…

5. 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.
MISSION CALLED BY MEDIA – MISSION
IMPOSSIBLE

7. Next up: ISSUES

8. Q1 . Lets see how the Advertising Campaign
worked ? Was it a Success ?

9.  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

10. Q2 . Elucidate on the Appeal of the New Beetle.

11. Automotive icon car
of 1960s, darling of
Detroit motor show
Affordable, less
maintenance cost,
budget minded users
Advanced , modern
& most up to date
features included
Heritage positioning,
real, drive-able car
Emotional essence
of Volkswagen
attached to beetle
Cutting edge
technology
Good
advertisements,
promotional contests
& stories around it
More connected to
the road, drivers
wanted campaign
Loved first car of
value conscious
users
Distinctive shape,
cult following

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

13. Positioning Decision: Mission Impossible
• The new Beetle needs
to take two important
factor into
consideration in order
to leverage them while
positioning the
product:
 Play on the nostalgia
 Appeal to the new
generation
These two factors make
the positioning strategy
for beetle a
cumbersome task.

14. • 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.

15. • All the other value being promised by the new Beetle like being fun
car, German Technology, driver’s 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.

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

19. POSITIONING STRATEGIES
1. Target the younger,GenX audience:
PROS
1. Design
2. Fun aspect of the car
3. Emotional Connect
4. Drivers Wanted Campaign
CONS
1. Pricing

20. 2. Target the baby boomers:
PROS
CONS
1. Financially stable
1. Change in preference
2. Strong emotional connect
3. Can be approached through
print media
4. German Engineering Concept
3. Target both Gen-X and Baby Boomers:
PROS
1. Target market becomes
broader
CONS
1. Increased Advertising costs
2. Advertising message could get
drowned

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

22. Pricing and Media Selection
Choices
 Target market : 18-34 years old & baby Boomers
 Pricing Options
 Two or more versions of New Beetle with different
configuration for two different generations of
consumers
 Different pricing strategy as per different
positioning
 Basic and cheap model will appeal to younger
generation of consumers who will be more budget
conscious.
 Enhanced model with popular options will be

23. 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 Beetle
– Use Positive media coverage to Volkswagen’s advantage
– Get 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

24. Volkswagen Global Marketing Mix
 Brand portfolio
 Development of
distribution partners
 Separated distribution
channels
for each
brand
 International
standardization of
dealers
1
 Unique brand identity for
 Volkswagen
 Audi
 Seat
 Škoda
 Bugatti
 Bentley
 Lamborghini
 Commercial vehicles
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
Global
Marketing Mix
4
 Localized communication
 Emphasis on the European
market
 Brand advertising
 Emotionalization
3
2

25. Car Sales According to Groups, Worldwide 2013
Mil. Vehicles
GM
8.2
Ford/Volvo
6.8
Toyota/Daihatsu
6.7
Volkswagen
5.2
DaimlerChrysler
4.7
PSA
3.4
3.0
Honda
2.9
Nissan
2.5
Renault
Fiat/Ferrari
BM
W
1.9
1.2
Source: manufacturer`s data, JAMA
*Numbers in millions.

26. Volkswagen Global Marketing Mix
 Brand portfolio
 Volkswagen
 Audi
 Seat
 Škoda
 Bugatti
 Bentley
 Lamborghini
 Commercial vehicles
 Development of
distribution partners
 Separated distribution
channels
for each
brand
 International
standardization of
dealers
 Unique brand identity for
each nameplate
 Complete product range
 Mostly standardized products
with minor adaptations
1
 Setting prices with regard to
competitors
 Price discrimination across
regions
 No price competition in
emerging markets
 Strict cost controlling
Global
Marketing Mix
4
 Localized communication
 Emphasis on the European
market
 Brand advertising
 Emotionalization
3
2

28. The Volkswagen Exhibit Space at the Frankfurt Auto Show 2013

29. Volkswagen Beetle 