beetle ppt group 3
TRANSCRIPT
Presented ByGroup 3Harmandeep Kaur GillKrishna OzaSandhya Keethi VipinPriyanka NarayanVishakha Natani
Lavanya Lakshmi
The New Beetle
Volkswagen
The Volkswagen was identified with the image of being people’s car.It is highly affordable with the unmatchable German technology.
Rise and fall of Volkswagen
Popular brand Launching the “Beetle”. The beetle was followed by the rabbit
which became popular among the energy conscious customers.
The company’s sales reduced up to 20% in1970.
1940 1950 1960 1970 1980 1990 20000
100000
200000
300000
400000
500000
600000
Total Sales
Total VW
year
Sale
s vo
lum
e
Ref : exhibit 2
1993 the sales were all time low. Hence re launch of the new Beetle.
Arnold communications was hired for the making the brand important again. The strengths of the new Beetle were to be used to invalidate the perception of its poor quality and reliability.
Relaunch Of Volkswagen
NEW PASSAT
JETTA
MICROBUS
KARMANN GHIA
OLD BEETLEDrivers
who sought to express
their individualit
y and personal
style.
Served as GERMANY’S equivalent to Jeep in 1930’s n 1940’s
Americans first saw the car in 1949 and quickly attracted the mass audience
A large part of cars
success in US was due
to memorable advertising campaign
BEETLE owners were intensely LOYAL to their “BUGS”
1939 First Model
1959 Beetle Deluxe Sedan
1993 BEETLE
DRIVERS WANTED Campaign!
The Beetle was given a NEW image RELATE the product direct to younger
generation. DIFFERENTIATE between drivers and
passengers Materialize the EMOTIONAL
attachment
Drivers wanted
Flower campaign
Famous News Paper Clippings
Old beetle was brought to halt due to many reasons:• Appreciation of the Deutsche mark against the dollar threatened
to price VW out of the market.• Dealers defecting due to new Japanese brand.• Falling sales threatened to break-up the company+’s US
distribution.• Company’s new product, Rabbit’ success was short lived.• Recession of 1982, drop in oil prices and the declining popularity of
hatchbacks.• Beetle’s inability to comply with requirements of new
environmental legislation forced VW to stop its’ sales in US.
New beetle
New beetle was upgraded and shaped in more refined and modern way though it resembled its original brother.
“the new car puts the original seat in a modern package”
New Beetle
Appeal of the new Beetle
Latest features-airbags, music system, trendy interiors etc
people perceived it as a Family member
Distinct round shape.
Portraying the uniqueness of the driver.
Innovation embodied in tradition.
Cutting edge German engineering and superior driving
performance in a reasonable cost.
Positioned the car as a PERSONAL CAR.
Design Principles-honest, simple, reliable and original.
PROBLEM
Marketing Plan REVAMP the Brand Positioning Removing Misconceptions REBIRTH of the Iconic BEETLE To prove the true value of Franchise –
Dealer’s Interest
Integrated name in every AMERCIAN householdMeaning of Volkswagen is PEOPLE’s CAR --- company achieved the goal as well -1950’s-1970’sConnected with people- EMOTIONAL NOTEReflection of owners personality as per its owners confident Distant The only brand that could offer the benefits of
German engineering affordably. Different driving experience – more connected to
the road- and a different Way of living- more connected to the world.
Meaning of the BRAND to the consumers
EVERYONE
LOVES
CURVES………
Why positioning is “mission impossible”
LOW advertising budget
DILUTED the brand equity of a LEGEND
No DEFINED target MARKET
Surpassing the advertisements of the “old” beetle
First few models sold easily – how to ensure sales after initial
euphoria subsides?
YOUNGER GENERATION
BABY BOOMER
•40 – 55 YEARS•Affluent•Emotional – ‘NOSTALGIA’•Individualism•More than Vehicle
DEMOGRAPHIC SEGMENTATION
•18 – 34 YEARS•Weak Buying Power•Emotional – ‘DREAM’•Personality•Attract Attention
MISSION: {I M} POSSIBLE
PSYCHOLOGICAL SEGMENTATION
Design Oriented
BEETLE LOVERS
•Unique/ Attractive•Love to Drive•German Engineering•Emotional Connection•Confidence/ Individualism
More Than Vehicle
Function Oriented
Transportation
• German Engineering
•Pleasurable Driving Experience
• Unique Design n Brand Equity
• Emotional Connection
• Relatively High Price
• Considered as a toy car
• Wider Appeal
• Cashing on the car’s strong heritage
• Competitors
• Change in consumer behavior
Ansoff’s Product/Market Expansion Grid
Existing products New products
Existing market
Market penetration Product development
New product Market development Diversification
PRODUCT
Product – More than Vehicle German Engineering - Cutting edge Technology - Improvised elements - Legendary driving performance Spirited Design
- Heritage and originality - Six splendid color- Curves
Domestic Car
Japanese Car
HighLIABILITYU
NIQ
UEN
ESS
Hig
h
PRICE
•Premium- PRICE STRATEGY-Performance, Heritage, Design.
•COMPETITIORS-Japanese car manufacturers
-Domestic car manufacturers
NEW BEETLE
PROMOTION
In 1997, Total advertising recall was 53%.
Company aimed at a Positive Press Coverage for the New Beetle.
-Select group of journalists invited to Wolfsburg.-Showcasing Beetle at Auto Show in 1998 in the US.-Journalists given the opportunity to drive the New Beetle for at least one day
After introduction of Drivers Wanted campaign and New Passat the dealers started showing interest towards Volkswagen dealership.
Special training sessions and a trip to Wolfsburg was arranged.
In 1998, there were 600 dealers in the US. 10% of them were exclusive.
PLACE
Strategy
Better Financing Options like 0% interest Company Branding: Tie ups with
adventure companies like K2 for promotion Promos in shopping malls Door step test drivers Positive press coverage Indulgence in nostalgia Advertisements
CCDS
Create Better safety Unique design Sentimental aspect German TechnologyCommunicate Advertisements-Graduation Ceremony Deliver Dealer relation(training in Germany)Sustain Maintenance-free Extended Warranty
Pricing of the car will influence on the positioning. The current generation is price conscious and they want the VALUE of the money.They give importance of the styling of the product.The media selection should be chose in such a way that it covers a broad audience.The customer audience was varied with the age group 18-40years.Media selection that is used- Television 60% Radio 25% Print 10% Malls 5%
Pricing and media selection