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