Volkwagen Analisis

kswagen Group:

Marketing Strategy Analysis and Profile

MARKETING 480 MAJOR CORPORATION PROFILE

Andrew Clayton, Brennen Charles,

Brandon Ferrell and Whitney Wilcher

MKG 480 Marketing Management

Ball State University

Muncie, IN 47306

Professor John Vann

Dec. 9, 20112

TABLE OF CONTEN

Volkswagen group is a automotive conglomerate consisting of several brands of vehicles for a range

of customer groups at a range of prices. It is one of the top automotive manufacturer’s in the world and is the

top automotive manufacturer in Europe (Volkswagen, 2011a).

Beginning in the late 1930s, Volkswagen created tanks and driving equipment for Nazi Germany

during World War II. After the war, Great Britain had the choice to either destroy the Volkswagen plant or

continue production. They saw potential in Volkswagen and decided to allow it to continue to manufacturer

vehicles. Volkswagen grew during the next few decades; acquiring new brands and expanding the brands it

had with new vehicles to fit the growing demand of consumers (Volkswagen, 2011a.)

Today, Volkswagen is recognized as a unique and distinct car brand. It is recognized through its oneof-a-kind vehicles like the Beetle and the Tiguan as well as for its innovative advertising. Volkswagen is not

afraid to take risks and stand out from the crowd (Volkswagen, 2011a).

They are one of the only automotive manufacturers to work with clean diesel and have a strategy plan

to build and sell an electric car for each customer group they serve (Volkswagen, 2011a).

They firmly believe in the responsibility they have to better the environment and, because of this,

wrote an 80-page sustainability report with goals and objectives for the future of the their company both

through environmental decisions and responsibilities to promote education and stability in their local

communities (Volkswagen, 2011a).

From its troubled beginnings to its slow and steady rise to the top of the automotive world,

Volkswagen has never forgotten what its soul purpose was: to be the people’s car. No matter what has

happened, Volkswagen has always put the customer first and designed and sold vehicles for them.

Volkswagen is a one-of-a-kind automaker and one worth learning more about (Volkswagen, 2011a).

Das Auto. 4

PRODUCT MARKET MATRIX

Young, Single Professionals Ages 18-24

The first customer group selected for Volkswagen is young single professionals between the ages of

18 and 24. This customer group is entering into the professional workforce for the first time and has access

to a higher level of income than in college. They now have the opportunity to fulfill functional needs they

have for a vehicle and intend to meet those needs with their new lifestyle (Clayton, 2011a).

Represent Their Status (Express themselves to enhance theirself-image)

As mentioned earlier, this customer group is at an early stage in the professional world and has access

to more money than they were previously used to; therefore, they want to express their status and success

and reward themselves for completing college and securing professional employment with a vehicle that

establishes who they are and where they are currently in their life. Several technologies work to satisfy this

functional need (Clayton, 2011a), (Consumer Reports, 2010).

Bluetooth technology. This technology offers this customer group the ability to sync their smart

phones to the vehicle and have conversations without having to use their phone. While it was designed as a

safety and efficiency technology, it satisfies the need to represent status due to the high cost of this

technology. Bluetooth is not standard in vehicles, but is an added technology in more expensive models of

vehicles. Volkswagen currently offers Bluetooth technology in select models (Bluetooth, 2011).

LED Headlights. This technology enhances the look of headlights on a vehicle while offering better

lighting during nighttime driving; however, the technology fits the functional need for this target by offering

style and innovation. The look of LED headlights is one significantly more stylish than of regular halogen

lights and the color resonating from the LED lights is close to a white-purple versus the standard yellow.

Together these two attributes fulfill the functional need of this customer group by offering a chance to

express their increased income and desire to be in tune with the current trends and technology in the world

today (Audi, 2011a).

Travel with Speed (to commute quickly and arrive at destinations on time)

Young single professionals are at a stage in their lives where they have little responsibilities or

concerns. While driving, they tend to keep with the speed limit and often, break it. They enjoy arriving

quickly and reducing their commute time. This leads to increased time at their arrival destination as well as a

feeling of efficiency for having a “quick commute.” Because of this, they have a functional need for a

vehicle that offers them speed while maintaining its durability. Several technologies satisfy this functional

need (Clayton, 2011a), (Consumer Reports, 2010).

V6 – V8 engine. The engine is the core determinant factor in the speed and efficiency of a vehicle.

Several technologies for speed deal with the engine, the first being the number of cylinders. Each cylinder in

an engine works to achieve greater power for the vehicle as a whole. The more cylinders, the faster a vehicle

can travel in a shorter amount of time. Certain V6 engines allow a vehicle to travel from 0 – 60 mph in less

than 6 seconds. Volkswagen offers vehicles with V6 – V8 engines (Hewitt, 2011), (Volkswagen, 2011a).

Horsepower (of 200 or more.) Horsepower is a measure of the power a vehicle omits during driving

and at specific speed intervals. The level of horsepower is directly related to how fast the vehicle can go. For

consumer vehicles, SUVs and trucks tend to have the higher horsepower to tow trailers or other necessary 5

equipment. For sedans and coupes, higher horsepower equates to faster speeds. Volkswagen currently does

not have a coupe or sedan that can reach 200 horsepower at a speed of less than 100 mph (Hewitt, 2011),

(Volkswagen, 2011a).

Married Couples with Children

The second customer group selected for Volkswagen is married couples with children. This customer

group is busy with professional and personal life. They have more responsibilities and concerns than young

adults and have a set of functional needs that go in line with their increased responsibility and family

(Clayton, 2011a).

Transport Goods (to fulfill tasks for family).

Parents are busy handling tasks for their family ranging from driving to soccer practice to going on

vacations. Each of these tasks requires transporting a large amount of goods ranging from luggage to sports

equipment to Christmas trees. This customer group has a functional need for a vehicle that can carry a high

volume of goods depending on what that family has planned for any given week in the year. Several

technologies satisfy this functional need (Clayton, 2011a), (Consumer Reports, 2010).

Stow n’ Go storage system. This technology makes efficient use of the space within vehicles to

allow for optimal storage. Storage bins can be found underneath seats beneath the floor and in doors of the

vehicle. Stow n’ Go Storage offers increased storage of 40 percent in vehicles. This allows for families to

pack all the necessary items they need for a sports game or trip without making multiple trips from home to

their destination or paying for a trailer to carry additional items their vehicle would not fit. Chrysler group

currently owns the patent for Stow n’ Go Storage system, so Volkswagen is unable to use this technology in

its vehicles, but should attempt to utilize the idea and better equip its vehicles with efficient storage

capabilities (Chrysler, 2011).

Folding seat system. Starting in the early 2000s, folding seat systems allow for the seats in an

equipped vehicle to fold flat or fold into the floor of the vehicle to make room for a large item. This

technology satisfies the functional need of storage for this customer group with similar outcomes as the

storage system; however, this technology allows for the transportation of larger goods whereas the previous

technology allowed for the storage of several small to medium sized goods. Such items as new furniture

pieces, lumber for a tree house or a Christmas tree could be transported in a family’s personal vehicle

through use of a folding seat system. Volkswagen has a complete folding seat system in one vehicle

(Volkswagen, 2011a).

Protect their family (in the event of or from an accident).

While most drivers look for safe vehicles, the family customer group values safety at the highest level

due to the addition of young children in the vehicle consistently. Families want to keep their children and

loved ones safe. By preventing accidents or preventing their children

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