Volkswagen Case Study
1 Relevant issues
Important issues:
Positioning- How VW position itself and how to differentiate itself with other two brands in the VW group’s portfolio in India.
ď‚·Segmentation- VW focused on five of nine segments based on social status and value orientation. These five segments comprised 45.8% of the market overall.
ď‚·Consumer insights- People bought cars for three main reasons. VW should design different solutions for each reason.
ď‚·Awareness- Consumers awareness of VW is only 9%. The goal of VW is to increase awareness to 18%.
ď‚·Advertising strategy- What advertising strategy can create more buzz and increase awareness.
ď‚·Innovation- As a late entrant, VW should make big innovation to attract consumers.
ď‚·Communication strategy- How to communicate with consumers more effectively.
ď‚·Being late to launch into a market- It was the 18th brand to launch into a market, VW needed to hit the ground running.
ď‚·Product portfolio- Each model should focus on a specific segment. And VW should also decide how many models they should launch.
ď‚·Pricing- VW should price their models based on their target market.
ď‚·PR strategy- What PR strategy can create more buzz and increase awareness.
ď‚·Sales- How to achieve their sales goal.
Less important issues:
ď‚·Relationship with dealers(Distribution)- As a late entrant, VW has a disadvantage of distribution. What they should do is to build good relationship with dealers and expand as many as dealers.
ď‚·Product designs(Feature)- NPD should develop new products based on the customer insights and decide which feature should be remained.
ď‚·Aligning corporate brand with the product brands- Since VW has different models in the Indian market, they need to associate their corporate brand image with the product brand image.
Engagement- VW has a low engagement due to its being late in the Indian market. It’s urgent for them to build loyalty and aspiration among customers.
Mission and vision- How to achieve VW’s mission statement both locally and globally.
2 Cases Questions
1)What are the issues in the case?
See the question 1
2)Do you agree with VW’s corporate brand positioning?
I agree part with VW’s