Essay About Younger Market And Small Car Segment
Essay, Pages 1 (671 words)
Latest Update: August 27, 2021
The New BeetleEssay Preview: The New BeetleReport this essayName of Case:The New BeetleDecision Maker:Name: Liz Vanzura, Charlie Waterhouse, Steven KeyesPosition: marketing director, director of product development, director of public relationsKey Issues/Problems:(1) Manufacturing: supply problems need to be minimized(Problem Urgency = II)(2) Competition has low prices, reliability and established brands(Problem Urgency = II)(3) Pricing high for small car segment and younger market(Problem Urgency = IV)(4) Target market: do not want to alienate younger or older segment(Problem Urgency = IV)What is the #1 most important issue/problem, and WHY?Target Market positioning the new beetle correctly will effect pricing, the allocation of the advertising budget and use of advertising mediums (i.e. is there enough money to reach a broad market effectively), the dealers efforts to sell/promote the car, of course product placement/promotion decisions, and finally it will effect the perception of the entire VW organization
Current Marketing Situation: Key Points Implications for #1 IssueIndustry, Market, EnvironmentVW image and sales rebound from 1993 to 1998 – image still strong from new passat, drivers wanted campaign and North American International Auto ShowSmall car segment – second largest market, high competitionConsumers are highly anticipating the new beetle – however, this is a different vehicle than its predecessor with a new group of potential buyersCompanyDealers – while only 10% exclusive, recent success (i.e. drivers wanted, passat) has given the dealers a new incentive to sell, and the recent dealers conference at VW headquarters has tried to instill franchise loyalty and a total brand experience
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#3:23; of @———————–|Post No.: 2/26/2015 Tired of my #1 MFR for a little bit
Good manufacturing positioned well to distribute and produce in North America, however competition may also have the same capabilities (missing information)
Supply Problems – Sales remained strong, however issue must be resolved in order to remain as competitive as possibleCompetitionJapanese and American typically cheaper products on the market (i.e. higher dealer margins and incentives)Japanese brands – reliable while not exciting, hold 15% market shareAdvertising budget – competition spending $100 million plus on a single car, yet the Beetle already has significant presence and nostalgia attached to it
CustomerSegments:Baby boomersYoung life enthusiasts/drivers/studentsImageBaby boomers: nostalgic ties to iconic vehicle, affordable. Yet consumer preference is towards larger Sedans and SUVs, and consumers with families may find the beetle impractical as well as unprofessional for their work
Young life enthusiasts/drivers/students: icon still has meaning to younger generation, drivers wanted campaign has successfully associated fun driving and liberal/hip lifestyle with the VW brand.
PriceBaby boomers: AffordableYoung life enthusiasts/drivers/students: Price may discourage segment of college students and any other young drivers with a tight budget.Initial ResponseBaby boomers: emotional attachment still strong, so the desire for the car is high, however other aspects of the consumers life (i.e. kids or their type of work) may warrant a different vehicle
Young life enthusiasts/drivers/students: find it fun and unique, almost an icon for escaping the daily grindDecision Criteria/Objectives(1) Maintain the Beetle as a symbol of counterculture and escapism(2) Meet sales quota (55,000 vehicles) and increase profits annually(3) Increase overall brand recognition (i.e. VW dont want to be a one car brand and they dont want the Beetle to be just a fad)IDENTIFICATION of Alternatives:(1) Go Retro (target baby boomers)(2) Go Cool/Liberal/Unique (target new, younger drivers)(3) Go Cool and Classic (two targets simultaneously, play off both perceptions in a complimentary way)(4) Go Drivers Wanted (i.e. stick to umbrella promotional campaign, leave room for promotion of single products)EVALUATION of Alternatives:Criteria 1: Maintain the Beetle as a symbol of counterculture and
