The New Beetle

Presented By Group 3 Harmandeep Kaur Gill Krishna Oza Sandhya Keethi Vipin Priyanka Narayan Vishakha Natani Lavanya Lakshmi

Volkswagen
The Volkswagen was identified with the image of being peoples 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 companys sales reduced up to 20% in1970.

Total Sales
700000 600000 Sales volume 500000

400000
300000 200000 100000 0 1940 1950 1960 1970 year 1980 1990 2000 Total VW

Ref : exhibit 2

Relaunch Of Volkswagen
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.

NEW PASSAT

KARMANN GHIA

JETTA

MICROBUS

OLD BEETLE
Served as GERMANYS equivalent to Jeep in 1930s n 1940s BEETLE owners were intensely LOYAL to their BUGS Drivers who sought to express their individuality and personal style.

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

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

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. Companys new product, Rabbit success was short lived. Recession of 1982, drop in oil prices and the declining popularity of hatchbacks. Beetles 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 Dealers Interest

Meaning of the BRAND to the consumers

Integrated name in every AMERCIAN household Meaning of Volkswagen is PEOPLEs CAR --- company achieved the goal as well -1950s-1970s Connected with people- EMOTIONAL NOTE Reflection 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 roadand a different Way of living- more connected to the world.

EVERYONE

LOVES
CURVES

Why positioning is mission impossible

LOW advertising budget

First few models sold easily how to ensure sales after initial euphoria subsides?
Surpassing the advertisements of the old beetle No DEFINED target MARKET DILUTED the brand equity of a LEGEND

DEMOGRAPHIC SEGMENTATION
40 55 YEARS Affluent Emotional NOSTALGIA Individualism More than Vehicle

BABY BOOMER

YOUNGER GENERATION

18 34 YEARS Weak Buying Power Emotional DREAM Personality Attract Attention

MISSION: {I M} POSSIBLE
Design Oriented Unique/ Attractive Love to Drive German Engineering Emotional Connection Confidence/ Individualism

PSYCHOLOGICAL SEGMENTATION

BEETLE LOVERS

Transportation

More Than Vehicle

Function Oriented

German Engineering Pleasurable Driving Experience Unique Design n Brand Equity Emotional Connection

Relatively High Price

Considered as a toy car

Wider Appeal

Competitors Change in consumer behavior

Cashing on the cars strong heritage

Ansoffs Product/Market Expansion Grid

Existing products Existing market Market penetration New products 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

LIABILITY

High

PRICE

UNIQUENESS High

NEW BEETLE

Domestic Car

Japanese Car

Premium- PRICE STRATEGY -Performance, Heritage, Design. COMPETITIORS -Japanese car manufacturers

-Domestic car manufacturers

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 Technology Communicate Advertisements-Graduation Ceremony Deliver Dealer relation(training in Germany) Sustain Maintenance-free Extended Warranty

Pricing and media selection

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 1840years. Media selection that is usedTelevision 60% Radio 25% Print 10% Malls 5%