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Programme
3Cs Issues Recommendations
3Cs - Company
3Cs - Company
A German car company in a little turmoil The situation is:
Sales have been declining Japanese competition, appreciation of Deutschemark, etc.
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Year Total VW
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3Cs - Competition
Mapping out everyones position:
Uniqueness New Beetl e
Reliability
3Cs - Consumers
There are:
The old fogies The new generation The general opinion: the peoples car - VW offers a unique, individualistic experience - affordable German engineering
3Cs - Consumers
Percentage of Small Cars Sold in 1997
Chevrolet Cavalier
VW Golf 0.9 %
VW Jetta 4.1%
Dodge Neon For Escort Geo Prizm Honda Civic Hyundai Elantra Isuzu Stylus Mazda Protg Mercury Tracer Nissan Sentra Plymouth Neon Pontiac Sunfire Saturn Suburu Impreza 4wd Suzuki Esteem Toyota Corolla Toyota Tercel VW Golf VW Jetta
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Year Total VW
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Issues (1 of 3)
How much of the cars heritage should the new positioning use to leverage?
Play on the nostalgia Appeal to the new generation Designing a marketing scheme that would appeal to a majority of consumers in both target groups.
Issues (2 of 3)
How to rebuild VWs image through the New Beetle?
Belief that VW product line is tired and old compared to Japanese cars
Overall Opinion VW and Key Competitor- U.S.
100 90 80 70 60 50 40 30 20 10 0 Dec-95 Mar-96 Jun-96 Sep-96 Dec-96 Mar-97 Jun-97 Sep-97 Dec-97 Time % Excellent/Good Opinions
Issues (2 of 3 contd)
How to rebuild VWs image through the New Beetle?
Improve the reliability Make regular innovations Strengthen its brand equity
Price
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Issues (3 of 3)
Brand
Issues (3 of 3 contd)
How to price the New Beetle?
If the price is set too high, consumers might trade up into a higher-priced segment If the price is set too low the car might not be attractive enough to dealers due to low margins and thus fall short of VWs profitability goals
Recommendations (1 of 3)
Approaching the Consumer
Two generations in target audience: Baby Boomers and Young Generation More effort should be focused on campaign to attract Young Generation consumers and appeal to their mentality, behaviour and attitude. A campaign for Baby Boomers would be straightforward by using nostalgic images to bring back good memories from the past and rekindle their interest in the Beetle.
Recommendations (2 of 3)
Pricing Options
Two versions of New Beetle for two different generations of consumers. Basic and cheap model will appeal to younger generation of consumers who will be more budget conscious. Enhanced model with popular options will be catered to Baby Boomers who can afford to spend more on a new car (or any other wealthy person).
Recommendations (3 of 3)
Media Channels
Theres an opportunity to use the positive media coverage to Volkswagens advantage. Get the media involved to spread the word about the Beetle! Other suggested options to increase Beetles exposure: Print Advertising in magazines and showcasing car at big events.
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