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The New Beetle Case Study. Casey Fei Isaac Derek. Programme. 3Cs Issues Recommendations. 3Cs - Company. 3Cs - Company. A German car company in a little turmoil The situation is: Sales have been declining

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the new beetle case study

The New BeetleCase Study

Casey Fei Isaac Derek

programme
Programme
  • 3Cs
  • Issues
  • Recommendations
3cs company4
3Cs - Company
  • A German car company in a little turmoil
  • The situation is:
    • Sales have been declining
    • Japanese competition, appreciation of Deutschemark, etc.
3cs competition

New Beetle

Japanese Cars

(Honda, Toyota,

Nissan)

American Cars (Ford, Chevrolet, Dodge)

3Cs - Competition

Mapping out everyone’s position:

Uniqueness

Reliability

3cs consumers
3Cs - Consumers
  • There are:
    • The old fogies
    • The new generation

The general opinion: “the people’s car”

- VW offers a unique, individualistic experience

- affordable German engineering

the present situation
The Present Situation
  • “Drivers Wanted” campaign boost
  • Now the New Beetle…
issues 1 of 3
Issues (1 of 3)
  • How much of the car’s 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
Issues (2 of 3)
  • How to rebuild VW’s image through the New Beetle?
    • Belief that VW product line is tired and old compared to Japanese cars
issues 2 of 3 cont d
Issues (2 of 3 cont’d)
  • How to rebuild VW’s image through the New Beetle?
    • Improve the reliability
    • Make regular innovations
    • Strengthen its brand equity
issues 3 of 3
Issues (3 of 3)
  • How to price the New Beetle?

This is in contrast with VW’s heritage of affordability.

issues 3 of 3 cont d
Issues (3 of 3 cont’d)
  • 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 VW’s profitability goals
recommendations 1 of 3
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
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
Recommendations (3 of 3)
  • Media Channels
    • There’s an opportunity to use the positive media coverage to Volkswagen’s advantage. Get the media involved to spread the word about the Beetle!
    • Other suggested options to increase Beetle’s exposure: Print Advertising in magazines and showcasing car at big events.