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Volkswagen New Beetle. 1- Problem ... proposition. If this option is pursued, Volkswagen
should emphasize the emotional qualities of the New Beetle. Retro ...
The New Beetle Case Study. ... Looking back, Volkswagen?s decision to switch advertising
agencies?from DDB Needham to Arnold Communications (AC)?was a ...
... If Volkswagen decides to use premium pricing for the New Beetle, it is
not affordable from the younger generation point of view. ...
... but the public inevitably saw Concept I as “Beetle II”, and on the Volkswagen stand
at the 1996 Geneva Motor Show it was presented as “the new Beetle”. ...
... The kindest thing it's possible to say about Volkswagen's 2.0 litre engine is that
it's ... No-one will buy a New Beetle because it's a brilliant car to drive. ...
Submitted by yaffarmike on February 8, 2008
Category: Miscellaneous
Words: 1418 | Pages: 6
Views: 139
Popularity Rank: 57,312
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1- Problem Statement
a) Defining the Problem. Volkswagen’s core problem is to decide whom to target and how to communicate the New Beetle’s benefits and characteristics, utilizing a launching campaign with a limited budget, which implies deciding which aspects of the product to emphasize, media to use, price to determine, and positioning to use, consistent with the new brand message the company wants to transmit its customers.
b) Effects and Consequences. A research conducted showed mixed reviews and opinions about the car. The target market encompassed Volkswagen’s core audience of 18 - 34 years olds and baby boomers. Buyer’s characteristics were identified as confident, individualistic, and a desire to be the center of attention. In addition, Volkswagen felt it could leverage the nostalgia surrounding the car. However, appealing to young adventurous individuals and nostalgic baby boomers seems to be contradictory. If the company is not able to target the market appropriately, the brand will be inconsistent, misleading customers. Volkswagen is aiming to make its brand relevant. To achieve this, they have to align with market conditions and trends. An improper segmentation would result in an inadequate association of characteristics of the car, with the target market destroying brand equity. In addition, the company has to decide the media required to publicize the car. Utilizing TV campaigns they will certainly reach a broader customer base. Utilizing print advertising they will reach more specific and demographic segmented customers. The issue is to adequately balance the media channels to be used to target the right market. On the other hand, price will be one of the most important variables that will determine segmentation used. If the company overprices the New Beetle, the young segment of customers associated with the car would be discarded because they would not afford it, but if they underprice it, uniqueness characteristics would be...
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