The New Beetle Case Study

1
The New BeetleCase Study

• Casey Fei Isaac Derek

2
Programme

• 3Cs
• Issues
• Recommendations

3
3Cs - Company
4
3Cs - Company

• A German car company in a little turmoil
• The situation is
• Sales have been declining
• Japanese competition, appreciation of
  Deutschemark, etc.

5
3Cs - Competition

• Mapping out everyones position

Uniqueness
Reliability
6
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

7
3Cs - Consumers
8
The Present Situation

• Drivers Wanted campaign boost
• Now the New Beetle

9
Next up ISSUES
10
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.

11
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

12
Issues (2 of 3 contd)

• How to rebuild VWs image through the New Beetle?
• Improve the reliability
• Make regular innovations
• Strengthen its brand equity

13
Issues (3 of 3)

• How to price the New Beetle?
• This is in contrast with VWs heritage of
  affordability.

14
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

15
Finally the RECOMMENDATIONS
16
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.

17
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).

18
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.

19

• END.