Volkswagen’s marketing strategy Case Study Example

Volkswagen works with 12 independent brands, a mix of geographic and demographic segmentation, and psychographic factors that meet the demands and expectations of the clients in the existing and developing countries. It follows a differentiated strategy to cater to the specific needs of the customers. 

Positioning strategy makes it easy to understand how the services and/or products created an impression in the minds of customers. Since the majority of the brands acquired by Volkswagen are premium, the business makes use of a value-based positioning strategy to form an inspirational and emotional bond with the customers.

Competitive Advantage in Volkswagen’s marketing strategy 

Company’s Portfolio: According to Volkswagen differentiation strategy, handling a group of automotive brands, and forming their ecosystem together, the company gained a competitive advantage. It helped the group to stay ahead of others. 

Financial Stability: With a versatile product portfolio of each brand under the architecture of the group, its economical stability can’t be doubted. 

Reduce operational expenses: Reduced expenses in the manufacturing, operational, and production cycles helped the enterprise to minimize cost, allowing the brand to invest more in its promotional activities.

BCG Matrix of Volkwagen’s Marketing Strategy 

BCG Matrix helps a company to understand its position in the market so that it can work on its loopholes. Audi, Volkswagen, Bentley, Ducati, Bugatti, and Lamborghini form stars in the BCG Matrix. On the contrary, Skoda, Seat, Scania is still struggling in the industry. So they are a question mark in the BCG Matrix. 

IT Financial services forming the supporting group, which assists and offers financial aids to the subsidiaries in the business. So it forms stars in the BCG Matrix of Volkswagen. 

Brand Equity of Volkswagen

Handling the subsidiaries, and developing a marketing strategy to boost brand awareness becomes challenging for the group. Moreover, cross-branding activities improved brand visibility and increased brand visibility, thereby reducing operational costs. 

The automobile industry is quite competitive. The market is crowded with companies that eat up each other’s market share. 

The growth of the automobile industry faces blockages like an increase in infrastructure expenses, currency fluctuations, government regulations, pricing differences, and competition in the market. 

Distribution strategy in Volkswagen marketing strategy

Volkswagen group is thoughtfully utilizing its Dealership and supply chain network to expand its business to foreign markets. it is doing to make its product available in both the existing and new markets. In 2015 the distribution expenses of the company rose from 16 % to 23515 million euros. For Volkswagen strategy 2025, the company has announced its ‘Strategy 2025′, which focuses on the automaker’s long-term plans to derive profitable growth and, basically, hopes to shake off the diesel gate scandal.

Volkswagen Group works closely with the Distribution and supply chain network and optimizes its efficiency, thereby creating a win-win scenario for both the franchises and the company. 

Competitive analysis in Volkswagen marketing strategy

The automotive industry is already filled with a handful of competitors that are eating each other’s market share. The company witnessed a rise in the customer’s Deliveries, which is a clear indication of improved customer support and experiences, and an increase in sales.

Based on Volkswagen target market, handling a group of mainstream automotive brands, Volkswagen gains a competitive advantage in the market. 

Customer analysis in Volkswagen marketing strategy

Volkswagen group is known for working with a group of Brands in the versatile customer segment, which enables the group to cater to the needs of the middle-class and aristocratic families in the society. 

Its financial services provide backing to the automotive business all over the world. 

Marketing Mix of Volkswagen 

Promotional Strategy

Initially, Volkswagen utilized print media and advanced ATL media to promote its products and brands. As the Indian automotive market was loaded with competent brands, the group had no alternative except to exploit BTL and exceptional media other than ATL media

To fortify its brand image, the organization dispatched an incorporated marketing plan in 2009. The company also sponsored several corporate and car events. 

Volkswagen strategy analysis shows an attempt to reach out to more and more customers, the organization permits clients to buy their vehicles through renting policy as well. It implies that clients don’t need to pay the whole amount to purchase the vehicle. This is emphatically prevalent in the USA and UK, but it is not effective in India. 

Price in Volkswagen’s Marketing Mix

Contingent upon the power and type of the motor, exclusivity level, and size, Volkswagen vehicle price range from moderate to costly. It is what happens with other brands.

Notwithstanding, Volkswagen prides itself as a vehicle producer which makes vehicles that the average-salaried individual can buy. Notwithstanding, Volkswagen is a German organization, and being an exporter to India, there are few cost considerations, which makes Volkswagen a less value-for-money brand and somewhat costlier brand. 

When you contrast the Maruti Swift or Hyundai I10, and a Volkswagen Polo you will see that the latter is costlier. Volkswagen pricing strategy indicates, Volkswagen needs to produce affordable vehicles, however, the opposition is high.

The smash-hit Volkswagen items are Volkswagen Vento and Volkswagen Jetta. Subsequently, in certain areas, the price of Volkswagen is higher while in others it is average. From pricing aspects, Volkswagen is a middle-range brand. 

It is neither affordable as Maruti or Hyundai nor as expensive as the Audi and BMW.

Place 

In 2012 the Volkswagen Group increased its dealership from 12 to 22. With a boost in sales, the number of showrooms all over the country increased to 28. Road Shows, new showrooms increased Volkswagen’s brand awareness throughout the cities in Malaysia. Roadshows in shopping malls of Kota Kinabalu, Sarawak, and Sabah instilled trust within the minds of customers. 

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