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The New BeetleCase StudyCasey Fei Isaac Derek
Programme3CsIssuesRecommendations
3Cs - Company
3Cs - CompanyA German car company in a little turmoilThe situation is:Sales have been decliningJapanese competition, appreciation of Deutschemark, etc.
Chart1
19492
1950330
1951417
1952980
19531214
19548913
195535851
195649550
195772555
195885985
1959129315
1960162037
1961186260
1962226649
1963270788
1964313426
1965357144
1966411956
1967443510
1968569262
1969551366
1970569696
1971522655
1972485645
1973476295
1974334515
1975267730
1976201670
1977260702
1978239300
1979292019
1980293595
1981278513
1982171281
1983166915
1984177709
1985218042
1986217231
1987191705
1988168800
1989133650
1990136357
199196736
199275873
199349533
199497043
1995115114
1996135907
1997137885
Year
Total VW
Sheet1
YearTotal VW
19492
1950330
1951417
1952980
19531214
19548913
195535851
195649550
195772555
195885985
1959129315
1960162037
1961186260
1962226649
1963270788
1964313426
1965357144
1966411956
1967443510
1968569262
1969551366
1970569696
1971522655
1972485645
1973476295
1974334515
1975267730
1976201670
1977260702
1978239300
1979292019
1980293595
1981278513
1982171281
1983166915
1984177709
1985218042
1986217231
1987191705
1988168800
1989133650
1990136357
199196736
199275873
199349533
199497043
1995115114
1996135907
1997137885
Sheet1
Year
Total VW
Sheet2
Sheet3
3Cs - CompetitionMapping out everyones position: Uniqueness Reliability
3Cs - ConsumersThere are:The old fogiesThe new generation
The general opinion: the peoples car- VW offers a unique, individualistic experience- affordable German engineering
3Cs - Consumers
Chart1
0.136
0.55
0.128
0.028
0.019
0.019
0
0.024
0.02
0.055
0.039
0.046
0.113
0.011
0.03
0.098
0.014
0.009
0.041
VW Golf 0.9 %
VW Jetta 4.1%
% of Small Cars Sold in 1997
Percentage of Small Cars Sold in 1997
Sheet1
Upper Small Cars% of Small Cars Sold in 1997
Chevrolet Cavalier0.136
Dodge Neon0.55
For Escort0.128
Geo Prizm0.028
Honda Civic0.019
Hyundai Elantra0.019
Isuzu Stylus0
Mazda Protg0.024
Mercury Tracer0.02
Nissan Sentra0.055
Plymouth Neon0.039
Pontiac Sunfire0.046
Saturn0.113
Suburu Impreza 4wd0.011
Suzuki Esteem0.03
Toyota Corolla0.098
Toyota Tercel0.014
VW Golf0.009
VW Jetta0.041
Sheet1
VW Golf 0.9 %
VW Jetta 4.1%
% of Small Cars Sold in 1997
Percentage of Small Cars Sold in 1997
Sheet2
Sheet3
The Present SituationDrivers Wanted campaign boostNow the New Beetle
Chart3
19492
1950330
1951417
1952980
19531214
19548913
195535851
195649550
195772555
195885985
1959129315
1960162037
1961186260
1962226649
1963270788
1964313426
1965357144
1966411956
1967443510
1968569262
1969551366
1970569696
1971522655
1972485645
1973476295
1974334515
1975267730
1976201670
1977260702
1978239300
1979292019
1980293595
1981278513
1982171281
1983166915
1984177709
1985218042
1986217231
1987191705
1988168800
1989133650
1990136357
199196736
199275873
199349533
199497043
1995115114
1996135907
1997137885
Year
Total VW
Sheet1
YearTotal VW
19492
1950330
1951417
1952980
19531214
19548913
195535851
195649550
195772555
195885985
1959129315
1960162037
1961186260
1962226649
1963270788
1964313426
1965357144
1966411956
1967443510
1968569262
1969551366
1970569696
1971522655
1972485645
1973476295
1974334515
1975267730
1976201670
1977260702
1978239300
1979292019
1980293595
1981278513
1982171281
1983166915
1984177709
1985218042
1986217231
1987191705
1988168800
1989133650
1990136357
199196736
199275873
199349533
199497043
1995115114
1996135907
1997137885
Sheet1
Year
Total VW
Sheet2
Sheet3
Next up: ISSUES
Issues (1 of 3)How much of the cars heritage should the new positioning use to leverage?Play on the nostalgiaAppeal 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
Issues (2 of 3 contd)How to rebuild VWs image through the New Beetle?Improve the reliabilityMake regular innovationsStrengthen its brand equity
Issues (3 of 3)How to price the New Beetle?
This is in contrast with VWs heritage of affordability.
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 segmentIf 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
Finally: the RECOMMENDATIONS
Recommendations (1 of 3)Approaching the ConsumerTwo generations in target audience: Baby Boomers and Young GenerationMore 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 OptionsTwo 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 ChannelsTheres 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.
END.