Volkswagen's Management
The idea of Volkswagen (VW) Beetle was designed so everyone can have a car of their own. Volkswagen kept that idea in mind to build New Beetle. When Volkswagen tries to bring New Beetle to public, management’s problem was to know the consumer’s expectations for New Beetle. They need to use marketing research to find out who will in their target market and what target market preferences are. After first step, then another problem is how management going to use those data to help them to understand what improvement does New Beetle needs in order to meet consumer’s expectations and management needs to know the demand on New Beetle. At last, management needs to position New Beetle in positive image in order to get high sell in market.
Marketing research objective:
In order to solve management problems, there are few objectives that Volkswagen’s managements need to focus on when they doing their marketing research. To Begin with they need to (1) Identify the target market, (2) Find out what the target market’s preference of small car, (3) Find out customer expectations from new Beetle, (4) Know what the reasons are that people want to buy New Beetle. The Volkswagen New Beetle was introduced to U.S market in 1998 (Wikipedia.org). Before launching the New Beetle, the team needed to design New Beetle to look like the original Beetle in order to bring back people’s memory about one of the most successful cars in the world. The New Beetle takes style and shape of the original Beetle to become a stylish and fashionable compact car.
Key factors:
There are different ideas between original Beetle and New Beetle. To compare their key factors in order to find out what management style is going to be and consumer’s motivation to buy New Beetle. And marketing group will have challenging to face to raise the passion of salesman to sell The New Beetle.
Original Beetle: (1) Capable of transporting two adults and three. (2) Low price which people can afford. (3) The first car in people’s life. (4) Use air cooled engine
New Beetle: (1) include modern standard package in the car such an A/C, CD changer, airbags (2) Offers German excellent engineering design for good handling to improve driving performance. (3) In 1994 consumers linked emotional to new Beetle after North American International Auto Show (Wikipedia.org). (4) Link people’s feeling and position it in fashionable compact.
design made the car very strong and durable that is one main reason you see many
one of the most majestic cars created. Nick?s comments on the vehicle describe its luster, ?...and
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
In 2014, researchers from West Virginia found out that recent models of Volkswagen vehicles were emitting up to 40 times the allowed levels of nitrogen oxides (2). These vehicles had a special software that would determine when the vehicle was in laboratory testing conditions, and the software would then alter the vehicle 's functionality to emit the legal amount of nitrogen oxides allowed by the EPA. The software was found in around half a million vehicles in the United States. In addition to the bad publicity, the Volkswagen scandal will cost the company at least $15.3 billion dollars in compensation to the owners of the affected vehicles (3). In 2016, Volkswagen engineer James Liang pleaded guilty for being a crucial part in developing the illegal software (3). The software was created because Volkswagen was unable to meet the rigorous EPA emission standards. Therefore, a small team of engineers including James Liang decided to cheat the emission exams to allow Volkswagen vehicles to be sold in the U.S.
Having both marketing strategies and both products analyzed and the history of the important marketing decisions made and techniques used by the company written down, it will be interesting to perform a critical analysis of how the market and business realities made an impact on the marketing of Tesla Motors, why it happened and what was the effect. The presence of the CEO and the impact he makes on the public and investor confidence will also be critically reviewed. Based on the results, a list of recommendations will be composed for both representatives and marketing specialists who work in the same or similar
Since the beginning of 2000, FAW-Volkswagen has grown rapidly in the face of international competition. Before 2004, the company used the traditional value-chain model, which is based on sales’ production (Mazen, 2010). This is a risky model for a company to follow in a volatile market. Use of the forecasting model provides, no analytical evidence to support different options. Both marketing people and financial management people are under great pressure to balance costs and profits. As a Chinese automaker, FAW-Volkswagen didn’t want to have a passive and disadvantaged position in the industry, so the R& D department began to analyze the build-to-order model of foreign auto manufacturers, and adopted a new value-chain model on this
Audi is majorly owned subsidiary of the Volkswagen (VW) Group and is headquartered in Germany and operation in more than 100 countries. With the commitment the implement progressive technology and its technological ingenuity, by late 1990’s Audi became globally respected brand among luxury automakers. After its entry in luxury sector in early 1990’s, Audi leveraged its ingenuity and gained the competitive edge over the industry parameters of innovative design, safety and performance. Today, Audi remains focused on satisfying on customer needs by building a brand that exemplifies individuality, exclusivity and excellence.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
By the reading of it, Volkswagen management expressed what seemed like genuine shock when the EPA and California’s Air Resources Board revealed their joint findings regarding the automaker’s manipulation of US emissions testing for diesel cars outfitted with a particular 2.0-liter, four-cylinder engine.
Nelson, Walter E. Small Wonder: The Amazing Story of the Volkswagen. (Boston: Little, Brown and Company, 1970). 213-220.
Porsche is always a want to consumers because they have the mind of concept that owning Porsche is meant for upper social class and it could bring them to a higher status as the value is high. Therefore, the Porsche 914 and 944 models were out in the market in 1970s and 1980s to attract consumers from different social classes who could not afford a traditional Porsche model. At that time, consumers bought the 914 and 944 models to satisfy their needs and wants because they wanted the image of the brand. It also boost their confidence and low self-esteem while being associated with upper social classes.
Perhaps the CAR could be initially launched in a small selected test market, stressing the dialogue with the customers about the value of the product and service. Afterwards, target pricing in pace with to the company’s strategic objective of a deft market penetration can beacon engineers to rebalance the technological features of the CAR. This also accommodates better for investors’ expectations of a fixed return. Moreover, it allows AUDI’s management to concert its pricing strategy and counteract unforeseen changes in the all too sensitive demand, as the link between customer value perception and product’s cost becomes alive. After all, relying solely on a forecast is not advised, as it cannot possibly capture all the dynamics of a fairly unknown market for a project which needs to age in the years to come.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.
Another one of Germany accomplishments was the Volkswagen Beetle, which means “People’s Car”. This vehicle was founded may 28,1937 it was designed from the advise of Hitler. He wanted it to look like beetle and wanted every German citizen could afford to buy. The car was a giant success but at the end of the war resources were low and the availability to the public declined. Towards the end of the Third Reich the Volkswagen emerged more as a military