The new product we chose was the 2013 Volkswagen Golf R. The German engineered car was created as a high performance for performance Volkswagen enthusiasts. With limited availability in the United States, this product demonstrates prestige among the Volkswagen community.
Pricing The 2013 Volkswagen Golf R introduced their product to the market at $34, 195. VW adopted a price penetration strategy by introducing the Golf R at a price lower than the competition. However, with limited availability in the United States, the Golf R is offers a sense of prestige to their customers. The price is also set at a point that only middle-high class Americans can afford.
Promotion Volkswagen has divided their promotion for the Volkswagen Golf R into two phases. They developed an iPad application, which customers can build their own Golf R and learn more about the new car. This application has been made shareable so that customers can share the information on the Golf R with their networks. This phase has only limited paid online and print media content. The second phase of promotion for the Golf R involves more paid media content as well as search engine optimization advertisements.
Target Market The Volkswagen Golf R has been marketed towards 30-40 year old men that are performance orientated. Because the Golf R has a starting price at $34, 195, it is marketed to middle age men who are working and have a disposable income available for a brand new car. The Golf R is marketed as a sports car which is why it is important that the target market for the Golf R is performance oriented and understands all that this car has to offer.
With the base price being between 34 and 37 thousand dollars this car is priced moderately for what you are getting. This is also a competitive price based on other competing models such as the Subaru WRX and the Mitsubishi Evolution. This car is going to be placed in highly populated areas; these will probably sell fast with a limited number of these cars being produced.
With the promotion only being via online application and limited print media this car will is being marketed to the Volkswagen lovers demographic. With this car being released in 2012 when the economy is still recovering its best to assume middle income to high income buyers only. Like previously stated, typically 30-40 year old males who are price and performance oriented buyers; this car offers a prestigious niche in the market. Limited availability will also allow this car to reach a prestigious level with only a few consumers able to purchase. Positioning
The position that Volkswagen is trying to attain with this particular car is that of a premium German made car. It is a hatchback with all-weather capabilities. This car was put through vigorous testing which included inclement weather such as snow and rain, also off road and track testing. This car received rave reviews, keeping up and most of the time beating all its competitors. With its limited availability it is often overlooked and not compared to by its competitors. It is Volkswagens highest performance offering on the market right now and it is only priced about $10K more than the GTI. Strengths
This car is German engineered, and has a very positive reputation amongst consumers. Volkswagen fans have a cult like following with lower price points than competitors. This car also attains better gas mileage than its closest competitors. Weaknesses
This cars main weakness is that it’s only available on a limited basis. This car is also a bit slower than its competitors, and only available in manual. There is limited promotion strategies with this model and has a very high dealer mark-up. Opportunity
There is an opportunity Volkswagen could extend its market reach to create better exposure for this product. The Golf R also builds upon Volkswagen’s good reputation, as well as creating more of a demand for itself. There is also a huge market for customers to customize and tune the Golf R. Threats With the competition being faster many performance minded consumers might chose a different model. This car also doesn’t create a product aware market, making it most of its target audience Volkswagen enthusiasts. Competitors also have automatic cars available with better warranties.