This case study is about Volkswagen which was formed in 1937, was the fifth largest automaker in the world.V.W because of its creative and effective marketing campaigns became the most popular name among the household on America during 1960.Their economy car brand BEETLE became a cult-favorite among the people of America and soon became the top selling brand in history with over 22 million units were sold.
During 1970 VW faced a very strong competition from Japanese manufacturer which hurt their sales badly and sales started declining by 1990 VW shared became 1.3% from 7% which was in 1970. In order to revive their business VW started an advertising campaign which was based on German word “Fahrvernugen” which means driving pleasure this difficult word got the attention of the consumer but didn’t has any effect on sales and sales continue to decline below 50000 units, by 1993.During 1995 company redefined their brand message as “Drivers wanted” and US sale rose to 18% in 1996. This campaign was targeted on VW loyal customer who are ready to pay an extra price because are in love with the company brands ,the sportier image.
In 1998 company relaunched modernized version its famous brand iconic beetle this relaunch of beetlte became a huge success and helped VW to increase sales and also helped in bringing back their customer. More than 55000 units were sold and about 50% growth in sales volume between 1998-99. Next step taken by VW was to launch luxury sedan called Phaeton, which was badly failed and less than 700 units were sold after this loss VW didn’t do any more modification in their core brand Jetta, Golf, Passat,as no more modification made this led to quality problems and customer started complaining. According to JD power survey of customer complain VW ranked next to last in2005 .
The Company took a uturn they fired their agency of record Arnold worldwide and hired new people named as crispinporter and bougusky with a hope that they will put in new life to their brands.
The agency developed ads to get the attention of the consumer many of them were bizarre ads, including the one for jetta in which they showed the safety attribute of the cars by showing an accident scene. The next step they took was to relaunch new golf (which was already launched in Europe for past 2 years) with a new name in usa as Rabbit brand. All these efforts were made with a hope that it will bring back their customer to them which were missing.