Volkswagen & Mercedes-Benz

Customer Focus: With the introduction of the new 2013 VOLKSWAGEN CC 125TDI it provides customers a vehicle where they can travel long distances on one tank of gas. They can travel up to 78.5 miles on one tank of gas and that today unheard of. Everybody wants to just fill up once and be able to travel long distance and not worry about filling up for another month or so depending on travel. It needs to be safe and people need to be able to trust the vehicle. It needs to be dependable and not have a lot of problems.

With Volkswagen being the first German car manufacture to do this, it will really show that Volkswagen is a more eco go green car manufacture and that will be good for their company image. Competitor Intelligence: Knowing your competition I feel is the most important by far. Being the first German car manufacture to do this you know more would follow.

The upcoming Mercedes-Benz CLA, is a class of cars set to be released in 2013. Volkswagen thinks that in 2013 Mercedes Benz and the CLA class will be there major competitor. It is the introduction of a whole new class of Mercedes Benz, which only happens every soo often. More comparable to gas efficiency is the French manufacture Peugeot 508 GT HDi – 2.2-litre turbo-diesel four-cylinder.

It cost $52,990
and has sexy French style, with a cool interior to match. Peugeot’s fuel economy is on par with the Volkswagen Passat TDI and so is the price . The hybrid market is Volkswagens major competitor. They use both gasoline and electricity, you have to charge your car and have some gas in it. The Toyota Prius leads the pack with the hybrids and is one of the most efficient vehicles on the streets today, it can travel on average 55 miles per gallon. Volkswagen came up with a way to travel 78.5 miles per gallon. Fill Needs:

To have the ability to travel 78.5 miles per gallon is unheard of and having that ability to fill up once a month depending on travel is a great benefit. It’s a sleek cool design and eco friendly. If you don’t want a high electricity bill due to you hybrid then owning this vehicle will potentially save you money in the long run. It’s a safe vehicle, its dependable with a strong eco friendly diesel engine. Distinguish yourself: We will be the first car manufacture globally to come up with this technology of a vehicles surpassing 70 miles per gallon and being more efficient then hybrids and potentially having the ability to save money in the long run and not generate a high electricity bill.

Capabilities and Customer value: Having the comfort to only fill up once a month using diesel fuel is unbelievable. Traveling 78.5 miles per gallon on one tank instead of filling up three times a month on the same tank will potentially save you money. Corporate Strategy: Volkswagen is focusing on positioning the Group as a global economic and environmental leader among automobile manufacturers. They have defined their goals and they intend to make Volkswagen the most successful and fascinating automaker in the world by 2018 Objectives:

Volkswagen intends to deploy intelligent innovations and technologies to become a world leader in customer satisfaction and quality. Volkswagen plans on becoming more environmentally friendly and produce safe and wallet friendly vehicles. Save people money and come up with new technology that will potentially save people money and help this gas crisis. Gas is not going to be around for that much longer and new ideas have to be made to save us when it does happen. Gas is so expensive and changes on the market daily, diesel is not cheap either but its more dependable and longer lasting. Innovation and New Product:

This is the first of its kind, no one has ever seen such a vehicle do this. Yes the hybrids average about 55 miles per gallon. But this diesel eco friendly engine averages about 77 miles per gallon by using just diesel fuel and no electricity. It is new on the market and never before seen people never even imaged an engine that can travel such far distances on one tank of gas.

Analysis of Chapter 5 Open-minded: People for some reason were never open minded to the use bio diesel fuels because they thought it was polluting the environment. But people liked the hybrids the use of half gas and half electricity seemed to be efficient for them. But Volkswagen has come up with a way to use bio diesel fuels in a safe environment friendly way and having the comfort of traveling in a luxury vehicle having the ability to travel 77 miles per gallon of gas.

Analyzing competitor’s actions: From news of new Volkswagen Passat, Mercedes Benz is introducing a whole new class of cars called the CLA. Introducing a whole new class of cars only happens every soo often with Mercedes Benz. They are sleek, sexy and affordable and could possibly hurt Volkswagen in the German market. This will be affordable and start costs at $30,000.

Encourage experimentation: let people see that bio diesel is a better fuel source and it has the ability to burn much slower and is now safer for the environment. Investing in start-ups: Bio diesel fuels is not a new technology, it is fairly old. Volkswagen has come up with a way to make it clean and efficient lasting up to 78 miles per gallon. They took the diesel engine and just made it better on gas and for the environment. Defining the Problem:

The problem is gas prices are really high and people visit the gas pumps way to often. People want a car where they fill up once and can go where ever they want and Volkswagen came up with a solution by offering a vehicle that can travel 78.6 miles per gallon.

Having a safe, eco friendly, gas friendly, and wallet friendly is the solution to this problem and Volkswagen did it. Gas sources are running and out and sooner or later all the gas in the World will be used and anew fuel source must be found. Understanding the Limitations: People thought that hybrids were it and no one could surpass an engine that could beat 55 miles per gallon. Volkswagen came up with a way and they say there engine can do up to 78.5 milers per gallon using bio diesel fuel. Costs: Prices for the base model 125TDI start from $54,990, while the V6 starts from $64,990. Analysis of Chapter 2

2013 Volkswagen Passat TDI Clean Diesel Changes in the marketplace: The automotive industry has changes substantially due to the introduction of hybrids and, clean diesel emission vehicles. With high gas prices and a go green movement it has really has changed people’s perspectives on travel.

Thinking outside the box: Volkeswagen took the diesel engine and made it take much better. They made it more eco friendly and can travel long distances with the vehicle. Disruptive Innovation: Hybrid technology in cars can defiantly affect the clean diesel market. Create New Market Space: While this is not a new market, and diesel fuel has been around for hundreds of years.

The introductions of hybrids have created a new market place by using electricity and gas in their vehicles. Matching needs with benefits: There is a need among travelers to get from point A to point B in a clean and affordable way. They would have the ability to fill up one single gas tank and travel 78.5 miles. This is unheard of in vehicles especially in hybrids, which travel on average 55 miles per tank. This would be a way for travelers to spend less money at the pump, less stops to refill your tank. The 2013 Volkswagen Passat TDI is clean and safe for the environment. Defining and Analyzing Product Markets

Buyers: the buyers could be broken into a few categories: (1) Business travelers who travel long distances for work. (2) Travelers that drive for vacation or pleasure. (3) Market Size: Diesel Systems North America, a global multibillion-dollar engineering and electronics automotive leader, predicts there will be 54 diesel vehicles available in the U.S. By 2017 in North America there should be 22 new models in 2013

. According to recent published reports, clean diesel auto sales increased by 24 percent in 2012 over 2011, while the overall U.S. auto market increased by 13.5 percent. Currently, diesel auto and light duty truck sales equal slightly more than three percent of the U.S. vehicle market, but many auto analysts predict that diesel vehicle market share will climb to as much as 10 percent by 2020. Current Competition:

Peugeot 508 GT HDi – 2.2-litre turbo-diesel four-cylinder, $52,990
Sexy French styling, with a cool interior to match. Peugeot’s fuel economy on par with the Volkswagen Passat TDI and the upcoming Mercedes-Benz CLA-Class coming later in 2013. Mercedes Benz only introduces a new line of cars every soo often. They most likely felt pressure from this Volkswagen so they did this. They don’t want to loose there dominance over the German market so that’s why they probably did that. Strategic Benefits:

This new division of clean diesel emission provides a number of strategic benefits including being the first car manufacture to provide and engine that can travel far distances. The use of diesel fuel to travel farter then seventy miles on one tank of gas was unheard of and Volkeswagen found a way to do it. They are the first German car manufacture to come up with this technology. Globally this makes the world a cleaner place. Globally make the world less dependent on gasoline and lets use us are excess amounts of diesel fuel. Analysis of Chapter 3

Identifying Market Segments: Demographics variable launch in California and see how it does. Life style variables you could use the car for work everyday or just want to fill up once a month. Customer Needs: customers need a vehicle where they can travel long distances on one tank of gas.

The Volkswagen has the ability to travel 78.5 miles on one tank of gas. The ability to just fill up once and be able to travel long distance and not have to worry about filling up for another month or so depending on travel. It needs to be safe, they need to be able to trust the car god forbids anything happens to it. It needs to be reliable, diesel engines are strong and powerful. The most important is that it needs to safe the customer money in the long run. Attitudes: people need to start believing in bio diesel and start using it more often.

People think it is not eco friendly but the way Volkswagen does it is. People are sick of waiting at the pump for gas. People are sick of paying high prices for gas. People are sick of going to the gas station 3 times a month. Why can’t they have a vehicle that they only need to refill once a month. People want to travel is a safe, eco friendly and wallet friendly way. Perception: People want a safe eco friendly and wallet friendly vehicle that they only need to fill up once a month and saves them money.

They are brand loyal and they know the quality and benefits of having this vehicle. Value Opportunities and New Market Space: Volkswagen is introducing a new product into the market. No one has ever seen something like this before, yeah sure diesel engines have been out but Volkswagen has come up with a way for it to be eco friendly and travel 78.5 miles per gallon. This has never been done before and the people thought it was impossible for a car that was not a hybrid to travel soo far. It’s a new market place and they are going to be the first ones with this technology.

Market Targeting: Volkswagen is targeting the business travels and people who just use the car a lot and there sick of filling up 3 times a month. People who want a change and are sick of the high gas prices will be very interested in this vehicle. Strategic Positioning: a vehicle like this has never existed, they would be the first of their kind. Out of the four German car manufactures BMW, Mercedes Benz, Audi, and Porsche they are the only vehicle of their kind. Cost Benefits of Segmentation:

If this is going to save them money in the long run then people will do it. If there going to the gas stations less and only going once a month they are saving money. Diesel as of now is the same as regular gasoline or close to it. Stability over time: Volkswagen has been around seventy six years and is a strong German auto maker.