Volkswagen Marketing Strategy

“The Volkswagen Group’s unique portfolio is made up of nine successful brands that excite millions of customers around the globe”(Company Website). Volkswagen, Audi, Seat, Skoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Skania are the unique brands that make up Volkswagen AG. Volkswagen AG slogan, “Volkswagen – Das Auto” is the basis on which all the marketing of their products is formed on.

“Das – Auto” and the combination of these three core messages (Innovative, providing enduring value and responsible) attract customers all over the world who are interested in the brands’ promise for quality, reliability and German engineering. Another one of Volkswagen AG’s main focusses of marketing strategy is being the leader in ecologically sustainability and low-cost mobility in growth markets (Company website). Volkswagen AG is a “customer first” company, responding to the needs and wants of millions of people worldwide.

Using regular customer surveys and customization options as well as using research and development groups, Volkswagen AG matches its product with customer needs. Volkswagen AG is enhancing its regional presence and geographical spread with popular promotions in Brazil, China and now India, but the emphasis is still on the European market (Marketing Strategy recommendation ppt, Dr.J.Coleman 2006).

Pricing of their product is dependent on the market price, the economy of the region the product is sold in, and the price of the competitors. An exception is in India where the Volkswagen Toureg is priced higher than the competition except with a lower interest rate, 4.5% instead of the competitors 8%.(International Business management:Volkswagen,ppt by Anil Lalvani). List of Products

All of the products at Volkswagen AG are based on quality, reliability and ecological sustainability. Volkswagen AG consists of 9 brands of vehicles including Volkswagen, Audi, Seat, Skoda, Volkswagen Commercial Vehicles, Bently Bugatti, Lamborghini, and Skania. Uniting a wide variety of brands and companies with all their individual characteristics and focuses under one umbrella is a great challenge, especially as the Volkswagen Group is committed to maintaining their individual identities. But this is the only way all the brands and companies can make their own contributions to the common value stream and form cornerstones of the Group.(Company Website) seeappendix for complete list of products.

VolkswagenVolkswagen Commercial VehiclesLamborghini Target MarketThe Volkswagen brand was initiated for the target market of Males and Females between 18 and 39 who recognize the need for quality German engineering.Volkswagen Commercial Vehicles were introduced into and target the market of males between 25 and 55 with need for industrial transport vehicles, cabs.The Lamborghini was designed to target middle aged men who desire a sleek, expensive model with refinement, power, comfort and luxury. Value PackageFeatures: The Volkswagen brand offers quality German engineering, affordable innovation, class leading fuel mileage and reliability in all their vehicles.

Benefits: The benefits attributed to the Volkswagen brand include wonderful financing, including low interest rates, customer trust and great customer service.Features: The Volkswagen Commercial Vehicle brand offers quality multi-purpose vehicles. Class leading fuel efficiency and a sleek, well manufactured design are also some features.

Benefits: The benefits of Volkswagen Commercial Vehicles, which can be used as motor-homes include great financing options, great customer service and added value of family memories.Features: The Lamborghini brand features vehicles with upwards of 570 horsepower, combined with the elegant, sleek design and comfortable driving are what separates this brand from all the others.

Benefits: The Lamborghini brand satisfies the ideal of exclusivity and luxury power during the mid-life-crisis of a wealthy male. Promotional MixAdvertising: TV commercials, radio magazines and online advertisements are being used to promote the product and increase global awareness. -Youtube videos showing the TV commercial adds, Facebook pages and advertising, and sponsorships of events such as The Blues promoted awareness in a huge way.

Promotions: Some examples of previous promotions.-Anyone who purchases or leases a 2007 Volkswagen model will get a custom electric guitar. -Anybody who purchases a 2003 Beetle can get a complimentary iPod. -Offer financing deals.

Podcasting: Volkswagen has developed and published four different podcast series as a means of media marketing.

Public Relations: The PR committee at Volkswagen offers great customer service, environmental awareness and responsibility and social responsibility.Advertising: TV commercials, radio magazines and online advertisements are being used to promote the product and increase global awareness. -Youtube videos showing the new Volkswagen Commercial Vehicles are becoming more and more popular in Asia and North and South America.

Promotions: Some examples of previous promotions.-Anyone who purchases or leases a 2007 Volkswagen model will get a custom electric guitar.

Podcasting: Volkswagen Commercial Vehicles has published four different podcast series as a means of media marketing. Public Relations: The PR committee at Volkswagen Commercial Vehicles offers great customer service, social responsibility and environmental awareness and responsibility, stressing how VCV offers industrial alternatives that reduce harm against the environment.Advertising:

TV commercials, magazines and online advertisements use emotional advertising, focussing on the status of having a Lamborghini. -Youtube videos go in more depth of the sleek design and engine power as well as the status symbol of the Lamborghini and replay the TV commercials.

Personal selling: A lot of the selling of the Lamborghini is done by personal selling, in the outlets, or at car shows.

Public Relations: The PR Committee at Lamborghini offers wonderful customer service, social responsibility and environmental responsibility and sustainability. Pricing Objectives-High quality product priced at or around the market price, depending on the Geographic’s and customer price. -Psychological pricing such as odd/even pricing used in leasing and other financing.

-“Cash Back” is also becoming popular in the auto sector. -Value Added Benefits such as the new three year scheduled maintenance program.-High quality product that boast fuel efficiency able to be priced slightly above competitors. -Value Added Benefit plans also available.-Prices set high based on consumer expectations, quality product, supply and demand and status.

-Maximum profit gains and customer satisfaction taken into consideration. Distribution-Intensive distribution. In some Geographical areas,Volkswagen is in a major competition for economy class automobiles, thus brand awareness and availability needs to be widespread. In other areas where consumer preference is already established, Selective Distribution is used.-Selective distribution.

Volkswagen Commercial Vehicles are unique in this new market and a limited number of outlets in a given area are used.-Selective distribution/exclusive distribution. Again, not a whole lot of competition in this market. Consumers know what they want, and are willing to visit outlets from other brands as well as they shop around, thus scarce, high performing outlets are the answer. PositioningVolkswagon positions their product in terms such as “reliability, quality German engineering, and ecological sustainability.

They boast best in class fuel efficiency as well.The Volkswagon Commercial Vehicle brand also positions it’s product boasting industry leading fuel economy, reliability, uniqueness, and ecological sustainability.Lamborghini positions it’s product boasting sleek design, popularity, quality, power, luxury and ecological sustainability. Jetta’s New Price Strategy Working, by Huw Evans. AutoGuide.com 2011, Annil Lavani powerpoint, see above.

Volkswagen Company SiteLamborghini Company Site