Strategic Global Marketing Volkswagen Case Study

MKT 302

Volkswagen: The Assignment

Summary of the case

Volkswagen executives acknowledge that if they make cars that appeal to American drivers, the number of vehicles sold in United States will increase. Volkswagen vehicles comprises of a few advantages especially its core competence in the design and manufacture of small, fuel-efficient gasoline engines. Its diesel engines also offer money-saving performance which is a main attraction that drivers seek for when gasoline price increases. However, Volkswagen currently only rank third among global automakers, it had only captured 3% of United States car market. Therefore, Volkswagen needs the right products and local production which is what it lacks of in the past, either it had the right product but not the right price or the right price but not the right product.

Volkswagen experienced and conquered key emerging markets by using Japanese-style “lean production” system that emphasizes just-in-time delivery from nearby suppliers. In order to increase United States business, the executives comes up with different product strategy for different cars they produced. The first example of their effort to Americanize Volkswagen’s cars is the 2011 Jetta, backed by advertising campaign that emphasize the sticker price, the advertising tagline was “Great for the price of good”. Next is the product strategy for Beetle. The Beetle was very popular in both Europe and United States, where they launch the Creative Revolution by “telling the truth” about cars and encourage buyers to “think small”. Volkswagen launch the New Beetle targeting United States as primary market, retaining its distinctive, iconic profile of the original which is instantly recognizable, featured whimsical touches such as flower vase on the dashboard, however the advertising campaign promised “less flower more power”. The new car has a bigger engine and more sporty appearance, hoping to attract more male buyers while still appealing to women. Furthermore,...