The New Beetle
...Position: marketing director, director of product development, director of public relations
Key Issues/Problems:
(1) Manufacturing: supply problems need to be minimized
(Problem Urgency = II)
(2) Competition has low prices, reliability and established brands
(Problem Urgency = II)
(3) Pricing high for small car segment and younger market
(Problem Urgency = IV)
(4) Target market: do not want to alienate younger or older segment
(Problem Urgency = IV)
What is the #1 most important issue/problem, and WHY?
Target Market positioning the new beetle correctly will effect pricing, the allocation of the advertising budget and use of advertising mediums (i.e. is there enough money to reach a broad market effectively), the dealers' efforts to sell/promote the car, of course product placement/promotion decisions, and finally it will effect the perception of the entire VW organization
Current Marketing Situation: Key Points Implications for #1 Issue
(1) Industry, Market, Environment
VW image and sales rebound from 1993 to 1998 image still strong from new passat, drivers wanted campaign and North American International Auto Show
Small car segment second largest market, high competition
Consumers are highly anticipating the new beetle however, this is a different vehicle than its predecessor with a new group of potential buyers
(2) Company
Dealers while only 10% exclusive, recent success (i.e. drivers wanted, passat) has given the dealers a new incentive to sell, and the recent dealers conference at VW headquarters has tried to instill franchise loyalty and a total brand experience
Good manufacturing positioned well to distribute and produce in North America, however competition may also have the same capabilities (missing information)
Supply Problems Sales remained strong, however issue must...
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