In 2007 the Volkswagen group with its headquarters in Wolfsburg, Germany sold
6,191,618 vehicles worldwide and 329,305 employees generated a sales revenue of
108,897,000€ with an operating profit of 6,151,000€ which in turn resulted in a profit
after tax of 4,122,000€.1 The group is divided into two divisions, namely the automotive
one, accounting for 91% of total revenues plus the financial one, contributing 9% to
the total turnover. Within the automotive sector, the company markets its vehicles
under brands like, VW passenger cars, Audi, Bentley, Bugatti, Lamborghini, Seat and
Skoda.
In 1984, Volkswagen as the first western auto maker, began its operational activity in
China. When it entered the market it had to form a joint venture with a Chinese
company to produce cars. By now the group has thirteen representative companies.
Due to its early engagement in the biggest Asian market, it reached a leading position
which despite some previous challenges lasted until today. For example, the corporation
sold 910,000 vehicles (VW + Audi) in Hong Kong as well as in the mainland of China
which resulted in a market share of 17.8% in 2007.2 Therefore, China is (yet) after
Germany the second most important market for Volkswagen, representing almost 15%
of the company car sales. In the following international marketing plan, the author will
describe how to increase car sales and boost market share up to 20% over the next 2
years with the introduction of a new small light weight hybrid car, the Volkswagen
Cotha.
[...]
Table of Contents
1. Introduction
2. PESTEL Analysis
3. Porter’s Five Forces
4. Three C’s
5. The Five M’s
6. SWOT Analysis
7. International Marketing Strategy
8. International Marketing Mix – 7 P’s
9. Budgeting
10. Controls – Balanced Scorecard
11. Conclusion
Objectives and Topics
This international marketing plan aims to analyze Volkswagen's position in the Chinese market and proposes a strategy to increase market share to 20% within two years through the launch of the new "Cotha" hybrid vehicle.
- Analysis of the external macroeconomic environment using PESTEL and Porter's Five Forces.
- Evaluation of internal marketing capabilities via the Five M's and SWOT analysis.
- Development of a comprehensive international marketing strategy and the 7 P's implementation plan.
- Financial budgeting for the new product launch and performance control via the Balanced Scorecard.
Excerpt from the Book
1. Introduction
In 2007 the Volkswagen group with its headquarters in Wolfsburg, Germany sold 6,191,618 vehicles worldwide and 329,305 employees generated a sales revenue of 108,897,000€ with an operating profit of 6,151,000€ which in turn resulted in a profit after tax of 4,122,000€. The group is divided into two divisions, namely the automotive one, accounting for 91% of total revenues plus the financial one, contributing 9% to the total turnover. Within the automotive sector, the company markets its vehicles under brands like, VW passenger cars, Audi, Bentley, Bugatti, Lamborghini, Seat and Skoda.
In 1984, Volkswagen as the first western auto maker, began its operational activity in China. When it entered the market it had to form a joint venture with a Chinese company to produce cars. By now the group has thirteen representative companies. Due to its early engagement in the biggest Asian market, it reached a leading position which despite some previous challenges lasted until today. For example, the corporation sold 910,000 vehicles (VW + Audi) in Hong Kong as well as in the mainland of China which resulted in a market share of 17.8% in 2007. Therefore, China is (yet) after Germany the second most important market for Volkswagen, representing almost 15% of the company car sales. In the following international marketing plan, the author will describe how to increase car sales and boost market share up to 20% over the next 2 years with the introduction of a new small light weight hybrid car, the Volkswagen Cotha.
Summary of Chapters
1. Introduction: Provides an overview of the Volkswagen group's performance and establishes the goal of increasing Chinese market share to 20% using the new "Cotha" model.
2. PESTEL Analysis: Examines the external macroeconomic environment of China including political, economic, social, technological, environmental, and legal factors.
3. Porter’s Five Forces: Evaluates the attractiveness of the Chinese automotive industry and Volkswagen's competitive standing.
4. Three C’s: Analyzes the strategic triangle of company, customer, and competition to refine Volkswagen’s strategic approach.
5. The Five M’s: Conducts an internal audit of marketing resources including men, money, and materials.
6. SWOT Analysis: Summarizes strengths, weaknesses, opportunities, and threats to inform future strategic planning.
7. International Marketing Strategy: Outlines the goal-setting process using SMART objectives and defines the target market for the Cotha.
8. International Marketing Mix – 7 P’s: Details the implementation of the marketing strategy focusing on product, price, place, and promotion.
9. Budgeting: Estimates the financial allocation required for the product launch across various media channels.
10. Controls – Balanced Scorecard: Describes a performance measurement framework to track progress against strategic objectives.
11. Conclusion: Synthesizes the findings and confirms the strategic direction for securing Volkswagen's future growth in China.
Keywords
Volkswagen, China, International Marketing Plan, Cotha, Hybrid Vehicle, PESTEL, Porter’s Five Forces, SWOT Analysis, Marketing Mix, 7 P’s, Budgeting, Balanced Scorecard, Market Share, Automotive Industry, Strategic Management.
Frequently Asked Questions
What is the primary focus of this document?
The document is an international marketing plan for the Volkswagen Group, specifically detailing strategies to launch a new hybrid vehicle, the "Cotha," in the Chinese market.
What are the main thematic areas covered?
The paper covers macroeconomic analysis (PESTEL), industry competitiveness (Porter's Five Forces), internal marketing audits (Five M's), strategic planning, marketing mix implementation (7 P's), and performance controlling.
What is the central research goal?
The primary goal is to provide a structured marketing plan to help Volkswagen regain market strength and increase its Chinese market share from roughly 17.8% to 20% over a two-year period.
Which scientific methods were employed?
The author uses standard strategic management models including PESTEL, Porter's Five Forces, the Three C's model, SWOT analysis, SMART objectives, Ansoff's Matrix, and the Balanced Scorecard.
What is discussed in the main body of the work?
The main body follows a logical flow from environmental scanning to internal auditing, strategy formulation, tactical implementation of the marketing mix, budget allocation, and the establishment of control systems.
Which keywords define this work?
Key terms include Volkswagen, China, Marketing Plan, Cotha, Hybrid Technology, Market Segmentation, and Strategic Marketing.
What role does the "Cotha" play in the proposed strategy?
The Cotha is positioned as a small, lightweight, environmentally friendly hybrid car designed to appeal to modern Chinese urban trendsetters, thereby helping Volkswagen capitalize on the growing demand for "green" vehicles.
How does the author address the lack of precise financial data?
The author acknowledges the lack of internal data and relies on estimates based on broader regional Asian/Pacific figures to calculate an approximate budget allocation for the project.
- Quote paper
- Christian Baumann (Author), 2009, International Marketing plan for Volkswagen, Munich, GRIN Verlag, https://www.grin.com/document/134003
