The automobile industry is a very dynamic and exciting example of the development of new products. Against the background of the legendary Beetle, who sold over 21.6 million times, Volkswagen decided to build a new, modern version of the car. The target market for the New Beetle was defined as the Baby Boomers and the Young Generation which declares a main difference between the two cars. As the old one was a car for the people, the new one was for the chosen people who earn enough money. With total costs of $ 590 million the product development process ended in 1998 when the car was launched to the American market first. It met with success there but costumers in Europe reacted differently when it was introduced a few months later. The unique design of a fun car was not the main attraction for Europeans to buy the car and the price was not accepted over here as in America. But accompanied by a huge marketing strategy, with the main goal of arousing emotions, Volkswagen achieved their objectives altogether. Volkswagen sold over 600,000 New Beetles from 1998 to 2003 and raised the brand awareness at the same time. Due to the crisis on the automotive market at the moment and the market caution I would recommend Volkswagen reconsider the price level of the car and they may be able to achieve higher sales outside America.
Table of Contents
1.0 Introduction
1.1 Company profile
1.2 Identification of competing products
2.0 Marketing Strategy
2.1 Description of the strategy
2.2 Target market
2.3 Marketing Mix
3.0 Product Development Process
4.0 Assessment of Performance
5.0 Conclusion
Research Objectives and Themes
This coursework investigates the development process of the Volkswagen New Beetle, analyzing its marketing strategy, the product development stages, and its overall performance in the automotive market to determine the factors contributing to its success or failure.
- Analysis of the Volkswagen company profile and market positioning.
- Evaluation of the marketing strategy, including target demographics and the marketing mix.
- Detailed breakdown of the product development lifecycle from concept to commercialization.
- Assessment of market performance and sales results in North America and Europe.
Excerpt from the Book
3.0 Product Development Process
The automobile industry is a very dynamic and exciting example of the development of new products. No other market develops products in an atmosphere where competition is as fierce, the product is as complex, and the challenge of constant refinement and innovation is as great (Cagan 2002).
The Product Development Process did not follow the general scheme of developing a car first and then presenting it to a customer audience. It was the other way around: The design study was presented to the public, and the technical development was specified afterwards. The centre of the development was the design of a car and not the engineering. The process can be described as a circular and parallel process of concept creation, market presentation and product planning and it did not follow the exact order of the process.
Summary of Chapters
1.0 Introduction: Provides an overview of the importance of new product development and outlines the scope of the study regarding the Volkswagen New Beetle.
1.1 Company profile: Details Volkswagen's status as a major global car manufacturer, including employee figures and financial performance.
1.2 Identification of competing products: Discusses the unique market positioning of the New Beetle and identifies comparable vehicles within its price range.
2.0 Marketing Strategy: Examines the core philosophy behind the New Beetle launch, focusing on emotional branding rather than rational product benefits.
2.1 Description of the strategy: Explains how the marketing strategy leveraged the legacy of the original Beetle to appeal to consumers.
2.2 Target market: Defines the core consumer profiles, specifically the "Baby Boomers" and the "younger generation."
2.3 Marketing Mix: Outlines the application of the four marketing tools—product, price, promotion, and place—in the context of the New Beetle.
3.0 Product Development Process: Describes the non-linear, design-led development cycle of the New Beetle, starting from concept studies in the USA.
4.0 Assessment of Performance: Evaluates the commercial success of the New Beetle through sales figures and marketing objective fulfillment.
5.0 Conclusion: Summarizes the overall findings, noting the success in the American market and the challenges faced in Europe.
Keywords
Volkswagen, New Beetle, Product Development, Marketing Strategy, Automotive Industry, Target Market, Marketing Mix, Brand Awareness, Innovation, Concept Study, Consumer Behavior, Commercialization, Market Performance, Drivers Wanted, Baby Boomers.
Frequently Asked Questions
What is the primary focus of this document?
The document focuses on the development, marketing, and market performance of the Volkswagen New Beetle, analyzing how the company successfully transitioned a nostalgic concept into a modern product.
What are the central themes explored?
The central themes include corporate innovation, the strategic use of emotional marketing, the complexities of international product launches, and the evaluation of product life cycles.
What was the main research objective?
The primary goal was to evaluate the New Beetle's development process and its subsequent success or failure in the international automotive market.
Which scientific methodology was used?
The study utilizes a descriptive case study approach, incorporating secondary data analysis from industry reports, marketing performance metrics, and product development models.
What topics are covered in the main section?
The main sections cover the company background, the creation of a specific marketing strategy, the step-by-step product development process, and a performance assessment following the launch.
Which keywords best describe the work?
Key terms include Volkswagen, New Beetle, marketing strategy, product development, innovation, and brand awareness.
Why did Volkswagen prioritize a design-led development process?
The process prioritized design because the primary goal was to evoke emotion and nostalgia, distinguishing the New Beetle as an "emotional" car rather than a purely rational choice.
What conclusion does the author reach regarding the car's price?
The author concludes that while the marketing campaign was highly successful, the New Beetle was potentially overpriced for its utility, lacking the comfort and space expected in that price segment.
- Quote paper
- Anonym (Author), 2005, Marketing Strategy of New Beetle, Munich, GRIN Verlag, https://www.grin.com/document/38937
