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Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
Melinda (Cormier) Harnden Golf TDI Launch Report
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Melinda (Cormier) Harnden Golf TDI Launch Report

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This is the hardcopy report for the VW Golf TDI product launch created for my integrated marketing communications class.

This is the hardcopy report for the VW Golf TDI product launch created for my integrated marketing communications class.

Published in: Automotive, Sports, Technology
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  • 1. Golf TDI Launch2010Melinda CormierJoe D’IsidoroAdam McCarthy
    Table of Contents TOC o " 1-3" h z u Target Market PAGEREF _Toc243736379 h 2Demographics PAGEREF _Toc243736380 h 2Geographic PAGEREF _Toc243736381 h 2Socioeconomic PAGEREF _Toc243736382 h 2Psychographics PAGEREF _Toc243736383 h 2Marketing Objectives PAGEREF _Toc243736384 h 2Communication Objectives PAGEREF _Toc243736385 h 3Campaign Theme PAGEREF _Toc243736386 h 3Competition PAGEREF _Toc243736387 h 3Toyota Prius: PAGEREF _Toc243736388 h 3Honda Civic Hybrid: PAGEREF _Toc243736389 h 4Nissan Altima Hybrid: PAGEREF _Toc243736390 h 4Golf TDI Advantages: PAGEREF _Toc243736391 h 4Media Sources PAGEREF _Toc243736392 h 5TV PAGEREF _Toc243736393 h 5Print Ads PAGEREF _Toc243736394 h 5Internet PAGEREF _Toc243736395 h 5Dealerships PAGEREF _Toc243736396 h 6Support Media PAGEREF _Toc243736397 h 7Outdoor Advertising PAGEREF _Toc243736398 h 7Transit Advertising PAGEREF _Toc243736399 h 7Promotional Products PAGEREF _Toc243736400 h 7Direct Mail PAGEREF _Toc243736401 h 7Budget Allocation PAGEREF _Toc243736402 h 8Television PAGEREF _Toc243736403 h 8Print Ads PAGEREF _Toc243736404 h 8Internet PAGEREF _Toc243736405 h 8Dealerships PAGEREF _Toc243736406 h 9Support Media PAGEREF _Toc243736407 h 9Direct Mail PAGEREF _Toc243736408 h 9International PAGEREF _Toc243736409 h 10United Kingdom PAGEREF _Toc243736410 h 10Canada PAGEREF _Toc243736411 h 10International Marketing Strategy PAGEREF _Toc243736412 h 10
    Target Market
    Demographics
    Gender: Male & femaleAge: Mid 20's to mid 40'sMarital Status: Single, married, divorced – No children
    Residence tenure: Own & rent
    Ethnicity: White, Black, Asian, Hispanic, mix
    This car will not be marketed towards those with a family, as the Jetta TDI and Jetta Sportwagen TDI would be targeted more towards those with children.
    Geographic
    Region: National
    Density: Urban, suburban, small town
    SocioeconomicEducation: Post high school, graduateOccupation: Working professionals, Managers, Service
    Income: $40k - $80k per year
    Psychographics
    Lifestyle traits:
    Our target market shops at retail stores like Banana Republic and Pier One Imports. They are active internet users, especially for downloading music and streaming videos. They are also physically active and enjoy sports such as snowboarding, skiing and kayaking. Traveling is often considered an adventure; road trips and long distance drives are common and actively enjoyed. They also enjoy watching independent films, comedies, and a variety of movie genres which require careful thought consideration.
    These individuals are also typically early adopters of new products, especially high-tech devices such as iPods and computer related items.
    Our audience would also be environmentally conscious, concerned with gas mileage, reliability and performance.
    Marketing Objectives
    Sales to exceed 15,000 Golf TDI's sold in the US in 2010
    Sales revenue to exceed $300 million in 2010
    Increase consumer awareness of the VW brand as a leader in clean diesel by 20%
    Increase market share by 8% in 2010
    Communication Objectives
    • Decrease consumer's negative perception of diesels by 15% in 2010
    • 2. Increase awareness of clean diesel & economical benefits by 20% in 2010
    • 3. Increase visitors to the TDI website by 50 unique visitors per week
    • 4. Keep visitors on the website an average of 2 pages more per visit
    • 5. Increase the number of TDI test drives by 15%
    Campaign Theme
    We will be continuing with the " Meet the Volkswagens" campaign which features the classic black Beetle named Max. Max will be the spokesperson for the Golf TDI, as he has been in previous campaigns. The “Meet the Volkswagens” campaign is under the “Das Auto” marketing plan.
    The emphasis will be on the performance, fuel efficiency and affordability of the Golf TDI in comparison to other car models. Direct comparative advertising will focus on the advantages of the clean diesel over other engine types including gas and hybrid.
    Competition
    Our three largest competitors are the Toyota Prius, Honda Civic Hybrid, and the Nissan Altima Hybrid.
    Toyota Prius:
    The Toyota Prius will be the Golf TDI’s largest competitor in the 2010 sales year. The Prius will continue to dominate the hybrid market, considering that the estimated number of vehicles sold in 2009 will be approximately 120,000. Its fuel economy is higher than that of the Golf TDI at 51 MPG-city and 48 MPG- highway, however performance, and styling are what makes the Golf TDI different and more appealing to our target market. The Prius’s net hybrid system puts out 134 horsepower and weighs 3,042 pounds. The Golf TDI however has better suspension that provides enhanced performance and more aggressive handling. The overall cost of owning the Prius will be more expensive than the Golf TDI. On average, the Battery life of the Toyota Prius is about 8-10 years. The cost for a replacement battery is about $5,000. The basic warranty for the Prius is 5 years or 50,000 miles.
    Honda Civic Hybrid:
    The Honda Civic Hybrid is the second largest competitor of the Golf TDI. 2008 showed that the Honda Civic Hybrid sold 27,597 units with 2009 selling less than 2008, with an estimated 22,000 units sold. The Civic does have higher fuel economy with 40MPG-city and 45MPG- highway. However, like the Prius, the Golf TDI has higher performance standards. The Honda Civic Hybrid carries 110 horsepower, which is a 30 HP difference in the Golf’s favor. The suggested retail price of the Honda Civic Hybrid is $23,800. Again, this is another area where the Golf TDI wins by $1,800. The battery lasts about 8-10 years, and replacement costs are about $3,500. The warranty information is as follows:
    • Bumper to bumper: 3 years/36,000 miles
    • 6. Power train: 5 years-/60,000 miles
    • 7. Corrosion: 5 years/unlimited miles
    • 8. Accessories: 3 years/36,000 miles (Honda parts purchased at time of vehicle purchase, installed by a Honda dealership.)
    • 9. Battery: 8 years/100,000 miles
    • 10. Replacement Parts: 1 year/12,000 miles (Parts purchased from Honda during the duration of the cars life that are installed by a Honda dealership)
    Nissan Altima Hybrid:
    The third largest competitor is the Nissan Altima Hybrid. The Nissan Altima Hybrid is estimated to sell approximately 10,000 units in the 2009 year, which is 5,000 less than estimated for the Gold TDI. The Altima boasts a fuel consumption of 35 MPG-city and 33 MPG- highway. The Golf TDI has the advantage in fuel consumption. The overall net power of the Altima’s hybrid system is 198 horsepower. This is a fairly large discrepancy from the Golf TDI’s 140 HP. However, a large difference between the two is the weight of the car. The Altima hybrid weighs 3,470 pounds, whereas the Golf TDI weighs 2,978 pounds, which is a 483 pound difference. Another difference between the two cars is estimated retail price. The Altima hybrid is $26,780, making the Altima $4,280 more expensive than the Golf TDI.
    The Nissan Altima has a 36 month/36,000 mile warranty on the vehicle. The power train has a 5 year/60,000 mile warranty and the battery life of the Nissan Altima is estimated at 5 years/100,000 miles. The replacement cost is about $5,000.
    Golf TDI Advantages:
    Performance standards far surpass any competition, power to weight ratios favor the Golf platform, and the TDI does not require a Hybrid battery, which reduces total cost of ownership. Disposal of old toxic batteries will not be a determining factor in the success of the Golf TDI, as the clean diesel engine has a longer life expectancy than any Hybrid battery and maintains above average fuel economy for any compact vehicle.
    Media Sources
    • TV
    We will air three different Golf TDI commercials, highlighting the Golf TDI’s performance features, fuel economy, Carefree Maintenance program, and affordability.
    Commercials will air on the following networks and programming:
    • CBS (primetime) – Football, NCIS, and CSI
    • 11. NBC (primetime) – Heroes and The Jay Leno Show
    • 12. News & Sports Networks – CNN, MSNBC, NESN
    • 13. Syndicated Programs
    • 14. TBS – The Office and Family Guy
    • 15. TNT – CSI NY, Law & Order, and ER
    • 16. USA – Law & Order: CI and House
    • 17. Print Ads
    Corporate print ads will be published in magazines only. They will be full page, 4-color process ads. Two different print ads will be published within the first six months of the Golf TDI release, each with a different target segment and overall message. Ads will be published in a number of issues in each magazine.
    Print ads will be featured in the following magazines:
    We will be using the Internet for a variety of promotions and online exclusive offerings such as a facebook fan page, specific to the Golf TDI. There will be an additional 18 pages added to vw.com which will feature all the information relating to the Golf TDI, including a “build your own” section where consumers can customize their own Golf TDI and contact their local dealership for availability and further information.
    Sponsored banner ads will be placed on:
    We expect to see approximately 2 million impressions from these banner ads, as typical traffic is 1 million visitors per day to the Vehix, Autotrader, and Edmunds websites.
    We will also be using Google AdWords and search engine optimization tools for more effective search results.
    AdWords to be used are:
    These AdWords are on cost-per-click basis, with the number of expected clicks to exceed 365,000 by the end of 2010. Search engine optimization will be implemented on each page of vw.com. Meta tags and html descriptions will be strategically written for faster and more accurate search results which lead consumers directly to our sites. We will also be implementing user tracking information and metrics to determine who is viewing our sites, so we can further determine benchmarks for consumer perception, awareness and demographic information.
    • Dealerships
    Dealerships would have customized radio and local TV ads which would promote test drives and visitation to the dealership, but it would also send listeners to the website for more information or to find a dealer near them. Special dealer promotions would be used to promote visits and test drives. These ads would be customized by each dealership, while still containing certain promotional criteria across all ads.Dayparts to be used:6:00am - 10:00am – This allows for ad retention during the morning commute and further research by the consumer at work or during lunch break, where they can use the website mentioned in the ad to learn more about the Golf TDI.
    3:00pm - 7:00pm – These ads air during the commute home which can facilitate more immediate action if a dealership is on their way home.
    Point of purchase displays would be provided to dealerships to enhance awareness and increase exposure to the Golf TDI.
    Support Media
    Outdoor Advertising
    Outdoor advertising will be featured in many of the large cities in or near dealerships. These will be similar in layout to the print ads with energetic images, quirky taglines and immediate action information such as the local dealership location and phone number.
    Media type to be used:
    • Billboards – To be placed in and around Chicago, Los Angeles and Houston, where population and income are in line with our target market along with the number of viewers these locations receive.
    Transit Advertising
    Transit advertising will only be used in large cities across the US which have an active public transportation system. These will ads be similar to billboards in their content, layout and contact information.
    Media types to be used:
    • Taxis, Subways, Planes, Buses
    Promotional Products
    Promotional products will be distributed at special events, dealerships, sale closings and launch parties. These products may display logos, model information and contact information, depending on the type of merchandise used.
    Media types to be used:
    • Wearables – T-shirts, scarves, hats
    • 35. Bags, drinkware, stickers, office/desk accessories
    Direct Mail
    A catalog featuring the 2010 Golf TDI will be mailed to previous and potential consumers. This mailing list will be based on a database of 500,000 consumers. The database mailing list will be compiled using information from the Department of Motor Vehicles and from dealership information.
    Media type to be used:
    • Catalog
    Budget Allocation
    Television     NetworkProgramAd lengthNo. AdsAd rateTotal CostNBS (primetime)Heroes30 sec5$230,000.00$1,150,000.00NBS (primetime)The Jay Leno Show30 sec5$230,000.00$1,150,000.00CBS (primetime)Football30 sec3$265,000.00$795,000.00CBS (primetime)NCIS30 sec3$265,000.00$795,000.00CBS (primetime)CSI30 sec4$265,000.00$1,060,000.00CNN/MSNBC/NESNNews & Sports30 sec55$70,000.00$3,850,000.00SyndicatedTBSThe Office30 sec8$50,000.00$400,000.00TBSFamily Guy30 sec8$50,000.00$400,000.00TNTCSI NY30 sec8$50,000.00$400,000.00TNTLaw & Order30 sec8$50,000.00$400,000.00TNTER30 sec7$50,000.00$350,000.00USALaw & Order: CI30 sec8$50,000.00$400,000.00USAHouse30 sec8$50,000.00$400,000.00Production of commercial3$200,000.00$600,000.00Post production/editing$300,000.00Director$400,000.00$12,850,000.00Print Ads     MagazinesNo. PublicationsAd sizeNo. InsertsAd RateTotal CostCar & Driver2Full page1$181,815.00$363,630.00Automobile3Full page1$110,000.00$330,000.00Time2Full page1$273,750.00$547,500.00Newsweek3Full page1$145,745.00$437,235.00Print Ad creationNo. Created3$25,000.00$1,703,365.00InternetNumber CostTotal CostWebsiteNo. Pages18$500.00$9,000.00Banner AdsNo. Pages2$1,500.00$3,000.00ImpressionsMeasured in 10k200$1,000.00$200,000.00Google AdWordsCPC365per day$1,800.00$657,000.00$869,000.00Dealerships     RadioDaypartAd Length6:00am - 10:00 am30 sec3:00apm - 7:00pm30 secRadio production/mix/editingLocal TV adsDealership PromotionsTest drive eventsDealer incentivesPOP displays $ 1,000,000.00 Support MediaLocationNumberDuration (months)CostTotal CostBillboardsHouston area11 $96,715.00 $96,715.00 Chicago area11$162,750.00 $162,750.00 Los Angeles area11$170,925.00 $170,925.00 Branded Merchandise $182,110.00 Transit & misc.Major CitiesVary3$432,110.00 $1,044,610.00Direct Mail     Database500,000 customers $50,000.00 Catalog construction $25,000.00 Printing $175,000.00 $250,000.00 Total Budget:$17,716,975.00
    International
    United Kingdom
    The Volkswagen Golf has traditionally been a high-volume selling car in Europe. As of 2009, The Volkswagen Golf is Europe’s top-selling car. Through August 2009, 376,013 units have been sold. This is a great platform to release the Golf TDI into.
    The United Kingdom should be one of the countries we launch the Golf TDI in. UK is already familiar with Volkswagen; therefore releasing a new model will be easier as consumers have a fondness for and high awareness of the VW brand. The UK is also interested in fuel efficiency, as they are the number three country using hybrid vehicles, with the US and Canada in the lead. The UK has had cars running on diesel fuel for many years, so there will not be an issue with infrastructure supporting the vehicle.
    The estimated number of units sold for the 2010 Golf TDI is 10,000 units in the UK. Of the top ten countries using fuel-efficient vehicles, Great Britain is ranked number three. The Volkswagen Golf was the fifth most driven car in the UK. This means the Golf TDI, combining performance and fuel efficiency, should do very well in a British market.
    In the UK, Volkswagen Golf does not have the same competitors as in the US. Therefore the Honda Civic Hybrid, Toyota Prius, and Nissan Altima will not outsell the Golf. Since the Golf is a popular model, competitors will be trying to keep up with Volkswagen.
    Canada
    The second location we will launch the Golf TDI will be Canada. Canada is very interested in fuel-efficient cars, ranking number two in top consumers of hybrid vehicles. Also, Canada is familiar with the Volkswagen Golf, as it has been sold in there since 1974, and is a perennial favorite. Canada has the infrastructure to handle the diesel needs of the Golf TDI; therefore diesel availability at the pumps will not be an issue.
    In 2008 Canada sold 11,823 Volkswagen Golf’s. Applying the desire that Canada boasts for fuel-efficient vehicles, and the familiarity Canada has with the Volkswagen Golf, the estimated number of units sold for the 2010 Volkswagen Golf TDI is 4,000 units. In Canada, the Honda Civic is the bestselling car. Therefore, the main competition for our Golf TDI will be the Honda Civic Hybrid. However, the originality of the Golf TDI will pull consumers to Volkswagen.
    International Marketing Strategy
    The Golf TDI will be marketed to both countries in a similar fashion to the US market. Target market statistics will be very similar for all countries, so the campaign theme will translate well to Great Britain and Canada, as there isn’t a large language or cultural barrier. The only differences will be in measurement statistics which will be converted to metric and the actors used in the TV commercials. The whistle tune associated with the “Meet the Volkswagens” campaign will not change, along with Max the Beetle’s voice and accent. Canadian commercials will feature both English and French actors, depending on where in the country the commercials will air. The print ads and TV commercial layouts are generic enough that scenery changes and excessive editing is not needed to create a localized feel for each country.
    The budget for the UK will be slightly smaller than the US budget due to the number of expected vehicle sold in 2010. Canada’s budget will be significantly smaller than both countries, but this shouldn’t be a problem due to the ease of translation from US to Canadian media.
    Media sources will vary depending on availability, demographics for each type and overall costs, but similar budget allocation will be present in each country. Canada’s billboard budget will have a larger share of the overall budget than the other two countries due to billboard popularity.
    Canadian advertising rules are regulated by the Canadian Radio-television and Telecommunications Commission which have similar standards to the FTC, so there shouldn’t be any issues airing and publishing any of the preexisting advertisements created in the US. Canada’s Radio Marketing Bureau will be of assistance to local dealerships in their creation of customized radio ads, to ensure radio regulations are followed correctly.
    The UK’s Advertising Standards Authority will be the regulating body for advertising, which also has similar standards to the US’s FTC, so translation of US advertising will not be an issue for the launch.
    Support media, direct mail and Internet usage will all be similar to the US plan, but customized for each country.

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