2. I. Introduction
Past VW Sales Record
Decreasing M/S Total VW
600000
Introduce New Line-up 500000
400000
We are hear !
Develop : New Beetle
300000 Decrease
Success
Challenge 200000
Fail
100000
Strong Competitor(Japan) New line-up
0
Year
1951
1954
1957
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
Goal
Sell 55,000 in US(„98)
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3. II. SWOT Analysis
Strengths Weaknesses
 German reliable technology  High price
 Nostalgia to old Beetle  Toy-like design
 Design and a variety of color  Limited marketing budget
Opportunity Threats
 Expansion of US car market  Small car competitors
 Successful “Drivers Wanted”  Preference of big or SUV car
 Broad market segment  Weak dealers’ relationship
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4. III. STP
Younger Gen. (18~34) Positioning
 Enjoy life and driving
For Younger generation
 Express themselves
 Consistent고객 Drivers Wanted
1.잠재 with and Baby boomers,
 Less income and asset New Beetle is a premium
Middle-aged Gen. (35~53) small cars providing
 High salary and position neo-classic design, high
 Enjoy leisure with family
technique and love
 Prefer big, safe and comfort. car
 Consider reputation from others
unlike Japanese small
Baby Boomers (54~) cars providing only a
 Nostalgia of past cheap price and
 Higher price point possible technique.
 Change preference: big, SUVs,
 Inconsistency: VW brand strategy
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5. IV. 4Ps - Product
Design
▪ Round shape
▪ Various color
▪ Refined & charming
Technique Facility
▪ Power window &
▪ German engineering
sun-roof
▪ Electronic Stability Program
▪ Gamma audio
▪ Dual air-bag
▪ Curved mirrors
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6. V. 4Ps - Price
Chevrolet Ford
$12,110 ~ 19,910 $11,745 ~ 12,995
New Beetle
Saturn $17,000 ~ 18,000 Toyota
$13,035 ~ 14,695 $12,328 ~ 15,218
□ Premium-price strategy
pr
☞ match trade up limit price → secure margin
☞ attractive enough to dealers → increase profitabilty
□ Discount-price strategy
☞ volume discount(10-10) : provide to dealers
☞ vacation discount(1-5) : provide to students
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7. VI. 4Ps - Promotion (1)
Targeting: Baby boomer, Young Generation
Positioning: Premium model in small-car segment
Low budget: $25M
Classic &
Nostalgia
Driver New
New Stealth
Wanted Design Campaign Marketing
Campaign
Traditiona
New
l
Media
Media
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8. VI. 4Ps - Promotion (2)
* Tagline: Once loved, love forever
TV
* Budget (Million Dollars) Internet
2 1
2 10
TV show : Short Movie&Dram
2
Internet : 30% popularity a
3 Magazine
Yahoo, MSN, Online Video 5 100-in-20
Magazine:
Album
Vogue, Entertainment Weekly, Architectural Digest
Others
Movie & Drama:
Titanic, Romantic Love Story
100-in-20 Project:
100 our New Beetles are moving around 20 biggest cities and universities.
Gold-Marriage Album:
Buyers will receive an album service in their important marriage celebration.
Others
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9. VII. 4Ps - Place
Dealer Rental Car
Long AS for rental car Rental car
Regular plant visi Normal Deale
t r
Volkswagen Supply priority fo
r exclusive dealer
Exclusive
Dealer
Discount for earl
y buyers: Extra margin for dealer
15% 100
5%
10% 1000
5% Sales
10000
0% 100
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10. VIII. Conclusion
4P
Product : Extract of German Eng. “New Beetle”
Price : Premium level & Optional
Promotion : Focus on special media and groups
Place : Secure Dealers with suitable margin
Vision
1998 M/S No.1 in compact-sized car in US
2008 Will sell 600,000 cars in US (Top 3 maker)
Promise
“ We make it possible : Nothing is impossible ”
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