Canada's Next Top Ad Exec - Pitch for VW Routan

Living the Volkswagen Life Canada’s Next Top Ad Exec March 31 st , 2009 Le Méridien King Edward

Who Are We?
Simon Wong
3 rd year student at the Schulich School of Business, York University
A marketer at heart!
Always By Your Side (Fido)
Jerome Skeene
4 th year student in Management at the University of Toronto
Aspiring entrepreneur
iPod Commercial (Apple)
Living the Volkswagen Life

Business Objectives
In a statement by Volkswagen of America
President and CEO Stefan Jacoby:
“ The minivan market still is approaching one million vehicles a year, and Volkswagen would like to capture 3 to 5 per cent of that.”
“ Volkswagen wants to sell 800,000 vehicles in the North America by 2018, or nearly four times the number it sold in 2007.”
(Toronto Star)

What We Know
1. Declining Sales
Minivan sales have fallen by 20% (USA Today)
Emergence of the crossover vehicle segment
Volkswagen AG net profit rose 15.4% and sales were 4.5% higher in 2008 (Toronto Star)
What is the state of the industry? Living the Volkswagen Life

2. Economic Downturn
Drop in consumers’ disposable income
Sales of big ticket items have dropped 2.6% (Bloomberg)
Sales are hindered by the lack of access to consumer credit (Driving.ca)
Chrysler struggling; negative reputation may hurt future minivan sales
What We Know Living the Volkswagen Life

3. Competitive Market
Highly concentrated: Chrysler, Dodge, Toyota and Honda
Together make up 74% market share, Chrysler Group LLC accounts for 40%
GM and Ford have pulled out of the minivan segment serves an opportunity for VW
What We Know Living the Volkswagen Life

Volkswagen Positioning
Known as the “people’s car”
Aimed at those who enjoy driving
Individuality
“ being true to myself and my choices”
F U N
derived from brand core DNA

Lovemarks are super-evolved brands that make deep emotional connections with consumers
“ Human beings are powered by emotion, not by reason”
VW is a lovemark

Routan Positioning
1. Brand
Volkswagen Minivan
F U N
Individualistic
“ Beetle of Minivans”

Routan Positioning
2. Value
“ Best value for money”
Starting at $27 975 (Comfortline)
Living the Volkswagen Life Automaker Routan Value Advantage Honda Odyssey Comfortline: $3977 Trendline: $3422 Toyota Sienna Comfortline: $-309 Trendline: $421 Dodge Caravan Chrysler Town & Country Comfortline: $3350 Trendline: $1304

Routan Positioning
3. German Heritage
Only German-engineered minivan
Styling
Handling

Competitor Positioning
Most innovative and feature-filled
Stylish and sporty; focus on physical comfort
Delivering performance and fuel efficiency

Positioning Model Living the Volkswagen Life

Brand Positioning Statement
“ To young couples with children, the Routan is the brand of minivan that allows you to express your individuality , including your own sense of style and fun, because it is a Volkswagen.”

Target Audience Living the Volkswagen Life Demographics
Aged 30s to 40s
Skewed to females
Two or more children
1+ children between 5 to 15
Household income $100,000 +
College or university degree
Psychographics
Technologically savvy
Enjoys typical parenting activities
Exude enthusiasm, optimistic view
Contemporary tastes & youthful attitude
Part of a community of individuals

Consumer Insights Leanne McLenan, 24 VW Rabbit Owner Living the Volkswagen Life

Consumer Insights
Parents are unique individuals and although they dedicate much of their time and energy into the kids and family activities, underneath they are still the same individuals who want to express themselves through their vehicle
Not have their vehicles define them as the traditional soccer mom minivan does.

Communication Objectives
Make existing VW buyers strongly aware of the Routan as exciting, unique, new entrant in the market that fits their lifestyle
(Brand Awareness)
Position brand as fun, attractive new alternative to competitors that allows you to express your own individuality
(Positioning)

Communication Objectives
Make target audience feel strong emotional connection with the VW brand with the sharing of experiences
(Emotional)
Entice target audience to test drive and ultimately purchase the Routan
(Behavioural)

Current Advertising Living the Volkswagen Life

Creative Theme
“ Living the Volkswagen Life”
Creative will focus on the Volkswagen lifestyle and all that it embodies
The Routan will be personified and brought to life and representative of VW brand personality & lifestyle associated with it

Creative Support
Using a balance of rational and emotional appeal
Use of ironic humour that is self-depreciating
Creative will highlight specific brand attributes
Featuring the Routan in unconventional situations

Direct Marketing
Capitalize on its emerging rise
Target existing VW consumers to help build loyalty
Use VWs existing database to send email blasts
Invite VW owners to share their stories

Internet Media
VW Life Website (micro-site)
Main destination for consumers
Focal point towards all communications will be directed
Highlight of website: community page

Internet Media
Advertising on two popular Canadian online auto magazines:
CanadianDriver.com
Wheels.ca

Print Media
Two consumer magazines:
Today’s Parent
Canadian Family
Consistent with target audience and allows for selectivity
Uncluttered

Out-of-Home Media
Transit shelter advertising
High reach and frequency
Key locations across Montreal, Vancouver and Toronto

Budget
Print Media
Canadian Family ($10,735 x 6 months) $64,410
Today’s Parent ($18,479 x 4 months) 73,916
Total expenditures on print media $138,326
Internet Media
CanadianDriver.com $6,412.50
Wheels.ca $6,412.50
Total expenditures on OOH media $12,825
Out-of-home (OOH) Media
Transit shelter (Toronto) ($35,081 x 0.70) $24,557
Transit shelter (Montreal) ($35,081 x 0.70) 24,557
Transit shelter (Vancouver) ($35,081 x 0.70) 24,557
Total expenditures on OOH media $73,671
Direct Marketing
‘ Share your story’ email blasts 0
Total expenditures on direct marketing media $0
Promotion
VW Life Contest $25,178
Total expenditures on promotions $25,178

Media Chart Living the Volkswagen Life

Our campaign will help launch the Routan as an exciting new minivan that allows you to express your individuality
Living the Volkswagen Life has “legs”
Focusing on something more important than that of available features or family, but that of personal empowerment
Conclusion Living the Volkswagen Life

Thank You!

Canada's Next Top Ad Exec - Pitch for VW Routan

by Jerome Skeene

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