The document discusses Volkswagen's launch of the new Volkswagen Beetle in the late 1990s as a successor to the original Beetle. It describes the design and engineering of the new Beetle and analyzes the consumer behavior and market for the vehicle. A SWOT analysis is presented and recommendations are made around pricing, targeting potential customers, and publicizing the new Beetle to revive Volkswagen's sales in America.

1. “THE NEW BEETLE”
Case Study Analysis Presented By:
Section B
Group 2
Presented by:
Mohd Mohtashim
Nitesh Dalal
Manvendra P.S. Bisht
Nishant Agarwal
Mayank Gupta
Manas Singh
Joycee Singh
Kapil Sharma

2. VOLKSWAGEN
★German Auto Car maker since 1938.
★ Entered American Market in 1949 and by 1968 it was selling
Half a Million Cars.

3. CULTURE OF VOLKSWAGEN
★ . It is the goal of the Volkswagen Group to recognize and uphold the
performance and learning potential of each and every member of staff.
★A company will only be able to survive in the face of international
competition if it has a top team, characterized by a high level of
competence, dedication, inventiveness and fitness.

5. The Beetle
“Premiere of a Series”
★ It is a success story which begins with
the Dream of the “people’s car”- the
“Volkswagen” - at the dawn of the 20th
Century.

6. THINK SMALL
★Volkswagen of America , Inc.
launches a professional publicity
drive.
★Considered to be one of the best
ad campaign of the century

7. The Love Bug:
“HERBIE”
The Oval
Beetle
The Split
Beetle
The Hebmuller
Cabriolet
Beetle Type 30

8. Volkswagen America Inc.

9. “END OF AN ERA”
THE DECLINE OF BEETLE
★During 1980s The Beetle run in the U.S ended due to non
compliance of new homologation requirements namely
National Highway Act & Clean Air Act.
★During same period The Beetle sales hit all time low due to
• Heavy competition from new & advance Japanese Brands.
•Exchange Rate Volatility.

10. THE CASE: MISSION
IMPOSSIBLE
★ Liz Vanzura, The Market Director of Volkswagen has a meeting
with Charlie Waterhouse, Director of Product Development
(VW) & Steven Keys, Director of Public Relations.
★Innovative Marketing Strategy has to be proposed to boost up
sales.

11. REBUILDING IMAGE

13. THE NEW BEETLE
★ Successor to the most
Successful Car of its Time
- The Original Beetle
★ Pressure to Live up to the
Legacy
★ Strategic importance to
Revive VW in America

15. DESIGN AND ENGINEERING
★Based on Four Design Principles: Honest, Simple, Reliable & Original
★ State of the Art German Engineering
★Water Cooled - Front House Engine
★4-Wheel Disc Brakes
★ Air-Bags, Air Conditioning & Speaker System (Standard Package)
★ Implication: Higher Price Tag

16. SWOT ANALYSIS
Strength
Different
Biggest
Selling Car
Design
Safest Small
Car
Weakness
Not a SUV
Brand
Loyalty
Opportunities
Global
Appeal
Capitalize
on Nostalgia
Threat
Can the
Trend Stay
Alive?
Could the
Beetle
Survive?
Beetle’s
History

17. CONSUMER BEHAVIOUR
ANALYSIS

18. MASLOW’S HIERARCHY OF NEEDS
Self Actualization
Esteem
Social
Safety
Physiological
Self Actualization
Esteem
Social
Safety
Physiological

19. THE BUYING DECISION PROCESS
Total Set
Volkswagen
Ford
Toyota
Honda
Chevrolet
Olds Mobile
Awareness Set
Volkswagen
Ford
Toyota
Honda
Consideration
Set
Volkswagen
Ford
Toyota
Choice Set
Volkswagen
Ford
Decision
?

20. 4P ANALYSIS
Product Price
Promotion Place

21. PRODUCT
★German Engineering at an Affordable Price
★ Iconic Design
★ Heritage & Originality
★Superior Driving Performance
★ Vibrant Colors

22. PRICE
★ Beetle Base Model: $ 15200
★ List Price: $17000 to $18000
★One of the Most Expensive Small Cars
★Considering Heritage & Technology, the Premium Pricing Strategy is
Reasonable

23. PRICING STRATEGY

24. PROMOTION
★ Driver’s Wanted Campaign re-launched with a Heavy Focus on The New
Beetle
★ Focus on Print Media
★ First Reaction of different communities were noted when The New Beetle
was taken to them by some Automobile Journalists as a part of a very
successful PR Campaign.

26. Architectural
Design
Spin Glamour
Entertainmen
t Weekly
Life Vogue
Sports
Illustrated
Page Cost $60,270 $35,935 $81,580 $63,945 $71,630 $72,230 $170,000
Circulation 741452 535392 2208926 1431886 1500744 1125585 3269917
Cost Per
Thousand $81.29 $67.12 36.93 $44.66 $47.73 $64.17 $51.99
Simmons
Descriptor 161 406 185 242 172 252 144
J.D Power 122 NA 108 114 NA 108 116

27. PLACE
★VW Value Sharing Program
★Museum of New Beetle
★Financial Support Program
★Dealers were flown to
Wolfsburg to give them a
First Hand Experience

28. RECOMMENDATIONS

29. PRICING OF THE PRODUCT
★Two or more variants with different configurations.
★EMI Options
★ Interest Rate as low as 0%

30. POTENTIAL CUSTOMERS
★More effort should be focused on campaign to attract Young Generation
consumers and appeal to their Mentality, Behaviour and Attitude
★A campaign for Baby Boomers would be straightforward by using
Nostalgic Images to bring back good memories from the past and rekindle
their interest in Beetle.

31. PUBLICISING THE PRODUCT
★ There’s an opportunity to use the positive media coverage to Beetle’s
Advantage.
★ Print Advertising in Magazines & showcasing car at Big Events.
★ Exploit Second Source of the Brand Knowledge.
★Motor Driving Schools.
★ Starting a Beetle Club.