New Beetle Value Proposition

New Beetle Value proposition (CCDS):

The New Beetle creates substantial value for the customers because of its cutting edge German Technology and revamped stylish looks. The Car also emphasizes on safety with dual air bags and driving comfort. This was adequately communicated to the customers with new ad campaigns especially with the spearhead "Drivers Wanted. Again" campaign. The Beetle was banking heavily on the nostalgia factor and was promoted with several ads highlighting this feature. The Beetle added perceived value in the customers mind with in built six speaker music systems, and in built air conditioning in the standard package. This coupled with zero maintenance left a very favourable impression in the customers view. The Beetle's extended warranty and dealership training programmes ensured that this created value was sustained over a long period.

Opportunities:

Notwithstanding the above facts, there were several opportunities in the market for the new Beetle which it could take advantage of. The primary being the emergence of a new generation of fun loving consumers who wanted to express themselves by showing off to the world their car and the confidence associated with it. The nostalgia surrounding the car coupled with innovative promotions and attractive lease financing schemes all represent a favourable proposition for the marketing of the car. In addition, the new Beetle seeks to explore the revelation of people's love for round shapes using this as an opportunity to promote its simple yet modern designs.

Threats:

While the above discussion paints a rosy picture of the new Beetle, all isn't well with the car and/or the market in general. A decrease of 5% in the small car segment might be indications of a contract market. This coupled with the propositions of competition from Japanese auto