Potential New Beetle Buyers

MKTG 501
Case: The New Beetle

POTENTIAL NEW BEETLE BUYERS

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The main customer segments for the New Beetle are young adults and baby boomers. Although both segments have high potential, the marketing team is supposed to focus one of them. In that circumstances, I would focus on Young Adults (18-34) segment. Because nostalgia feeling couldn’t be enough to buy the New Beetle. However, the characteristics of New Beetle is consistent with young generation’s characteristics and expectations.

In addition, I believe, intense focus is not necessary for baby boomers. Because once they hear the Beetle is back, they would go and check themselves, if they’re really attached to original Beetle. For these kind of people, special advertising campaigns are not necessary.

Since its pros are heavier than its cons, focusing young adults would make more sense.

2. The New Beetle should be introduced and positioned as real drivable car not as fashion/toy car. German engineering is the key point to create this image. Although the Beetle has fun, joy side, its quality will be the driving force for sales. Therefore, before everything else, Beetle’s unique and fun side should be composed with “German engineering” “real, drivable” tags.

When it comes to pricing strategy;

The current situation:

Price range for small cars: two-door Saturn coupe $11035 –  $17239 four-door Sentra SE sedan
As it was mentioned in the case, pricing too low could be a problem for our dealers since its profit-margin will be lower. Too high price would be against Beetle’s ‘affordable German engineering quality’ image and would expand the New Beetle’s competitive set.

Although base price set $15200 will make the New Beetle among the most expensive cars in its segment, its differentiated image can compensate this problem.