Volkswagen Case Study

1 Relevant issues

Important issues:

Positioning- How VW position itself and how to differentiate itself with other two brands in the VW group’s portfolio in India.

Segmentation- VW focused on five of nine segments based on social status and value orientation. These five segments comprised 45.8% of the market overall.

Consumer insights- People bought cars for three main reasons. VW should design different solutions for each reason.

Awareness- Consumers awareness of VW is only 9%. The goal of VW is to increase awareness to 18%.

Advertising strategy- What advertising strategy can create more buzz and increase awareness.

Innovation- As a late entrant, VW should make big innovation to attract consumers.

Communication strategy- How to communicate with consumers more effectively.

Being late to launch into a market- It was the 18th brand to launch into a market, VW needed to hit the ground running.

Product portfolio- Each model should focus on a specific segment. And VW should also decide how many models they should launch.

Pricing- VW should price their models based on their target market.

PR strategy- What PR strategy can create more buzz and increase awareness.

Sales- How to achieve their sales goal.

Less important issues:

Relationship with dealers(Distribution)- As a late entrant, VW has a disadvantage of distribution. What they should do is to build good relationship with dealers and expand as many as dealers.

Product designs(Feature)- NPD should develop new products based on the customer insights and decide which feature should be remained.

Aligning corporate brand with the product brands- Since VW has different models in the Indian market, they need to associate their corporate brand image with the product brand image.

Engagement- VW has a low engagement due to its being late in the Indian market. It’s urgent for them to build loyalty and aspiration among customers.

Mission and vision- How to achieve VW’s mission statement both locally and globally.

2 Cases Questions

1)What are the issues in the case?

See the question 1

2)Do you agree with VW’s corporate brand positioning?

I agree part with VW’s