Volkswagen has to reintroduce the Beetle in order to revive sales. However, given the past success of the Beetle as well as the current scenario in 1998, positioning of the brand is a key problem. Vanzura, the Marketing Director of Volkswagen is faced with the difficult task of deciding what really is the target market for the new Beetle.
Customers - The younger generation would appreciate the Beetle the most, but they are the ones that cannot relate to the emotional bond that the Beetle is trying to revive. The older generation may prefer cars with more seating such as mini-vans.
Competition - The Beetle is to be placed in the small car sector. This sector is currently very competitive and is experiencing a decline anyway. Beetle cannot offer their car for less than $18,000 which makes the car the most expensive in the segment.
Beetle faces competition from domestic brands such as Chevrolet's Cavalier as well as Ford's Escort. They also face competition from Japanese car manufacturers.
Company - Volkswagen is experiencing a decline in sales and if things continue to move the way they are, Volkswagen will be a thing of the past. After the old Beetle was shut down, Volkswagen began to lose more and more market share. Volkswagen needs this new Beetle to revive interest in their company.
Product - top of the line technology, excellent engineering and safety features as well. Visual appeal is very strong.
Promotion - people already have an emotional attachment to the Volkswagen's "People's car" motto but now the car is being marketed as "personal car"
Position the car in the older consumer's segment. This would ensure greater sales as people would have a previous emotional attachment to the car. However, the problem...