Marketing Channel Design

Essay by glowcoverUniversity, Master'sA, March 2014

download word file, 13 pages 0.0


Channel Design

Channel Design: Volkswagen Group

Razvan Iliescu

MBA 528 Channel Management

Owen Fernandes

Channel Design: Volkswagen Group

March 21st, 2014

Affected by numerous trends, the modern automotive industry responds to the changing dynamics of business and to the influence of the emerging markets. At the same time, governments worldwide try to moderate the need for income by enforcing strategies, and specific policies. The increased competition on all markets, framed by the global recession has shaped the automotive industry landscape, hence nowadays leading automakers focusing on sustainable growth, financial flexibility, technical research and customer satisfaction. A special drive in the top segment of the automotive industry consists of the research and investment in alternative technologies, fuelling the race toward the affordable and energy efficient electricity-powered vehicles. (Ernst & Young, 2012).

Top vehicle producers face severe trade-offs between investing into compliance to new regulations and saving funds in order to navigate the worst market downturn in 25 years.

At the same time, the large public demands high performance and fuel-efficient vehicles, whilst regulations require the diminishing on the environmental footprint.

Binging into focus one of the top three players in the global car production business, the Volkswagen Group, (Forbes, 2012), the paper will depict and analyze the companie's marketing strategies, weaknesses and capabilities, with accent on the marketing channel design of this giant of the automotive industry.

A. Volkswagen: The Company

Short History

Originally founded in 1937 as a state-owned company, Volkswagenwerk (later Volkswagen) came to life in times in which the German automotive industry was largely composed of luxury models. Operated by the German Labor Front, in addition to the project of building a network of highways across Germany, the company had the ambitious project to develop and mass-produce and affordable vehicle that could sell for less...