Assignment for Week 10
1. What are the various market targets for the New Beetle available to Volkswagen?
Describe each both demographically and psychographically. What are the pros and cons
of each option? What are the appeals of the New Beetle to each group?
The New Beetle target markets included VW new core audience of 18-34 and Baby Boomers.
- Younger people (18-34), single or married without children, students or professionals
- Enjoy active role in driving, challenging winding roads, not always obey to speed limits,
see the car more than a way to get from one place to another.
- Unique attitude towards life: well informed, ...view middle of the document...
The overall VW “Drivers Wanted” campaign applies directly to this audience. VW can
continue promoting this car to the Gen X’ers under this umbrella. Promotions like the
Trek/K2 are very appealing for this audience
- The pricing of the car ($15,000+) may put the car out of the “affordability” range of this
Higher income that Gen X
Confidence, individualism, desires to be the center of attention, love to drive.
They are financially stable and they are able to afford the higher price tag ($15,000+) of
the new Beetle.
They have a strong emotional connection with the previous Beetle. The New Beetle
awakened their memories of the old Beetle (honeymoons, college days, etc…)
Consumer trends among this group revealed changing preferences to larger cars.
Overall VW strategy had shifted towards a younger generation of drivers (for example,
the 1997 Golf ad and the “Drivers Wanted” campaign.)
Appeals for VW:
Generation X group is the new target group for the company, aiming to invite new and younger
potential drivers and customers. This approach was in line to the original target audience of the
original Beetle back in the early ’50: round shape, low price, individuality and style expression
appealed at that time to a young generation of Americans (students and young drivers who
bought their first car).
Baby Boomers group have a strong emotional connection with the car, due to the “nostalgia
factor” of their personal history and emotional ties to the Beetle brand. Moreover, they can afford
the $15,000+ price tag for the car.
2. What are the positioning options available to Volkswagen for each of the target
markets? Describe each. What are the risks and opportunities of each? How would each
be differentiated from competition?
Positioning option for the Generation X target:
Affordable, invitational, approachable.
Unique driving experience.
In this case, the company would offer the benefits of German engineering at an affordable price
(high quality/reasonable price), in contrast with other European brands which offered high quality
at higher prices. VW would be then perceived as the “people’s car”, that is more approachable,
more likable, more value, more human and more affordable. Moreover, the unique driving
experience would convey a different, individual and personalized driving experience, tying in the
“lifestyle” element, in contrast with Japanese cars, which are more perceived as standardized
cars that bring people from one place to the other. In this case, VW would be able to meet the
need in the American society of expression and individualization, by owning a “personality car”.
The high price of $15,000+ could be a risk, as it would position the car as one of the most