Volkswagen Brand Traits - Case Study Example

Term project Outline Executive summary 1.0 Introduction 2.0 Company overview and history 2.1 company history 3.0 product-brand overview 3.1 brand overview 3.2 product overview 4.0 discussion of consumer behaviour theory 4.1 consumer behaviour theory 4.1.1 Sub-theory 4.2 discussion of consumer theory 4.2.4 Discussion of sub-theory 5.0 application of the theory 5.1 analysis and discussion of the theory applied by the company 6.0 general discussions 7.0 conclusions 8.0 reference list Executive summary Every organisation is concerned with creating a strong brand for its product. A company's brand helps it to enter a certain market without any problems because people already know the brand. To create a successful brand, organisations need to study their market and develop strategies on how to enter the market. It becomes a necessity for the company to understand consumer behaviour theory to understand their buying processes and develop ways of influencing them to buy the company products. 1.0 Introduction Consumer behaviour theory refers to the process through which people decide what, where, when, how, from where, and whether to buy a particular product. The theory explains the process through which consumers goes through when making the decision as to whether to buy or not. In addition, the theory explains what influences' an individual to buy a product and their attitudes towards the products. Consumer behaviour theory helps companies to understand the buying habits of customers so that they can be able to know how best to influence them to buy their products. Moreover, the theory helps companies know how to segregate the different customers, how to advertise their products and ho w to distribute the products. Consumer theory Consumer behaviour theory explains the process that buyers go through when deciding what, when, where and how to buy a particular product. Consumers goes through a decision making process before deciding to buy a product. In the process, so many factors influence the decision the customer is going to make. The company is obligated to understand the customers and what influences their buying decisions. The organization, therefore, should categorize its customers in a way that will enable them to attend to their particular needs. Volkswagen uses demographic segregation to categorize its customers. It divides the customers into males and females, the young and the old, recent graduates, and depending on their annual income. After the segregation, Volkswagen uses extensive advertising to market the Passat across the demographic groups. The company uses different adverts for different groups of the customers. This way, the company is able to reach each category of customers through adverts that suit them. In this section, we analyse Volkswagen, a leading automobile manufacturing company in the world and how the company applies the consumer behaviour theory to influence customers to buy its cars. 2.1 company history Volkswagen was started in 1937 in Germany for production of vehicles, but during the first and the second world wars, it was converted to produce armaments. After the war, the company started mass production of vehicles, specifically the Volkswagen beetle. In 1950, the company introduced another model, the VW Bully. In 1973, the company introduced the first passat model. From this period to date, the company has continued to introduce new models of cars while upgrading the existing one. Today, Volkswagen boasts as a brand that luxurious cars. The automobiles are divided into two, the passenger cars and commercial vehicles. In 2008, it was rated the third top most. Though the company has its operations all over the world, it has its core market in Europe. Currently, the company produces over 18 models of cars, among them, the beetle, Jetta, Polo, Golf, Passat and Passat CC. Passat is the company's second most selling model after the beetle (Rohm, 2007). 1.0 Brand-product overview 3.1Brand overview Volkswagen, a word meaning people's car was started to produce affordable cars for Germans. All the cars produced by Volkswagen bears the VW logo. The record and progress of the brand entails a number of success and failures. Immediately when the 2nd war ended, the company was bombed and its control taken over by the British. It released its first car, the beetle to the market in 1937; this marked the start of the growth of the brand. It soon regained its operations and in the 70s, the company manufactured new lines of car including the Passat. The company spread its operations Europe and US market. In the 21st century, the company introduced a new campaign that would ensure growth in its sales. The campaign combined funny adverts with committed to producing diesel cars that were clean and cost effective. The going green campaign worked for the company making the company the leading seller of cars in the world. Passat is one of the cars produced by Volkswagen. The first model was built in 1973 and the car has gone through six generations since then. 4.0 consumer behaviour theory 4.1 Identification of the relevant theory Volkswagen's uses different marketing strategies to identify its market target. It uses demography to categorize their customers. The car enjoys a large market ranging from both males and females, people who want luxurious cars but economical, college graduates and households with an average income of $100,000. 4.3 Discussion of consumer behaviour The Passat is car is one of the most luxurious cars for the Volkswagen. To market this car and get a larger portion in the market and uses demographic segregation. This includes people's age, gender, and socio-economic status. It is an upgrade of standard into a luxurious model. This way, customers are able to identify the model with their level of living. It is an innovative way of making the middle income earners to enjoy the feeling of driving a luxurious car. This has worked for the company as the passat continues to be the most sold luxurious car (Haak & Tachiki, 2004). The company employs uses extensive marketing and advertisement to be able to reach the target market. In the recent past, the company has turned into online and social media advertising, where the company is using facebook to advertise the passat. With the invention of technology, internet and the social media, people are no longer interested in the traditional advertising media. Volkswagen realizes that this is a great opportunity to reach majority of its customers. The company has established a mobile campaign to popularize the Passat. Volkswagen worked in connection with Zingy such that photos of the passat appear on Zingy's network and people can learn more and ask question about the car. 5.0 Application of the strategy The collaboration between Zingy and Volkswagen received a very high response rate, with an increase of 3% of customers. This helped the company in building its brand in that, people got quick response from the network. Zingy responded to the emails sent by customers making requests. Popularizing the Passat through Zingy was a big success. The use of social media also saw the company increase the popularity of the car as more people get the information from the social sites. The target market was people within the ages for 20-30 years and the company was able to attract most of them. The company advertises and sells all its cars under one name around the globe. This way, different people from different company can be able to buy the same car under the same name. This has continued to help in the building of the brand. The company advertisements have created a strong engagement within the company and the clients. This is because; the adverts appeal to people's intelligence and reflect those people who don’t just go for fancy cars, but also functional ones. They also create their adverts in a humorous and friendly way. This enables the brand to introduce modifications, which are readily accepted by customers (Parsons & Maclaran, 2009). Volkswagen has benefited in the strategy it employed in that it benefits from a wide market across the world. The Passat is considered as a luxurious car but economical. This has attracted a wide range of customers into buying the car. A recent research shows that 53% O customers who purchases the Passat are males are males while the rest are females. This means that the car has attracted the minority market of females. This is unlike the BMW's 3 series which is, majorly, bought by male customers. The model locks out the female customers (Baker, 1998). As a marketing strategy, the company continues to be creative in its models. The company developed the new passat model as a new and unique model. This is unlike the common Volkswagen model which can easily be identified. Customers are more interested in this new model due to its uniqueness and this has seen the sale of the car go up in the last few years. All categories of people, the old, the young, males and females are attracted to this new model. Constant upgrading of the model is done to ensure that it’s better and better in the coming times. This way, people can still buy the same car but with new and unique features (Solomon, 2009). 6.0 General Discussion As a company, a brand is the strongest strategic asset and basis of competitive advantage. A brand enables a company to access the market more easily. It becomes very easy for a company to introduce a new product in the market if has already built a brand. The company can create the brand through the marketing strategy they use to market their products. As companies decide on the marketing strategies, they should not be very rigid, this is because, customers are very different in different countries and as such, different strategies should be used (Cleland, 2006). Passat has attracts market from different classes of people. For this reason, the company adapts advertising methods which favour all these groups. Recent graduates meaning that the car is affordable, though still considered as luxurious and stylish. The fact that recent graduates can afford to buy the car means that many more people can buy the car. In addition, the company has attracted has attracted middle income earners with an average of $100,000 per annum. This has contributed to the growth of the company's sales (Kerin, 2004). This is unlike the BMW 3 series, which is too costly and the wealthy people can afford and maintain. Fresh college graduates are locked out from buying this car due to its initial costs and maintenance. While Passat is not very expensive, it is still luxurious and commands status for the people owning its. The car is also being used by government officials in some countries like Kenya; this is because, the car is economical to maintain but also considered luxurious and stylish. This has helped to build the Volkswagen's brand (Mercer, 1996). 7.0 Conclusion Using demography to segregate the market will is very important in brand building. This is because; the company ensures that it has popularity across all groups of people. Demography refers to the characteristics of people like age, gender, religion and socioeconomic status. This strategy allows a company to access different categories of people and as such, provides a large market. Passat has a wide market in terms of age, as even the young graduates can be able to buy it for style while the old can buy them for prestige. In addition, middle income people can afford to buy the car and maintain it, while the rich can also buy it because it is luxurious. When a company has market across all demographic aspects, then it building the brand becomes relatively easy (Lock, 2007). References Baker, M. J. (1998). Marketing: managerial foundations. London: Palgrave Macmillan Australia. Cleland, D. I. (2006). Project management: strategic design and implementation. New York: McGraw-Hill Professional. Bradley, F. (2005). International Marketing Strategy. New York: Financial Times/Prentice Hall Cohen, J. (1996). BMW M-Series and Performance Specials. New York: MotorBooks International. Fifield, P. (2007). Marketing Strategy: The Difference between Marketing and Markets. London: Butterworth-Heinemann Groucutt, J. (2004). Marketing: essential principles, new realities. New York: Kogan Page Publishers. Haak, R. & Tachiki, D. (2004). Regional strategies in a global economy: multinational Corporations in East Asia. New York: Iudicium Verlag. Holmstrom, D. (2009). BMW Motorcycles. London: MotorBooks International. Kerin, R. A. (2004). Marketing: the core. New York: McGraw-Hill/Irwin. Lock, D. (2007). Project management. New York: Gower Publishing, Ltd. Maguire, M. (2007). BMW Brand Audit. New York: GRIN Verlag. Mercer, D. (1996). Marketing. London: Wiley-Blackwell. Parsons, E., & Maclaran, P. (2009). Contemporary Issues in Marketing and Consumer Behaviour. New York: Butterworth-Heinemann. Parkinson, L. (2009). CIM Coursebook: Project Management in Marketing. New York: Butterworth-Heinemann. Polland, T (2010) Why VW's multiband will make it no.1, Analysis. Car blogs Rohm, S. (2007). VW Phaeton - Did Zeus' Anger Hit Sales of Volkswagen's Luxury Car. Berlin: GRIN Verlag. Solomon, M. (2009). Consumer Behaviour: Buying, Having, and Being. London: Prentice Hill. Surhone, L. M. (2010). Volkswagen Commercial Vehicles. London: VDM Verlag Dr. Mueller AG & Co. Kg. Nicouland, B. (2008). Marketing Strategy and Competitive Positioning. New York: Prentice Hall Vuskane, L. (2010). BMW Business Strategy - An Overview. London: GRIN Verlag. Volkswagen Commercial vehicles. Retrieved from http://www.volkswagen-vans.co.uk/# Volkswagen Commercial vehicles International. Retrieved from http://www.volkswagen- commercial-vehicles.com/int/index.html Appendix 1. 2. The Volkswagen brand headed for number 3. The Volkswagen brand headed for number 1 4. Passat uses online media to advertise Passat uses online media to advertise 5. The Volksvogen Commercial vehicles international Read More