Recovering Losses and Enhancing Product Attractiveness in a Competitive Market

The assignment concerns identifying potential customers for a product or service in the new market scenario. It involves analyzing consumer behavior and preferences to determine how pricing affects their purchasing decisions. The content highlights two case studies: the acquisition of Opel by PSA Group and Google's entry into the smartphone market. The research questions involve making vehicles more attractive in terms of pricing and emission standards, as well as understanding public perception through surveys. The assignment also explores the concept of augmented products and their value to customers.

Running Head: Assignment Marketting
Assignment
Marketting

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Answer A1:
The advertisement was created to provide the emissions of their car that is having no emission
from the car. The whole notion was to promote that their vehicle is clean regarding emission and
doesn’t pollute the environment at all. At the start of 2015, Volkswagen became number 1
trading car, and its sales crossed the marks of Toyota. But later it emerged out that Volkswagen
is trapped in the "diesel hoodwink" outrage of 2015 where Environmental Protection Agency’s
(EPA) notice that the vehicles were violating the Clean Air Act by for duping discharges tests in
the US. EPA found that many VW autos had a “defeat device” or programming introduced in
diesel motors chip that could identify when the cars were being checked and changing the
execution to enhance the outcomes. The programming created the vehicles' nitrogen oxide (NOx)
yield to meet the US norms amid administrative testing while emitting 40 times more NOx in
actual driving conditions. The EPA's has impacted the fate of 4, 82,000 autos in the US alone,
but VW has conceded almost 11 million vehicles across the world including eight million in
Europe. All of them were fitted with the so-called “thrashing gadget." Firstly, the German
automaker conceded that it had purposely prepared its line of Turbocharged Direct Injection
(TDI) diesel motors with a "thrashing device" that was planned to "sidestep, thrashing, or render
defective components of a vehicle's discharge control framework" amid discharges testing. Later
after 2011, it was noted that the company had influenced about 11 million vehicles through this
device under different brands to affect its sale.
As per the reports, the former Chief Executive Officer of Volkswagen AG Mr. Martin
Winterkorn resigned immediately on the moral grounds at the wake of this outrage saying that
his business had "broken the trust of our clients and people in general (Winterkown, 2015)." In
order to counter the unfriendly attention and feedback, the organization ought to make a critical,

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long haul speculation to position itself as a pioneer in the innovation advancement to decrease
emissions along with performance improvement.
Volkswagen has started to see the aftermath from the outflows embarrassment both from buyers
and officials. The United States auto producers have begun to offer schemes to clients so that
they can change brands from VW, the cost of diesel VW and Audi vehicles have dropped a
standard of $1500 at the sale, and shoppers are careful about putting resources into the vehicles.
American and European officials, including the District Attorney of West Virginia, have started
legal claims against the brand. The EPA has expressed that it arrangements to test vehicles under
standard conditions, instead of being dependent upon the lab testing and proclamations from the
makers (Harder, Amy, and Chow, Jason Sept 2015). The Washington State Department of
Ecology has additionally formally told VW that they had damaged the States Clean Air Act
(Saarinen, Martin, 2015). Also, the officials from the VW in the United Kingdom could confront
up to 10 years prison if they are found guilty in the malpractice (Saarinen, Martin, 2015)
Since the outrage broke, VW stock had dropped from a high of $38.03 to $25.96 (Vlkay Nov.
2015). The drop was not as radical as it seems, but it implies thousands of vehicles being sold by
others and an open door for development for VW's rivals. The results clearly demonstrate buyers
have lost trust in Volkswagen as their favorite brand. Volkswagen and the brands that they
produce under were praised as being at the bleeding edge of green innovation. In 2009, "Green
Car of the Year" grant was given to Volkswagen for their Jetta TDI show, and in 2010 for the
Audi A3 TDI demonstrate and had since been made a request to give back the honors (Green
auto of the year, 2010).

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As I would like to think, what Volkswagen did, has they misled their clients, the legislature, and
were carefully about it! They swindle everybody who interacted with the influenced vehicles. At
the point when purchaser purchased the affected vehicles, he/she bought the vehicle for higher
execution, esteem, and better fuel mileage. Be that as it may, they deceived millions and made an
easygoing customer of purchasers. Volkswagen ignored and disregarded their moral and real
obligation as experts. Perhaps, if Volkswagen advanced an informant culture inside the
association, this sort of sound in-building issue, could have been contained or restricted its
extension inside the organization.
From a social stance, I trust that this embarrassment unmistakably lays out how most vast
partnerships see on the planet, their purchasers, and original enactment. This circumstance
sounds like a companion of mine, who worked at a Freightliner dealership where their emissions
controls turn out to be increasingly stringent, especially when he lived in California. Right now,
this was getting to be distinctly troublesome for vehicle makers, to keep up and create motors
that could work under such strict controls. As I would like to think, I didn't anticipate what
happened to my companion event to Volkswagen, since they have dependable appeared to be at
the cutting edge of growing innovations.
My real situation is whether Volkswagen was defended in introducing programming that
permitted their diesel vehicles to work in a manner that they could beat outflows testing while
putting out more than 40 times the lawful furthest reaches of discharges, amid normal operations
or they needed to check whether they would get got. By bamboozling the framework, the
shareholder cost of VW's stock dropped, and commission numbers were affected at the
dealerships. Numerous representatives were compelled to rethink their decent quality and
whether it adjusted to the thoughts of the organization, and contenders would utilize this as an

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opportunity to develop the piece of the pie, to offer motivators for purchasers to change from
VW.
An outside advertising agency prepared VW ad for Volkswagen’s approval. There were certain
legal issues like the ad portrays no emission from the car by towel test. But with such high
emission values, it creates an ethical issue and fraudulent depiction of results. The first
amendment provided the limited media access. Amendment made Volkswagen after being tested
in his wrongdoing they provided the claimants to be given with 50 to 100percent of the purchase
price. The dealership was forced to payout to former customers, but the company neglects its
duties towards environmental damages.
Answer B1:
Brand loyalty is an example of customer conduct where buyers get to be distinctly dedicated to
brands and make rehash buys from similar names after some time. In an aggressive commercial
center, brands need to keep up persistent critical engagement with a specific end goal to
distinguish customer needs and desires. Brand loyalty is characterized as positive emotions
towards a brand and devotion to buy a similar item or administration over and again now and
later on from a similar name, paying little mind to a contender's activities or changes in the earth.
It can likewise be exhibited with different practices, for example, active informal backing. Brand
loyalty is the place an individual purchases items from a similar producer over and over as
opposed to from different providers Brands are best when they address enthusiastic qualities that
are fundamental to their goal customers. Organizations whose esteem rests in a vast part of their
image devotion are said to utilize the dedication plan of action. At the point when the esteem
distinguishing proof is right, it prompts to more client engagement and higher quantities of

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rehash clients. High rehash client rates are quick to greater benefits for brands. The customer
loyalty decrease with the events like Volkswagen fraud. There are other reasons also making
same to happen. One is Failure to keep their customers’ expectations, second nowadays there are
a decline loyalty programs due to market trend shift and as in everything is becoming
transparent, and hence people know all the misleads very soon. The customers are becoming
more and more tech-savvy. The shaky company outlook towards customer lacks the wholesome
experience and also not providing any uniqueness for the client. Brand loyalty has not been
shaken in the case of Volkswagen scandal due to lower diesel costing than gasoline.
Answer B2:
Recently the reports show that Volkswagen has pledged to regain the trust they lost in due to
faulty vehicles. First thing what company can do to regain its confidence is to satisfy the
previous customers using their damaged vehicles to get it replaced with new one and provide the
loyalty bonus like incentives or gifts for not breaking commitment apart from the change costing.
The trust is hard to regain, and such behavior of unsound practices are unlawful and also not
morally right. The customers are bound by trust-based relations only and with satisfactory
services. The replacement must be followed with ease to customers through equipping the stores
with some facility like pick up and drop. Arrangements for their taxi until their car is replaced.
These services improve the faith in the company as in its business fault, not the customer's fault.
Further to this, it was noted that the responses were unchanged even after the company illustrated
a grave scandal by fooling the regulatory authorities. The reason behind was falling diesel prices
and the difference between gasoline and diesel almost zero, and in August it was lower than that
of gasoline. Volkswagen has also revised the executive payments so that they can include more
incentive-based pay structure and also the bonuses will not be paid if the company doesn’t score

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any profits. The biggest auto player needs to recuperate with the losses as soon as possible to get
ready for the new market scenario.
This question concerns are identifying consumers who might be customers for the product or
service you have chosen for your marketing plan.
Answer C1:
Opel can buy by France’s PSA Group in a deal with General Motors with an agreement with the
US carmaker. By procuring Opel, the French gathering will jump match Renault to wind up
distinctly Europe's second-positioned carmaker after Volkswagen by a piece of the overall
industry. Between them, PSA and GM Europe recorded €71.6 billion ($76 billion) in income and
4.3 million vehicle conveyances a year ago. The tie-up was endorsed on Friday by the PSA
supervisory board, on which the French government, Peugeot family, and China's Dongfeng are
spoken to as shareholders, one individual with information of the matter said. Representatives for
PSA and Opel declined additionally remark.
The two carmakers, which as of now share some generation in a current European collusion,
affirmed a month ago they were arranging a through and through obtaining of Opel and its
British Vauxhall mark by Paris-based PSA, starting across the board worry over conceivable
occupation cuts.
For PSA, the Opel bargain tops a stellar two-year recuperation under cost-cutting CEO Carlos
Tavares, who said on 23 February he would apply similar techniques to Opel if the arrangement
experienced. PSA turned away chapter 11 by pitching 14% stakes to France and Dongfeng in
2014, to coordinate a weakened Peugeot family holding. The securing offered a "chance to make
a European auto champion" and immediately surpass 5 million yearly vehicle deals, Tavares told

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examiners as he introduced whole year profit. PSA additionally anticipates that investment funds
of up will €2 billion ($2.1 billion) from the tie-up, individuals have said. Tavares additionally
told his board that PSA would redevelop the Opel lineup with its advances to accomplish fast
reserve funds, as indicated by persons with information on the matter.
The research question that company PSA can put for the consideration is how to make the
vehicles more attractive in pricing as well as in the emission standards as the public is becoming
more and more aware of the global warming. The research must be employed towards the
feasibility of adding a catalytic converter so as to minimize the waste gasses as well as carbon
dioxide emissions. The cheaper are the converter technology much easily it can be incorporated
into the vehicles to chuck off the emissions. Within six months of tenure frame, one can frame
certain changes in the design of engineering in the cars to be more fuel-efficient and less in
pollution which can be done by combining different techniques.
One more way is to get the survey done by the public and know the changing taste of the
population. The survey could be done by marking the possibility of purchasing a car shortly.
What will be the criteria of their choice how pricing affects their decision? Such calculations will
help the company to look for the better sales records.
Answer C2:
Google divulged new equipment from Pixel cell phones and shrewd speakers to remote switches.
It was a year-long odyssey that included outline, inventory network arrangements and the look
for an assembling accomplice. Presently the Alphabet Inc. unit must think about the similarly
overwhelming test of getting the devices to customers. It has a past filled with retail
methodologies that either battled or never got off the ground, as indicated by individuals

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acquainted with the organization's local endeavors. Also, its unpracticed managing returns and
reusing. Also, not at all like opponent Apple Inc., the organization does not have its stores where
it can grandstand equipment however it sees fit rather depends on other teams' in-store shows.
The key strategy for the Google new phone is its digital assistant like Apple’s Siri and second is
the limited scope of availability like that of Apple brand. It is only available in Verizon
Communications Inc. and Best Buy Co. stores in the U.S., via the use of its online store, a
transitory physical store in New York City and through its remote administration Project Fi. It's
working with few different remote bearers and retailers in nations including Germany and India.
Google needs to expand its selling by providing customer services and benefits of
distributorship. As Google doesn’t have any good memories with the hardware manufacturing
with Nexus started producing in 2010 only sold 2, 00, 000 pcs but expected to sell millions
(Farago, 2010). This time the technology giant has developed separate mission Android silver
which came in 2014. Google has added Mountain View to get enhanced building view
experience. The product can be bundled with Google Glass a new concept of virtual reality. The
prime rival according to Google is Apple which already has established its brand and doing well
with its Siri phones and impressive designs
Around nine months after introductory converses with bearers, Google revealed its kind of
explicit support: Pixels have worked in visit bolster where client benefit reps can assume control
cell phone screens to recognize issues. The AI system of Google is much more robust and has
been Lock into the system like that of Apple. Such use by some millions could only provide
benefit to the Google, but that’s way too far a dream to reach

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Answer D1:
Buyers frequently imagine that an item is a physical thing that he or she purchases. With a
specific end goal to investigate the way of an item further, how about we consider it as three
distinct items – the CORE item, the ACTUAL item, lastly the AUGMENTED item. The product
has three different levels:
The core product is not a tangible product. The product is the embedded system in the product
which makes it valuable to the consumer. If we think of Google products were used by billions
of people for ease of their utilization and productivity. These products were embedded in other
systems and deployed for use by the customers. Actual product is the real product on which you
can obtain the maximum results. When Google started Nexus, it came out with this phase and
utilized the market for its better compatibility and better performance issues. The Nexus phones
were made to build the hardware arm of Google. Augmented product is again a nonphysical part
of the product but may be a premium one which one may or may not pay for the premium like
warranty or in the case of Google it is the AI of the system which governs the customer
responses and services like cloud service etc (Marston, 2011).

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References
BBC News. Volkswagen: The Scandal Explained - " (2015) BBC News. 4 Nov. 2015.
Retrieved on Web. 12 March, 2017.
Farago, P. (2010). Day 74 Sales: Apple iPhone vs. Google Nexus One vs. Motorola
Droid.
Harder, Amy, and Jason Chow. "EPA, Foreign Regulators Crack Down on Emissions
Over Cheating Revelation." (2015) The Wall Street Journal. 25 Sept. 2015. Retrieved on Web.
12 March, 2017.
Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud
computing—The business perspective. Decision support systems, 51(1), 176-189.
O'Sullivan, Joseph. "State Threatens VW with 'sizable Penalties' over Rigged Emissions
Data." (2015) The Seattle Times. 16 Nov. 2015. Web. Retrieved on 12 March, 2017.
Saarinen, Martin. "VW Emissions Scandal: Recalls, Compensation & Is Your Car
Affected?" (2015) Auto Express. 21 Nov. 2015. Web. Retrieved on 12 March, 2017.
"VLKAY Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance." VLKAY (2017)
Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance. Web. Retrieved on 12 March,
2017
Voelcker, John. "Green Car of the Year: 2010 Audi A3 TDI." (2009) Green Car Reports.
3 Dec. 2009. Web. Retrieved on 12 March, 2017
Winterkorn, Dr. Martin,CEO of Volkswagen AG: "Statement of Prof. (2015)."
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