Volkswagen Beetle Marketing Strategy

This assignment analyzes Volkswagen's global marketing strategy for the Beetle brand. It explores how the company adapts its promotional mix, including advertising, sales, and public relations, to different target markets while maintaining a consistent brand image. The analysis also highlights the importance of logistics in global markets and the challenges Volkswagen faces in managing its supply chain internationally.

Running head: GLOBAL MARKETING MIX
Global Marketing Mix
Name of the Student
Name of the University
Author’s Note

1GLOBAL MARKETING MIX
Contents
Introduction.................................................................................................................................................2
Marketing Mix for China.............................................................................................................................2
Marketing Mix for United States.................................................................................................................3
Marketing Mix for Britain...........................................................................................................................4
Merits of Standardization and Customization..............................................................................................4
Multinational Diffusion theory....................................................................................................................5
Global branding Strategy.............................................................................................................................5
Driving forces in foreign market pricing.....................................................................................................5
Non-cash compensation in international transaction....................................................................................6
Constrains of Global Market communication strategy.................................................................................7
Advantages and disadvantages of marketing communication tools.............................................................7
Importance of Logistics in global market and challenges............................................................................7
Conclusion...................................................................................................................................................8
Reference.....................................................................................................................................................9

2GLOBAL MARKETING MIX
Introduction
Volkswagen is a German based automobile company currently operating around the
globe with its wide range of product line of all-purpose cars. The company ranks 5 in the fortune
500 list for 22017 (fortune.com, 2018). The company was established in 1937 and its
headquarters is situated in Wolfsburg, Germany. Beetle is one of the significant brands of
Volkswagen that was introduced in the international market in 1938 (vw.com, 2018). The brand
is further modified over the long years of the company. This report will provide a marketing mix
for this particular product in India, United States, and Britain. It will further communicate
different marketing theories for the particular product.
Marketing Mix for China
Product Beetle is one of the oldest brands of Volkswagen that has undergone various
modifications over time. The current beetle is comprised of 1.8L TSI in-line
valve engine with 170 hp and 6-speed automatic transmission. It further offers
convertible body. Company offers a number of warranties for various body
parts on their Beetle brand. Company offer standardized products for their
Beetle brand in their Chinese market (Brand.vw.com.cn, 2018).
Price Similar to the other two markets, the company follows economic pricing in their
Chinese market for gaining competitive advantage (Liu et al, 2017).
Promotion Volkswagen uses general promotion strategy for their Beetle brand in the
international market. The latest version of their Beetle brand is promoted based
on the digital media marketing as their primary advertising strategy in Chinese

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market. Moreover, the campaign is also associated in the brand promotion.
Place Beetle is manufactured only in a limited number of manufacturing facilities of
Volkswagen around the world. However, their production facility in China does
not manufacture Beetle, which makes it necessary for the company to import
the vehicle in the country (Laufs & Schwens, 2014). The product is then
distributed through their stores located around the country.
Marketing Mix for United States
Product The company uses product customization for their Beetle brand. They offer
similar Beetle cars with level of customization option for their customers in
their USA market.
Price Company in their U.S. market is using economic pricing strategy for their
Beetle brand (Liu et al, 2017). Economic pricing is based on the competitive
pricing in the market that further helps in avoiding damage incurred from
exchange rate fluctuation.
Promotion Promotion of Beetle in is digital based. They focused on the digital media as
their primary promotion. Moreover, general campaign strategy is also effective
advertising strategy incorporated. Sales promotion as incorporated in other
market is also present.
Place Though Volkswagen company has their product plant in USA, they limited their
production of Beetle brand in only a few production facilities. Hence, they
export the particular product in U.S. market (Laufs & Schwens, 2014). The

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product is distributed through their stores located around the country.
Marketing Mix for Britain
Product The Beetle brand sold in the Britain market is similar to the ones in the other two
international markets of the company under study. However, a degree of
customization options is provided in their products in Britain market.
Price The company is using market penetration strategy for their new Beetle cars in
their Britain market by offering exclusive offers on the product price (Liu et al,
2017). Moreover, the final pricing of the product is based on economic pricing.
Promotion Marketing strategy implemented in Britain is more or less similar as the
international markets. They implement digital marketing, brand campaign, road
show etc. for their advertisement. Moreover, a sale promotion obtains is also an
effective promotion strategy incorporated by the company in the selected market.
Place As Mentioned the Beetle brand of the company is produced only in limited
facilities, the company has to export its Beetle brand in their Britain market
(Laufs & Schwens, 2014). The product is distributed through their stores located
in the Britain market.
Merits of Standardization and Customization
Standardization of products for the global market helps in reducing the production cost
and helps achieving the global economic scale (Qizhang & Goh, 2015). Moreover,
standardizations help in ensuring the product quality and brand image.

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Benefits of customization on the other hand provide the company to tailor the products
according to the customers’ preferences, which in turn increase the product cost and reduced the
production (Qizhang & Goh, 2015).
Multinational Diffusion theory
Multinational diffusion theory communicates the process through which innovative ideas
spread across the borders. Increased globalization is the primary attributer in diffusion of the
innovations in multinational level due to the cultural interchange (Alvarez, 2016). The theory
communicates company’s need for adopting innovative approach in their international products
for satisfying the customers around the globe.
Global branding Strategy
International brands require considering a number of branding strategies for their
international expansion. These are for value creation among the target customers. Some of the
considerable strategies are competence strategy, brand positioning, brand naming strategy, brand
development strategy and brand management strategy (Chabowski, Samiee & Hult, 2013).
Driving forces in foreign market pricing
Cost – Direct, indirect and overhead cost incurred by the company broadly determines the
pricing of Beetles
Competition – Competition faced by Volkswagen in their international market influence the
pricing of Beetle.

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Brand Image – Brand image of Volkswagen has recently underwent ethical dilemmas in recent
times that could have adverse effect on their pricing of Beetle.
Import Cost – Government taxation policies largely determines the product pricing in the
international market for importing the products. Volkswagen produces Beetles only intheir
Australian facility among the selected markets (Nagle, Hogan & Zale, 2016). Hence, they need
to import their products in the other markets for which, the pricing varies accordingly in the
respective countries.
Non-cash compensation in international transaction
Non-cash compensation referrers to the transaction, which does not involve monetary
value. Companies both in domestic and international setup often use non-cash compensation for
motivating their employees (Masi, 2013). A number of non-cash compensation methods are
utilized in the international transaction, which are listed below:
Training –This is one of the popular non-cash transaction made by the organizations, which
benefits both the employees and the organization in term of performance.
Flexible Working Hours – This is another non-cash compensation provided by the company
allowing the employees work according to their comfort.
Recognition – Recognizes the effort put by the employees that help in keeping them motivated.
Workplace Improvement – Improvement in workplace environment is one of the influential
factors in employee performance.

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Involvement in Decision-making – Involving employee in decision-making process is another
compensation provided by the company that increases the employee performance (Masi, 2013).
Constrains of Global Market communication strategy
Market communication strategies that can be integrated in the international market are
limited to advertising, public relation and sales promotion. Advertising strategy utilized in case
of international market can broadly be restricted in social media marketing, online marketing
third and pay per click marketing that are widely used by the international organizations
(Hollensen, 2015).
Advantages and disadvantages of marketing communication tools
Marketing communication tools are the tools used for promotion of the products.
Different communication tool can be advertising, sales, public relation and two-way
communication. Advantages of using these tools are that these successfully communicate the
product information to the customers in the process of gaining attraction (Hollensen, 2015).
However, excessive use of communication of the tools will direct customers in avoiding the
promotions.
Importance of Logistics in global market and challenges
Logistics in international business organization is of primary importance as the brand
image is partially dependent on it. Timely delivery is of equal importance as the quality of the
product. However, the company faces a number of challenges in their supply chain that are
unknown supply-chain risk, greater supply chain variability and less visibility in the supply chain
(Waters & Rinsler, 2014). These challenges are common to all the global businesses.

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Conclusion
It can be concluded form the above that the company uses more or less similar marketing
strategy for their beetle brand around the world providing similar opportunity to their customers.
However, limited number of specific modification is made depending on the target market. For
example, the pricing strategy is differently implemented in the particular market.

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Reference
Alvarez, J. L. (Ed.). (2016). The diffusion and consumption of business knowledge. Springer.
Brand.vw.com.cn. (2018). Brands. Retrieved 21 January 2018, from
http://brand.vw.com.cn/carmodels/models.php
Chabowski, B. R., Samiee, S., & Hult, G. T. M. (2013). A bibliometric analysis of the global
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fortune.com. (2018). Volkswagen. Retrieved 23 January 2018, from
http://fortune.com/global500/volkswagen/
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), 1109-1126.
Liu, Y., Li, K. J., Chen, H., & Balachander, S. (2017). The Effects of Products’ Aesthetic Design
on Demand and Marketing-Mix Effectiveness: The Role of Segment Prototypicality and
Brand Consistency. Journal of Marketing, 81(1), 83-102.
Masi, L. A. (2013). U.S. Patent No. 8,412,629. Washington, DC: U.S. Patent and Trademark
Office.
Nagle, T. T., Hogan, J., & Zale, J. (2016). The Strategy and Tactics of Pricing: New
International Edition. Routledge.