Introduction to Marketing - Volkswagen Assignment

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of the chosen organisation and one of the competitor ...........................................1
Current state of marketplace and brief overview of the market..................................................3
Marketing strategy of Volkswagen ............................................................................................4
Marketing strategy of BMW.......................................................................................................4
Why they have chosen these strategies.......................................................................................4
TASK 2............................................................................................................................................5
Briefly explained selected organisation strategy to improve......................................................5
New and innovative approach ....................................................................................................5
Plan of implementation with critical analysis and outline challenges with possible outcomes..6
RECOMMENDATIONS.................................................................................................................7
Recommendations for improvement...........................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing define as the actions or business of promote and sales of products and services
which can be successfully developed through conduct market research and advertising to gain
high market share (Luthra, Qadri and Haleem, 2014). In this regard, present study based on
Volkswagen which is committed with different market operations and make constant investment
and growth to provide various project initiated. For gaining, insight information of the present
study, it covers brief description of the organisation and market where Volkswagen operates.
Furthermore, marketing strategy of the selected firm explained which assists to expand several
aspects in different areas of the world.
TASK 1
Introduction of the chosen organisation and one of the competitor
Volkswagen group is a global automobile manufacturer leading the passenger which
segment car with small size. They are ranking on top 5 brands that driven in 2015. It is dedicated
to deliver safe and environmentally sound vehicle. The portfolio of the company includes
Volkswagen AG, Audi, Skoda, etc. The selected business considers print media to promote
products that gain more growth in automobile market. They also started their operations in
electronic, digital and home media along with print media. They implemented integrated
marketing campaign which strengthen to brand image of the company (Gopal and Thakkar,
2016). Furthermore, they cater luxury segment of car market so that company established
presence in separate distribution channel for each brand.
SWOT analysis
Strength Weaknesses
 Very well structured umbrella brand.
 Existence in all over the world.
 Excellent brand recognition.
 High competition so that low margin of
profit.
 Weak positioning in several areas of the
world.
 Parent brand can be strengthened
Opportunities Threats
 Increasing purchasing power.  High competition of the automobile
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 Worldwide expansion
 Increasing fuel efficiency
businesses.
 Different regulations of government
PESTLE analysis
With respect to consider PESTLE analysis, following elements included in it: Political factor: Political factors highly influence automobile sector business that are
grown in 21st century. Volkswagen consider their operations as per government rules and
regulations. As a result, oversight grown and automobile brands must follow these norms. Economic factor: Economic factor contain direct impact on Volkswagen which affect to
demand. In this regard, fluctuations in the economic environment create impact on
chosen business (Wang, Nguyen and Wang, 2016). Social factor: Social forces also play important role in growth of business industry.
Preference of customers, their habits, etc. create impact on Volkswagen. As a result, as
per changes in social trends, the organisation must deal. Technological factor: Technology also played central role in automobile industry.
Successful automobile brand also depends on advance work which successfully develop
in the industry. Technology play important role which grown central as investment which
determine level of success. Legal factor: Legal factors acquired huge importance in 21st century. Legal and
regulatory framework consider huge compliance risks in all areas of labour to
environment and driver safety (Kale, 2017).
 Environmental factor: Environmental factor also play important role in automobile
industry. Pollution laws implement across the world where large penalties for brand
implement to meet criteria.
Basis Volkswagen BMW
Sales The company earns around 230.7b
EUR.
This company earns around 150.5b
EUR.
Revenue 260bn USD 180bn USD
Profit 4.2 billion EUR 2.3 billion EUR.
Create a table and compare …in terms of sales, profits etc…
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In BMW is one of the major competitor of Volkswagen. They consider operations and
functions in Motorcycle and automobile company from 1916 from German. Due to quality and
pricing, they generally prefer high-end clients. Total production output also estimated in 2.6
million vehicle and 2.2 million are sold to generate revenue approximately 100 billion euros. In
all over the world, there are around 125,000 employees work in BMW. Most of the car are
marketed under its brand name. Rolls Royse is one of the major brand among others. Audi is
being luxury car brand name from the house of Volkswagen which contain the highest
competitor from BMW.
Current state of marketplace and brief overview of the market
Automobile industry contain vital part in UK economy and generate more than £82
billion turnover and £20.2 billion value added. There are more than 186,000 people employed
directly in manufacturing with excess of 856,000 in different areas of the market. They account
for 12.0% of total UK export of goods and invest £3.65 billion each year in automobile R&D
(UK Automotive, 2018). There are more than 30 manufacturers build excess 70 models of vehicle
in UK. All the major vehicle manufacturers with plants in UK owned in foreign. Investment
decisions and sourcing choice in this market also set key performances indicators to attain
competitiveness.
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In respect to summarised above graph, it can be stated that automobile industry
continuously grow in UK to perform functions and operations. Therefore, selling of this industry
also increases from years. In 2016, maximum number of vehicle sold by them to attract
customers.
Marketing strategy of Volkswagen
The Volkswagen group's has unique portfolio which made up with nine successful brands
that excite millions of customers around the globe. There are different types of products consider
under this brand such as Audi, Seat, Skoda, Bentley, etc. Main marketing of the products which
is formed on three major core messages such as innovative, providing enduring value and
responsible. With the help of these aspects, customers could be attracted from all over the world
who are interested in the successful brand, promise for quality, reliability, etc. It is the only
successful way where brands and companies can make their own contribution for common value
stream (Ha and Janda, 2014). With company website, Volkswagen mainly targets their
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Illustration 1: Automobile industry of UK
(Source: Contributions of the motor industry to the UK economy between 2009 and 2016 (in
1,000,000,000 GBP), 2018)

customers. As a result, their marketing strategy determines and designed with power, comfort
and luxury. In this way, the firm has benefits attributed to Volkswagen brand which includes
wonderful financing with include low interest rates, build customer trust and great customer
service.
Marketing strategy of BMW compare
Digital marketing strategy
BMW has continued efforts to globalise the market with using digital marketing strategy.
It is global players which including prominent auto-maker from Germany. Therefore, marketing
strategies helps to create value to better serves customer needs. In order to make successful
marketing plan, managers create trust on the basis of varying aspects of marketing mix to
identify precise segmentation of market. It also assists to understand different patterns to assess
customer purchase behaviour (Mahamuni and Tambe, 2014). With the help of including different
marketing mix, BMW consider marketing strategy such as socio-economic segments,
aggressively emphasis premium segments. They initiate to accomplish goal of segmenting
premium market that optimising fit between purchasing behaviour to maximise sales (Hanson,
Hitt and Hoskisson, 2016).
Why they have chosen these strategies
Volkswagen has unique portfolio in market so that they selected their own website to
expand operations and functions. In this regard, they can deal successfully in the market which
assists to target a million of customers in the business. They develop different kinds of products
to target them in the business. This method is selected because to maintain quality, successful
brand, reliability, etc. All these perspective helps to financing at low cost which would be
beneficial to build customer trust. Apart from this, BMW chosen different aspect of marketing
mix that assists to segment on global scale consistently which define end brand identification to
renders success (Wang, Nguyen and Wang, 2016). For example, distribution of the company
considers with online marketing, television marketing, etc. Attractive and trendsetting products
range from the 3 to 7 series which assists to deliberately focus that influence customer
demonstrate to gain success of the auto-maker global marketing strategy.
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TASK 2
Briefly explained selected organisation strategy to improve
In order to successfully develop desired results, Volkswagen consider proposed
implementation of timeline outline for ten years. It contains rolling out hybrid program within
UK to increase presence with marketing activities. Implementation of marketing strategies in
different areas of the world consider to proposed new strategy which must be applied till 2025.
Key criteria for success includes rebuilding trust, strengthening global presence and support for
sustainable consumer lifestyle. Identifying emerging marketing and taking actions assists to
make high success in future development (Mahamuni and Tambe, 2014). This brand also offers
quality with innovation and class leading fuel that develop reliability in different vehicles.
In the UK, automobile sector generally assists to perform very well to develop labour
productivity, flexible labour market and collaboration, etc. With the help of research and
development, innovation ecosystem viewed positively by the industry. In UK, there are several
areas that are being successfully develop as less competitive with different elements such as
labour costs, skills, etc. supply chain and government investment also made successfully with
sensitive information (Automotive Sector Report, 2018).
New and innovative approach
With implementation of new and innovative idea, new advertising method successful
implemented. It assists to demonstrate successful brand or product to interact with several
applications and its results. For instance, Volkswagen can use video marketing because there are
70% of people used YouTube as the part of car buying process. It gives car buyers sneak peek
into cars without actually visiting car dealership (Fremeth, Holburn and Richter, 2016).
Therefore, the selected automobile industry can easily deal with social media pages which
includes prime recipient in marketing strategy. With the help of seeking help, dealer and
agencies can add this feature to develop more significant outcomes.
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Plan of implementation with critical analysis and outline challenges with possible outcomes
With respect to implement plan for new and innovative approach, following perspective
can be ascertained:
 Mission: Volkswagen has mission to work together to create effective functioning
network of experts and maintain good relationships among people. Success of whole
group assists to gains several advantages from the community (Wang, Nguyen and Wang,
2016).
 Vision: Volkswagen determines their functions to build right choice by customers with
qualitative products.
 The company adopted strategy to gain more success with leading in successful operations
. To accomplish these goals, board of management consider the biggest change process in
the history. As critically analysis, company face challenge because strategic decisions
and specific initiatives essentially aimed to make safeguarding for long term future.
 Comprehensive transforming core automobile business, rapidly establishing new mobility
solution operations significantly develop efficiency which strengthening innovation
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Illustration 2: New idea of Volkswagen
(Source: New Idea of Volkswagen, 2018)

power. However, as critical evaluation entrepreneurial mindset and approach in the
company required for enriched the lives of million people in all over the world with
products and brands (Mahamuni and Tambe, 2014).
 Successful strategic program also assist to develop specific measures and financial targets
which involve significant efficiency, productivity and profitability. Competitiveness also
successfully develop to accomplish group targets. As critically analysis, Volkswagen
need to implement new group strategy which centres on transforming core activities in
whole business. Making fundamental realignment, sharpen positioning also successfully
develop which focus on most attractive and fastest growing segments. The company also
forecasts sales which increases by 2025. However, as critical evaluation partnering with
regional players develop advanced stage (Fremeth, Holburn and Richter, 2016).
 Further, new competencies also transform with core automobile business to develop
successful results. Group also intend independently which provides necessary resources
to address future topics. Aim is to gain competitive self-driving system which developed
in-house by end of decade. However, as per critically analysis market volume and unit
sales of electric vehicle in upcoming years develop with battery technology.
 Strategic goals: Volkswagen must consider their strategic goal to accomplish desired
level efficiency in successful manner. Therefore, they are able to communicate more
systematic work performance in the different areas of the world.
 Staff engagement: Staff engagement is one of the important perspective which would be
beneficial to organise activities and tasks in appropriate manner. All people are involved
to perform operations and functions.
 Preparation of budget and structure: On the basis of appropriate budget and structure,
Volkswagen must develop plan to implement new advertisement channel.
RECOMMENDATIONS
Recommendations for improvement
Volkswagen is global automobile industry which work and understand and develop
significant advantages. In this regard, several actions intent that are more important to strategy
and employ to recover with block. Actions that are taken by the organisation consider wide range
of industries. Following recommendations can be consider in chosen enterprise:
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 New 2025 strategy and vision: With the help of the new corporate vision, it can be stated
that efficient program consider with reorientation. In order to consider advanced
technologies fixed costs can be cut. Therefore, Volkswagen can increase their investment
in further development. They should focus on strategy through company can make
“together” in effective manner (Chang, Chuang and Lin, 2015). Recruit independent director: Furthermore, existing director of the Volkswagen is
dependent on other people. Therefore, they should recruit skilled and independent
director to make radical changes in direction and revealed for development of mass
market brand. Focus on emerging market: Volkswagen also require to focus on emerging market
trends (Fremeth, Holburn and Richter, 2016). This is because, automobile sector assists to
operate globally which would be beneficial to gain market share and successful
leadership in UK. With respect to leading in automobile manufacturer, two largest
automobile market take position such as USA and China. Focus on passenger safety: In product promotion, Volkswagen should concentrate on
passenger safety which would be beneficial to underlying the importance of the
organisation. Driver safety systems on selected premium models also assists to take
decisions among module that enable to provide technology (Chang, Liao and Wu, 2017).
 Online marketing approach: The chosen organisation considers the latest online
marketing approach which is useful to gain goals and objectives in systematic manner.
With this regard, on the basis of technology improvement, desired level results gain.
CONCLUSION
From the above report, it can be concluded that marketing consider important role in
automobile industry. In this regard, report summarised about Volkswagen and its competitor to
regulate functions in different market. Furthermore, it articulated about marketing strategy that
adopted by both the enterprise. Volkswagen consider own website to promote their products and
services in different areas of the world. BMW adopted marketing mix strategy to regulate
different functions and operations to deal in decision making process.
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REFERENCES
Books and Journals
Chang, P. C., Chuang, C. L. and Lin, W. C., 2015. An examination of the effects of quality on
customer loyalty: the automobile industry in Taiwan. Total Quality Management &
Business Excellence. 26(1-2). pp.203-217.
Chang, W.J., Liao, S.H. and Wu, T.T., 2017. Relationships among organizational culture,
knowledge sharing, and innovation capability: a case of the automobile industry in
Taiwan. Knowledge Management Research & Practice. 15(3). pp.471-490.
Fremeth, A.R., Holburn, G.L. and Richter, B.K., 2016. Bridging qualitative and quantitative
methods in organizational research: Applications of synthetic control methodology in
the US automobile industry. Organization Science. 27(2). pp.462-482.
Gopal, P.R.C. and Thakkar, J., 2016. Analysing critical success factors to implement sustainable
supply chain practices in Indian automobile industry: a case study. Production Planning
& Control. 27(12). pp.1005-1018.
Ha, H.Y. and Janda, S., 2014. Brand personality and its outcomes in the Chinese automobile
industry. Asia Pacific business review. 20(2). pp.216-230.
Hanson, D., Hitt, M.A. and Hoskisson, R.E., 2016. Strategic management: Competitiveness and
globalisation. Cengage AU.
Kale, D., 2017. Sources of innovation and technology capability development in the Indian
automobile industry. Institutions and Economies. pp.121-150.
Luthra, S., Qadri, M.A. and Haleem, A., 2014. Identification of critical success factors to achieve
high green supply chain management performances in Indian automobile industry.
International Journal of Logistics Systems and Management 1. 18(2). pp.170-199.
Mahamuni, A. and Tambe, M., 2014. Green Marketing in Automobile and Ancillary Industry:
Issues and Implications (With reference to study of Units in and around Pune). Journal
of Commerce and Management Thought. 5(3). p.363.
Wang, C.N., Nguyen, X.T. and Wang, Y.H., 2016. Automobile industry strategic alliance partner
selection: The application of a hybrid DEA and grey theory model. Sustainability. 8(2).
p.173.
Online
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Automotive Sector Report. 2018. [Online] Available through:
<https://www.parliament.uk/documents/commons-committees/Exiting-the-European-
Union/17-19/Sectoral%20Analyses/4-Sectoral-Analyses-Automotive-Report.pdf>.
Contributions of the motor industry to the UK economy between 2009 and 2016 (in
1,000,000,000 GBP). 2018. [Online] Available through:
<https://www.statista.com/statistics/299342/motor-industry-contribution-to-the-
economy-of-the-united-kingdom/>.
UK Automotive. 2018. [Online] Available through: <https://www.smmt.co.uk/industry-topics/uk-
automotive/>.
New Idea of Volkswagen. 2018. [Online] Available through: <http://wearegreenspark.com/how-
to-be-better-at-video-marketing-than-volkswagen-viral-video-of-the-week/>.
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