Marketing Essentials: Comparing Marketing Mix Strategies of Volkswagen and Jaguar

This document explores the marketing mix strategies employed by Volkswagen and Jaguar, two prominent automotive brands. It analyzes how each company utilizes the 7Ps of marketing (Product, Price, Promotion, Place, People, Process, and Physical Evidence) to achieve their business objectives. The analysis highlights key similarities and differences in their approaches, providing insights into effective marketing strategies in the automotive industry.

MARKETING ESSENTIALS
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Table of Contents
PART A..............................................................................................................................................3
COMPARE WAYS IN WHICH ORGANISATIONS USE ELEMENTS OF THE MARKETING MIX TO
ACHIEVE OVERALL BUSINESS OBJECTIVES...................................................................................3
PART B............................................................................................................................................10
PRODUCE A MARKETING PLAN FOR VOLKSWAGEN..................................................................10
REFERENCES...................................................................................................................................17
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PART A
COMPARE WAYS IN WHICH ORGANISATIONS USE ELEMENTS OF THE
MARKETING MIX TO ACHIEVE OVERALL BUSINESS OBJECTIVES
The marketing mix of the organisation like Volkswagen, a leading manufacturing company
whose products set a brand model in the automobile industry is articulated. The elements of
the marketing mix can be recorded in order to achieve the business objectives of the
organisation (Massingham and Pomering, 2017). The traces to their group in India launched
their first car named Skoda. Further, it has enriched their product services and presented a new
brand named AUDI and Volkswagen. The company emphasizes their aspects on the basis of the
brand in demand and profitable measures. The highest rated competitor in the Volkswagen is
Jaguar. Jaguar is one of the most renowned car manufacturers through which
acknowledgement of the quality of the products and brand image is maintained. The
organisation has a different division in the cars as a part of their brand. Jaguar Land Rover is one
of the British based divisions of the Jaguars and is multinational car manufacturers.
The marketing mix of the organisations can help in providing a presentable knowledge of
achieving the business objectives (LIU and LI, 2017). They can be compared on the basis of their
elements are as follows:
PRODUCT
The size of the organisation can lead them to be presentable in the market and meet the
expectation and need of the customer with the satisfied range of product. Volkswagen offers
the products like Jetta, Golf, Polo, Sharan, Passat CC, Touareg and Phaeton. The product of the
organisation delivers good services and very few escalating complaints. The products are
promoted on basis of the distribution strategy that figures on the models that are purchased by
the customer (Gupta, 2017). Taste and preference of the customer support the high-quality
cars with the brand name in support.
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The Jaguar car brand is synonymously presenting the premium products. The organisation is
favoured by the people in terms of presenting the vehicles with necessary mileage products.
They also provide the products with very low mileage and running on petrol and diesel. The
maintenance and running cost of their products are comparatively high.
PRICE
Price of the product depends on the size, options, level of exclusivity and power of the engine.
Volkswagen can naturally provide a range of affordable prices through expensive and cost
considerations of the Volkswagen can lead to present a bit costlier product.
Jaguar purely uses pricing strategy as they preserve to target high class and rich or famous
people. The cars of the Jaguar are highly expensive and durable with starting price of one of
their product named XF is about 35,000 GBP, However, depending on the desires the prices are
even added and offers the worth luxurious features (Flanagan, et al.2017). This can, however,
provide the dealership with the customer loan and repayment schemes.
PROMOTION
The assurance to promote the products and brands urge on the use of media like print media
and TVC’s. The surge to develop marketing strategies can help in adoption of the additional
marketing measures like BTL, digital and another source. It strengthens the launch of the
integrated marketing plan. Henceforth, it results in reaching wider customer base for the
Volkswagen Company.
Since the Release of the products of Jaguar in the 40s and 50s, the elegance along with quality
has been maintained by the organisation. The launch of the sports care has indulged choice of
many celebrities and television artist. It uses most of the advertising budgets on billboards and
magazines. Thus, it can be prowling around the customer base that can actually purchase their
products (Tomczak, et al. 2018). Sponsorship deals are the measures through which they
promote their brand recognition and growing the market with the participation of the products
shown. The chances to improve the organisation image can be done through using 100% ATL
promotions and premium targeting of products while promoting.
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PLACE
There are strategic measures which are recorded to set the penetrated market with the largest
feature of accessing the channels. The cars of the Volkswagen are manufactured and
distributed in the key locations with the target market of the region. The company’s market
strategy is to outreach the sale of 300 units of their products in each area. For example- In the
urban areas the Volkswagen outlet and provide the high range of keeping the solid track of
their customer and fulfilling their service needs and other products resourcing through
maintaining their annual maintenance (Gupta, 2017). While measuring to the rural areas the
demand and supply of their products are comparatively high.
Jaguars have launched their 4 distributors in the nearby years. This has outset their exclusivity
and targeting on the massive distribution of the place. The power of the organisation lies in its
product quality and promotional measures which is directly depended on the distribution. For
example- In Asian countries, the company provides the range of top class products. This has
delivered high quality at somewhat affordable prices (Grünig and Morschett, 2017). Jaguar cars
are financially restricted many people as they provide a selective distribution and maintains
exclusivity.
PEOPLE
Volkswagen present the range of the marketing and customer services teams with the skilled
measures. This helps the organisation to make their purchase more experiencing and
rewarding. However, the company has a wide range of the customers which purchases the
products and gets evaluated with other brands. The result of evaluation has favoured them in
terms of providing the high experiences and rewarding purchase. This covers the people
associated with the part of the organisation (Song, et al. 2017). Trained employees and
graduates associated help in catering the customer in effective terms.
The Jaguar believes in building a relationship and maintaining a strong range of the customer
base as a vital part of the business strategy. Training and Development is the heavily invested
area of the organisation through nurturing the new products and skills and talent can be
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promoted. The targeted programs are specifically progressed with the leadership excellence
and assessing the new talents to outreach the business objectives. The organisation holds the
record of appointing the number of graduates and employees for designing the management
base of the organisation strong (Flanagan, et al.2017). Reward and recognition is the most
valued part of motivating their employees.
PROCESS
Volkswagen signifies the process from manufacturing to marketing. It presents the range of
well-structured process that helps in managing the purchase rates from the customer. It has
been measured that the company encounters with online customer service team which take
care of the grievances, feedback and complaints that leads to the positive development of the
organisation appearances.
Jaguar is responsible for conducting high competitive prices and quality products through
different modes such as through online or through nearest product via dealerships and
consumer base (Zhikang, 2017). The finance options that are available can lead to locating their
nearest dealer through booking a test drive and even get quotes or finance options. The
consumer has the preference as the approved and used car is provided with specification and
modification which are required by the people. Thus, providing the organisation with a variable
range of marketing mix prospects such as leading to the training and development.
PHYSICAL EVIDENCE
Volkswagen relates to the physical evidence in terms of providing the design and appearance
with the Volkswagen dealership. It accesses to providing the last impression to the customer by
visiting the place with the sense of trust and comfortless. It has however added advantage
while making the product purchase from the outlet and leading them to visit the place. It
presents the associated measures to enhance the competitiveness and advantage of the
product through generating profit and revenue in positive terms.
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Figure 1: Marketing Mix
Source: Tomczak, et al. 2018
The physical evidence leads to the exchange of goods or services that takes place. The layout,
signage, space, music, decoration and service that are offered can present the customer base
level with quality. Jaguar depends on the brand positioning and dealerships such as state of art
facilities and customer’s quality with the expected high range of prices like Luxury cars. The sell
can propound on the selling low-value products on a large scale. Consumers of jaguar are likely
to have a bad experience than good experiences which can, however, impact on the
detrimental terms of the organisation (Grünig and Morschett, 2017). This can analyse through
predicting any gaps or threats that can cause the organisation to change their prospects.
MARKETING MIX VOLKSWAGEN JAGUAR
PRODUCT High mileage, quality products
such as Touareg TDI, Volvo
Luxurious and sophisticated
brand class with the products
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XCS and BNX X5. ranging in different
categories. Some of the
products are - XF Saloon, F
type Convertible, F Pace
PRICE Exhibiting the average
difference in pricing on brands
are 10% and providing the
high rate of market share for
the products BMW X5 and
Audi Q7
High tech specification
approaches high pricing terms
and providing better services
and positioning in the market
PLACE Use of Selective, Intensive and
exclusive distribution
measures are found in the
Volkswagen
Selective distribution and
maintaining exclusivity is the
symbol used for
demonstration of the Jaguar
PROMOTION Use of ATL media and print
media for promotions, Social
media and integrated
marketing source
Use of Above line Advertising
(ATL) strategy and Below line
advertising strategy (BTL) to
improve their image
PEOPLE High customer services and
trained employees to cater
effectively
Building skills in the
employees with ADVANCE
feature such as upgrading
skills with the help of UK
Armed Forces Corporate
Covenant
PROCESS Handling customer and
recording their feedback and
presenting them solutions are
part of the process
Different measures are taken
to establish a brand image
which is done through-
dealership, online consumer
booking, test drive booking
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PHYSICAL EVIDENCE The test in drive after
presenting design and
appearance has been
provided to the customer
The ambience is promoted
through exchanging goods
through layout, signage, TV
newspaper and services. After
training to the customer their
product is provided.
(Madhavaram, et al. 2017)
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PART B
PRODUCE A MARKETING PLAN FOR VOLKSWAGEN
EXECUTIVE SUMMARY
The market analysis of the Volkswagen is subject to the strategies that are maintained through
presenting the marketing mix in the automobile sector. The current strategies that are adopted
by the Volkswagen in order to improve their brand image and increase in market share, value
creation, profitability and sustainability (LIU and LI, 2017).
COMPANY OVERVIEW
Volkswagen is an automobile company which was established in the year 1930. It has become
one of the topmost groups in the automotive manufacturing world. They cover a conglomerate
range of cars for different demographic groups of customer. Volkswagen has launched their
first product at the time of 2nd World War which has heavy artillery and tanks. The company
provides the potential through which the automotive manufacturer in Europe (Madhavaram, et
al. 2017). The founder of the Volkswagen, Ferdinand Porsche has suggestively designed
affordable cars and different prototype features like KdF-Wagen which has expanded its
operations and presents the products through being most famous among other automotive
company.
CURRENT MARKETING SITUATION ANALYSIS
The situation of the Volkswagen is assisted with an internal and external measure of the market
situation. It has been recorded that company had a strong business model through which they
sustain business and turbulent features over years.
INTERNAL ANALYSIS- VALUE CHAIN ANALYSIS
Volkswagen can outset their activities on the basis of the market conditions. The primary
activity of the internal analysis is-
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 Inbound logistics- Volkswagen Group enhances the qualitative supplier processes. The
suppliers provide all parts in the manufacturing plant of the organisation. The materials
are generally stored in the big hubs (Grünig and Morschett, 2017). Further, it has
maintained the record of deliverables under Just-In-Time and is penalised through a sort
of deliveries that are not provided in time.
 Operations- The processing plant of the organisation consist of 1500 metric tonnes of
sheet every day. The sheets are cut and pre-stamped through special plates and are fully
galvanised. Later the production of the new and more flexible technologies helps in
meeting the demands of the people and even building the same line with major
modifications. After the pre-treatment folds and joint sealed each car can present
protective layers which are applied to the sealants. There are different features and
engines that are precisely practised through gaining the rigorous measurements,
adjustments and performance tests that are carried out to ensure the quality of the
customer.
 Outbound Logistics- Vehicle logistic plan helps in providing the support to the
production and controlling the transport of the finished goods (Ma, 2017). This has
affiliated with the Auto port controls of import and export of terminal for all brands in
the port. It also drives the features that operate on associating the drivers themselves.
 Marketing and Sales- The sale of the Volkswagen helps in achieving greater customer
satisfaction through developing global 3600 marketing concepts to improve brand and
its products
 Service- The sale has been timely assisted with maintaining the operation data records
and also conducting a workshop to upraise the customer satisfaction. This has also
intervened through proactive maintenance management and serving high-quality
specialist tools
 Procurement- All employees are rewarded on the basis of generating opportunities in
the new market and shaping the future prospects of the company (Varshney and
Sharma, 2018). Volkswagen depends on FAST (Future Automotive Supply
Tracks)measure to procure their services
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 Human resource management- Human resource management can draw attention to the
recruitment process. This covers the applicant's details in the form of online CV. On the
basis of which selection of the candidate is approved and are trained under the
assessment centres for a particular department and later on basis of the skills, they are
elected through interviewing them. A final decision is made by the Volkswagen head.
 Technological Development- There is a number of technologies measured by
Volkswagen (Patil and Bach, 2017). Among them, Electric Research Laboratory (ERL)
providing traffic jam pilot, autonomous parking, steering mounted touch pads,
connected cars, iBeetle App, photo souvenir, Smart Accessories are approached
 Firm Infrastructure- different criteria are set through which the infrastructure of the
organisation is maintained (Massingham and Pomering, 2017). They are recorded in
water and sewage management, waste management, chemical disposal handling and
others.
Figure 2: Volkswagen Value chain analysis
Source: Flanagan, et al.2017
EXTERNAL ANALYSIS OF VOLKSWAGEN
External factors that are associated with the environmental concern and management concern
of the organisation are undertaken through PESTLE analysis. It can be recorded as:
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POLITICAL
Political analysis of the
situations that are faced by
the organisation is very
difficult as the political
stability of the different
countries are different (Song,
et al. 2017)
ECONOMIC
Volkswagen contributes in
generating high national
income and increase in GDP It
also helps in dealing with
uncertain conditions of the
country where difficulty in
handling range of brands
under low segment (Song, et
al. 2017).
SOCIAL
Volkswagen provides
employment to thousands of
people directly or indirectly.
Total 5,10,000 people work in
the organisation through
which level of society and
change in the way of people
living has been associated (LIU
and LI, 2017)
TECHNOLOGICAL
Different types of
technologies are used by
Volkswagen for production of
the strong cars like BMW,
Mercedes and others
LEGAL
The intellectual property law,
competition law and
consumer protection law
along with taxation and
emission laws are all managed
by the organisation in order to
upgrade the functional status
of the Volkswagen (LIU and LI,
2017)
ENVIRONMENTAL
Car Manufacturing has a big
impact on the environmental
features as the uses of raw
material affect the
environmental conditions and
emission of the air and
wastage thrown in the
surrounding. Therefore, it
must be protected by
investing in R&D department
development.
SWOT ANALYSIS
STRENGTH
 Provides a wide range of cars
 Has a high brand presence
 Use of hybrid models for making cars
WEAKNESS
 Limited market share result in lower
growth due to intense competition in
the market
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and motorsports
 have a large customer base
 Excellent marketing base (Gupta, 2017)
 Fraud cases and negative controversy
can lead to the emission of cars which
cause a global loss in brand image
OPPORTUNITY
 Create long-term relations with other
manufacturers
 Entering into different markets by
offering cars and other attractive
features (Zhikang, 2017)
 Increasing purchasing power of people
THREATS
 Increase in fuel cost leads to a
reduction of the purchasing cars
 Innovative features launched by other
competitive companies affecting
market share (Varshney and Sharma,
2018)
 Disproportionate in following the
regulations and policies
OBJECTIVES
The purpose of introducing the marketing plan is generating a report on the current features
that are required to improve the market share, growth and development of the organisation.
The data which is gathered is used to increase the productivity and sale of the product in the
market by 10 million vehicles per year.
STRATEGY
Pricing strategy and Distribution Strategy is the widely used strategy by Volkswagen as the ideal
positioning of consumer’s needs and criterion for choosing vehicle can associate with consistent
pricing measures. Volkswagen has been losing its grip in the international market. The shared
market perceives the value of the car as overpriced comparative to other cars present in the
market (Patil and Bach, 2017). Therefore, a rigorous use of recovering can result in a layoff and
shut down a measure which can be recorded. For maintaining their market shares high it
necessary to provide a quality product at premium prices. This can be maintained through
increasing production capacity in order to meet the demand of supply and increasing the
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customer satisfaction. Further, it also adds an increase in production level by keeping operating
cost low.
SEGMENTATION, TARGETING AND POSITIONING (STP)
Volkswagen can incorporate different strategies to cover different age demographics and
presents their pricing and other needs (Zhikang, 2017). The vehicles that are produced can set a
product market matrix that divides the quality of work. They can be monitored through:
Segmentation
 Focus on the essential feature that is specifically used by the consumer such as the
requirement of LED headlights, Bluetooth enable system and another status
differentiator
 Designated model as the different priority of the consumer for example- a priority of
speed and better running horsepower capacities
 Consumers such as retired couple are less emphasis on speed and they sleek on the
design their target market is different
 Married couples and children look for the safety feature
Target market: Targeting on young and professional singles aged between 18-24 years old.
On the basis of aforementioned details of the target market and their segmentation is
positioning of the organisation is maintained (Madhavaram, et al. 2017).
Positioning: For positioning, the organisation has several competitors with automotive arms
such as Audi and BMW, Scania and Skoda are different level vehicles which are supplied by
Volkswagen. These vehicles propose the biggest sale in enduring the Volkswagen’s presence.
The main policy that has been focused on the organisation is Sustainability and supporting
educating communities such as protection of the environment. The use of the Blue Ocean
technology to reduce the size of engines and making it operate able either by petrol or diesel
can be recorded by positioning them above the existing market (Goffin, et al. 2017). It is
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necessary to ensure the safety and endurance of the quality and durability and comfort of
ergonomic design with the attractive and modern look.
TACTICS AND ACTIONS
Recently it has been experienced that the customer satisfaction and demands of the consumer
are not met. This can give rise to point on the different tactics which are to be formulated in the
maintaining the records of the organisation. The use of the hybrid elements and low weighted
engine for increasing the speed of the car must be approached. This requires support from the
governmental bodies and investment in the R&D department in order to satisfy the customer
preferences (Song, et al. 2017). Following different legal and governmental policies can help
them in maintaining the desired output measures of the organisation.
BUDGET
It is necessary to spend an estimated expenditure of around $120 thousand for the new plan.
The necessity to invest in the upgrading the technological sources can account for providing
millions of new cars every year. An estimate expenditure of $25 thousand dollars for upgrading
technology is required. Other than this, $50 thousand dollars are required for promoting and
designing the outlets of the cars (Grünig and Morschett, 2017). Recruitment of the new
employees to increase the sale encounters with the investment in the training and
development programs through which employees and other efficiency measures are recorded.
CONTROL
Regular monitoring of the resources and evaluation and checking of the implementation of the
designed feature is recommended. It is necessary to keep a check on the marketing plan
through which adhere to the budget can be known (Tomczak, et al. 2018). It is also required to
keep a check on the contingency and flaws from our part. It is necessary to meet the need of
the customer.
CONCLUSION
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Thus, it can be concluded that Volkswagen uses the marketing tactics by using the principles of
marketing. It enhances their brand image and increases the ratio of the sales. Production of the
new cars sets a perfect blend of the tools of the marketing mix. The quality and prices are the
most effective means through which the customers are approached which is achieved through
rigorous updating of the change in the market conditions. However, this helps in reduction of
the threats and increase in production and meeting the needs of the customer with the
development of the new plan if followed effectively.
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