Volvo's Brand Strategy and Marketing

This assignment delves into Volvo's brand strategy and marketing initiatives. It requires you to examine Volvo's positioning in the global car market, analyzing its core values, target audience, and communication strategies. The analysis should also encompass Volvo's recent successes, challenges, and future prospects. Consider factors like Geely's acquisition, design trends, and the evolving automotive landscape.

Running Head: Marketing
Marketing
Volvo Company

Marketing 1
Contents
Introduction.................................................................................................................................................1
Market Segmentation and target market product.........................................................................................1
Segmentation...............................................................................................................................................1
Target Market..........................................................................................................................................2
Value Proposition........................................................................................................................................2
Product Strategy..........................................................................................................................................3
Promotion Strategy......................................................................................................................................4
Place Strategy..............................................................................................................................................4
Pricing Strategy...........................................................................................................................................5
Effectiveness of Marketing Mix in positioning strategy of Company..........................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
The purpose of this task is to provide a brief overview about the marketing techniques which the
organization Volvo shall use in order to promote their product in the target market. Volvo is a
well renowned company which is based in trading automobile vehicles in the market. Trucks,
buses, marine, construction equipment, industrial engines etc.; all types of machines are supplied
by the company worldwide. It was founded in year 1927 by Assar Gabrielsson and Gustav
Larson. Volvo has high revenue of 301.914 billion kr which shows that the company is running
their business in large scale. Further the company wants to introduce their product Volvo XC 90,
2017 model in the market (Volvo 2018). So, the below mentioned task discusses about the
marketing strategy and the target market which the company shall select to adequately position
their product in the target market.
Market Segmentation and target market product
Segmentation
Segmentation refers to the process of creating segments in the market on the basis of many
factors which create differentiation in choice of people for a particular product. It is an activity
which is referred as general brainstorming activity. Under this activity on the basis of
geographic, demographic, psychographic and behavior factor, the customers are segregated and
then targeted in the market. Further the basic motto of the company to segment their customers
so as to create stronger brand name, greater market share and cross selling solutions in the
business process of the company (Volvo 2018). Segmentation of the Volvo XC 90, 2017 model
is discussed below:
Demographics: Under this aspect the company identified the customers on the basis of age,
gender, ethnicity, culture, education etc. factors. By looking at the sagacity lifestyle model, the
company targeted the pre-family and family. This helped the company to provide services to the
company who actually wised for it.

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Psychographic: Under this segmentation the company evaluated the lifestyle of the customers.
This helped them to place their product correctly in the market by identifying the actual
customers of the company. The company preferred to sell the products to the people who have
high standards of living and likes buying luxury cars (Volvo Car Group 2018).
Behavioral: Under behavioral segmentation, the company analyzed the mindset of customers
while purchasing the products of their company. On the basis of attitude, Volvo targeted the
customers who prefer purchasing cars to fulfill their esteem need and create position in the
society. So, basically depending upon the attitude of people the company segmented them of the
basis of their needs to purchase the car (von Bismarck, and Zheng 2016).
Geographic: Lastly, geographic segmentation divides the market on the basis of geographical
division and environmental specification. Most products of the company are sold in UK, Western
Europe and Germany. So, the company shall initially launch their product in one of these
markets so that the product does not face failure in its starting days.
Target Market
The target market selection is the following step of the segmentation process. The company shall
target the customers who are fit for the company to create the brand value; as ultimately the
reviews of customers only will create the goodwill of the product in the market. Further Volvo
shall target the market which is most profitable for them and provide long-term value addition in
the product. Thus, in this way target market selection will help he company to increase the sales
and make repetitive sales in the target market (Liu, et. al., 2017).
Value Proposition
Value proposition refers to the process of innovating the product in such a way that its value is
increased in the eyes of prospective customers present in the market. Further in context to
launching the new model of Volvo XC 90, the company added that value in the product by
reducing the barriers which people used to face in the old models (Evans 2013). Further the
value addition details in the product are discussed below:
 The XC 90 model SUV truly fits the reputation of the company and is mainly designed
for the households who value safety in the vehicles. The company clearly target the

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customers who believe that safe riding is their utmost priority. Thus the product of the
company is designed in such a way that it increases the safety level of the customers. The
NHTSA report stated that the ratio of rollovers in SUV is comparatively two to three
times higher as compared to other passenger vehicles. This results in injuring around 27.6
per cent of people than expected (Biswas, Mukherjee, and Roy 2014).
Thus in accordance to which the company implemented a Roll Stability Control System
for the new models produced for SUV XC 90 cars. This process helped the reducing the
roll over by designing the product in such a way and using electronic gyroscopes along
with computerized breaking/suspension control. Also the vehicle was further tested by
professional working in the automobile industry who said that they tried hard to roll over
this vehicle but it didn’t happen (Saridakis, and Baltas 2015).
 Further in order to improve the quality services provided by the company, the engineers
looked at the fatalities which can occur with the car. After testing the car on road, the
engineers designed their vehicle to match with crumple zone. And they also added details
in the product while considering low profile of the passengers as well.
 Further comfortability of the customers is also preferred on highest priority by the
company. So, the SUV is designed with extra seating capacity to carry more people in the
vehicle. Also Volvo realized that while travelling some passengers feel uncomfortable
while sitting in the car. So, with respect to that the company introduced third side row
airbags, crumple zone and seat specially designed by children. Further ultra-luxury
standards are being followed by the company which gives pleasant experience to the
customers while riding and adequate safety measure as well. Thus, in this way this value
addition in the product will help the company to target the customer and to the customers
to gain better experiences as well (Oswald, and Oswald 2015).
Product Strategy
The product of the company has created an identified position in the market. This position is
created by adding value in the product according to the preference of customers present in the
market. So, the product strategy of the company Volvo explains the management introducing
new and efficient techniques in the product so that product differentiation is created in the
market and it is highly demanded by the customers as well (Lindgren, and Åkesson 2017).

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Further the product strategy of the company states that they aim on creating diversification in the
product. Thus they have manufactured all type of product starting from trucks to passenger cars
as well. And the company is now majorly famous for producing product which are safe and have
classic style as well. The most popular segment of the company is its Sedan class in SUV
segment. The aim of the company is to manufacture big boxes on wheel with special features as
well (Urde 2016).
Promotion Strategy
The company has promoted itself along with human-centric brand strategy stating “Designed
around you” which tells about future plan and direction which the company is aiming to develop
it brand. The most important part of the process of promotion in Volvo Company is the
establishment of classic design along with world class safety. As it is know that the company is
famous for providing safety to the customers, so the management uses this feature as there
branding and promotion strategy (Olleros 2017). Apart from that the company has also
introduced mobile application in three categories that are product app, owner apps and campaign
apps. These there app are differently used by people according to their requirement. Also Volvo
uses the social media tools and techniques to promote their product online as well. Both online
and offline measure are adequately used by the company, online through social media apps and
offline by the way of magazines, newspapers etc. The company promotional strategy is used as
Volvo way to market feature. This strategy has its focus on areas like digital leadership,
dealership, services and marketing tools (Hjalmarsson, Juell-Skielse, and Johannesson 2017).
Place Strategy
Volvo is a leader in the automobile industry, and has many segments and product lines in which
they operate their business activities. In shall also be noted that the products of the company are
placed in almost every part of the country. The company has high international market share as
well which is up to 20% of the total market value. Further the company has its office in all big
cities and is managed by branch manager. The activities of the company are initiated on large
scale so with respect to that all the activities are segregated accordingly. Every branch has their

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own manager and management team to initiate sales and manage business activities as well
(Urde, and Koch 2014).
Pricing Strategy
The pricing strategy of the new and efficient product served by Volvo is price sensitive along
with product efficient. The company is engaged in providing premium products to the customers
in the market. Volvo uses optimal pricing strategy to promote their product in the market, they
differentiates the market by segmenting the customers according to their taste, preference and
lifestyle. Thus, the company produces many brands and categories of products according to the
demand present in the target market. Further the company is famous for providing premium
quality high ended SUV cars between the price range of $25,450 and $40,800 (Volvo 2018).
Effectiveness of Marketing Mix in positioning strategy of Company
The process of marketing mix is used in an organization so as to gain information about the
product and the marketing strategies which the organization shall use in order to promote the
product in the target market. Talking about the effectiveness of the marketing mix techniques
used by the company Volvo, it shall be noted that this process helped the company to promote
their product in the adequate market. As XC 90 is premium product, thus the marketing
techniques helped the company position the product on the high quality premium product market
only. Further the marketing mix also helped Volvo to create competitiveness in the target market
and attract more and more customers (Fang, and Chimenson 2017).
Conclusion
Thus in the limelight of above mentioned events the facts that shall be noted are that the new
model of Volvo XC 90 SUV is highly efficient and competent and is expected to gain the market
share as well. In the above mentioned task, segmentation process helped the company to analyse
the target market which shall be targeted by the company to initiate sale of the product in the
market. The marketing mix evaluates the marketing strategy which shall be initiated by the
company to their basis of the product, price, place, promotion. The report adequately fulfils the
requirements of the task.

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References
Biswas, A., Mukherjee, A. and Roy, M., 2014. Leveraging Factors for Consumers’ Car Purchase
Decisions-A Study in an Emerging Economy. Journal of Management, 2(2), pp.99-111.
Evans, M., 2013. Why Value Propositions Are Important (And How To Create Them). Viewed
on January 8, 2018 from < https://www.forbes.com/sites/markevans/2013/10/31/why-value-
propositions-are-important-and-how-to-create-them/#6adde04616c0>
Fang, T. and Chimenson, D., 2017. The internationalization of Chinese firms and negative media
coverage: The case of Geely's acquisition of Volvo Cars. Thunderbird International Business
Review.
Hjalmarsson, A., Juell-Skielse, G. and Johannesson, P., 2017. Design Business Model. In Open
Digital Innovation (pp. 117-122). Springer International Publishing.
Lindgren, M. and Åkesson, T., 2017. Long-term customer relationship: A study on how to
achieve long-term customer relationship in the car retail sector.
Liu, Y., Li, K.J., Chen, H. and 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), pp.83-102.
Olleros, F.X., 2017. Business models in emerging industries: some lessons from the'Better
Place'electric-car debacle. International Journal of Technology Management, 75(1-4), pp.193-
207.
Oswald, L.R. and Oswald, L., 2015. Creating value: the theory and practice of marketing
semiotics research. Oxford University Press, USA.
Saridakis, C. and Baltas, G., 2015. Modeling Country-of-Origin Effects in the Car Market:
Implications for Pricing. In Ideas in Marketing: Finding the New and Polishing the Old (pp. 534-
537). Springer, Cham.
Shields, J., 2017. TP: International Business Marketing and Cultural Analysis of Sweden (TRIP).

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Urde, M. and Koch, C., 2014. Market and brand-oriented schools of positioning. Journal of
Product & Brand Management, 23(7), pp.478-490.
Urde, M., 2016. The brand core and its management over time. Journal of product & brand
management, 25(1), pp.26-42.
Volvo Car Group, 2018. Volvo Cars’ 2016 sales hit new record. Viewed on January 8, 2018
from < https://www.media.volvocars.com/global/en-gb/media/pressreleases/202294/volvo-cars-
2016-sales-hit-new-record>
Volvo, 2018. Our Company at a Glance. Viewed on January 8, 2018 from <
https://group.volvocars.com/company>
Volvo, 2018. Volvo Group. Viewed on January 8, 2018 from <
http://implementconsultinggroup.com/our-expertise/our-clients/volvo-group/>
von Bismarck, G. and Zheng, Y., 2016. Geely: A Case Study on the Trend Following Volvo-
Owner. In Multinational Management (pp. 33-54). Springer International Publishing.