Marketing Plan for Volkswagen Group

This report provides a marketing plan for Volkswagen Group, including an analysis of the organization and industry, 5Cs framework, market intelligence and research, and marketing strategies. The report discusses the mission, vision, and core values of the organization, as well as its strengths, weaknesses, opportunities, and threats. It also covers the company's key resources, collaborators, customers, and competition. The report concludes with a discussion of the company's target market, value proposition, and positioning statement.

Running head: Marketing
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Table of Contents
Introduction.................................................................................................................................................3
Issue 1: Organization and industry analysis.................................................................................................3
Issue 2: 5C’s Volkswagen Group..................................................................................................................4
Company.................................................................................................................................................4
Strengths.............................................................................................................................................4
Key resources..........................................................................................................................................4
Weaknesses.............................................................................................................................................4
Opportunities...........................................................................................................................................4
Threats.....................................................................................................................................................5
Collaborators...........................................................................................................................................5
Customers...............................................................................................................................................5
Competition.............................................................................................................................................5
Context....................................................................................................................................................5
Issue 3: Market intelligence and market research.......................................................................................6
Issue 4: Developing marketing strategies....................................................................................................7
Choice of target market...........................................................................................................................7
Value proposition....................................................................................................................................8
Positioning statement..............................................................................................................................8
Issue 5: Developing marketing tactics.........................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
The main purpose of this report is to prepare a marketing plan for Volkswagen group who
provides various types of the automobile products and vehicles to the customers. Volkswagen is
the largest German automakers in the global market. The mission, vision, slogans and core
values also have been explained in the task. Along with this, the report also explains 5Cs
framework and segmentation, targeting and positioning strategy of the organization. STP
strategy plays an empirical role to increase customer satisfaction with reducing the ample of risks
and challenges. More detail of the task is discussed below.
Issue 1: Organization and industry analysis
Volkswagen group is one of the multinational German automakers which was incorporated in
28th May 1937. The company designs and manufactures commercial and passengers vehicles,
engines, motorcycles and turbomachinery and renders related services such as leasing, financing,
and fleet management. It is one of the biggest automakers measured by sales. There are approx
642,292 employees working in the organization. The company is divided into two sections such
as financial service division and automotive division. The firm is 100 production facilities
operating and managing in 27 countries in across 153 countries. It is stated that the company has
approx 342 subsidiaries (Britannica, 2018).
The mission of the firm is to render attractive, safe and environmentally sound vehicles which
can compete in an increasingly tough market and established standards in their respective class.
The vision of the firm is to be the no.1 car seller in volume overtaking Toyota by 2018. Another
vision of the organization is to make this world a mobile sustainable place with access to all the
citizens (David, 2011). It is noted that the company’s mission and vision may affect the product
orientation in the marketplace. They are trying to provide happy life to the customers across the
world. It uses unique and effective policies to be a leader in the international market. It has been
noted that the organization is working on the turbo machines, engines, automotive and
motorcycles vehicles. The company products include passenger cars such as Porsche, Bugatti,
Audi, Volkswagen etc. The firm also sells its products under the Ducati brand name. The firm
uses positioning strategy to sell the premium products in the competitive market. The brand
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focuses on the development of long term as well as medium term concepts to ensure the
competitiveness and sustainability (Beattie and Smith, 2013). The customer oriented,
competitiveness and efficiency product comprises the portfolio planning which encompasses the
planning, positioning and system standards. The pricing strategy is used by the firm to explore
and flourish the business activities and operations in the Chinese market. It has been noted
Volkswagen group focuses on the branding and pricing strategy to strive with competitors. “Das
auto” is one of the significant and effective slogans of the Volkswagen group (Volkswagen,
2018).
Issue 2: 5C’s Volkswagen Group
Volkswagen is one of the biggest leaders in the world. The 5C model is initiated and used by the
firm to meet the long term goals and objectives and overcome the competitors in the market
(Vierimaa et al, 2012). The 5Cs model for Volkswagen group includes the following:
Company
Strengths
 Volkswagen group provides wide range of cars to increase and enhance the customers
across the world.
 It is one of the biggest brands in the world.
 Volkswagen is the largest car manufacturers in the marketplace.
 The firm employs approx more than 350,000 employees.
 Hybrid cars are also made by the company. The firm has rewarded for its cars and
services to the consumers.
Key resources
It has been noted that Volkswagen uses various resources to make a dynamic and unique image
in the eyes of the customers. The key resources and capabilities include tangible, intangible and
human resources. It is stated that the company also uses leadership styles, and maintain dynamic
culture at the workplace. High quality of products, lower pricing strategy, differentiation strategy
and product development strategy are also included in the key resources ( Johnson, 2016).
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Weaknesses
 High and intense competition in the market.
 Fraud and controversy also affects the brand image of the company and Volkswagen
group has to bear great loss in the market.
Opportunities
 The company provides unique vehicles to maintain a strong and unique relationship with
customers in the market.
 Rising purchasing power of the people.
 The company can enter in the different market by rendering cars with different features
and attributes.
 Continuous improvement and innovation is done by the organization.
Threats
 Intense and high competition in the international market.
 Rising fuel costs can reduce and eliminate the purchase of cares.
 The government regulations and policies also affect the success and growth of the firm.
Collaborators
It has been noted that key partners play a significant role in each and every company to explore
and expand the business globally. The main suppliers of Volkswagen group include Dr.
Schdneider holding GmbH, Durr Akteingesellschaft, Bridgestone Corporation and Fritz
draxlmaier GmbH& Co. It has been noted that suppliers help to maximize the profitability of
Volkswagen group. It also helps to gain competitive advantages in the marketplace.
Customers
The success and growth of the firm depend on the potential and effective customers. No
company can survive its business without identifying the target audience in the global market.
The young executives, urban families and businessman are included in the target market of
Volkswagen group. The organization designs and manufactures its products after considering
and analyzing the needs, tastes and preferences of the consumers worldwide. Appropriate prices
of the products are set by the firm to maximize the profitability and sale in the competitive
market.
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Competition
It has been noted that competitors may affect the profitability and sustainability of Volkswagen
Group adversely. Honda motors, Fiat, Nissan motors, Toyota Motor Corporation, Tata motors
and Skoda Auto are considered the main competitors of the Corporation. It is stated that
Volkswagen group needs to focus on the plans, strategies and policies of the competitors to cope
with the competitors globally.
Context
Political factors: It is analyzed that political factors directly affect the operations and activities
of the firm. This is because the decisions made by the government and higher authorities will
influence the daily lives in the form of regulation and policy.
Legal factors: Different countries follow different rules and regulations. Therefore legal factors
shall be taken into the consideration when initiating the new business operation and activities.
Technological factors: Latest and innovative technology helps to company to meet the long
term goals and objectives in the international market. Technology is essential for the company to
carry out the business operations in a hassle free manner.
Socio-cultural factors: The socio-cultural factors include lifestyles, age, behavior, custom,
values and culture of the people that have direct impact on the productivity and selling process of
the firm. It is noted that the firm should focus on the socio-cultural factors to become a strong
and effective leader in the rivalry market.
Issue 3: Market intelligence and market research
After the various researchers, it has been analyzed that market research and market intelligence
provides information about the 5Cs framework. Market intelligence is done by Volkswagen
group to analyze and evaluate the demands, needs and requirements of the customers. Therefore,
it provides various types of information related to the requirements and preferences of the
consumers (Ryan, 2016). Along with this, market intelligence also helps to know and identify the
major competitors of the market that can affect the long term mission and vision of the firm. By
using market intelligence strategy, Volkswagen group has been able to analyze and determine the
collaborators, customers, and competitors of the market (Heger and Rohrbeck, 2012). Along with
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this, the organization can know and measure the issues and challenges of the market by initiating
the market intelligence strategy. It has been noted that ample of data and information related to
the external and internal environment can be collected by Volkswagen group to make a strong
financial position in the global market. This strategy also helps to analyze the opportunities and
threats of the market. By using market intelligence and market research, the company has been
able to understand and identify the plans, actions and strategies of the rivalries furthermore; it
also provides information about the prices and products of the competitors (Baker, 2014).
On the other hand, the company uses market research in order to reduce and eliminate the risks
and challenges of the market. It is revealed that market research is considered the organized
effort to collect information about the target markets or customers globally. It is one of the
significant and vital components of the business strategy (Lovelock, 2011). This analysis also
protects the firm from future risks and challenges that can hamper the efficiency and
effectiveness Volkswagen group. It is analyzed that market research guides and assist the
company’s communication with current and potential consumers globally. It also helps the firm
to identify the new opportunities in the global market. Future risks and challenges can be
identified with the help of market research and market intelligence thus; it minimizes the
potential risk of the market. It also helps to build and develop dynamic reputation in the
international market (McQuarrie, 2015). No company can grow and survive its business
activities without conducting marketing survey and research. Before implementing the business
activities and operations, Volkswagen needs to focus and determine the various macro
environmental factors such as political, legal, Technological and social factors. For this purpose,
pestle analysis is done to analyze and evaluate the external factors effectively. In this way, it is
assumed that market research and market intelligence provides information about the 5Cs
framework of the firm. It has been stated that company should use effective and unique market
research and market intelligence strategy to grow and explore the business widely (Babin and
Zikmund, 2015).
Issue 4: Developing marketing strategies
From the above mentioned analysis, it is stated that Volkswagen group is one of the biggest
players in car manufacturing industry. Although, the firm is growing its business operations and
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activities in an effective way but still it is smaller than other competitors in Australia. It has been
studied that Volkswagen needs to build and enhance its marketing strategies to beat the
competitors worldwide. Various marketing strategies are initiated by the firm to make a strong
and unique goodwill in the global market. The marketing strategies include target marketing
strategy, value proposition and positioning strategy. Some of the points that need to be taken care
by the organization while creating marketing strategies are discussed below (Osterwalder et al,
2014).
Choice of target market
Volkswagen is one of the oldest car automakers who design various types of vehicles to capture
the entire market. The company is delivering its vehicles products with innovative features to the
target audience. Innovative and new products are introducing by the company to augment and
develop its business activities worldwide (Crouch and Housden, 2012). It has been revealed that
the company segments its target audience after considering the behavior, lifestyles and age group
of people. The market is divided by the firm after focusing on the various areas such as
demographic, behavioral, geographic and psychographic. Under demographic basis, the
purchasing power of the target audience is taken into consideration while selling the products of
the firm. Volkswagen group focuses on the youngsters, urban families and businessman to reach
its maximum level of profit in the competitive market. Mostly, young executives prefer to buy
the Volkswagen cars. Thus, the organization identifies and focuses on the demands and tastes of
youngsters in order to earn returns and revenue. In today’s era, the Corporation is using unique
and dynamic segmentation strategy to meet the needs and requirements of the target market.
Besides this, the firm also concentrates on the prices and features of the vehicles to maximize the
profitability and market share (Schlegelmilch, 2016).
Value proposition
Value proposition is a process explains that how the company satisfies the needs, requirements
and wants of the target market. Value proposition provides clear direction to the customers in
order to make unique and effective decisions regarding products and services. Value proposition
is a key to validate Volkswagen business and process. With the help of value proposition, the
company has been able to improve the understanding and engagement of the customers. In
addition, the organization increases effectiveness and efficiency of the marketing by using value
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proposition. Value proposition also generates the greatest and higher results and outcomes
(Lindič and Marques da Silva, 2011). This strategy also helps the customers to measure and
identify the features and qualities of the products that are being sold by the company. It is seen
that Volkswagen uses effective and unique leadership styles to create a good value in the eyes of
the target audience. By using value proposition, the organization has been able to fulfill the
desires, expectations and wants of the suppliers, consumers and leaders. Lower prices of vehicles
are set by the firm to attract and retain wide range of consumers in the global market. Market
penetration and product development are done by Volkswagen group with the help of value
proposition. In this way, it is noted that Volkswagen group uses unique and attractive value
proposition to explore and expand the business operations in the international market (Avraham
and Ketter, 2012).
Positioning statement
Positioning plays an empirical role in analyzing and identifying the demands and expectations of
the consumers. Positioning strategy is used after measuring the tactics and plans of the
competitors. This strategy implies that how vehicles can enhance and maximize the level of
satisfaction of the customers. In the competitive market, each and every firm tries to improve and
enhance the positioning strategy to improve the morale of the consumers( Zott, Amit and Massa,
2011). This strategy also helps the organization to grip the large market worldwide. It is analyzed
that Volkswagen group uses positioning strategy to maintain a string goodwill and reputation in
the minds of the target market. To position the products, the organization focuses on the quality
and aspects of the vehicles. It will also help to generate higher profits and returns within the
organization. By focusing the above mentioned factors of marketing plan, Volkswagen group can
reduce the risks and formulate its success and growth that helps to gain competitive benefits in
the future (Lovelock, 2011).
Issue 5: Developing marketing tactics
The marketing mix is essential to grow the operations and activities of Volkswagen group. The
marketing mix includes 7Ps that have been stated below (Kapferer, 2012).
Product: It is noted that Volkswagen Company should product strategy serve ample of the
customers. The company should offer several vehicles to the customers in different countries.
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The products of the company include Volkswagen passat, Volkswagen Polo, Volkswagen
sirocco and Phaeton. The product strategy helps to company to make a unique and strong
reputation in the global market. The company should focus on the quality, features, comfort
zone, options, engine configuration, size and level of localization in order to distinguish its
products against the competitors (Rudzinski and Uerz, 2014).
Price: It has been noted that Volkswagen is one of the leading and growing automobile
manufacturers in the international market. It is analyzed that prices of Volkswagen is higher as
compared to the competitors (Buiga, 2012). Psychological pricing shall be used and initiated by
the firm to further its pricing objectives. The pricing strategy of the firm is based on the demand,
competition, segment and features offered in the vehicles. To build a image in the marketplace,
the organization must fix appropriate prices of the products to serve and help the target audience.
It has been measured that the company should use effective and suitable pricing strategy to
attract and manage the large number of customers (Moriarty et al, 2014).
Place: It is stated that place strategy helps the company to get higher results and outcomes. The
company provides effective and unique distribution network to initiate the business actions in the
international market. No company can attain success and profitability without deciding the
unique place in the global market. It is analyzed that the company setup a new plant for $140
million towards the manufacturing of the wider transport vehicles and multivans (Achtenhagen,
Melin and Naldi, 2013).
Promotion: This strategy plays a vital role to maximize and increase outcomes and returns of
the firm effectively. For this purpose, advertisement, promotional and marketing campaigns shall
be used by the company to attract the customers for buying the products and services. It is noted
that higher quality as a trait of all of its car in the rivalries market. The company should also use
to social media and online promotional tools to maximize the enhancement and operations of the
firm. The company should differentiate its promotion strategy and product from the rivalries
(Uggla, 2014).
People: It is analyzed that people is considered the backbone of the firm. The company cannot
attain success and growth without analyzing and determining the target audience. Potential and
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ineffective people also help the firm to manage the workforce in a hassle free manner (Hu et al,
2012).
Physical evidence: The physical evidence and feedback shall be collected by Volkswagen group
in order to determine the quality and features of the firm. Documentation shall be done by the
organization to promote and encourage its products globally (Strauss & Frost, 2016).
Conclusion
On the above mentioned analysis, it has been concluded that Volkswagen is one of the biggest
players that renders vehicles and some other products to the customers. The paper explains the
mission, vision and core values of Volkswagen group. The above mentioned analysis shows that
how value proposition helps in generating and maintaining the level of outputs of the firm. It
tells that how the organization uses marketing strategies to fulfill the demands and requirements
of the customers. It also explains 5Cs framework to get information and facts at the workplace. It
is analyzed that the firm should also focus on the marketing strategies to overcome competitors.
By using innovative and effective strategies, the firm has been able to overcome the competitors
in the international market. At the end, some effective and unique recommendations have been
given by the company to find out the right and appropriate candidates.
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