Marketing Strategy of Volkswagen: Segmentation, 4 P's, and SWOT Analysis

marketing strategy

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Contents
Introduction...........................................................................................................................................3
Marketing Segmentation.......................................................................................................................3
Elements of marketing mix (4 p’s)........................................................................................................4
SWOT Analysis.....................................................................................................................................7
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11

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Introduction
Volkswagen group is the largest Europe automaker group which handles Audi, Scania,
Porshe, Ducati, Lamborghini, Seat, Bentley, Man, Bugatti, and other Volkswagen
commercial vehicles. The company deals in automobile and financial services business. It
undertakes a major mass and low priced production of automobiles. Automobile business
deals in both commercial cars and passenger cars. Whereas, financial services deals with fleet
management, leasing and customer financing services. It is headquartered in Germany and is
generally operated by German Labor front (Volkswagen AG, 2018).
As far as marketing strategies are concerned, Volkswagen operate in these many independent
brands, therefore it has to consider demographic, geographic and psychographic segmentation
variables to render the needs of customers in existing economy. The report brings out
marketing strategies of Volkswagen, it tries to widen its scope of 4p`s (Martin, 2014).
Apart from the marketing mix, it is important to consider the SWOT analysis of marketing
strategies which the company have made. Moreover, it can identify the potential
opportunities and strengths to make sure whether the company is efficient to grab them
(Cremer, 2017).
Marketing Segmentation
Volkswagen strategizes to cater the different age demographics, needs and the prices. Most
vehicle manufacturer comes with one or two model to please mass market (Skinner, 2018).
Volkswagen has efficient set of product Market Matrix which is divided as per the specified
groups-
Young and professional people between 18 to 24 years. Consumer who regard vehicle and
car as status differentiator and are specified with technical features such as LED lights and

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Bluetooth enable system. To cater the wider range of factors, the four elements of marketing
mix has been extended to seven elements. The extended elements is process, people, physical
evidence. Some people prefer to ride their vehicles at high speed for fun and run their engine
such as V6/V8 engine with higher watt capacities. Retired and old people mostly look for less
speedy vehicles and sleek design (Fan, Shaokun, Lau, and Zhao, 2015).
Elements of marketing mix (4 p’s)
While considering the marketing incorporated in Volkswagen, the company chose Value-
based marketing. Initially, in 1930s, Volkswagen aims to maintain and empower every
person to drive their own car. This concept was not applied when company used radically
nonconformist in the age when company only produced luxury cars for elite. This assisted the
company to design the manufacturing and bringing product quality and brand image at par in
UK. Apart from this, the company strategies has inculcated relationship marketing approach
in Volkswagen. It is important for the company to stable its relationships with its customers.
To elaborate the marketing mix, brand strategy of Volkswagen considers 4P`s renowned as
product, price, place and promotion. The product in regards to Volkswagen is defined as a
combination of both services and goods to sell to the target market. Apart from this, it is
discovered that product is also a part of brand name. Design and quality are the major product
features that have variety in them (Cremer, 2017).