Impact of Digital Marketing on Volkswagen's Profitability: A Research

This research project examines the impact of digital marketing on Volkswagen AG, a German car manufacturing company. The project begins with an introduction to digital marketing and its importance, followed by a formulation of the research project outline, including aims, objectives, and research questions. It explores the factors influencing research project selection and provides a critical review of key references related to digital marketing and its effects on business profitability. The methodology section outlines the research evaluation techniques employed, while the data collection and analysis chapter presents findings from employee surveys on Volkswagen's digital marketing strategies. The research investigates the use of various digital techniques such as content marketing, mobile marketing, social media channels, and online PR. The project concludes with recommendations for Volkswagen to improve its digital marketing efforts, including effectively using digital technology platforms and focusing on content marketing to increase profits and gain a competitive advantage. The research highlights the importance of digital marketing in enhancing sales, market share, and overall profitability for companies like Volkswagen.

RESEARCH PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Formulate and record possible research project outline specification..............................1
1.2 Identify factors that contribute to process of research project selection..........................2
1.3 Undertake a critical review of key references..................................................................2
1.4 Research project specification..........................................................................................3
1.5 Appropriate plan and procedures for agreed research specification................................3
TASK 2............................................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Resources which required in the research........................................................................5
2.2 Literature review..............................................................................................................5
Effect of digital marketing on profits.....................................................................................6
TASK 3............................................................................................................................................8
CHAPTER 3: METHODOLOGY...................................................................................................8
3.1 Use appropriate research evaluation techniques...............................................................8
CHAPTER 4 DATA COLLECTION AND ANALYSIS..............................................................10
2.3 Record and collate relevant data where appropriate.......................................................10
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS.................................................15
3.3 Make recommendations and justify areas for further consideration..............................15
Conclusion:...........................................................................................................................15
Recommendation:.................................................................................................................15
TASK 4..........................................................................................................................................15
4.1 Use an agreed format and appropriate media to present the outcomes of the research to an
audience................................................................................................................................15
REFERENCES..............................................................................................................................16
APPENDIX....................................................................................................................................17

INTRODUCTION
Digital marketing is the latest trend which is most prominently going on in whole world
so it is important that every organisation is taking this into all its operations whether Human
Resource Management (HRM) or Production department would also be using this technology. In
this current research project, we would be talking about how this digital technology is affecting
Volkswagen which is a German car manufacturing company.
TASK 1
1.1 Formulate and record possible research project outline specification.
Background of study:
Marketing is very much important as this would be telling about how organisation is
using the materials like that of products and service in showcasing them to others which include
customer or supplier. This will be helping organisation so that they could promote their all goods
and services to customer or helping them to make decision of buying and which product to opt.
The current project would be dealing with Volkswagen AG which is a German car
manufacturing company and using some of the best digital technology forms that is enabling
company to sell its products all over the world and thus making profits.
Aim:
To analysis the impact of digital marketing on the profits of firm: A case study of
Volkswagen AG.
Objectives of research:
 To interpret the meaning and importance of digital marketing within Volkswagen.
 To analyse the effect of digital marketing on profits of Volkswagen AG. To give suggestion to increase the use of digital marketing to make more profits by
Volkswagen.
Research Questions:
1. What is the meaning and importance of digital marketing on profits?
2. How will digital marketing would be impacting profits of Volkswagen AG?
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1.2 Identify factors that contribute to process of research project selection.
Rationale of study:
As we all know that marketing is very much important in all types of businesses at the
current times as without this, company would not be able to express to its customer what it is
trying to sell. This marketing is impacting both company and customer which will be helping
customers in buying correct product and availing correct service so that they are not being
hampered or cheated by anyone. But times are gone when company was using traditional
methods like that of newspapers articles or advertising (Staunton and Devlin, 2018). At this
current stage, they have been using digital platform like that of social media channels so that
more and more customers across the globe could be reached. So, this topic of research project is
very much important to study at this time and that too on Volkswagen AG Company.
1.3 Undertake a critical review of key references.
As per Sheth, (2018) marketing is that type of process which would be enabling company
to showcase their products and service in market so that customers know about that and could
easily purchase them. In this time, everyone is going online and digital companies are increasing
their use of digital technology within their operations and day to day working. Traditional
methods of marketing like that of billboards or newspapers are not being existing. On the other
hand, modern methods which are involving technology within their use are becoming more and
more popular. Vendrell-Herrero and Bustinza, (2018) said that Volkswagen is German
multinational company that is producing cars for all class of people whether rich or middle class
so this becomes important for them to communicate with their different types of customers.
Volkswagen is been enabling and using the best form of digital technology like that of
social media channels and emailing strategy thus making them to gain maximum competitive
advantage. The best results which company is getting of their increasing use of digital marketing
could be that of making more and more profits. Thus, digital marketing is enabling company to
gain higher amount of profits and gaining higher market share that firm could be able to reinvest
back into company.
Islam and Buxmann, (2018) said that company which is not using digital marketing is not
getting more profits as compared to those which are being employing this form to promote their
goods and services of company. It was seen that with the use of digital technology instead to
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traditional one, company could be gaining higher profits and customers could be easily opting
that product which is known to them.
However, Reinartz and Berkmann, (2018) suggested that this use of technology within
marketing should be more and more regulated by companies so that misuse could be avoided.
This misuse of technology is very much common into market which is not allowing company to
gain profits. If company are using this form to communicate with people who are associated with
them then they must be using digital technology with great precautions.
1.4 Research project specification.
Chapter 1 Introduction: This would be introducing both topic and company on which research
is done so that reader could be getting some knowledge about it beforehand.
Chapter 2 Literature review: This part is the most important one which is including all literary
work of scholars, authors and writers who have written on the particular topic which we have
taken.
Chapter 3 Research methodologies: This section will be taking all methods and techniques
which researcher is involving within its use so that outline of project is specified.
Chapter 4 Data analysis: The most important part is interpretation of data which we have
collected using questionnaire or interview or through books or journals.
Chapter 5 Conclusion and recommendation: At the end, we would be telling what we have
concluded in whole research that is done by researcher and thus giving some important
recommendations as well.
1.5 Appropriate plan and procedures for agreed research specification.
Key Activities
1st
Wee
k
2nd &
3rd
Week
4th
Week
5th
Wee
k
6th
Week
7th &
8th
Week
9th
Week
10th
Week
11th
Week
12th
Week
Introduction for
the research
Literature Review
Gathering
secondary data
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Data analysing
Research Design
Research
Methodology
Developing survey
question
Gathering
customer's reviews
Analysis of
primary and
secondary data
Conclusions and
Recommendations
Completion of
remaining work
Revise and draft
Final Submission
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TASK 2
CHAPTER 2: LITERATURE REVIEW
2.1 Resources which required in the research
While conducing any kind of research or dissertation, it is required to acquire many
resources like that of books, journals, articles, internet, paper and other stationary items. All
these things would be important in conducting and completing research. Involvement of humans
within this research project is also kind of resource only as they would be telling us about their
experience and practice of digital marketing on profits of Volkswagen.
2.2 Literature review
Meaning and importance of digital marketing in Volkswagen.
Marketing would be meaning that element or part of any organisation which is making
organisation to perform well in market so that profits of firm are increased. This is not only
promoting their products, service and company in market but persuading customer or prospect of
that product to buy it. According to Kannan, (2017) persuading customer so that they are been
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Illustration 1: Digital marketing of Volkswagen AG.
[Source: Digital marketing industry case study library, 2018]

able to buy products of our firm only and so that they are having knowledge about the products
and service of company. Volkswagen which is known to be one of the best car manufacturing
companies of the world is also one which is using more and more of digital technology within
the context of marketing phenomenon. This will be very much essential for company to
implement and make new ways for technology so that more and more customers have been
informed and their profits have also been improved.
Doing marketing and then promoting products of company will be allowing them to
organise and collect profits; sales would also be improved in this context. Creative featuring of
ad, inspiring digital marketing campaigns, social media marketing, commercial ads and hot news
are all parts of digital marketing (Digital marketing industry case study library, 2018). As the
correct meaning of Volkswagen would be “People's car” so then in order to boost up its current
marker and procuring higher share of customer all across the world they started to use the social
media campaign from China. With the help of this, they somehow managed to create about 33
million website visit and 2 million car design plus their project marked a yearlong running
project. With the help of this, company was now called to as most loved car brand on social
media with over 3.1 million fans who were helping company to upgrade all its cars and also
shaping the future one.
Effect of digital marketing on profits.
Hanssens, (2018) included that digital marketing would not only insisting customer to
know about company and its products but it will be grabbing higher market share, increment in
sales and altogether effecting profits of company. Every firm that is working or operating within
market would be there to earn higher profits than all its competitors as they are also sharing
market with them. This will also be one of the best tool to predict the profits of any firm so that
they could be making good and proper business strategy. Digital marketing as per the Medina,
Coelho and Bellido-Pérez, (2017) is also meant to increase and give return on its investment in
advertisement.
According to Kasemsap, (2018) it was marked that more the company is analysing its
need to invest in digital marketing the more it becomes easy for them to increase their profits.
So, for this they must be making budgets which will be leading to improve their investment in
digital marketing channels. Content marketing strategies could also be helpful for company
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which will be including all kind of promotional tools and techniques employed by company in
making profits of firm better. At present, Volkswagen is having the highest number of sales
worldwide in units as compared to others operating in same industry like that of Toyota, General
Motors, Ford etc., which was in year 2017.
However, it was also noted that digital marketing would be employing very much
resource and people into their so if company is investing its amounts in digital marketing then
they must at first be making good budget. With the employment of staff of company into budget
will not be helping company to obtain higher profits even if they are employing digital marketing
as said by Lilien, Rangaswamy and De Bruyn, (2017). At present time, there are numbers of
tools and techniques that company could be taking into consideration if they are including digital
marketing among which content marketing is the best one to be used. In recent time, content
marketing is gaining immense popularity among various company of world under this type
creating and sharing more of online material like that of blogs or videos on social media
channels. This is not only aiming at promoting one particular brand but this is also stimulating
interest of customer and clients of organisation into their products and service.
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TASK 3
CHAPTER 3: METHODOLOGY
3.1 Use appropriate research evaluation techniques
Research methodology is including various methods and tools that researcher would be
using to make their research more and more effective. It will not only including various methods
but also would be telling reason behind the use of one method over some other.
Research approach: This is of two kinds namely, inductive and deductive in which one would
be telling about phenomenon which researcher is studying more clearly and in depth basis
(Aslam and Karjaluoto, 2017). While other is forming hypothesis and then evaluating them all,
so, in current research project we would be using inductive one.
Research philosophy: Source of data collection is vital so it is required to set the pattern that is
dealing with nature of source and knowledge about that. Philosophy is also of two types like that
of interpretivism and positivism one will be taking goal of project into consideration and then
researching about. In this, interpretivism would be used which is be very much specified to goal
of study and not taking too much general terms.
Research design: This would be providing guidelines to researcher in order to collect data and
then analysing them as well. So, the whole project which is telling about impact of digital
technology within profit generating power of company literature review and descriptive methods
are to be used.
Data collection: An important part of any kind of research which is collecting and gathering of
relevant and valid data from authentic source is called as data collection. Both primary and
secondary sources of data collection will be used in this research type which will be including
information from articles, journals, books preparing questionnaire from 5 employees of
Volkswagen and then summarising them all.
Data analysis: Only collecting data will not be enough; it is required that data must be analysed
in interpretation of what we have collected and what actually was needed (Reddy and Rao,
2017). This will be helping us to conclude with our topic while making some important
recommendations.
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Ethical consideration: While collecting information, there are certain things that need to be
considered like that authenticity of data and source, taking consent by the participants of
research, researcher and respondents having full knowledge and they are aware of topic etc. this
is called as ethical consideration.
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CHAPTER 4 DATA COLLECTION AND ANALYSIS
2.3 Record and collate relevant data where appropriate.
Theme 1: Use of digital technology in marketing of company.
Particular Respondents
Yes 3
No 2
Total 5
Interpretation:
As seen in the literature review that Volkswagen is using more of digital marketing in its
promotion of products and service. So, 3 out of 5 employees of company agreed with the fact
that their company is very effectively using digital marketing. While only 2 of them said that
they are not agreeing with company's use of digital marketing at the time of promotion.
Theme 2: Satisfaction with use of digital technology in marketing of Volkswagen.
Particular Respondents
10
Respondents
0
0.5
1
1.5
2
2.5
3
Illustration 2: Use of digital technology in marketing of
company.
Yes
No