Volkswagen: Evaluating Digital Marketing for Business Report (MANM373)

This report evaluates the digital marketing strategies of Volkswagen in the UK automobile industry, acknowledging the sector's dynamic changes and increasing competition. It examines Volkswagen's current marketing techniques, emphasizing the shift from traditional to digital methods, and analyzes the competitive landscape, including rivals like BMW and Toyota. The report utilizes secondary data from various sources, including statistical reports and Google Scholar, to assess the effectiveness of Volkswagen's digital presence. It highlights the importance of enhancing digital marketing and social media engagement to reach a wider consumer base. Recommendations include developing a dedicated research and development team and providing employee training in digital marketing. The report covers the scope, aim, and topic, providing background information on Volkswagen, data collection methods, findings, and recommendations for improvement. It also discusses the company's vision, mission, and its performance in the UK market.

Business Reporting Technique
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1. Executive Summary
Primary objective of present report is to evaluate digital marketing tools and techniques
for Volkswagen it is operating its business services in automobile industry sector with the
provinces of United Kingdom. It has been identified that this industry is facing dynamic changes
in terms of changing needs and demands of consumer. This subsequently shifted choices of
organisations in terms of marketing from traditional to digital marketing advertising techniques.
This technique does not only provide cost-effective way as comparatively to traditional method
but also allow organisation to grab attention of large base of consumers towards them. In order to
fulfil this purpose secondary data has been duly evaluated by researcher with the help of
statistical reports, books, government reports and journal. In addition to this Google Scholar is
being utilised as to significantly have in-depth analysis and study on the develop aim of the
research. Present report significantly accesses the degree of competition which is prevailing in
this industrial sector which significantly generate need of formulating better form of digital
marketing campaigns. Organisational likes for BMW, Toyota engaged in aggressive competition
which decreases Volkswagen capability to earn higher profitability. Thus. in order to effectively
overcome this Volkswagen is recommended to significantly enhance their overall presence on
digital marketing and social media website. in order to continuously post services and products
of organisation with special features. Report ends with certain recommendation through which
organisation can significantly enhance their consumer base, with the help of developing a
separate research and development team with the help of providing training opportunities to
employees in terms of digital marketing.
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1. Executive Summary................................................................................................................2
2. Scope, Aim and Topic of the Report...........................................................................................4
3. Background of chosen company..................................................................................................6
4. Data Collection Sources and Analytical Methods.....................................................................10
5. Findings......................................................................................................................................12
6. Recommendations......................................................................................................................16
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2. Scope, Aim and Topic of the Report
Scope of the report
In order to effectively have proper understanding of this report, it is essentially important
to have in-depth analysis of organization and industry. In order to conduct effectively conduct
this report, Volkswagen is being undertaken. This company is operating its business services in
automobile segment and offer wide range of products and services to customers. This helps in
evaluating various forms of marketing techniques that has been undertaken by organization in overall
UK (Ali and Anwar, 2021). This report scope basically emphasizes on four key aspects. In this the
first is related to digital media advertising techniques in the international market while second
issue is subjected to overall scope of organization in the automobile industry. In addition this,
thirst issue is related to evaluate overall scope of organization which is, Volkswagen. At last, fourth
scope of this report is to define Volkswagen scope in the selected country which is United Kingdom.
Hence, this has been stated that overall business scope is to assess marketing techniques that has been
undertaken by Volkswagen in the provinces of U.K.
Aim of the report
It has been identified that in automobile sector there is increasing competition among
organisations in order to influence attention of consumers towards their products and services,
that significantly increased the need of constantly making improvement in marketing techniques
that has been implemented by organisation. Volkswagen is operating its services worldwide
among United Kingdom. It is one of the prime markets for this organisation for growth and
opportunity. In United Kingdom income level of individuals are significantly increasing due to
the increase in GDP. According to the report published in the year 2019 it has been identified
that in Great Britain currently 38.4 million vehicles are licence are most of them are being duly
used on the roads. This ratio is constantly rising which provide significant opportunity for
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company for organisations like Volkswagen to enhance their profitability ratio. Main aim for this
report is to access digital marketing techniques of Volkswagen in automobile industrial sector in
the provinces of United Kingdom. It will significantly aid in evaluating pitfall based on which
further marketing recommendation is been offered to organisation.
Topic of the report
With the assistance of the aim of this report the topic has been developed for the report
which is “accessing the digital marketing advertising tools and techniques for Volkswagen
within automobile industrial sector of the United Kingdom”. Present topic has been selected
because of significant increase in the number of brands within automotive industry in the
provinces of UK. Volkswagen is a leading organisation which is operating their business
functioning from past many years. However, with the aggressive increase in the competition in
automobile sector. It is essential to conduct present analysis it has been identified that United
Kingdom is one of the fastest growing economies around the world in terms with automobile
sector their number of substitutes in the market. In this it is essential for company to rethink
market strategy. It has been identified that Volkswagen is facing intense rivalry from competitors
like General Motors, Renault, Toyota and Ford. This makes company to lose its market share.
Along with this organisation like Audi and Skoda is continuously gaining High position in
marketplace along with a number of consumers. This makes Volkswagen.to experience
significant decrease in their overall sales ratio. This is high after diesel scandal in the year 2015,
market techniques have been reminded since 2016. This has been evaluated that present topic is
efficient in order to generate in the evaluation of the market techniques implemented by
Volkswagen in the provinces of United Kingdom.
3. Background of chosen company
Volkwagen is performing its business operation as a German automobile maker which was
established in 1937. This company headquartered in Wolfsburg. Organisation is operating their
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business services in automotive industry and was founded by German Labour Front. Company
offers their services products and facilities worldwide and mainly known for the iconic Beetle. It
has been identified that this organisation is serving its consumer base by emphasizing upon
satisfying consumer with high quality products and services. Furthermore it has been evaluated
that this organisation satisfy customers by fulfilling needs and demands of employees, for which
company adopted efficient communication modes within organisation, in order to clearly discuss
and communicate company vision and objectives with employees. Furthermore, with the help of
performance appraisal managers and supervisor of Volkswagen increase employee performance.
In addition to this manager of company effective develop needful as well as suitable strategic
training programs in order to improve skills of employees. It has been evaluated organisation
always made affordable as well as individual mobility possible for number of individuals around
the world (Elhajjar, 2021). This is mainly a public company which is listed in Frankfurt Stock
Exchange.
Vision statement of Volkswagen is “Shaping mobility - for generations to come”. It has been
identified that of Volkswagen does not have any official mission statement however there
“goTozero” environmental mission statement is “for all the product as well as mobility solution
they are aspiring to significantly reduce environmental impact from the entire life cycle.
Company also has mission to comply with environmental standards, regulations and voluntary
commitments. It has been evaluated that respective of issues associated with low profitability and
over capacity it has been identified that automotive industry have retained stronger influence as
well as importance. Furthermore it has been analysed that this industry is having major industrial
as well as economic force around the world. With the help of technology this industry is shaping
world in better way. It has been evaluated that, this industry is having significant contribution in
world’s economy. In context with Volkwagen this has been evaluated that company provided 6.0
billion euro in terms of employee compensation that in turn lead towards 20.94 euro of U.K
economic gross output. This German vehicle maker has had the option to sell roughly 13,224 cars
in the UK in January in the year 2019. It has raised the general portion of the overall industry of
the organization, where it has had the option to reach to 8.21%. In spite of the emission scandals,
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the UK has had the option to top the income market of the automobile sector in the year 2017. It
appreciates a solid plan of action which has helped the association in making due over the fierce
years of this industrial sector. The efforts of taking risks and the proactive producer have been
guaranteeing that it rivals the new and current organizations arising in the UK market. A most
extreme number of deals can be seen in March.
Figure 1: Sales in 2019
Source: Volkswagen - Statistics & Facts, 2019
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Figure 2: Market share in 2019
Volkswagen car market share in the United Kingdom (UK) from January 2016 to January
2019, 2019
Furthermore, it has been evaluated that, the organization has continually been dealing with
further developing its promoting tasks to have high dependence on less expensive type of
advertising as compared to other forms of traditional methods. With the expansion in investment
of 50% in digital marketing, Volkswagen has had the option to have an Annual financial plan of
1.5 billion Euros. It has been gauge by Volkswagen that there will be maximisation of 70% in
various individuals visiting the worldwide site of the organization. According to the reports
distributed in 2015, the current traffic is of around 360 million. One of the extremely renowned
Volkswagen's advanced an is digital is hashtag Polo tag, which was a continuous social game.
The player needed to detect the new Polo close by the predetermined course, label something
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very similar on twitter and get a test pass through it. It helped in making a social buzz on the
lookout, and the product scope of Polo had the option to accumulate greatest consideration from
consumers (Gani and Faroque, 2021). Despite the fact that, Volkswagen is engaged with starting
360-degree correspondence crusade joining all the customary just as an advanced strategy for
promoting, like print, home media and digital economy. The organization is additionally
associated with distributing showcasing marketing blogs now and again. Furthermore, it has been
evaluated that the organization is engaged with starting advertising with the assistance of
Podcasting as well as MSN network also. In the principal year itself, Volkwagen had the option
to draw in roughly 130-million-page impressions.
The main reason behind selecting this company to conduct this report is, due to its objective
of providing answers to the challenges of today and tomorrow with their sharpened TOGETHER
2025+ group strategy. Main goal of this organisation is to do more actively shape future of
mobility by safeguarding its sustainable mobility, for present as well as future generation. This
company aim and promises to deliver products which will include digital connectivity, electric
drives and autonomous driving. Company also aim towards making automobile quieter, cleaner,
more intelligent as well as safer, with the help of taking advantage of tailor-made mobility
solution and appealing product portfolio of impressive vehicle with forward looking approach.
Organisation has set their goals to continuously serve consumers and fulfil their dynamic needs.
With the help of these objectives’ organisation have cornerstone of individual, contemporary and
affordable mobility in future. Thus, it has been identified that with these future generic objectives
this company will fulfil the needs of present and future generation in effective manner, that's why
this company is being selected to conduct this report, as it will fulfil needs of international
consumers around the world.
4. Data Collection Sources and Analytical Methods
Data collection method
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The current report centres around evaluating the computerized media promoting
strategies of Volkswagen in the auto business of the UK. The essential part of auxiliary
examination is to pick the right sort of information that can help in fulfilling the necessities of
the outlined point and destinations (Wangge, 2021). Consequently, to keep up with the realness
and exactness of the gathered information just believed sources would be utilized by the analyst
to gather data. The information concerning the car business will be gathered with the assistance
of the organization's advancement report, IDC just as an antithesis. Further, factual information
will be utilized from the data gave at the organization's site just as a confided in site, Statista.
Furthermore, peer assessed diaries, scholastic sources from Google Scholar and business letters
from Business Insider and Forbes will be thought about to gather the validated outcomes.
Significant consideration is likewise paid on data uncovered in paper reports as it has helped in
calling attention to the rates that may not be found in the connected diaries. All the data will be
aggregated in a way that can help in fulfilling the prerequisites of the outlined point of the
examination. Among the gathered data, the primary focal point of exploration has been
continued evaluating the computerized media promoting procedures of Volkswagon in the car
business of the UK. It will help in arriving at the right resolution and further giving convincing
proposals to the organization.
Other Analytical techniques
Porter’s five forces model
Volkwagen has had the option to serve the prerequisites of individuals having a place
with both the lower fragment and upper portion. It is also able to give vehicles to individuals
who are status cognizant and put resources into a top-notch way of life (Suh and Chow, 2021). It
has been evaluated that in order to learn the digital advertising strategy of Volkswagen, and
evaluate the state of the outer market, Porter's fiver powers model will be the most appropriate
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strategy for the current exploration. It will help in creating a more profound understanding into
the outer climate and guarantee to draw in a most extreme number of clients towards the
association. Additionally, it will help in uncovering the new roads and propose the ideal way of
technique for the organization, which can assist it with performing all the more successfully in
contrast with the contenders. Consequently, it tends to be expressed that Porter's five powers
model is the main most appropriate insightful apparatus for the current exploration on
Volkswagen.
VRIO Model
The principal point of the association is to grab a greater number of market share so it can
help in accomplishing the outlined key vision. The Resource based view model totally center
with respect to deciding the essential assets that can eventually help in creating economical upper
hand in the organization. For this situation, four variables are ordinarily contemplated for
ingenious exploration (Ghaphery, 2021). It incorporates Value, Rarity, Imitability and
Organization. Evaluating these four boundaries can help in examining whether the association
will actually want to appreciate a feasible stay in the business or not. Additionally, it helps in
deciding the asset abilities that can start long haul upper hand of the association. In the current
situation, VRIO model will be applied to Volkswagen to survey the intensity of its advanced
media publicizing procedures in the current business situation. Besides, it will likewise help in
investigating the propriety of the different drives taken by Volkswagen as far as computerized
media promoting method.
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5. Findings
Porter’s five forces model
Considering digital media advertising technique method of Volkswagen, the organization
is continually associated with focusing on the customers with the assistance of digital media
advertising strategy. It has had the option to start advancement of online media sites, websites,
organisation websites and more. It has expanded the overall investment made on publicizing so it
can get consideration from a greatest number of likely clients. The standard strategy for
advanced adverting utilized by Volkswagen is a steady presence of web-based media channels,
developing digital billboards, composing an advertising blog time to time and individual mailing.
Further, video advertising is another forthcoming technique for advanced promoting that is for
the most part considered by organizations nowadays. In this cycle, the organization associated
with making valuable and significant recordings for the clients, like instructional exercise videos.
The equivalent is advanced by Volkswagen on Facebook, YouTube and other advertising
accomplices to accomplish greatest perspectives. The discoveries for Porter's five powers model
can be applied summed up in the accompanying way:
The threat of new entrants In terms with automotive sector, it has been
identified that there is no threat of new entrants that
can affect Volkswagen market share and
profitability, as this company is operating their
business services as a leading and already
established organisation with high trust and loyalty
from its consumer base. However, in order to
compete with leading organisation in automotive
sector new entrants are required to make heavy
investments. Thus, it is essential for Volkswagen to
grab this opportunity and invest in digital marketing
strategy in order to take a greater number of
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