Volkswagen Marketing: Global Strategy & Communications Analysis

This report provides a comprehensive analysis of Volkswagen's global marketing and communications strategies, utilizing the SOSTAC model to assess the company's situational analysis, objectives, segmentation, targeting, positioning, tactics, actions, and controls. The report begins with a description of Volkswagen as a leading German car manufacturer with a strong brand image and a wide range of car models. It then delves into the situational analysis, including SWOT and PEST analyses, to identify Volkswagen's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors impacting the company. The objectives are outlined using the SMART framework, focusing on boosting revenue, brand awareness, and sales through effective online and offline marketing channels. Furthermore, the report examines Volkswagen's segmentation and targeting strategies, emphasizing psychographic and need-based segmentation to reach diverse customer segments, including elite customers. The positioning strategy aims to reinforce Volkswagen's image as a premier car manufacturer. The report concludes with a reflection on the marketing plan and its potential impact on Volkswagen's global market position.

Global Marketing &
Communications

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Description of the business organization:....................................................................................3
SOSTAC marketing model:.........................................................................................................4
Situational analysis:.....................................................................................................................4
PEST analysis:.............................................................................................................................5
Objectives:...................................................................................................................................6
Segmentation and targeting of Volkswagen:...............................................................................7
Positioning of Volkswagen:.........................................................................................................7
Tactics..........................................................................................................................................8
Action........................................................................................................................................10
Control.......................................................................................................................................11
Reflection...................................................................................................................................12
Conclusion.....................................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is one of the most important thing for every business organization as this allow
them to reach as many audiences as possible, marketing is fuel that continue speed of business
growth. almost every business enterprise know that without marketing their company can not
process further and can not sell product and service. Under effective marketing strategies,
company achieve great success and boost their sales. Depending on spending capacity of
company, they can chose different method of marketing including offline marketing and online
marketing.
This study is based on Volkswagen, this company is one of the most successful market
manufacture that fulfil demand of customer with wide range of car model. Volkswagen is one of
the leading auto mobile giant that have great brand image and reputation. This report will discuss
company and its brief description and will study their marketing process. Later this report will
discuss SOSTAC marketing model to develop marketing plan and will discuss each and every
element of the marketing plan. At last this report will provide reflection.
MAIN BODY
Description of the business organization:
Volkswagen is German car manufacture that provide wide range of car model to fulfil
rising demand of the customer, this company have its own brand image and reputation that allow
them to become industry leader. Volkswagen is one of the finest car manufacturer, this company
was founded by German Labour Front in the year 1937. It is very clear that automobile industry
is full with innovative car manufacturer that have ability to fulfil demand of customer in low
price. Tesla is one of the largest car manufacturer with electric car concept, this company seems
to be biggest competitor of Volkswagen. Even with high market competition, Volkswagen was
able to survive the market and tend to rule over the industry. With brand image, this company
have been selling iconic car to every customer segment including elite one. Volkswagen might
have faced huge financial loses and situation but still this company is standing alone and holding
position of the largest car maker in the world.
Volkswagen group is parent organization for example this company have subsidiary of any
other famous and leading brand of the world these are: Audi, Skoda, SEAT, Porsche and many
more car brand. In current situation, this company have stability. Volkswagen is rapidly growing
with marketing strategies, each group connected with this company have their own marketing

process for example Audi have one of the finest marketing strategy that allow them to target only
elite customer who have wealth to purchase car and expensive model. Due to perfect customer
segment, Volkswagen reach as many audiences as possible.
SOSTAC marketing model:
SOSTAC model is one of the most effective marketing model that allow company to start
from basic to reach higher level of knowledge about marketing strategy and campaign. With the
use of SOSTAC model, Volkswagen can understand how to make their marketing effective,
there are different part of SOSTAC model, these are:
Situational analysis:
Situational analysis is one of the most important thing marketing team have to consider
before crafting effective marketing strategy, this point allow company to analyse current
situation and craft strategy accordingly. Every business organization focus on situation that will
impact their business, Volkswagen have to perform situational analysis that allow them to fulfil
demand of effective marketing strategy. In situational analysis, there are certain element that
company need to consider, these are:
SWOT analysis:
SWOT analysis allow company to examine their strength and weakness and help them to
become stable while crafting effective marketing strategy, this analysis have certain point, these
are:
Strength analysis: Every business organization have their own strength, these lies in uniqueness
selling proposition where company have most unique product and service to lead market.
Strength of Volkswagen lies certain area for example, this company is one of the largest car
manufacturer that have wide range of product and have widest brand portfolio as compared to its
competitor. This company focus on their own marketing process where they introduce new
strategy for example upcoming ‘Together 2025’ marketing strategy whereas Volkswagen have
strong synergy with other brand that allow Volkswagen to become their parent company. At last
this company jointly work with Chinese auto maker that have supplies of raw material in low
cost.
Weakness: Every business organization have weakness; these weakness lies in those area where
improvement is needed the most. Weakness of Volkswagen lies in less demand, model of
Volkswagen has rapid fall due to certain reason at first, this company is unable to provide

electric car and fulfil trending demand of customer. Secondly due to less demand, publicity is
badly impacted and company will have to face fall in market of US, UK and china. Volkswagen
lack behind at some point of their marketing strategy because this company have other famous
brand so their original marketing was impacted.
Opportunity: Opportunity lies in improvement company make by analysing their weakness for
example of Volkswagen can analyse their weakness like low publicity then they can improve
them and convert weakness into opportunity. It is very clear that Volkswagen have brand image
and reputation and still hold position of one of the finest car manufacturer, this company have
opportunity to develop electric car and fulfil demand of the customer. Developing electric car
will allow them to become stable and with brand image this company can win target market.
Threat: Every business organization have face threat, these threat are competitor and their
movement in the market. Volkswagen face huge competition from their competitor, new entry
like Tesla have captured whole auto mobile market and become leading car brand of the world.
The biggest threat Volkswagen will have to face lies in future demand of electric cars where
company will fail to provide electric cars and often loss positioning in auto mobile industry.
Apart from this, Volkswagen have to face increasing government regulation on fossil fuel car
that will impact their brand image and reputation.
PEST analysis:
PEST analysis allow company to understand external situation and factor that might
impact company in both, positive as well as negative way. PEST analysis is one of the most
effective tool which have certain parts, these are:
Political factor: Government and its policy play vital role when it comes to business growth,
Volkswagen is one of those company who always get impacted to due changes in political
environment of the country. Government of Germany have taken certain steps to control impact
on environment, they are planning to develop new policy for auto mobile industry that will
impact positioning of Volkswagen. European auto mobile will soon will be impacted due to
sustainability policy of government.
Economical factor: Economical factor is one of the most important factor that company need to
consider, Volkswagen’s positioning was impacted due to instability in the economy. After
COVID-19 impact, German economy is not stable which means this might impact company and

become reason for failure. There is high rate of inflation in German economy where prices of
raw material have increased, it is very challenging for Volkswagen to stay stable in the market.
Social factor: every business organization have to consider social factor as this is connected
with customer and their demand, After COVID-19 impact, spending capacity of customer have
decreased that means Volkswagen will lose elite customer and might face failure in the market.
This company need to target other customer segment to become stable, Volkswagen still have
customer trust that help them to become stable.
Technological factor: Technology play vital role when it comes to business growth,
Volkswagen have to bring latest and fastest technology to boost their sales with the help of
powerful manufacturing plant. Apart from this, Volkswagen have to consider IT to bring their
sales up, using latest technology to reach as many audiences as possible.
Objectives:
Specific: To boost revenue and brand awareness with the help of online marketing while using
online platform including social media and other advertising channels. Volkswagen will use
different mode of marketing and will try to reach any audience as possible.
Measurable: To boost sales by 25% with the help of both online and offline marketing including
effective use of Omni channel. Volkswagen can measure their success with the help of change in
sales and many other indicator that allow company to measure their success.
Achievable: To understand every goals of Volkswagen is achievable, goal to become market
leader with the help of effective marketing strategy and set out achievable KPI to become stable
in the market. Every goals is achievable which means Volkswagen can regain their position with
the help of achievable goals.
Realistic: To goal to measure outcome of intended objectives of the company, with effective
marketing, Volkswagen is expecting stability in auto mobile industry with rapid increase of 10%
growth. Goals should be realistic which means company need to consider realistic goals before
performing marketing.
Time: To become global market leader by the end of financial year, increase marketing spending
over 10% to make this goal achievable within time frame. Volkswagen can boost their sales
double with the help of digital marketing. Every goal of the company is time bounded which
means they need to complete it before or on the decided time.

Segmentation and targeting of Volkswagen:
Every business organization perform market segmentation and target their audience, STP is
main element of marketing where company need to decide best target audience and how to
segregate them. Volkswagen is one of those company who focus on segmentation of the
customer according to their lifestyle, with the help of partition based marketing. Volkswagen
focus on:
Psychographic segmentation: psychographic segmentation means considering customer’s
value, belief, interest and lifestyle. Volkswagen focus on psychographic segmentation because
they believe dividing customer according to lifestyle is way more beneficial for the company.
This company have to consider lifestyle of the customer for example in market segmentation, if
company will target those segmented customers who have elite spending capacity and have
lifestyle. Under effective marketing plan, Volkswagen analyse interest of customer and develop
strategy accordingly.
Need segmentation: need segmentation means customer’s need are analysed by the company for
example of customer is looking for mobility rather than improving their lifestyle the company
need to target accordingly. This company need target those customers who simply want mobility
and do not consider price range, however this type of customer are rare and have low budget. But
still this company can reach this segment and sell their product.
Elite customer: when it comes to targeting, company have to focus on those segmented
customer who will suite best for the marketing strategy. Volkswagen need to target elite
customer with good spending capacity, these are often businessmen and wealthy family.
Volkswagen have wide range of car model that will help them to target even those customer who
have low income level and less spending capacity. Under age segmentation, Volkswagen have to
target 25 to 45 age group that have interest in mobility and need as basic human desire.
Positioning of Volkswagen:
Positioning play vital role when it comes to marketing, this simply means company need to
create image of product in the eye of customer and have to set a mentality they their product is
much better than its competitor. Volkswagen already have good positioning in the market which
means customer are already recognizing brand, this company create an image in the mind of
customer in such a way that they see Volkswagen as finest car manufacture of the world.

However, it is very challenging to create position in the market where competitor are
ready to impact company and its brand positioning. There are many cases where company have
lack behind and lost its positioning, due to poor marketing strategy, Volkswagen have been
struggling to gain their position in the market. This company have to create effective marketing
which allow them to reposition themselves and become competitive in highly competitive
market.
Tactics
Marketing Mix of Volkswagen
Product — The huge market size of the Volkswagen is the main factor which contribute to its
growth. There are various different brands which are under Volkswagen with the help of which
they provide several car model to fulfil the needs of different types of customer. These huge
different models support the tastes & preferences of their consumers. The main feature of their
cars are the high quality which represents the brand name. They also provide quality services and
have less number of complaints from their customer. Volkswagen also include electric vehicles
to support the new trend. The brands which are included in Volkswagen are Audi, Skoda, Ducati,
Lamborghini, Scania, Buggatti and various others. These brands are generating high revenue for
the company as some of them are luxurious brands.
Price — The main strategy for setting the prices are competitive pricing strategy while they also
have premium priced range of vehicles which are treated as luxurious vehicles. They also
considered geographical region as one of the factor as prices are affordable in developing
countries while premium prices in some developed countries. They also use psychological
pricing as it justifies the high prices vehicles by their giving a perception of high quality products
having slightly higher price. Volkswagen price their vehicles according to their size, engine
power & model which ranges their vehicles from affordable to expensive vehicles. Their high
quality cars can include Phaeton with high price whereas low quality car can be Polo with lesser
price. The medium quality and price car can be Jetta and there are various categories of cars with
differential pricing strategy.
Place — Volkswagen manufacture and distribute their cars in prime location which helps them
while delivering those cars on time. This manufacturing units can be considered Germany,
Malaysia, USA, Indonesia, China as well as Mexico. They have their manufacturing locations in

various areas of European countries and lesser in some other countries. Their increasing
showroom in various countries are increasing their sales simultaneously. Volkswagen identifies
those market which are growing, and then they expand their location so that it will support their
sales. Their vehicles are only available at those showrooms which have company's dealership.
They are improving their brand identity by their international presence and the quality of services
as well as vehicles.
Promotion — Volkswagen is known to be a well-established brand among various countries.
They promote their vehicles separately from their parent company. Their promotional methods
include digital channel, their website is among those digital channel. The other platform can be
considered social media such as YouTube, Facebook, Instagram, whereas they also consider
traditional methods such as posters. On their advertisement the main features and specification of
the cars will be showed which makes it relatable and connecting with their audience. They also
advertise their product by various events as well as roadshows such as contest in malls to
promote the new products.
People — They have people who are working in the sales department, which helps to increase
the sales of the company and contribute to its growth. They attract the consumers by adapting
various marketing strategies. Employees are also working in the service department, which helps
the company to resolve the issues of the customer. As they resolve issues effectively it improves
the image of the brand in the view of customers. They have employees working with the
suppliers so that they can get the delivery of the material faster. It will also reduce the cost of the
raw material if they can form a relationship with the suppliers. They also have people working in
the retail store to explain the features more accurately which will ensure that the customer will
purchase the product. It also helps them to connect to the customer.
Process — Their process is very simple as their retailer has some software installed which help
them to notify the Volkswagen about the lower stocks. This helps them in making the product
available at every store which help to keep their customer satisfied. It is also beneficial for the
company as they can monitor those retailer who are beneficial for the company. Volkswagen
also have online platform where the customer can place order. This helps the customer to get the
delivery fastest and have variety to options to choose from, as online platform will definitely
have more variety than the offline store.

Physical — Their products are of various different colours which differentiate them from their
competitors. They have separate shelves in the outlets which distinguish them from the other
brands which exists in the store. Their online store is also very easily accessible to the customers
and their employees provide photos from every dimension with high quality. This motivates the
consumer to purchase their products.
Action
Volkswagen will need skilled employees who will help the company to grow in the
market. It will be done by increasing sales and marketing activities. The online marketing
strategies will need various resources such as computers, connection with influencers, graphic
designer, & digital marketing tools. The skilled employees will take the help of these resources
to their work effectively. Company will need various more investment than the company is
currently doing. Volkswagen will improve their online platform of shopping by having high
quality cameras which provides the images and its colour in original way. The company will also
have to research the areas where there products are not available so that they can provide their
products there. It will help them to capture more market which will increase its growth in the
auto-mobile industry. This will increase the need of sales person in the organization which will
contribute to the growth of the organization. The affordable prices can be achieved by lowering
the cost of raw material as well production. This will be done by establishing the relationship
with the supplier of the company, so they will provide some sort of discounts on the material
provided by them. Volkswagen will need to assess that they have employees required for the
above plan if not they will to recruit new employees.

Budget
Establishing of budget is very important as it will ensure that the company will not invest
more than the necessary. The budget for Volkswagen as per the plan is mentioned below:
Particulars Amount in Euro
IT employees 5000000
Marketing employees 4000000
Sales Person 3000000
Commission to Courier Company 800000
Computers 1500000
Graphics Designer 300000
Fees of Influencer 500000
Raw Material Cost 6000000
Quality Cameras 200000
Premium of digital marketing tools 50000
Total 21350000
Control
Control measures are important as it is necessary to ensure that the plan made is being
followed or not. For the purpose of controlling the company should ensure that key performance
indicators are set. For improving the growth of the organization the KPI will include number of
new inbound leads, percentage of leads converted into customer, increasing opportunities which
is gained by the business. KPI for manager will include the sales target achieved by their team,
how much margin earned, loyal customer gained. For marketing strategies KPI will include cost
per lead as well as cost per acquisition incurred, leads brought in the business as well as their
quality, etc.
For the operation KPI will include cost of labour, turnover rate of employees, training
provided, materials used, time taken to fulfil order, delivery time taken by the courier company,
and various others. If the company want to have lesser amount of issues they will have to

monitor the response times, active support agents, positive reviews as well as negative reviews,
loyalty rate of customers, etc. The company will have to ensure that the quality of computers
provided is high so that the objective achievement will become easier for the department.
Reflection
From the peer to peer discussion I have learnt about various strategies of Volkswagen
which is helping them to grow in the market and cater to the needs of the consumer at large.
There were various skills related to global marketing & communications which I learnt from
those peer to peer discussion. It taught me that it depends upon those knowledges which are
obtained from marketing fundamentals, cross cultural awareness, etc. The discussions helped me
to learn about the SOSTAC model and how it can be applied in an organization. The benefits of
SOSTAC model which is necessary for a company. It helps me to understand how various factor
will affect the business as well how an international organization like Volkswagen get help from
the opportunities which are provided to their business. I also learnt how the global marketing
strategies help a company to target their market and cater to their needs so that they can increase
their sales as well as market share. As the company cater to the needs of the customer it
improves its brand image in the point of view of those consumers. These strategies are very
beneficial for the business as whole business is based on these strategies. These strategies can
give positive of negative impact for the Volkswagen.
It helped me learn more about the objectives of the Volkswagen which is done with the
help of 5S's of goals as it make the objectives measurable. Those objectives will be in favour of
the company as it support their growth in the market as well as its image. It taught me that the
strategies which help the business are based on the objectives of the business. It then taught me
to make the action plan which is very helpful for a business to have. As this action plan helps the
organization to achieve its tactics with the help of planning the budget and steps. This action will
be beneficial as it will help the business to grow in the market and fulfil its objectives with the
help of the strategies formed. It helped to learn that after the action plan is made the organization
will have to monitor as well as measure the performance of the business. I learnt that the action
plan also include budget as without any set limit the business might spend more than necessary
on the projects. By making the budget it will ensure that the business will not reduce its sales. As
it will help to know that business has been benefited from the strategies or it was not good for the

growth of the business. It will set the KPI for every tactic which connects the whole objectives to
the monthly set objectives. It helped me to learn how a business can take help of various factors
to control the actions as well as objectives from destroying the plans of the organization. This
report helped me to learn various things which are necessary for the business and included in the
SOSTAC model.
Conclusion
From the report it can be concluded that Volkswagen is an international organization
which is a parent company. Its subsidiaries are well known brand in all over the world. They are
fulfilling the needs of the consumers by providing them quality products. It discusses various
factors of SOSTAC model which includes various marketing strategies of Volkswagen. It
discusses about SWOT analysis of the company as well its PESTLE analysis how it impacted the
company marketing strategies. It also tells about the segmentation, positioning & targeting
strategies of the company which helps the company in improving the availability of the products.
This report helps us to understand the 7p's of marketing mix of Volkswagen which help the
company to cater to the needs of their customer effectively. Further it discusses the needed action
plan which support the objectives of the business as well as provide the required budget for the
business. The budget will ensure that the plan is according to the capacity of the company.
Further it discusses the measures required in controlling the actions of the company to ensure the
required objective is completed or not. It will ensure that the company is achieving its objectives
accordingly and effectively.

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