Case Study on Marketing Strategy of Volkswagen CASE SUMMARYVolkswagen is well-known auto importer of the United States. In 1960s it auto important of the united states than all other auto imports combined. Despite of growing foreign competition in 1970. V W sales reached 300000 unites annually. But the 1980 and early 1990, its annually sales in the U.S market was down to 150000 units. In effect,
...[Show More]
Case Study on Marketing Strategy of Volkswagen
CASE SUMMARY
Volkswagen is well-known auto importer of the United States. In 1960s it auto important of the united states than all other auto imports combined. Despite of growing foreign competition in 1970. V W sales reached 300000 unites annually. But the 1980 and early 1990, its annually sales in the U.S market was down to 150000 units. In effect, its market share had dropped 3 percent to under 1.5 percent.
V W is now trying to regain its standing and to increase market share in both Europe and the United States .To do so, it has acquired SEAT, the Spanish car maker and SKODA, The Czechoslovakian auto manufacture. So, it is now much more competitive worldwide than a few years ago.
Another current V W strategy is to customize its product so that they appeal to various specific international markets. In the United States, management of V W has discovered the reason of declining sales that the car it had made looks ‘too American’. But U.S people preferred the cars, which have European styling and German Engineering. This mistake is being corrected. The same strategy is used in Europe where VW offerings are customized to meet driver expectations.
At the same time, the company is putting renewed emphasis on its major strength engineering. VW is convinced that this market advantage will help it to reach new sales height over the last decade. In support of this belief, management Argus that the European market responds well to cars that offer better handling and styling, and this is why it has been so successful on the continent as well as the United States. The big challenge will be for the firm to gain market share in an extremely competitive worldwide industry that is able to produce far more cars each year than the market demand.
[Show Less]
