Beetle Case Study

The New Beetle Question 1: Why was the current advertising campaign a success? In 1993 Volkswagen had record low sales but by the end of 1997 the VW brand had sold 137,885 cars. That was an increase of 178% from it’s 1993 slump. It is safe to say that the the ’94 relaunch of VW on the American Market was a success. The “Drivers Wanted” campaign, developed by Arnold Communications, I believe was successful as a result of excellent market research and positioning. Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles to experience the cars for themselves. Recollecting primary data was probably length but essential in my opinion as the modern car buyer and extent of affiliation to the VW brand may have change since the last time VW commission research. Through this up to date research it was now possible for VW to realistically define the market segments and to develop the most appropriate segment for them. Hollensen 2007 suggests characteristics in which effective IMS (international market segmentation) can be based, these include general characteristics such as demography, education, economy and also specific characteristics such as culture, lifestyle, personality and attitudes. Arnold Communications found from their analysis that VW consumers in general were younger, slightly more affluent and more educated than the average car buyer. But they found specifically, and more interesting that they all shared very similar attitudes. They were seen to be adventurous, experimenters, self-sufficient, creative, well informed and wanted to get the most out of life. The research of VW within the industry showed how the brand was perceived. It was appealing for its affordability and approachability versus other European car brands and for its

Bibliography: Hollensen, Svend (2007), Global Marketing: A Decision-Oriented Approach (4th ed.). London: Prentice Hall.