Volkswagen Trang Nguyen, Caroline Stefko, Leslie Rubio, Christina Steuben, Molly Tran

Brand Overview 1930s: Began under orders from Hitler to build a “people’s car” – hence the name Volkswagen 1940s: Made cars for British govt. after the war 1950s: expanded overseas; 50% global market share 1960s: focused more on R&D, diversifying brand portfolio; company becomes public corporation The original Beetle

Brand Overview 1970s: Created finance division 1980s: Factories on four continents 1990s: Period of increased productivity, quality, and environmental efficiency 2000s: Growth in developing economies (BRIC countries) Wolfsburg Factory

Brand Planning Assessment Brand positioning Add source Source: http://www.volkswagenag.com/content/vwc

Brand Positioning Compare to other brands Source: http://www.volkswagenag.com/content/vwc

Brand Positioning High-end Cars Entry-level Cars Target customer is upper class Less common Prestigious Imported Entry-level Cars Target customer is middle class Many locations

Brand Positioning Point of Parity: Point of Difference: Media channel Trendy style Safety Point of Difference: Vertically integrated 100% German made cars Less production

Opportunities More advertising the goodwill of the company Target families by enhancing the safety of their cars Focus on the heritage of Volkswagen Automotive Group

How Has Your Brand Built Brand Resonance? Brand salience: Wide range of salience - Volkswagen commercial cars - Luxurious brand: Bentley, Audi,… - “Das Auto” Brand image: - Audi: Vorsprung durch Technik - SKODA: Simply clever - SEAT: dynamic, young, design-oriented

Brand Image Brand image: : exclusivity, power and elegance : reliability, economy and partnership : customer first, respect for the individual, and quality

Brand Feelings Excitement: Get in. Get happy. Social approval: Social campaign in Africa Self-respect: luxurious car Come and get it

Brand resonance Loyalty: repeated purchase Community: many communities both online and offline - Volkswagen Caring Community in Phildelphia

Brand Resonance Engagement Volkswagen Arena Motor Sports Museum of Modern Arts Volkswagen Junior Master

Brand Resonance Pyramid Loyalty Community Engagement Brand resonance Quality Credibility Superiority Excitement Social approval Self-respect Brand judgment Brand feelings Service Primary and secondary characteristics Style and design Brand performance Brand imagery Depends on individual brands. But generally positive Brand Salience: “Das Auto”

How Do You Assess Your Brand Value? Brand resonance: strong foundation Brand value number: - 2012: 17,758 millions - 2013: 23,666 millions

How Do You Assess Your Brand Value? Brand Value Number

How Do You Assess Your Brand Value? Competitors Among 7 most famous luxury car brands, 3 of them belongs to Volkswagen Strongest competitor is BMW. BMW and Volkswagen share many similarities but BMW used to surpass Effective projection of Volkswagen brand value “In 2012, the Group increased the number of vehicles delivered to customers to 9.276 million. Corresponding to a 12.8% share of the world passenger car market.”

Brand Growth Analysis Corporate Brand Family Brand (12) Individual Brand Modifiers http://www.volkswagenag.com/

Brand Growth Analysis Each family brand maintains its own image and operates as an independent entity on the market Pros: Entry-Level and High-Level Brands have established and maintain brand equity over the years Does not necessarily tie back to Volkswagen Group name, however, the vast brand portfolio still legitimizes the Group in the market Cons: Absence of value-conscious brand Any more critiques? // good or bad things about the hierarchy?

Brand Growth Analysis Growth Strategy Channel strategy: Following trends “Revamped” newer version of classic models Target very specific audiences Channel strategy: Apply technology features into higher-end vehicles Eco-friendly and hybrid vehicles

Brand Growth Analysis How brand hierarchy fits into brand portfolio: Tailor needs of every customer in mind Separate the Automotive and Financial divisions

Recommendations for Growth and Maintaining Brand Equity Vertical brand extension: SEAT & Skoda brands, or co-branding strategy Create point of difference with eco-friendly car technology: TDI Diesel and Hybrid, electric car Reintroduce the iconic Transporter van: cash cow brand (minimal marketing), high recall Emphasize safety features to improve brand meaning and response Jetta Commercial

Questions

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