The New Beetle

Name of Case: The New Beetle Decision Maker:
Name: Liz Vanzura, Charlie Waterhouse, Steven Keyes
Position: marketing director, director of product development, director of public relations
Key Issues/Problems:

(1) Manufacturing: supply problems need to be minimized
(Problem Urgency = II)
(2) Competition has low prices, reliability and established brands
(Problem Urgency = II)
(3) Pricing high for small car segment and younger market
(Problem Urgency = IV)
(4) Target market: do not want to alienate younger or older segment
(Problem Urgency = IV)
What is the #1 most important issue/problem, and WHY?
Target Market ? positioning the new beetle correctly will effect pricing, the allocation of the advertising budget and use of advertising mediums (i.e. is there enough money to reach a broad market effectively), the dealers' efforts to sell/promote the car, of course product placement/promotion decisions, and finally it will effect the perception of the entire VW organization

Current Marketing Situation: Key Points ? Implications for #1 Issue

(1) Industry, Market, Environment
? VW image and sales rebound from 1993 to 1998 ? image still strong from new passat, drivers wanted campaign and North American International Auto Show
? Small car segment ? second largest market, high competition
? Consumers are highly anticipating the new beetle ? however, this is a different vehicle than its predecessor with a new group of potential buyers

(2) Company
? Dealers ? while only 10% exclusive, recent success (i.e. drivers wanted, passat) has given the dealers a new incentive to sell, and the recent dealers conference at VW headquarters has tried to instill franchise loyalty and a ...
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