New beetle Essay -- essays research papers

Case9 New BeetleEXTERNAL ANALYSIS1.Market definitionNew beetle is competing in the undersize size car industry in the US market.2.Market sizeIn US market, the total of small car sales in 2,217,813 units, which is equivalent weight to 32 million dollar.Market size in dollar term = 2,217,813 * ($11,035 to $18,000) = $ 32 millionIn 1998, New beetle sales is 137,885 units, which is 6 portion of the market.Market share in 1998 = 137,885 = 6 percent.2,217,8133.Market growthThe industry is considered to be in the position between the growth and maturity stage. Considering the innovation and dogging car developments are still taking place, there are still good signs for the growing factors. Moreover, the industry is less attractive to enter at the indorsement because of the already established industry. The car manufacturer is approaching the maturity stage of the industrial life cycle. However, based on the small car sales in 1996 (2,322,021 units) and 1997 (2,217,812 units), the mark et is declining by 4 percent. Market growth = 2,217,812 - 2,322,021 = - 4 percent2,322,0214.Key TrendsSocio-cultural American consumers have ever-changing demands attitude and there is a line of aging population. The baby boomers customer has a change preferences as they are changing preferences to larger cars-sedans, SUVs and pick-ups.Economic During the 1970s, the appreciation of the Deutsche Mark against the dollar threatened to legal injury VWs cars most of which were low or mid range models out of the market. The 1982 recession, drop in oil prices, and the declining popularity of hatchbacks contributed to the declining sales. Technology In this industry, it is important to always salve up with technology in order to satisfy customers demands. Volkswagen offered the benefits of German engineered cars, which are perceived as high quality cars. For instance, with the New Beetle, VW is belongings themselves up to date with todays car industry standards. Po... ...ncrease Reve nue543Maintain the affordability concept252Increase number of customers445TOTAL151412The strategy selected for New Beetle is to focus on the handle Boomers market.8.SELECTED STRATEGY AND JUSTIFICATIONNew Beetle is a differentiated product that should target a focus segment that is the Baby Boomers. In terms of promotion, the advertisements would be mainly using the print media with high level of frequency to achieve the ads effectiveness. Since the main target market is Baby Boomers, Volkswagen can charge premium determine in order to increase the revenue. The other competitors in the small car market may try to seduce the potential to buy their products instead, due to the pooh-pooh price offered, dealers special deals and possibility of design duplication by the competitors.