New beetle Essay -- essays research papers

Case9 brand-new BeetleEXTERNAL ANALYSIS1. trade definitionNew beetle is competing in the diminutive size motorcar industry in the US market.2. discernet sizeIn US market, the total of small car gross revenue in 2,217,813 units, which is equivalent 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 percent of the market.Market cope in 1998 = 137,885 = 6 percent.2,217,8133.Market growthThe industry is considered to be in the position between the growth and maturity symbolize. Considering the innovation and continuous car developments are still taking place, in that location are still devout signs for the growing factors. Moreover, the industry is less attractive to enter at the aftermath 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 market 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 trend of aging population. The baby boomers customer has a swap 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 price 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. engineering In this industry, it is important to always keep up with technology in order to satisfy customers demands. Volkswagen offered the benefits of German engineered cars, which are sensed as high quality cars. For instance, with the New Beetle, VW is keeping themselves up to discover with todays car industry standa rds. Po... ...ncrease Revenue543Maintain the affordability concept252 adjoin number of customers445TOTAL151412The strategy selected for New Beetle is to focus on the gratify Boomers market.8.SELECTED STRATEGY AND JUSTIFICATIONNew Beetle is a differentiated growth that should target a focus segment that is the Baby Boomers. In damage of promotion, the advertisements would be mainly using the print media with high level of frequence to achieve the ads effectiveness. Since the main target market is Baby Boomers, Volkswagen can depend upon premium pricing in order to increase the revenue. The other competitors in the small car market may try to seduce the potence to buy their products instead, due to the lower price offered, dealers special deals and possibility of normal duplication by the competitors.