Comprehensive Marketing‌ ‌Mix‌ ‌of‌ ‌Volkswagen ‌- All 4Ps Included

Volkswagen is a German automobile company. The company holds a significant position in the industry and had the highest sales in the year 2016-17. They deliver cars of different sizes and features to cater to every kind of customer around the world.

In this blog, we will cover the Marketing‌ ‌Mix‌ ‌of‌ ‌Volkswagen and its 4Ps. Let us first know more about the company.

About Volkswagen

Volkswagen is a multinational automobile company founded by the German Labour Front in 1937. It is headquartered in Wolfsburg, Germany. It consists of several brands of vehicles for a range of cars for different customer demographics age groups and prices. The company provides its services and products in around 153 countries with its largest market share in China. 

Internationally the company is known as Volkswagen Group, It has become one of the top automotive manufacturers in the world and is a top automotive manufacturer in Europe.

The journey of Volkswagen began in India with the launch of SKODA in 2001 and still, the company is persisting and growing in India, Today the group holds its manufacturing units in Pune and Aurangabad in India.

What’s new with Volkswagen

Here is some current news about Volkswagen:

• Volkswagen has officially approved the ninth generation of the Passat after much ambiguity regarding the car’s future. Even before it was released, the Passat 2023 was already regarded as one of the best sedans in the nation.
• Volkswagen recently sponsored Hindustan Times India’s Most Fashionable Award 2023.
• Volkswagen India opens five new touchpoints in AP, Telangana to further the Brand’s goal of bringing its goods and services closer to consumers.

Now let us know the target audience of Volkswagen.

Target Market of Volkswagen

Volkswagen has a diverse target audience that includes the middle class, upper-middle-class, and upper class. The premium brands in the group target the higher segment of society with their premium cars like Audi, Lamborghini, and Buggati.

The passenger cars are targeted to the middle-class segment who are looking for a sturdy and safe vehicle at an affordable price. 

Volkswagen has divided its market in the following ways to create something for every target segment.

• Professionals, young people between the age group of 20-27
• A consumer who regards a vehicle as a status 
• A consumer who prefers better speed and engine
• Good transporter for small-scale businesses
• A consumer who hauls equipment that has advanced features 

The following buyer persona explains the target customer:

Volkswagen has expanded into the electric vehicle (EV) market in addition to the aforementioned markets to address the escalating environmental concerns and the shift to sustainable mobility. With the release of vehicles like the Volkswagen ID.3 and ID.4, the company hopes to draw in customers who are concerned about the environment and are looking for emission-free modes of transportation.

Overall, Volkswagen’s strategic market segmentation enables the business to provide specialized services to a wide range of customers, ensuring that they have a suitable option regardless of their way of life, preferences, and financial situation. This focus on the needs of the customer has helped Volkswagen become a successful international automaker.

Now that we have got insights about the company let us now understand the marketing mix of Volkswagen.

Marketing mix of Volkswagen 

The marketing mix refers to the tactics, and actions used by the company to promote its product and service. The 4 Ps consist of product, price, place, and promotion.

Following is the marketing mix of Volkswagen company –

1. Product Strategy of Volkswagen

Its product range is also among the broadest in the industry with more than 70 different models and there are 12 brands in its product portfolio. The major selling models of the company are VW Golf with 25 million units sold to date. The company has all kinds of cars including convertibles and hatchbacks. Coupe, sedan, sports, and SUV.

In Malaysia, the Volkswagen Polo has remained the most popular model with 5 versions that range from Trendline, Comfortline, CrossPolo, Highline, and GTI and run on petrol, diesel the diesel blue technology. 

The Volkswagen Group has several different brands under it through which the company sells several car models to cater to the needs of various kinds of customers. 

2. Price Strategy of Volkswagen

 Depending on the size, power of the engine, and model the price of the car ranges from affordable to expensive cars 

The Volkswagen company caters to every segment of society. It has a large range of competitively priced cars and on the other hand, its product portfolio also includes expensive cars. The marketing mix of Volkswagen follows a varied price strategy.

With a huge amount of sales every day, Volkswagen prices its cars through a competitive pricing strategy, and it prices its luxurious collection a little more expensive to keep it premium for the upper class. The company also takes into consideration the geographical factor while deciding the pricing, it has affordable prices for basic countries and high prices for developed nations where people can buy its products.

The company justifies its high prices by giving the customers a perception of getting high-quality products for a little more money which can be referred to as psychological pricing.

Overall the company uses competitive and psychological pricing according to different geographical regions.

Next is the place strategy in the marketing mix of Volkswagen.

3. Place Strategy of Volkswagen

The Volkswagen cars are manufactured and distributed in the prime location so that the delivery can be done on time. The company has its manufacturing and assembling units worldwide including Germany, Mexico, the USA, China, Indonesia, and Malaysia. It has 119 production facilities in 19 European countries and 10 other countries in America, Asia, and Africa.

The leading markets for Volkswagen are China and Europe. The number of showrooms throughout the country has become 260 in 145 cities with a positive increase in sales. The company first identifies the growing market and then plans to expand its units in those locations to boost its sales.

The company has an attractive international presence which has helped it in creating its brand identity all over the world.

Lastly, the promotional strategy of the marketing mix of Volkswagen.

4. Promotional Strategy of Volkswagen

Volkswagen is a well-established brand in the world. The company invests in 360 advertising and promotion which means it promotes each car individually and even the parent company. The company mainly uses the digital channel of promotion.

Apart from their website, they use social media channels like YouTube and Instagram, and they also use traditional methods of advertising like posters. The company includes all the features and specifications of the cars in their advertisements to make them relatable and connect with the customers.

Volkswagen also constantly organized events and roadshows in malls with contests, promotions, and product launches all year long. Besides, they also partner with other prominent brands worldwide through sponsored events.

A proper marketing strategy helps a brand reach great heights. And if we see in this new generation digital marketing is the latest trend. Let us see how Volkswagen uses this strategy.

How does Volkswagen use Digital Marketing in its strategy?

Volkswagen has an online presence on Facebook, Twitter, Instagram, YouTube, and Instagram. It is the most active of all these on Twitter and YouTube. Volkswagen is a business that offers experiences rather than automobiles. The experiences their customers had while driving and their employees’ experiences at work are thus depicted in their YouTube videos. Customers will feel more trusted as a result, which is a great way to gain their loyalty.

Along with this they also own their official website where the customer can interact with the company check out their products and access their services. Hence. Volkswagen makes potential use of its E-commerce strategy.

The brand needs to strategize its marketing to beat the industry competition. Volkswagen has competition from many potential automobile brands.

Here is a list of them:

Competitors of Volkswagen

Toyota

Toyota Motor Corporation is a multinational Japanese automaker with its main offices in Toyota City, Aichi, Japan. Kiichiro Toyoda established it, and it became a corporation on August 28, 1937. One of the biggest automakers in the world, Toyota produces about 10 million vehicles annually. The marketing mix of Toyota will give you a better understanding of the brand.

BMW Group

German luxury vehicle and motorcycle manufacturer Bayerische Motoren Werke AG, also known as BMW, is a multinational company with headquarters in Munich, Bavaria. The business was established in 1916 to produce aircraft engines, which it did from 1917 to 1918 and once more from 1933 to 1945.

Hyundai Motor

The Hyundai Motor Company, also known as Hyundai Motors or simply Hyundai, is a multinational South Korean automaker that was established in 1967 and has its headquarters in Seoul. 

Check out the marketing strategy of Hyundai.

Ford

Ford Motor Company is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. Henry Ford established it, and on June 16, 1903, it became a corporation. Under its Ford brand, the company sells products like cars and trucks, and under its Lincoln brand, it sells luxury vehicles.

Chevrolet

The American automaker General Motors has a division called Chevrolet. On November 3, 1911, the Chevrolet Motor Car Company was founded by Louis Chevrolet, Arthur Chevrolet, and William C. Durant, the ousted founder of General Motors.

Here we come to the end of the study about the marketing mix of Volkswagen. Let us summarize in the next section.

Conclusion

Volkswagen is an established and well-known brand. The company is constantly trying to have innovation in its products to cope with the new-gen demand. The structured product lines of the company have helped it to gain a huge customer base as it has some models for every kind of customer. The premium section of the company has helped it to gain a strong brand identity. The Volkswagen Group has come a long way and has the potential to achieve more success with time.

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