Marketing Strategy of Volkswagen

Marketing Strategy of Volkswagen – Volkswagen Marketing Strategy: The company was founded in 1937. Volkswagen Group is Europe’s largest automobile manufacturer, which includes 12 brands like Audi, Seat, Skoda, Bentley, Porshe, Lamborghini, Scania, Ducati, Man, Bugatti, Volkswagen, and Volkswagen commercial vehicles. It is mostly involved divided into two segments which are the automotive business as well as its Financial Services business.

The Automotive business is involved in Passenger Cars as well as Commercial Vehicles/Power Engineering Business while the financial service vertical is involved in financing for customers leasing, fleet management, and fleet management.

Volkswagen At A Glance – Marketing Strategy of Volkswagen

Marketing Strategy of Volkswagen

[wp-svg-icons icon=”office” wrap=”I”] Company: Volkswagen Group

[wp-svg-icons icon=”user” wrap=”I”] CEO: Herbert Diess

[wp-svg-icons icon=”user” wrap=”I”] Founder: German Labor Front

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 28 May 1937, Berlin, Germany

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Wolfsburg, Germany

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: EURO€254.6 billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: EURO€9.7 billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees: 665,000

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Passenger Vehicles | Commercial Vehicles | Motorcycles | Engines| Propulsion Components | Turbomachinery | Banking | Financing | Fleet Management | Insurance | Leasing

[wp-svg-icons icon=”globe” wrap=”I”] Website:

Volkswagen Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Daimler AG | Toyota | Ford | General Motors | Tata Motors | Honda | Mitsubishi Corp | Chevrolet | Hyundai Motors | Nissan

Volkswagen Fun Facts: More than 21.5 million original Volkswagen Beetles were sold since 1945, making it one of the top-selling vehicles in the twenty-first century.

Marketing Strategy of Volkswagen

Marketing Strategy of Volkswagen

Volkswagen’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Volkswagen? Let us discuss.

Segmentation, Targeting, Positioning – Volkswagen Marketing Strategy

Since Volkswagen operate across 12 independent brands The mix of group brands includes demographic, psychographic, and geographic segmentation variables designed to meet the needs of its customers in the current as well as emerging markets.

It employs a distinct targeted method to provide the targeted items to specific segments of customers from different brand names of the group.

Positioning assists in understanding where products will be perceived by the prospective customer and also the image that is created within their minds. The majority of the brands fall in the premium segment, which is why the company employs values-based positioning strategies to build emotional and inspirational connections with customers.

Volkswagen Mission Statement

Mobility for everyone

Volkswagen Vision Statement

To Provide customers Cars & components which are manufactured by the motivated and innovative team in the environment-friendly ecosystem and should be of the highest quality, competitively priced & viable in long run.

Volkswagen Tagline

Das Auto

Competitive Advantage – Marketing Strategy of Volkswagen

A strong name portfolio: Handling the world’s strong automotive brands and working together to create their efficient ecosystem and support system has assisted the company stays ahead of its competitors in the market.

A Financially Solid Group: With such a broad product range of each brand within the branding architecture for the entire group, the financial management is indisputable.

Low Operating cost: Economies of scale across its many manufacturing, production, and operational processes have helped the company keep its operational costs at a minimum, thus investing more in marketing as well as advertising actions.

BCG Matrix – Volkswagen Marketing Strategy

BCG matrix aids the business in understanding its position within the market and then working on the loopholes in the industry accordingly.

In the auto industry, Audi, Bentley, Porshe, Lamborghini, Bugatti, Volkswagen, and Ducati are the top performers on the BCG matrix, whereas Scania, Seat, Skoda, Man, and Volkswagen commercial vehicle companies are struggling, and are therefore an unanswered question within the BCG matrix.

The financial services business is the support division that helps and provides financial assistance to the group companies. It is, as such, Stars in the BCG matrix.

Distribution Strategy – Marketing Strategy of Volkswagen

The company has been extensively using dealership networks and is expanding to emerging countries to make its brands accessible to existing and newly created marketplaces. In 2015, distribution expenses increased between 16% and 23515 million euros. Working closely together with dealers’ networks as well as optimizing the operation efficiency in order to improve the profit is a win-win-win for both the company as well as dealers.

Brand equity – Volkswagen Marketing Strategy

Controlling these brands and their public relations campaigns is a difficult task for the company. Cross-branding has helped the company in enhancing its presence within the market by reducing operating costs and brand management.

Competitive Analysis – Volkswagen Marketing Strategy

The auto market is highly competitive, with firms stealing the other’s market share. There is a rise in the number of deliveries to customers, which is an indication of an increase in sales, as well as better services to customers and trust in the brand, and an increase in satisfaction of customers.

Volkswagen group is a competitor based on its expertise in managing the largest and giant automobile brands.

Market Analysis – Marketing Strategy of Volkswagen

The development of the automotive industry has been impacted by a variety of bottlenecks, including the rise in government regulations on the cost of labor, infrastructure costs and volatility in the price of fuel, currency fluctuations, and intense competition in the market. The automotive industry is overcrowded, with an abundance of MNCs.

Customer Analysis – Volkswagen Marketing Strategy

The company manages many brands that cater to different segments of customers therefore it offers products for customers in the middle or upper-income groups. Its financial services department is a part of its automotive business around the world.

You May Also Like:

This is the Marketing Strategy of Volkswagen. Please let us know if you have additional suggestions to add.

[wp-svg-icons icon=”bubbles” wrap=”i”] Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.