marketing plan

MKTG 301 Billy Wieboldt

Ed BennettSeong Lee

Tien LeRay Bulaclac

AlionaPhilip GrossWilliam Gil

Volkswagen Blitz

1. Executive Summary

What makes a Volkswagen?

Reliability Performan

ce

Ingenuity Affordability

Volkswagen

Introducing:

The worlds first four door fully electric sedan that can travel up to 200 miles on a single charge.

And it’s the most affordable one out there.

BLITZThe Volkswagen

Why the Blitz?

The Blitz will benefit VW by…

First mover advantage

Demographic and Psychographic market penetration

Cost segment differentiation

Increased US market presence

2. Strategic Objectives

Strategic Objectives

Mission Statement

Volkswagen strives to raise the industry standards in efficiency, safety, eco-friendliness, and value of automobiles

We believe in maintaining a high standard of ethics and corporate social responsibility

Strategic Objectives

Goals•Gain significant market share

•Gain consumer interest in the Blitz

•Introduce a practical fully electric sedan to the market

•Stimulate media buzz for our highly anticipated electric vehicle

•Use a product development strategy to create a mass following

•Infiltrate the automotive industry by mass producing an electric powered vehicle

•Reposition the Volkswagen brand to be more environmentally responsible

Strategic Objectives

Business Summary

Promote movement towards environmental sustainability

Utilize more eco-friendly manufacturing processes

Produce an electric vehicle with zero emissions

Raise interest in environmentally conscious consumers living in urban and suburban areas

Strategic Objectives

Competitive Advantage

200 mile range per charge

Zero harmful emissions

Inexpensive to recharge

Green manufacturing process

Efficient supply chain management

3. Situation Analysis

Market Analysis

25.4%

17.1%

7.7%

0.8%

13.8%

20.1%

5.9%

4.6%

2.1% 1.5% 1.2%

Automotive Industry Markt Size

MidsizeSmallLuxuryLargePickupCross-overMinivanMidsize SUVLarge SUVSmall SUVLuxury SUV

90%

10%

Small Car Market (2010)

General Small Cars

Hybrid (HEV/PHEV)

83%

15%

2%

Small Car Market Pro-jections (2012)

General Small Cars

Hybrid (HEV/PHEV)

Electric (EV)

Market Growth (Forecast)

Strengths- First company to enter the market with fully electric vehicle- Efficiency- Affordability- Eco-friendly

Weaknesses- Charging time- Weak brand power- Maintaining cost

Opportunities

- Increasing fuel prices- Eco-Friendly and Going Green trends

Threats- Competitors EV- Saturated Market- Public transportation

SWOT Analysis

CompetitorsToyota

Market leader

Strong brand power

“Prius” - Gas-Electric

Hybrid

In development of

Electric version of

“Prius”

Chevrolet

GMC - Domestic

brand

2nd in Market share

“Volt” – Plug-in

Hybrid Electric

Vehicle

Customer Analysis

Individual Gas mileage concern

Environmentally conscious

Business Logistics firms

Other firms

(use vehicles in daily operation)

4. Marketing Strategy

Marketing Strategy

Market Segmentation

Age & Income

Generation Y

Generation X and

Baby Boomers

Psychographics

“Green”

customers

“Economical”

customers

Geography

Big cities and

towns

Political

favorite areas

Innovators and early adopters

Majority

Environment Conscious

saving on a huge cost of

gasoline

Washington DC, New York, Atlanta, Dallas,

Los Angeles, and Detroit.

Positioning

Blitz with a friendly and innovated image

• great saving

• high value

• modern design

5. Marketing Mix

Marketing Mix: Product

Fully Electric VehicleZero Emissions200 Miles on one charge4-Door Sedan

Volkswagen is focusing on providing an AFFORDABLE and EFFICIENT car that is friendly to the environment. On top of this, Volkswagen uses a very environmentally sound process to produce the Blitz.

Marketing Mix: Price

Volkswagen Blitz Price:

$32,500 for the base modelGovernment mail-in rebate of

$7,500At $25,000, the Blitz is an

affordable alternative to other cars in the Electric Vehicle MarketChevy Volt MSRP: $41,000Tesla Roadster MSRP:

$109,500

Marketing Mix: Place

Pretest Launch for the first year of existence in six US Cities

• New York City• Washington DC• Atlanta• Detroit• Dallas• Los Angeles

Once the product reaches a stage of early maturity, more and more cities will start distributing the Blitz

When the Blitz hits late maturity, the cars will be distributed worldwide

Marketing Mix: Promotion

Full-scale Advertising Campaign to gain exposureTelevision

CommercialsBillboardsSocial MediaCar ConventionsMagazines

6. Financials

FinancialsAuto Manufacturing Cost Year 1

Direct Materials 45% $11,025.00

Direct Labor 20% $4,900.00

MOV 16% $2,695.00

SG&E 13% $3,185.00

R&D 5% $2,695.00Total Manufacturing Cost 100% $24,500.00

Auto Manufacturing Cost Year 2

Direct Materials 42% $9,675.00

Direct Labor 18% $4,300.00

MOV 18% $2,365.00

SG&E 16% $2,795.00

R&D 6% $2,365.00Total Manufacturing Cost 100% $21,500.00

Pro Forma Income Statement

Year 1 2 3 4 5

Projected Units 20,000 units 25,000 units 30,000 units 40,000units 45,000 units

Sales $600,000,000 $750,000,000 $900,000,000 $1,200,000,000 $1,350,000,000

Gross Margin $490,000,000 $537,500,000 $615,000,000 $820,000,000 $922,500,000

Gross Margin % 81.67% 71.67% 68.33% 68.33% 68.33%

Net Profit $592,650,000 $738,175,000 $882,575,000 $1,180,525,000 $427,500,000

Net Profit

1 2 3 4 5$0.00

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

$1,400,000,000.00

Net Profit

Net ProfitLinear (Net Profit)

Revenue vs Net Income

1 2 3 4 5$0.00$200,000,000.00$400,000,000.00$600,000,000.00$800,000,000.00

$1,000,000,000.00$1,200,000,000.00

Revenue and Net Income Projections

Net ProfitNet Income

Years

Revenue

Break Even Point

  Year 1 Year 2 Year 3 Year 4 Year 5

Units Sold 20,000 25,000 30,000 40,000 45,000

Direct Cost $15,925 $13,975 $13,325.00 $13,325.00 $13,325.00Indirect Cost $4,575 $3,525.00 $3,175.00 $3,175.00 $3,175.00

Fixed Cost $4,000 $4,000 $4,000.00 $4,000.00 $4,000.00Cost Per Unit $24,500 $21,500 $20,500.00 $20,500.00 $20,500.00Price Per Unit $30,000 $30,000 $30,000.00 $30,000.00 $30,000.00

Sales$490,000,00

0$537,500,0

00$615,000,0

00$820,000,00

0$922,500,00

0

BEP (Units) 16,333 17,917 20,500 27,333 30,750

Units Sold 20,000 25,000 30,000 40,000 45,000

7. Implementation Plan

Objectives Expansion

18 more car dealerships in:

Acquire 30% share of Electric Vehicle (EV) Market

Los Angeles

Chicago

Detroit

Dallas

WashingtonD.C.

NYC

Marketing and Financial Objectives

Environmental Leaders ProgramRebate among members for

charging station

Create BuzzImprove awareness of Blitz and

future EVs

Financial (TBD)

Key Success Factor

Four Phase Plan

Phase 1:Market to Target

Audience

Phase 3:Appearances in Environmental Trade Shows

Phase 2:Informing

Volkswagen Dealerships

About Benefits

Phase 4:Television

Promotions

Phase 1: Market to Target Audience

Use three channels of communication

Environme

ntal

Magazines

TV Segment

s

Environmental Radio Shows

First Adapters

Phase 2: Informing DealershipsProvide information about EVs to dealerships in order to inform the

consumers

Dealerships

Consumers

Early Movers

Phase 3: Appear in Environmental Trade Shows

Expand by informing dealerships and consumers through brochures, video

presentation, and Blitz prototype

Brochures

Blitz Prototy

pe

VideoTrade Show

New Consumer Base

More Dealershi

ps

Phase 4: Television Promotion

National TV appearances during prime time entertainment and

nightly news

CBSABC

NBC

All Consume

rs

8. Evaluation and Control

Evaluation and Control

Dealerships

The Individual Customer

Creating Buzz and

Advertisement

Dealerships

• VW representatives will check

every month

• Phone calls with respective

managers

• Evaluations of sales associates

The Individual Customer

Online Surveys

www.VW.com/blitz

Website and Phone Center Help

Frequently Asked Questions

Advertisement

Television

Nielsen Ratings

ABC, CBS, NBC

In Conclusion:

The Blitz will benefit Volkswagen by…

First mover advantage

Demographic and Psychographic market

penetration

Cost segment differentiation

Increased US market presence

Thank you for your

attention

Any questio

n?