Download - 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?