mark man vw (final)

8/6/2019 Mark Man VW (Final)

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TITLE



Heather Allers

200612089

Danni Blumenthal

200614621

Caitlin Crouch200704759

GROUP MEMBER 4Student number



INTRODUCTION

Volkswagen has launched the new Golf 6. The following discussionwe¶ll show the differentiation focus strategy, the benefits of this strategyand the sustainability of the strategy. A Swot Analysis will also beconducted on Volkswagen. Volkswagen target audience generation y

shall be for identified and discussed for the Golf 6.Finally technologywill be used in a campaign to attract Generation Y .

DEPARTMENT OF MARKETING MANAGEMENT

Where good enough is simply not good enough



THE STRATEGY

� In order to achieve competitive advantage and sustainability,

Volkswagen should implement a focus strategy based on

differentiation, by targeting a specific segment of a market, that

wants a unique product offering there by reducing clutter.

� In this focus strategy, Volkswagen will select Generation Y,

particularly the older higher end of Generation Y, to market the

new Golf 6 to, as it has unique attributes which will appeal to

Generation Y.

� A six month launch campaign for the Golf 6 will be implemented.

� Technology will be used to reach Generation Y as it is best

suited to reach them, as they are technology savvy.





GENERATION Y

Who is Generation Y?

� People who were born between the 1980¶s and the beginning of the 1990¶s.

� They have been exposed to technology from a young age and as aresult now depend on it, especially to perform their jobs better.

� They strive to be very individualistic within a niche group

� They prefer to communicate via technology, especially e-mail andtext messaging (sms), as opposed to interpersonal communication.

� Family is a priority over work, and they strive to have more family

and ³me´ time in their busy lives.

http://legalcareers.about.com/od/practicetips/a/GenerationY.htmhttp://www.businessdictionary.com/definition/Generation-Y.html





GENERATION Y

Who is Generation Y?

� They thrive on compliments, praise and reassurance from others.

�They are confident, self-assured individuals who liveachievement-orientated lives.

� They are faithful, dedicated and value teamwork.

� They want to be kept up-to-date on current information andtrends.

http://legalcareers.about.com/od/practicetips/a/GenerationY.htmhttp://www.businessdictionary.com/definition/Generation-Y.html





THE NEW GOLF 6

What makes Volkswagen new Golf different from competitors?

� Fuel consumption:6.21 Litres per 100km (Winton, 2008).

Volkswagens new Golf offers 10 -15% superior fuel economy at a 10%lower total cost of ownership. The new golf will do an average 52.3 mpg-5.4

l/km

� The new Golf¶s CO2 Emissions: 150 Grams per kilometre eco efficient

� The branding of Volkswagen: ³The Peoples car´ the personality.

� High performance engine: The engine develops 138 bhp, powerful for adiesel car that¶s the size of the new golf.

Winton, N. (2008). VW Golf VI Review. Available from:

http://www.wintonsworld.com/cars/2009/VW-Golf-VI-review.html

(Accessed 25 August 2009).





THE NEW GOLF 6

What makes Volkswagen new Golf different from competitors?

� The new golf with DSG gearbox has two clutches. It¶s at least as

economical as a manual gearbox .

� The computer software makes the new golf very economical making sure

you are in the highest possible gear with the lowest engine revs.

� Volkswagen comfort and reliability of the brand and cars.

Gover, P. (2008). First drive: the new Volkswagen Golf 6. Available from:http://www.carsguide.com.au/site/news-and-reviews/story/first_drive_new_volkswagen_golf_6/

(Accessed 25 August 2009).





ACHIEVING THE FOCUS

STRATEGY

In addition to selecting Generation Y as the target market and the

new Golf 6 as the product line, Volkswagen need to:

� Target the main metropolitan cities of South Africa Cape Town,

Durban, Johannesburg and Pretoria as these are where the

concentration of Generation Y¶ers reside, work and many of

Volkswagen distributors are located.

� Meet a main need of Generation Y¶ers, to be individualistic,

which has not been met by competitors who produce in mass for

the general population.





BENEFITS OF THIS FOCUS

STRATEGY

� A six month campaign, being a short time-span, will ensureVolkswagen remain focused, and the efforts and resources toachieve the campaign will not be diluted or distracted from.

� Due to South Africa being affected by the global recession, thisstrategy allows Volkswagen to make an impact on Generation Ywithout the spending of excessive resources.

� Allows Volkswagen the opportunity to compete with competitorsusing technology.

� This strategy and campaign will create an image of youthfulnessand fun, which Generation Y will associate with the Golf 6 andultimately create a positive association and loyalty to Volkswagen

itself.� Selecting the Generation Y reduces competitive intensity





WHY A FOCUS STRATEGY?

The reasons why Volkswagen should use a focus strategy based

on distinction are as follows:

� Generation Y is a large segment that would be profitable whentargeted using a focus strategy.

� Other competitors are not targeting Generation Y as they should

be (using appropriate technology).

� Volkswagen have the ability regarding tools and resources to

effectively target Generation Y.� Volkswagen is strong enough to fight off competitors as it has a

good reputation with its customers and general public and is able

to provide them with what they need.





GENERATION Y





SUSTAINABILIT Y OF THE

FOCUS STRATEGY

� VWSA needs to make sure that its strategy to target Generation

Y will survive against any onslaught from competitors such as

Ford or Mazda.

� In order to do this VWSA will keep constantly updating their technologies to keep ahead of the current market. This will be

ensure that their value chain is different from competitors

� Another threat is imitation but VWSA have the prestige of being

original and by constantly updating their accessories they can

keep their segment of Generation Y which is small and stable.� Even in the current economic crisis, there is no indication that

Generation Y will shrink or become less profitable.





CONCLUSION

The reasons why Volkswagen should utilise a focus strategy usingdistinction have been clearly stated, and it is evident why it would be aneffective way of targeting Generation Y. Suggestions have also beengiven as to how Volkswagen can achieve this focus strategy. Possibleways of reaching Generation Y, using technology which is an importantpart of their lives, have been provided. How Volkswagen can maintainthis focus strategy have also been analysed. Volkswagen shouldimplement this focus strategy to achieve success and gain popularitywithin the Generation Y market. There are several pitfalls in the

differentiation strategy some of which are large price difference, manyconsumers feel that the price of the new golf 6 is too high therebydevaluing the new golf. Another pitfall is that it is difficult to maintain realuniqueness as competitor adjust their products to yours continuouslythe value and uniqueness must be perceived by consumer.



mark man vw (final)

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