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Volkswagen's marketing strategy

Volkswagen is an automobile company that was founded in 1937 in the Wolfsburg region. It was founded by the German Labor Front, one of the most renowned groups of the time. Today, Volkswagen is at the top of the ranking of the best car manufacturers in the world. It includes several brands such as Audi, Lamborghini, Bentley, Scania, MAN, etc. Literally translated as "People's Car", what is the strategy implemented by this company to prosper in the global market?

The product strategy implemented by Volkswagen

To improve its reputation throughout the world, Volkswagen is implementing a real product strategy. In fact, this company sells several vehicles in different countries. Today, the best-selling and most popular models can be summarized as follows:

  • The Volkswagen Polo
  • The Volskwagen Golf
  • The Volkswagen Passat
  • The Volkswagen Sirocco
  • The Volkswagen Tiguan
  • The Volkswagen Touran
  • The Phaeton
  • The Eos and the Beetle

Each of these cars listed above constitutes the product strategy of Volkswagen's marketing mix. This company specializing in the production of automobiles offers several versions and variants and this varies depending on:

  • From the size of the vehicle.
  • Options
  • Characteristics
  • Comfort
  • From the location level
  • Engine configurations and power
  • Etc.

In terms of bodywork, Volkswagen offers several types including the minivan and the sedan. We must also not forget the convertible, SUV, hatchback, etc. body types. This automobile company is also a specialist in the production and sale of hybrid vehicles (fuel and electric). In this product line, it offers cars such as “Polo” and “Gold”. Although Volkswagen spent more than $80 billion developing hybrids, this strategy paid off as both vehicles won the famous European Car of the Year award.

The pricing strategy implemented by Volkswagen

For several years, Volkswagen has been one of the leading automobile manufacturers in the world. According to studies carried out by trade specialists, this company sells around 34,500 vehicles per day. Such success is due to the fact that Volkswagen markets each of its cars at competitive prices. This allows certain developing countries to benefit from the wonders of its products. Conversely, Volkswagen offers these cars slightly more expensive in countries where the company is among those that can command a higher price.
Furthermore, know that Volkswagen studies the market thoroughly before setting these prices. This company focuses much more on the superior quality of each vehicle put on sale. To easily achieve its pricing goals, it relies on one of its competitors' lesser-known tactics. These include psychological pricing. Indeed, Volkswagen is implementing reductions in buyer's remorse through the high quality of these products. In this way, this company justifies the extra money customers pay to buy their cars. Likewise, the pricing of spare parts for Volkswagen vehicles is particularly high. Consequently, it must be deduced that the pricing strategy implemented by this motoring company is mainly based on certain key points as follows:

  • Competition
  • Requirement
  • The features offered
  • The geographical area served
  • The segment

Volkswagen's implementation and distribution strategy

Since the creation of the Volkswagen brand, the cars produced by this company have been gaining authority. Today, they are found all over the world. To achieve this goal, Volkswagen has put everything in place to benefit from assembly lines and manufacturing facilities in several countries around the world. As an illustration, you will find the subsidiaries of this company in the German, Mexican, American, Chinese, Indian, Indonesian, Russian, Portuguese, Spanish, South African, Polish, Slovak regions, etc.
After establishing itself all over the world, the Volkswagen company realized that India is one of the preferred destinations for certain cars and vans. To maximize its chances of success, it installed a new factory estimated at $1,400,000,000. This is particularly specialized in the design and production of large transport vehicles.
Likewise, this new factory located in the Indonesian regions produces multi-vans, which helps increase Volkswagen's notoriety in Asia.
In India, Volkswagen has specialized in the assembly of engine modules particularly intended for operation. Likewise, this subsidiary produces local engines with the aim of significantly increasing the level of localization in this region. In addition, Volkswagen has been able to establish itself in Algeria. In this region, it has built a new production plant with the aim of participating in increasing the level of localization. Consequently, this allowed Algerians to benefit from cheaper cars.
Furthermore, it is quite possible to find Volkswagen cars almost anywhere in the world. This is because this company has dealerships. Likewise, several multi-brand automobile showrooms tend to offer vehicles of this brand to their customers.

Volkswagen's promotion and advertising strategy

Apart from the product, pricing, implementation and distribution of vehicles, Volkswagen also draws its notoriety from the promotional and advertising strategy implemented. In advertising campaigns, this brand always remains very energetic. It puts everything in place so that its notoriety is on the rise compared to its competitors. To implement its marketing mix promotion strategy, Volkswagen used the 360 brand. In this way, it was able to promote both the parent company and all of its vehicles individually. To do this, Volkswagen highlights certain specific points of each of its designs. As an illustration, it can be cited:

  • The greatest know-how in Volkswagen cabins
  • The high quality of resistance to attraction used in the steel necessary for vehicle design
  • The highest shine of Volkswagen paint
  • The best equipment levels
  • The greatest depth of each automobile.

These are all aspects put forward by Volkswagen to promote the company and the vehicles on sale. This has allowed this brand to adopt “premium quality” as the basic element of each of these designs. Likewise, in most cases this constitutes the main element that allowed several countries to promote it. In India, for example, Volkswagen focuses on construction that is respectful of abuse, without forgetting the solidity and longevity of each vehicle put on sale. This allowed it to gain notoriety and achieve record sales figures.
Furthermore, Volkswagen is also focusing on aggressive promotional activities. This automobile brand uses social networks and online platforms to establish its notoriety while remaining at the top of the promotional games.

The differences in quality between products are part of one of the marketing tactics very popular in the promotional activities implemented by Volkswagen. Likewise, the latter focuses on German-made quality and safety, which constitute the two main characteristics of its vehicles.