The New Beetles Case Essay

600 Words Apr 1st, 2014 3 Pages

1. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group?

There are two main target audiences for the New Beetle - baby boomers and younger generation (18- to 34- years-old). The customers were demographically diverse like gender, life cycle, occupation or education etc. but share some common psychographic characteristics.

Demographically: The baby boomer had family and children and stable job. The younger generation was single or married without children, having unique and active lifestyles.
Psychographically: he baby boomer had strong
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The new Beetle would remind the baby boomers of their history of owning the old Beetle. The opportunity was that baby boomer could afford the car, whereas the risk was taht they might prefer a larger car. They did not have strong emotional tie with Japanese car or other luxury German car.
For younger generation, positioning option would be “personal car”. Young people were more focusing on their feelings. They want to show their personality. The opportunity was that the unique design attracted young people, whereas the risk was that they might not afford the car. They could be seen as people with personality and drive German car with a relatively low price.

3. Which target market(s) do you recommend for Volkswagen? What positioning should they use?

In my opinion, for small car like new Beetle, we should focus on the target market of younger generation. There was no practicality for baby boomers unless they had strong emotional connection with old Beetle and were rich enough to afford a second car. However, for younger generation, they might not afford BMW or other luxury German cars, but they might want new Beetle for economical reason and to show their personality. Therefore, the new Beetle might be their first car ever and it would be the starting point of accepting the brand of Volkswagen for long-term consideration. To solve the problem of affordability, we could offer financial services for young people, so that they could drive

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