Case study: The Bettle Cars (solving problems regard target market and market positioning)

SBU LEVEL CASE Situation Analysis Environment Volkswagen experienced success with cars such as Beetle, Golf, Karmann Gia sport coupe and Microbus during 1950s to 1970s. However during the late 1970s, exchange rate between Deutsche and America dollars grow high making importing much more expensive. This brought Volkswagen to a great defeat since the cost can not be covered by the profit they are making. This economical factor in the global environment affected Volkswagen America greatly …

…to maintain that consistency and brand image which large number of people can refer to and VW has the advantage of using "Driver Wanted" campaign with added creative ideas that follows the current trend of customer's needs and wants. Pricing strategy has no alternatives. VW buyers are more attracted by New Beetle's uniqueness, style, personality, individualism and the fun of driving it rather than measure the real value of New Beetle by its price range.