Product Success/Failure Case Analysis

THE NEW BEETLE

PRESENTED
PRESENTED BY:
BY: TEAM
TEAM 7
7
NIVAS
NIVAS KILARI
KILARI RAVI
RAVI
SATHISH
SATHISH KUMAR
KUMAR CHINNASWAMY
CHINNASWAMY
SAI
SAI KRISHNA
KRISHNA DASARI
DASARI
SRIGOWTHAM
SRIGOWTHAM KARTHIKEYAN
KARTHIKEYAN GUNASEELAN
GUNASEELAN
VENKAT
VENKAT RAGHAV
RAGHAV ARUMUGAM
ARUMUGAM RAVICHANDRAN
RAVICHANDRAN
YOGESHWARAN
YOGESHWARAN SUNDERARAJAN
SUNDERARAJAN

AGENDA
Introduction
Beetle Life Cycle Curve
Competitors
Target Market Segment
Product Positioning
Compelling Value Proposition
4 Ps
Campaign
Outcome
2

INTRODUCTION

VW - German Auto Car maker since 1938

Penetrated US market in 1949 with Beetle and by 1968 it was

selling over a half million cars annually in US

Beetle History in US

BEETLE LIFE CYCLE

CURVE

In 1949, launched in US and

sold only 2 units

In 1960s, reached the cult

status among US Customers

In 1975, Sales started

dipping

In 1979, Sales almost

abruptly stopped due its
4
inability to meet safety

requirements

BEETLE LIFECYCLE CURVE

COMPETITORS

TARGET MARKET SEGMENT

Baby
Boomers

Gen X

Born between 1965 1980, Men and Women

Approximately 51 Million
Easily impressable
Looking to be different, fun and unique
Develop brand loyalty that will translate to
additional translate to additional purchases at
later stage
Loved to drive and appreciated spirited deign

Adults born between 1946 1964

Approximately 79 Million
Nostalgia is the only selling point
Oriented towards SUVs and luxury cars
Not a long-term sustainable market
demographic
7

PRODUCT POSITIONING
Real Driveable car

Best among small cars

Unique, Fun, and exciting
driving at affordable cost
Honest, Simple, Reliable and
Original
8

COMPELLING VALUE
PROPOSITION

Spirit of classic design combined

with best in class German
Technology
Superior driving performance

V/S

Better safety - The 1998 model of

the New Beetle is the safest small
car that has been tested by the
Insurance Institute for Highway
Safety
Better comfort

4 PS
PRODUCT
German Engineering

Cutting Edge Technology

Have a superior product, with superior value in terms of

and/or emotional benefits, which exceeds threshold
Comparison
Superiorrational
driving performance
of target, it works, its well-designed (this will have arisen
with
from intensive research with customers, high cooperation
Best
Top
Quality
Practices with Sales and R&D)

Spirited Design

V/S

VW relaunched the new beetle with the same old spirited

design with
stateShapes
of art German technology. Nostalgia
Iconic Design
Circular
factor had worked quite well to connect beetle and its
Heritagecustomers.
and Originality
10

Six Vibrant colors

4 PS
PATHWAY

60
Dealers
EXCLUSIVE
DEALERS

Comparison
with
Best
Practices

Use channels preferred by the innovators,CUSTOMERS

but direct is
best if possible (and make sure pathway partners are
credible andOTHER
genuinely motivated ! )
DEALERS

V/S

VW sold the new Beetle through exclusive VW dealers

and Multibrand dealers

540
Dealers

11

4 PS
PRICE
Price Segment
Range was $11000 to $17500
Beetel base model $ 15200,
with extras(CD
Player,
Sunroof)
$ 17000
$ competition
Reflects
product
positioning,
esp.tovs.
Comparison
18000 with
(intro offers or penetration pricing are
Premium
Best
Pricing
Strategypartner margins must be motivational
possibilities),
Practices
Considering Heritage,Technology & Performance
V/S
One of the Most expensive in small car segment
VW
priced
the new beetle
If price too high,
More
competition
fromusing
nextPremium
higher Pricing Strategy
which reflects the product position as Premium Small Car
segment
also considered the Dealers profit margin
If price too low,and
less attractive for dealers due to low
profit margin
12

4 PS
PROMOTION
TV Commercials
Able to reach large population in
quick time
Provides more oppurtunities for
creative and interactive design
Continue to focus on Drivers
Wanted Campaign

Print Media
Advertise in various auto
magazines and newspapers
Magazines like Car & Driver,
Motor Trend, Entertaintment
Weekly, Spin, Vogue, Glamour,
and Life.

13

4 PS
PROMOTION
Test Drive by Journalists

In 1997, invited a group to journalist to Germany to preiew the

Using beta/credible lead user testimonials, media
New Beetle

Comparison testimonials, credible partners, demonstrations and/or

trials, possibly even freebies, and often, but not
with
Explained
the group with unique insights into New Beetles design
always, big advertising and promotion
Best
and
development
process
Practices
V/S

Given an opportunity
to drive
New in
Beetle
for one day through
VW demonstrated
thethe
product
1994 American
InternationalinAuto
good testimonials from
various communities
the Show,
country
journalists as a result of test drive, numerous TV
commercials ads and Paper ads

14

CAMPAIGN

15

OUTCOME

16

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