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Heather Allers 200612089 Danni Blumenthal 200614621 Caitlin Crouch 200704759 GROUP MEMBER 4 Student number

INTRODUCTION

Volkswagen has launched the new Golf 6. The following discussion well show the differentiation focus strategy, the benefits of this strategy and the sustainability of the strategy. A Swot Analysis will also be conducted on Volkswagen. Volkswagen target audience generation y shall be for identified and discussed for the Golf 6.Finally technology will 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.

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

GENERATION Y
Who is Generation Y? People who were born between the 1980s and the beginning of the 1990s. They have been exposed to technology from a young age and as a result 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 and text messaging (sms), as opposed to interpersonal communication. Family is a priority over work, and they strive to have more family and me time in their busy lives.

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

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

GENERATION Y
Who is Generation Y? They thrive on compliments, praise and reassurance from others. They are confident, self-assured individuals who live achievement-orientated lives. They are faithful, dedicated and value teamwork. They want to be kept up-to-date on current information and trends.

http://legalcareers.about.com/od/practicetips/a/GenerationY.htm http://www.businessdictionary.com/definition/Generation-Y.html DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

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 Golfs CO2 Emissions: 150 Grams per kilometre eco efficient The branding of Volkswagen: The Peoples car the personality. High performance engine: The engine develops 138 bhp, powerful for a diesel car thats 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).

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

THE NEW GOLF 6

What makes Volkswagen new Golf different from competitors? The new golf with DSG gearbox has two clutches. Its 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).

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

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 Yers reside, work and many of Volkswagen distributors are located. Meet a main need of Generation Yers, to be individualistic, which has not been met by competitors who produce in mass for the general population.

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

BENEFITS OF THIS FOCUS STRATEGY

A six month campaign, being a short time-span, will ensure Volkswagen remain focused, and the efforts and resources to achieve the campaign will not be diluted or distracted from. Due to South Africa being affected by the global recession, this strategy allows Volkswagen to make an impact on Generation Y without the spending of excessive resources. Allows Volkswagen the opportunity to compete with competitors using technology. This strategy and campaign will create an image of youthfulness and fun, which Generation Y will associate with the Golf 6 and ultimately create a positive association and loyalty to Volkswagen itself. Selecting the Generation Y reduces competitive intensity

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

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 when targeted 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.
DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

GENERATION Y

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

GENERATION Y

DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

SUSTAINABILITY 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.
DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough

CONCLUSION

The reasons why Volkswagen should utilise a focus strategy using distinction have been clearly stated, and it is evident why it would be an effective way of targeting Generation Y. Suggestions have also been given as to how Volkswagen can achieve this focus strategy. Possible ways of reaching Generation Y, using technology which is an important part of their lives, have been provided. How Volkswagen can maintain this focus strategy have also been analysed. Volkswagen should implement this focus strategy to achieve success and gain popularity within the Generation Y market. There are several pitfalls in the differentiation strategy some of which are large price difference, many consumers feel that the price of the new golf 6 is too high thereby devaluing the new golf. Another pitfall is that it is difficult to maintain real uniqueness as competitor adjust their products to yours continuously the value and uniqueness must be perceived by consumer.
DEPARTMENT OF MARKETING MANAGEMENT Where good enough is simply not good enough