In 2007 the Volkswagen group with its headquarters in Wolfsburg, Germany sold
6,191,618 vehicles worldwide and 329,305 employees generated a sales revenue of
108,897,000€ with an operating profit of 6,151,000€ which in turn resulted in a profit
after tax of 4,122,000€.1 The group is divided into two divisions, namely the automotive
one, accounting for 91% of total revenues plus the financial one, contributing 9% to
the total turnover. Within the automotive sector, the company markets its vehicles
under brands like, VW passenger cars, Audi, Bentley, Bugatti, Lamborghini, Seat and
Skoda.
In 1984, Volkswagen as the first western auto maker, began its operational activity in
China. When it entered the market it had to form a joint venture with a Chinese
company to produce cars. By now the group has thirteen representative companies.
Due to its early engagement in the biggest Asian market, it reached a leading position
which despite some previous challenges lasted until today. For example, the corporation
sold 910,000 vehicles (VW + Audi) in Hong Kong as well as in the mainland of China
which resulted in a market share of 17.8% in 2007.2 Therefore, China is (yet) after
Germany the second most important market for Volkswagen, representing almost 15%
of the company car sales. In the following international marketing plan, the author will
describe how to increase car sales and boost market share up to 20% over the next 2
years with the introduction of a new small light weight hybrid car, the Volkswagen
Cotha.
[...]
Table of Contents
- Introduction
- PESTEL Analysis
- Porter's Five Forces
- Three C's
- The Five M's
- SWOT Analysis
- International Marketing Strategy
- International Marketing Mix - 7 P's
- Budgeting
- Controls - Balanced Scorecard
- Conclusion
Objectives and Key Themes
The objective of this international marketing plan is to outline a strategy to increase Volkswagen's car sales and market share in China by 20% within two years. This will be achieved through the introduction of a new small, lightweight hybrid car, the Volkswagen Cotha. The plan utilizes various marketing frameworks to analyze the market and develop a comprehensive strategy.
- Market Analysis (PESTEL, Porter's Five Forces, Three C's)
- Competitive Positioning and SWOT Analysis
- Marketing Strategy Development (including the marketing mix)
- Budgeting and Control Mechanisms
- Product Launch and Market Penetration
Chapter Summaries
Introduction: This chapter provides an overview of Volkswagen's global performance in 2007, highlighting its strong presence in China and its ambition to further expand its market share. It introduces the Volkswagen Cotha, a new hybrid car, as the central focus of the marketing plan, aiming to increase market share to 20% within two years. The chapter sets the stage for a comprehensive analysis of the Chinese market and the marketing strategy to achieve the ambitious goal. The introduction underscores the significant role of the Chinese market for Volkswagen and the opportunity presented by the introduction of the Cotha. Footnotes cite the annual report, providing verifiable data to support the claims of market dominance and growth potential.
PESTEL Analysis: This section would delve into a detailed examination of the political, economic, social, technological, environmental, and legal factors impacting Volkswagen's operations in China. It would analyze the influence of these factors on the viability of launching the Cotha, assessing potential opportunities and threats, and identifying implications for marketing strategy. A comprehensive PESTEL analysis would be crucial in informing the overall marketing plan.
Porter's Five Forces: This chapter would analyze the competitive landscape within the Chinese automotive market, using Porter's Five Forces framework. This would involve examining the competitive rivalry, the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitute products. The analysis would assess Volkswagen's position within this competitive landscape, identifying strengths and weaknesses in relation to its competitors, informing decisions about pricing, product differentiation, and overall marketing strategies.
Three C's: A detailed evaluation of the company, competitors, and customers in the context of the Chinese automotive market. The analysis would examine Volkswagen's strengths and weaknesses, the competitive strategies of its main rivals, and the needs and preferences of the target customer segment for the Cotha. This chapter aims to understand the current market conditions to create a marketing strategy tailored to the specific environment.
The Five M's: This chapter would detail the five key elements of a comprehensive marketing plan. It would involve explaining the market, money, message, media, and measurement involved in the introduction and promotion of the Volkswagen Cotha. The integration of these five M's would be crucial to building a successful marketing strategy.
SWOT Analysis: A thorough SWOT analysis of Volkswagen's position in the Chinese market, incorporating insights from previous sections. It would identify the company's internal strengths and weaknesses, and the external opportunities and threats relating to the launch of the Cotha. This critical analysis would inform the subsequent strategy development and decision making.
International Marketing Strategy: This chapter would detail the overall marketing approach chosen for the launch of the Cotha in China. The strategy would be informed by the analysis conducted in previous chapters and would focus on achieving the targeted market share increase. It may discuss market segmentation, targeting, and positioning, identifying the specific customer groups to reach and how to effectively communicate the Cotha's value proposition to these segments.
International Marketing Mix - 7 P's: A detailed discussion of the marketing mix (Product, Price, Place, Promotion, People, Process, Physical Evidence) used to launch the Cotha in China. This section would elaborate on how each element contributes to the overall marketing strategy, considering the specific context of the Chinese market.
Budgeting: This chapter would outline the proposed marketing budget for the Cotha's launch, justifying the allocation of resources across different marketing activities. The budget would be aligned with the overall marketing strategy and aimed at maximizing the return on investment. Justification and projections would support the presented budget.
Controls - Balanced Scorecard: This section would detail the performance measurement system to track the progress of the Cotha's launch and the achievement of the stated marketing objectives. The use of a balanced scorecard would ensure that performance is monitored across multiple perspectives, including financial, customer, internal process, and learning & growth.
Keywords
Volkswagen, China, International Marketing, Hybrid Car, Market Share, Market Analysis, PESTEL, Porter's Five Forces, Three C's, SWOT Analysis, Marketing Strategy, Marketing Mix, Budgeting, Balanced Scorecard, Cotha.
Volkswagen Cotha Marketing Plan: Frequently Asked Questions
What is this document?
This document is a comprehensive language preview of an international marketing plan for the launch of Volkswagen's new hybrid car, the Volkswagen Cotha, in the Chinese market. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main objectives of this marketing plan?
The primary objective is to increase Volkswagen's car sales and market share in China by 20% within two years through the introduction of the Volkswagen Cotha.
What marketing frameworks are used in this plan?
The plan utilizes several key marketing frameworks, including PESTEL analysis, Porter's Five Forces, the Three C's analysis, the Five M's framework, and SWOT analysis. These are used to analyze the market and develop a comprehensive strategy.
What are the key themes explored in the plan?
Key themes include market analysis (using PESTEL, Porter's Five Forces, and the Three C's), competitive positioning and SWOT analysis, marketing strategy development (including the marketing mix), budgeting and control mechanisms, and product launch and market penetration.
What is covered in the Introduction chapter?
The introduction provides an overview of Volkswagen's global performance in 2007, highlighting its presence in China and its ambition to expand market share. It introduces the Volkswagen Cotha and sets the stage for a comprehensive market analysis and strategy development.
What does the PESTEL analysis cover?
The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors impacting Volkswagen's operations in China, assessing opportunities and threats for the Cotha's launch.
What does Porter's Five Forces analysis cover?
Porter's Five Forces analysis examines the competitive landscape of the Chinese automotive market, considering competitive rivalry, new entrants, supplier and buyer power, and substitute products. It assesses Volkswagen's competitive position.
What does the Three C's analysis cover?
The Three C's analysis evaluates the company (Volkswagen), competitors, and customers within the Chinese automotive market, examining strengths, weaknesses, competitive strategies, and customer needs and preferences.
What does the Five M's framework cover?
The Five M's framework details the five key elements of a marketing plan: market, money (budget), message, media, and measurement (evaluation).
What does the SWOT analysis cover?
The SWOT analysis identifies Volkswagen's internal strengths and weaknesses and external opportunities and threats related to the Cotha's launch in the Chinese market.
What is discussed in the International Marketing Strategy chapter?
This chapter details the overall marketing approach for launching the Cotha in China, informed by previous analyses and focusing on achieving the targeted market share increase. It likely discusses market segmentation, targeting, and positioning.
What is covered in the International Marketing Mix (7 P's) chapter?
This chapter elaborates on the marketing mix (Product, Price, Place, Promotion, People, Process, Physical Evidence) used for the Cotha's launch, considering the specific Chinese market context.
What does the Budgeting chapter cover?
The budgeting chapter outlines the proposed marketing budget for the Cotha's launch, justifying resource allocation across various marketing activities and aiming to maximize return on investment.
What does the Controls - Balanced Scorecard chapter cover?
This chapter details the performance measurement system using a balanced scorecard to track progress toward marketing objectives across financial, customer, internal process, and learning & growth perspectives.
What are the keywords associated with this marketing plan?
Keywords include Volkswagen, China, International Marketing, Hybrid Car, Market Share, Market Analysis, PESTEL, Porter's Five Forces, Three C's, SWOT Analysis, Marketing Strategy, Marketing Mix, Budgeting, Balanced Scorecard, and Cotha.
- Quote paper
- Christian Baumann (Author), 2009, International Marketing plan for Volkswagen, Munich, GRIN Verlag, https://www.grin.com/document/134003
