New beetle Essay -- essays research papers

Case9 New overhangEXTERNAL ANALYSIS1. commercializeplace definitionNew beetling is competing in the small size political machine exertion in the US market.2.Market sizeIn US market, the total of small car sales in 2,217,813 units, which is equivalent to 32 million dollar.Market size in dollar term = 2,217,813 * ($11,035 to $18,000) = $ 32 millionIn 1998, New beetle sales is 137,885 units, which is 6 percent of the market.Market sh are in 1998 = 137,885 = 6 percent.2,217,8133.Market growthThe industry is considered to be in the position mingled with the growth and maturity stage. Considering the innovation and continuous car developments are be quiet taking place, there are still good signs for the growing factors. Moreover, the industry is less attractive to enter at the moment because of the already accomplished industry. The car manufacturer is approaching the maturity stage of the industrial deportment cycle. However, based on the small car sales in 1996 (2,322,021 uni ts) and 1997 (2,217,812 units), the market is declining by 4 percent. Market growth = 2,217,812 - 2,322,021 = - 4 percent2,322,0214. headstone TrendsSocio-cultural American consumers have ever-changing demands attitude and there is a social movement of aging population. The baby boomers customer has a change preferences as they are changing preferences to larger cars-sedans, SUVs and pick-ups.Economic During the 1970s, the appreciation of the Deutsche Mark against the dollar menace to price VWs cars most of which were low or mid flap models out of the market. The 1982 recession, drop in oil prices, and the declining popularity of hatchbacks contributed to the declining sales. Technology In this industry, it is grand to always keep up with technology in order to replete customers demands. Volkswagen offered the benefits of German engineered cars, which are perceived as exalted quality cars. For instance, with the New Beetle, VW is keeping themselves up to date with todays car industry standards. Po... ...ncrease Revenue543 advance the affordability concept252Increase number of customers445TOTAL151412The dodge selected for New Beetle is to focus on the Baby Boomers market.8.SELECTED STRATEGY AND acknowledgmentNew Beetle is a differentiated product that should target a focus segment that is the Baby Boomers. In terms of promotion, the advertisements would be chiefly using the print media with high level of frequency to achieve the ads effectiveness. Since the of import target market is Baby Boomers, Volkswagen can charge premium set in order to increase the revenue. The other competitors in the small car market may try to seduce the potential to buy their products instead, collect to the lower price offered, dealers special deals and possibility of design duplication by the competitors.