Volkswagen India: Das Auto Digitally Marketing Strategy Analysis & Solution

Marketing & Sales Case Study Analysis and Solution

At Fern Fort University, we use Harvard Business Review (HBR) marketing principles and framework to analyze Volkswagen India: Das Auto Digitally case study. Volkswagen India: Das Auto Digitally is a Harvard Business Review case study written by Seema Guptafor the students of Sales & Marketing. The case study also include other relevant topics and learning material on – Social platforms

Strategic Marketing Analysis of Volkswagen India: Das Auto Digitally case study written by Seema Gupta will comprise following sections –

  • Volkswagen India: Das Auto Digitally Case Description
  • Marketing Definition
  • Market Potential Analysis of Volkswagen India: Das Auto Digitally
  • Market Share Potential Analysis
  • Segmentation and Segment Attractiveness Analysis
  • Competition and Competitiveness Analysis of Volkswagen India: Das Auto Digitally
  • Customer Value Analysis of Volkswagen India: Das Auto Digitally case study

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Volkswagen India: Das Auto Digitally Marketing Case Description

Sales & Marketing Case Study | Authors :: Seema Gupta

In 2011, Volkswagen (VW) India made digital marketing a significant aspect of its marketing. It set an objective of becoming the buzziest brand online and ''Innovation'' was identified as the common thread across all digital mediums. When VW was launched, people were unaware of the brand and social media was also nascent, thus the focus was on display ads. VW spent 50% of its digital marketing budget on display ads, 30% on paid search and 20% on social media. VW advertised on reputed, influential and high traffic news and information portals and on car portals/review sites.VW understood the customer funnel and worked backwards on planning ad inventories. ''Cost per lead'' was the key metric to measure any campaign performance. After brand awareness was built through display ads, VW invested in search engine marketing for organic and paid searches which led to ''Planet Volkswagen,''(PV). PV represented VW activities on a revolving circular globe with each section designed around a specific theme. PV received good response; however, owing to recession in industry in 2012, marketing had to lead to test drives - hence efforts towards PV were reduced. Two campaigns were launched one after other towards increasing leads. VW launched New Jetta in 2011 with a social media campaign called ''#AnythingforJetta''. It revolved around the concept that Jetta gave so much driving pleasure that people would do anything to own Jetta. Twitter was chosen for the campaign to get instant responses and to tap into specific customer segment. VW prepared video content showing people doing quirky stuff for Jetta. Full front page ads were published in leading newspapers, which gave the campaign a big push. #AnythingforJetta became the No. 1 trending topic on Twitter and it also led to 15% increase in Twitter users in India. "Jetta TSI YouTube Test Drive" campaign was launched in 2012, which took test drives drives from roads to viewers' desktops, tablets, and mobiles. The idea behind the YouTube test drive was to engage users and let them ask any questions about the car just as they would in a real world test-drive. The campaign, reached 21 million unique users against planned reach of 10 million. The challenge facing VW was how to break the clutter and engage fans to generate positive word-of-mouth.

Social platforms

Marketing Definition

According to American Marketing Association – Marketing is a set of activities that a firm undertakes for creating, communicating, delivering, & exchanging offerings that have value for customers, clients, partners, and society at large.

Kotler explains - Marketing is a process by which organizations can create value for its potential and current customers and build strong customer relationships in order to capture value in return.

Market Potential Analysis of Volkswagen India: Das Auto Digitally

Market potential analysis comprises evaluating the overall market size of the related product that the firm is planning to launch. This will involve defining – Why the target market segment needs the product and how it will provide a solution to full its consumers’ needs. Market potential of Volkswagen India: Das Auto Digitally products various on factors such as –

  • Maturity of the market. In mature markets the profitability is often stable but the market potential is less as most of the players have already taken market share based on the segment they are serving. New players have to go for market share strategies in marketing.
  • Technological competence of the existing players and culture of innovation and development in the industry.
  • Untapped market sizes and barriers to both enter the market and serving the customers. Often companies can easily see the unfulfilled needs in the markets but they are difficult to serve as there are costly barriers.
  • Define the core need that your product is serving and list out all the direct and indirect competitors in the market place. This will help not only in positioning of the product but also in defining or creating a segment better.
  • Uncovering the current and untapped market sizes and barriers to serving the larger market. Analyze the areas that you need to sort out while launching the products to wider market and what are the challenges the firm will face in market place.
  • Estimate the current stage in product life cycle and its implications for marketing decisions for the product.

Market Share Potential Analysis

  • Understanding the buyer behavior model for Volkswagen India: Das Auto Digitallyindustry.
  • Identifying the market share drivers relevant to Volkswagen India: Das Auto Digitally market.
  • Segment Attractiveness Analysis – Our analysis will work out which are the most attractive segments and which are the one the firm should go ahead and target. We point out in great detail which segments will be most lucrative for the company to enter.
  • Understanding the different needs and relative value of your offering by segment.
  • Developing segment priorities and positioning the product based on the product need fit developed by the firm.

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Competition & Competitive Position Analysis

  • Uncovering customer-based competitive positions for key rivals and firm’s offering. This will not only help in assessing the strengths and weaknesses of the competitors but also help in defining and positioning of the product.
  • Developing a positioning and launching strategy. It will require not only distribution channel analysis but also promotion mix for the product.
  • Strategic Marketing Planning — the process of developing and maintaining a strategic fit between the organization’s objectives and capabilities and the ever evolving marketing opportunities for its products.

Volkswagen India: Das Auto Digitally - Customer Value Analysis

Capturing customer value is essential to marketing efforts as it results in higher return in the form of both current & future sales, greater market share, and higher profits. By creating superior customer value, the organization can create highly satisfied customers who stay loyal and buy more. This, in turn, means greater long-run returns for the firm.

  • The crucial role of customer perceived value in acquiring and retaining profitable customers. Product differentiation is often based on building on a value niche that a firm believes that is very important to the customer. This niche contributes to perceived value. If the perceived value is high then customer stay loyal to the product if not then she can switch to the competitor’s product.
  • Graphically displaying value differences for deeper understanding and better internal communication. This helps is building a narrative that a customer can identify with. The better the insight more are the chances of connecting with the potential customers.
  • Identifying and selecting actionable value creation options. This can help in increasing the customer lifetime value. Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

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