The New Beetle Case

The New Beetle" case study reflects back on the challenges of developing the product positioning for the New Beetle that WV faced in 1998. The case elaborates on the customer segmentation, product position and marketing communication issues. Considering the discussion on lifestyle marketing in Chapter 6, address the following questions in your write-up of the case problem:

What are the possible positioning options for the New Beetle based on the potential consumer segments discussed or identified in the case? Discuss the advantages and disadvantages of the different positioning options. What do you suggest should be the positioning of the New Beetle? Argue well for your choice considering how your choice will address the key concerns of each of the other options.

How would the pricing and media selection choices be affected by the positioning of the car? Based on your answer of question 1, what do you recommend as possible pricing and media selections? Be specific using the media information provided in the case.

As part of your preparation for the case, make sure you understand the following issues/points before addressing the two questions above. These will not only help you in addressing the problem in the case, but will also be discussed in class as part of the case discussion:

Through an analysis of the history and current marketing research data on the Beetle, understand the nature of the current advertising campaign, "Drivers Wanted" as well as the reasons behind its success.

Using the idea of perceptual maps, understand and be able to discuss the meanings that surround the VW brand as well as those that surround New Beetle?

Understand the situation of the introduction of the New Beetle and the reasons that made its positioning termed: "Mission Impossible." Look at all the aspects of its marketing strategy and history.