In 1949. Since this was right after WI, most Americans were cautious about buying Imported cars and Germany had other Image problems (as stated In the case). Maintenance and parts of foreign cars were expensive that not a lot of the populace could afford, but despite this, VOW sales grew.
By the end of 994, at total of 8,913 VOW were in America and in 1955, the company was incorporated and officially became Volkswagen of America. In these years, Hahn, the head of the W/ America focused the advertising on the quality of service Wad offered. However, after having high sales, some events in the next several years brought WISE sales down. A few of these events were, the audience moving away from hatchbacks (Vow’s Golf), dealers began moving to Japanese brands and WV not being able to comply with the requirements of the new environmental legislation.
To re-launch the product In America, the market needs to be segmented. This segmentation can be based on demographics which would encompass age, gender, Income and occupation. The case discusses that the demographics of the market are diverse. Hence, It can be further segmented Into behavioral and cryptographic segments. Some characteristics of potential customers of the new beetle had qualities like confidence, individualism and the desire of center of attention. This is what the target ideal market would be for VIM to pursue.
People that show same behavioral patterns as the sample discussed about in the case who liked the new VOW. As discussed in the case, most of the returning customers shared, “Beetles are repositories of personal history as well as practical transportation. ” New customers shared how their Job does not define what they are but their car will. Targeting this market will generate sales from both, old Beetle lovers as well as new customers who find the fun aspect of the car appealing and want to be Identified by what the car Is.
The year after this, the total sales of small cars would be 2,014,291 and VOW would have to have a share of 10. 11% in the market In order Tort teem to reach ten goal AT cars Tanat year. Every year IT TN customer keeps a car for 6 years, will have to sell an additional of 55,000 every year to new customers. This goal is not unrealistic if the target market is well understood and VIM knows the potential number of potential customers. However, if car sales continue to decline, the goal of an annual sale of 55,000 cars will need to be revisited.