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The New Beetle's target market

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Introduction

The New Beetle Segmentation The New Beetle's target market should be people who are "psychologically young," individualistic, confident and nonconformist. Research indicates that potential New Beetle drivers embodied qualities such as confidence, individualism and a desire to be the center of attention. They loved to drive and appreciated a spirited design and German engineering. The segmentation method that would be most appropriate would be the psychographic method, which is based on personality characteristics and lifestyle. Using the Values and Lifestyles Survey (VALS), the segment that would be most responsive to the New Beetle are the Experiencers. VALS describes Experiencers as young, vital, enthusiastic, impulsive and rebellious. They seek variety and excitement, savoring the new, the offbeat and the risky. They also have higher resources like income, education and self-confidence. Also, by focusing on a psychologically young as opposed to chronologically young segment, Volkswagen (VW) can address the two populations that are likely to be most responsive: young people (ages 18 to 34) and baby boomers who would like to recapture the fond memories of their youth and the original Beetle. Weaknesses of the psychographic segmentation method are that it is difficult to determine how to identify and market to people who possess certain personality characteristics such as confidence, individualism and desire to be the center of attention. ...read more.

Middle

VW can adopt a similar strategy to lure potential buyers; by allowing them to test-drive the New Beetle, so that they can get a firsthand feel of the car. Thus VW can make the presence of the New Beetle felt in all these areas, in order to make an impact. 3) Alternative Evaluation: Assessing Value - Here, the consumer evaluates the various available choices, using different strategies. VW has to focus on highlighting the distinctive and new features of their car, compared to the other competitors in the same segment. The New Beetle can be leveraged based on its affordability, superior German engineering, unique and individualistic driving experience, style and strong heritage. In order to target the consumer, VW can have aggressive print and radio advertisement campaigns highlighting these factors, and also a strong relationship with dealers, so that their sales people can focus on these key points. 4) Purchase Decision: Buying Value - After evaluating alternatives, the consumer may come up with a preferred brand, but may not necessarily purchase that brand. VW has to ensure that in the small car segment, the New Beetle emerges as the preferred choice for a consumer, and also, more importantly, the intention to purchase is definitely realized. ...read more.

Conclusion

The sample must also be a group of achievers who feel confident and in control of their lives and who feel that image is important when they buy something. All these characteristics fit the description of the segment that VW is targeting. The company can collect the sample by researching census data to establish the segment for which they want to concentrate. For example, choose an age group based on Census Data for Population by Age, showing the growth trends since 1981. We also gathered data for states with the most driver registrations, which will help, in the geographical targeting. Since VW is concerned about pricing the car between $17,000-$18,000, they may want to analyze data on how much people spend on cars. Based on data from Mediamark Research Inc., the majority of people in our selected age range spend $15,000-$20,000 on a car. This information will assist VW in pricing the car for this targeted age range. The focus groups and test drives that VW will conduct will prove to be valuable because it will give insight to the new perception of the car. The combination of these data sources will show VW the way in being able to price their product reasonably without losing the premium image and attracting a new breed of customers for their New Beetle. Appendix ...read more.

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