Professional Documents
Culture Documents
I. BRAND PLANNING
1. HISTORY AND BRAND OVERVIEW
The history of the Volkswagen brand began with the “Käfer”; development work
on this Nazi prestige project began in 1934. On May 28, 1937, the “Gesellschaft
zur Vorbereitung des Deutschen Volkswagens mbH“ (Company for the Preparation
of the German Volkswagen Ltd.) was formally established. The name was changed
to “Volkswagenwerk GmbH” in 1938, and the company built its main plant in what
has become Wolfsburg. However, the outbreak of war and integration in the arms
industry prevented mass production of the Volkswagen (“people’s car”) – instead,
military vehicles and other armaments were produced using forced labor.
After the war, the British instructed Volkswagen to build the Volkswagen saloon at
the end of 1945. With the Type 1 (Käfer) model, and the Type 2 (Transporter)
model added in 1950, Volkswagen became a symbol of Germany’s economic
miracle, above all as a result of the strong export orientation on the part of the
company converted into a joint stock corporation in 1960. Innovative and flexible
manufacturing systems made an appearance in the 1970s and led to the birth of a
new generation of Volkswagens with the Passat, Scirocco, Golf and Polo models.
Growth was boosted in the 1980s through advances in vehicle technology, flexible
production, and forward-looking international cooperation.
Each brand has its own character and operates as an independent entity on the
market. The product range extends from low-consumption small cars to luxury
class vehicles. In the commercial vehicle sector, the product offering spans pick
ups, busses and heavy trucks.
It is the goal of the Group to offer attractive, safe and environmentally sound
vehicles which are competitive on an increasingly tough market and which set
world standards in their respective classes.
Originally, the logo is said to have been designed in 1938. The logo was later
modified in 1996 and then again in 2000. At the time of the last modification,
aspects such as color blend and three-dimensional were introduced, to present the
logo with a unique design.
The origin of the logo design has however been surrounded by controversy. While a
certain group of people believe it to have been created by Franz Xaver Reimspeiss,
an employee of Porsche, there are others who abide by the theory that Martin
Freyer was the one who created the mark and also won a design competition
consequently.
However, despite the uncertainty, the logo is largely recognized as one of the most
remarkable logos to have ever been designed.
The beauty of the logo lies in its simplicity, it contains only two letters (a V over a
W), which seem to be interacting with each other. The letters are held together with
a circle of the same line weight, effort has been made to include just the right
amount of “air” in the spaces around the central image so as not to affect the
legibility of the logo while at the same time, making the logo visually distinct.
The logo is a culmination of two colors, blue and white. The blue color represents
class, excellence and reliability while the white outlines charm, nobility and purity.
1937-1939
The first Volkswagen logo reflects its birth as the "people's car" that Adolf Hitler
wanted to motorize the citizens of Nazi Germany. The initial logo comprised of the
‘Nazi’ flag designed in the shape of a swastika symbol. Furthermore this symbol
also signified an ancient Nordic symbol called ‘Ginfaxi’ a binding in ancient rune
that supposedly granted victory in any battles fought.
The initial ads were in sync with the mission of KDF (Kraft durch Freude), ‘strength
through joy’, which showed pictures of family and friends relaxing and going for a
holiday in the car. Also, the print ads show friends and families visiting forests, hill
stations.
1939-1945
The original logo lasted only two years and changed during the period of World
War II. References to the cross disappear, but the cogwheel remains. In this way,
the design composed of the V and the W becomes larger and the proportions
become similar to those of today.
The peculiarity of this logo is that it is found practically only in military vehicles,
given the war conversion of all production during the conflict.
1945-1960
The one that goes from the postwar period to the beginning of the '60s is the
longest-running Volkswagen logo. It lasted 15 years and became famous not only
with the Beetle, but also with the different T1 vans.
The cogwheel disappears and the design of the letters widens. It is an immediately
recognizable logo, simple and very proportionate.
With new zeal and vigor and with the help of the then U.S. Marshall Plan,
Volkswagen became a feasible and flourishing business. The car was given a new
glossy paint job and a luxurious interior. It was made available in pastel green,
medium brown and bordeaux red. According to the general director of Volkswagen,
Mr. Rieger, the new paint job was more than just a visual enhancement, it was
symbolic of peacetime. olkswagen became a corporate powerhouse which helped
Germany in its resurrection from economic uncertainty. The residents of the country
also felt confident while driving the new swankier vehicles, new career
opportunities became a reality resulting in improved living standards.
1960-1967
This logo is the only one in the history of Volkswagen that has a square shape.
In these years, the Wolfsburg firm opened up to international markets, especially
North America, and a new design was necessary to maintain a more global image.
In the 1960s, another plant was added in Mexico as part of international expansion.
Further in 1965, almost a million bugs were sold. In 1968, Disney released its Love
Bug movie, and later the Herbie series, immortalizing the vehicle in screen glitz and
glamor.
The archetypal Volkswagens, the Beetle and the T1 bus, became the four-wheeled
symbols of the “peace and love” movement of the 1960s. From Hitler to hippies, not
many other companies, automobile or otherwise, can lay claim to that sort of
stranger-than-fiction corporate narrative. The brand had become truly iconic.
1967-1978
At the end of the '60s, the logo changed again and the square part was lost... never
to return.
The new design was very similar to the postwar one, but is thinner. In addition, the
colors are no longer black and white; the blue used in this logo appears to this day.
It is the most essential and minimalist logo in the history of Volkswagen. Until
recently, at least.
1978-1989
The '60s passed, the '70s arrived and, with them, the revolution of the K70, Golf,
and Passat. Volkswagen began to grow exponentially and also looked towards
China. A new logo was needed to reaffirm that maturity.
The basic graphic design remains the same and the two-dimensionality does not
change. Instead, the colors are inverted, with blue as the background and white in
the letters, while adopting a double frame.
1989-2000
In the next 11 years, the Volkswagen logo changes three times. The first version,
which lasted until 1995, is the simplest of all: it is practically the same logo used
between 1945 and 1960, but with the light blue color instead of black.
From 1995 to 2000, however, it returned to the graphics of the '70s and '80s, but
with slightly different proportions and colors, which change very little, as
confirmed by the coexistence of two almost equal logos during the last year of the
millennium.
2000-2012
With the third millennium comes three-dimensionality, with a new logo that seems
to rest on a kind of round platform.
The blue becomes a little less intense, especially in the second version, which lasts
only two years, from 2010 to 2012, while the proportions are now fixed.
2012-2019
The next logo, the one now being replaced, is basically an even more three-
dimensional version, and slightly smaller than the previous one.
This is ultimate evolution of a concept that's now changing to accompany
Volkswagen in a new era of electric mobility.
2019 - ?
Here it is, the new Volkswagen logo and the ninth since 1937. It's a marked
departure from the last two logos, eschewing all dimension for a simple, flat, two-
dimensional design.
VW showed off the new logo design at the 2019 Frankfurt Motor Show, where it
was displayed in this white-on-blue combination, as well as blue-on-white and
black-on-white.
At the start of the 2019 International Motor Show (IAA) in Frankfurt, the
Volkswagen brand presented its new logo and brand design. This world premiere
marks the start of a new era for Volkswagen, accompanied by the presentation of
the full-electric ID.3¹ at the same time. The realignment of Volkswagen’s brand
design is one of the world’s largest rebranding campaigns. Here we explain the
guiding principles of “New Volkswagen” and provide answers to the most
important questions.
Entry-level segment products satisfy basically first two levels of needs: ability to
transport something safely + some exclusively utilitarian features(e.g. large trunk,).
Mid-price vehicles have to add emotional component to the mix: comfort,
performance, excitement of driving. And premium segment products should
possess certain status-markers, that’ll establish buyers within desired social groups.
So, advertising campaign, promoting different car segments should focus on
addressing specific features, that’ll satisfy respective need levels.
Positioning the car brand may appear somewhat tricky. There are a lot of factors to
take into account, such as desired margin, potential volume and your own
capabilities to support that volume.
If we look at the perceptual mapping based on the car type, it is seen that VW is
positioned somwhere in the middle, and relates to all attributes such as: sporty,
classy, practical and conservative.
Volkswagen Automotive Group has created a personalized high-end car for a more
of a “wow” statement for the owner when they are driving down the street.
The low-end of Volkswagen Automotive Group cars include the SEAT, Skoda and
Volkswagen passenger car.
Volkswagen Automotive Group also has their commercial vehicles MAN and
Scania. Like the SEAT and Skoda, MAN and Scania are only located in Europe,
because of the little profit they would make trying to compete with the American
made commercial vehicles. Ducati motorcycles are commonly used as a racing
motorcycle and possess a high-end brand image in the motorcycle community.
6. VW MARKETING MIX
Product:
As previously explained, Volkswagen offers several vehicles in different countries.
Its top selling and most popular models include Volkswagen Polo, Volkswagen
Passat, Volkswagen Jetta, Volkswagen Sirocco, Volkswagen Tiguan, Volkswagen
Touran, Phaeton, Eos, and Beetle. All these cars are the product strategy in the
marketing mix of Volkswagen. Depending on the level of localization, features,
comfort, size, seating capacity, options, engine configurations and power several
different trims and variants are offered. The various body types Volkswagen offers
including hatchback, estate, sedan, coupe, convertible, SUV, crossover, coupe and
MPV. It also manufactures and sells Hybrid, Dual fuel and Electric vehicles.
Volkswagen cars, Polo and Gold also won the prestigious European Car of the
Year award, which is 50 years old.
Price:
Volkswagen pricing ranges from affordable to exorbitant. Volkswagen is leading
global automobile manufacturer. With 34500 vehicles sold every day, Volkswagen
prices its products competitively for certain developing nations and slightly more
expensively for economies where it is seen as a brand which can command a higher
premium. Volkswagen banks on its higher quality as a measure for its slightly
expensive prices. Psychological pricing is one of the tactics used by Volkswagen to
further its pricing objectives. Reduction in buyer remorse through perceived and
actual high quality helps them justify the extra money they pay for Volkswagen
cars. Spares too are priced on the expensive side. Hence, he pricing strategy in the
marketing mix of Volkswagen is mostly based on competition, segment, demand,
features offered in the car and the geography being served.
Place:
Following is the distribution strategy of Volkswagen:
Volkswagen cars are available almost everywhere throughout the world. Having
assembling lines and manufacturing facilities in several parts of the world. These
includes Germany, Mexico, USA, China, India, Indonesia, Russia, Czeck Republic,
Portugal, Spain, South Africa, Poland, Slovakia. After recognizing Indonesia as a
top destination for car and van sales, Volkswagen set up a new plant for $140
million towards the manufacturing of large transport vehicles and multivans. As far
as India is concerned Volkswagen to start the assembly of specific export modules
of engines and also local engines to increase localizations levels to 90% from the
current 70%. In its latest venture into Algeria, Volkswagen also launched a new
production plant there to help boost localizations levels and make cars cheaper.
Volkswagen boasts a truly international presence and has its distribution well laid it
out for the countries it operates in. Volkswagen cars are available throughout the
world via company owned dealerships and multi-brand car showrooms.
There are company specified retailers and distributors throughout the world who
are in constant touch with the parent and comply implicitly. Dealers also have
round the clock servicing and repair. Volkswagen also has a used car portal where
one can choose and buy his/her appropriate model. They also have bodyshops in
several parts of the town or cities and an exclusive workshop
Promotion:
Most of the Volkswagen communication takes place through print media in
magazines and newspapers. This is supported by communication through TV
advertisements and point of sales promotion. Now a days a good company has a
state of the art web portal, Volkswagen websites are highly informative, interactive
and a pleasure to watch. One can get any amount of detailed information regarding
the prices, features, retailers, and support services etc.
Volkswagen has always been forceful with its ad campaigns. As a part of its
marketing mix promotion strategy, Volkswagen has used 360 branding to promote
not only the parent company, but all its cars individually. With higher grade of
tensile strength used in its steel, greater depth and shine of paint, higher
craftsmanship of its cabins and better equipment levels has helped Volkswagen
drive ‘higher quality’ as a trait of all of its car and most of its promotions.
Aggressive promotional activities using social media networks and online
platforms including Twitter, Facebook, You Tube and Instagram help Volkswagen
remain at the top of the promotional game as competitors are increasingly heading
into online space. Product differentiation is one marketing tactic used in the
creatives for promotional activities of Volkswagen and safety and German build
quality are two traits used most often in campaigns of its vehicles.
Clever marketing has helped Volkswagen as far back as 1959, when its “Think
Small” campaign was as minimalist as the Beetle it was promoting. That pitch
helped reposition Volkswagen, dogged by its wartime association with Adolf
Hitler, as “something that was warm and friendly and the antithesis of Nazi
Germany.” It absolutely wiped the slate for many people, it was really
revolutionary.
Later campaigns, including “Lemon” and “Drivers Wanted,” kept Volkswagen
fresh.
The tagline may also change with the release of a new model of the automobile
company but the vision and the interest of the logo is to allure the interest of
people. So as the Volkswagen, we could spot some taglines as follows:
The “New Volkswagen” sees the car company “mark the start of a new era” with a
new logo and brand design that it promises will “not show a perfect advertising
world”.
VW is trying to create a new holistic global brand experience on all channels and
across all touchpoints.
“As a general principle, the aim in future will not be to show a perfect advertising
world. In our presentation, we want to become more human and more lively, to
adopt the customer’s perspective to a greater extent and to tell authentic stories.”
VW’s visuals will be bolder and more colourful, and come with a promise to focus
more on people than products. According to the brand, this means “the main
objective will be to present realistic situations that customers can identify with”.
The new logo shows a simplified VW, with changes including a switch to two-
dimensions and reducing it “to its essential elements” to ensure it works well in
digital formats.
“The new brand design marks the start of the new era for Volkswagen,” explains
Jürgen Stackmann, member of the brand board of management responsible for
sales, marketing and after-sales.
He adds: “By formulating new content and with new products, the brand is
undergoing a fundamental transformation towards a future with a neutral emission
balance for everyone. Now is the right time to make the new attitude of our brand
visible to the outside world.”
The ‘New Volkswagen’ strategy will affect both product design and marketing
across both passenger and commercial vehicles. It is accompanied by the launch of
its full-electric car, the ID.301, at the IAA Frankfurt International Motor Show to
highlight that Volkswagen’s future is “electric, fully connected and has a neutral
carbon balance”.
It’s hard to hook consumers for long. However, being positioned higher in budget
segmentation, volkswagen cars are more than just commodity and they successfuly
managed to achieve and generate resonance on the brand. Powerful heritage of
models had very strong cultural impact on various societies throughout the world.
Every consumer segment has an unique way of perceiving the messages send by a
particular brand vis-a-vis others. The messages can be either explicit or implicit. It
aims to reinforce existing information and identify or promotes new ones in the
mind of consumers. Depending of the nature of the product or service, the perceive
message can have a positive and negative effect on the brand. However, brands are
essentially looking to conveying a positive image by creating a durable and
desirable product. By extension of items such as Color, Shape, Slogan , Symbols,
etc. the brand seeks to grow their equity potential by doing their utmost to bring the
message thorough to end users. These adjectives or attributes promotes cognitive
association in consumers mind which leads to a quick recognition of the brand.
Quick mental decisions are formulated by consumers everyday seeking to get a
reward/satisfaction from what the brand has to offer. By responding to basic
consumer needs at the beginning, brands can create or promote communities that
shares the same values or passion. This is the main reason why brands seeks to gain
a strong position inside the consumer mind. Volkswagen is not exception to this. It
strives to send a positive message, in its own way, to reach the market.
In order to accelerate the process and aid the consumers, VW utilizes every mean
of marketing mix to reach their intended target. From printing ads, TV
commercials, Celebrity Endorsement, Customer Service, Point of Sales, Word of
Mouth, etc. The brand is creating “noise” and “buzz”, to seduce every potential
consumer into becoming a loyal one. All these ideas and tools are helping the
brand to build ‘equity’ and generate profits.
There are arrays of ideas, concepts, words and symbols that comes to mind when
we talk about VW. The company managed to tap into human emotions, their main
attributes are mainly linked to primordial emotions and basic human needs( safety,
survival, protection, trust,etc.) Thanks to the simple slogans they have used, the
company is able to to connect with their customer instantly. Although some of
them were in German, consumers associated the language, in this particular
context, as a symbol of quality,reliance, craftsmanship,great engineering and
strength. Further segmentation of the market led to other words associate with the
brand. The car manufacturers brand also come to mind in terms of luxury and
prestige when we look into Porsche, Lamborghini and the Bentley line. These
brands helped the company to further extend their brand ‘equity’ around the world.
What really lies behind this brand “EQUITY”, resulting from humans perception, is
the overall exposure and spread knowledge of the brand. Build on human emotions,
either physical or mental manifestations, brands capitalized on the associations
made by the consumers once exposed to the messages or ideas conveyed by then.
As consumers, we seek to get answers and somehow, a connection with the brand.
We do identify with their culture and readily create an association with a particular
model or message emanating from the brand. It also reflects the right approach that
the brand are doing regarding the target market and the solutions or answers
provided. By differentiating themselves from the competitions ( via jingle, slogan,
symbols,physical shapes, etc.) their are able to hammer and convey the right
information in a short,sweet and concrete way.
This is the reason why every VW model coming out of the has its own set of
attributes that conveys power, comfort, elegance, prestige, affordable price,
practicality, etc. These attributes helps to make the connection with the consumer
by promoting differentiation or integration of the brand, from a social standpoint.
Further, by responding to the need of each consumer segment, the company
increases its “equity” regarding the competition.
ATTRIBUTES
On 1 September 2015, just before Dieselgate broke, the brand had a score of 25.3;
this then dropped significantly to a low of -1.6 on 18 December 2015. Since then,
its brand has been in recovery, and on 1 September had a score of 20.5, well up on
the lows but not yet back at its previous score.
This pattern is mirrored across other metrics including quality, value, and
reputation. However, in terms of purchase intent, VW has actually overtaken its
score prior to the scandal, with the measure now sitting at 8.1 compared to 7.3 on 1
September 2015.
VW’s sales have also been relatively strong despite the scandal. In 2018, it
managed to grow its UK market share to 8.42%, ahead of the 8.21% share it had in
2017 and making it the second biggest car marque in terms of value sales in the
UK. to become number 2 in the market. It is also the second largest car
manufacturer globally, with a 7.38% market share.
Although the general consumer is unaware that the brand portfolio includes brands
like Skoda , Bugatti,and Lamborghini, the company ranks very high in the mind of
consumers thanks to the cognitive associations prompted by brand. However, there
is an interesting trend in volkswagen’s brand awareness dynamics — it tends to go
upwards in segment associations: VW is increasingly viewed as expensive car,
rather than “Volk’s”.
Recently VW discovered that they have problems with their vision of a car and that
of a consumer. To put it in another way, they started to have problems with
aesthetics, utility and design aspects of their vehicles. However, problem was
resolved by implementing more consumer-based approach in designing new
vehicles.
“We cannot let up in our efforts and must realize further substantial
improvements."
Ralf BrandstätterChief Operating Officer
€9 billion for e-mobility
References:
https://www.marketingweek.com/volkswagen-brand-redesign/
https://www.volkswagenag.com/
2018 – VW Annual Report
https://rockstarsbm.wordpress.com/page/1/
https://www.slideshare.net/sachinsearch/volkswagen-marketing-ppt
https://www.mbaskool.com/brandguide/automobiles/1527-volkswagen.html
https://www.interbrand.com/best-brands/best-global-
brands/2018/ranking/volkswagen/branding-role-delivering-innovation-qa-
volkswagen/
https://www.bloomberg.com/news/articles/2019-07-12/vw-ford-alliance-
expansion-shows-automaker-mingling-here-to-stay