Overview
After a steep sales decline and compliance issues in mid-1980’s, the Volkswagen Beetle needed a new groove for the new millennium. The marketing team needed to identify a target market for this heritage vehicle for the Y2K moment. After a successful unveiling at the 1998 American International Auto Show, the auto trade had accepted the New Beetle with open arms. Coupled with improved sales of VW’s Jetta model (91,000 units in 1997) and 29% growth for the New Passat, the combined momentum began to put the VW brand back in the American zeitgeist. All of these factors made 1998, the moment to strike for the New Beetle. The question remained, what was the strongest target market? Baby Boomers with a sense of 1970’s nostalgia or Gen X looking for an affordable, fun vehicle?
Perception
VW is known as the “people’s car.” VW’s Beetle was an icon of the 70’s despite having poor quality and reliability. Despite its lack of features, the car had a rounded shape that looked like smile. This iconography endured into the 90’s, with die-hard Baby Boomer fans who would install an entirely new engine to save the shell of their beloved youth vehicle. Other positive attributes of the brand were German engineering, a pleasurable driving experience and perception of fun. Brands like Chevrolet and Ford were known for their American manufacturing, while Nissan and Toyota became American household names due to their Japanese-manufactured practicality [Exhibit3].
Demo Target Market
Both the Baby Boomers (Ages 18-34) and the Gen X’er (34-54) were both prime audiences for the New Beetle relaunch due to shared characteristics [Exhibit 4].
Buyer Persona
The following adjectives describe Volkswagen buyers:
Well Informed Adventurous Creative Confident Self-Sufficient
Highly Individualist Ambitious Attention Seeking Affluent Educated
Deeper mining of the customer indicates that VW buyers have different hobbies, love dining out and most likely have multiple cars, for multiple purposes. The car was priced well, $17-18K for a customer who had multiple car payments.
Positioning Importance
“VW had a generation of lovers and lost them. They allowed the Japanese to seduce this generation. The VW product line is old and tired,” said Maryann Keller, an auto industry analyst. No company wants their product to be called “old and tired.” Sales were so bad in the early 90’s, that there were rumblings of VW pulling out of the American market entirely. If so, they would be taking away the VW brand from 600 dealerships and putting 10% of that 600 out of business entirely due to VW exclusivity. Either new models had to be developed for Y2K drivers or focus on Europe solely. By figuring out who the current American VW customer is, set the tone for product design, price, promotion and which dealerships to place the New Beetle. Will the Gen X urbanite respond to the New Beetle with the same reverence as the Baby Boomers who moved to suburbs?
Elements of Positioning
The positing statement had to be clear that this is not the old Beetle. After being dormant, the brand messaging must shoot out of a canon, shouting that the New Beetle has arrived. The messaging must signify transformation, a continuation of a classic that is both trendy, enduing and anti-elitist. The New Beetle had to be fun, pleasurable driving experience for both the slacker generation and those nostalgic for the Beetle’s heyday.
Positioning Statement
For Baby Boomers and Gen X alike, the New Beetle is for drivers with unbridled confidence. While honoring the Beetle’s past, this model is driving straight into the new millennium with style, safety and primed for daily use—from the office to the coffeehouse, or wherever the moment takes you.