Author:

Publisher: GRIN Verlag

Published: 2005-05-18

Total Pages: 16

ISBN-13: 3638378594

Seminar paper from the year 2005 in the subject Business economics - Miscellaneous, grade: 1.0, Robert Gordon University Aberdeen, language: English, abstract: The automobile industry is a very dynamic and exciting example of the development of new products. Against the background of the legendary Beetle, who sold over 21.6 million times, Volkswagen decided to build a new, modern version of the car. The target market for the New Beetle was defined as the Baby Boomers and the Young Generation which declares a main difference between the two cars. As the old one was a car for the people, the new one was for the chosen people who earn enough money. With total costs of $ 590 million the product development process ended in 1998 when the car was launched to the American market first. It met with success there but costumers in Europe reacted differently when it was introduced a few months later. The unique design of a fun car was not the main attraction for Europeans to buy the car and the price was not accepted over here as in America. But accompanied by a huge marketing strategy, with the main goal of arousing emotions, Volkswagen achieved their objectives altogether. Volkswagen sold over 600,000 New Beetles from 1998 to 2003 and raised the brand awareness at the same time. Due to the crisis on the automotive market at the moment and the market caution I would recommend Volkswagen reconsider the price level of the car and they may be able to achieve higher sales outside America.