Volkswagen AG Navigates China (Case #7, Notes)
Overview
The reality for Volkswagen in China is that they have prospered for quite some time but much of that initial success was due to the virtual monopoly they had in the market. Now, that competition is becoming more and more prevalent in the Chinese market, Volkswagen must become more aggressive in their approach in order to remain competitive. There are two immediate goals that VW should have as part of their strategy moving forward. They must concentrate on slowing the erosion of their market share, and focus on maintaining what is a well-established and recognized brand in the Chinese market. It is our belief that VW should launch an entire campaign based on the fact that they were the first to enter and will continue to be the first in many aspects of the automobile experience in China. The marketing plan will be called "China First", and will encompass many aspects of the business. As we will discuss in the following paragraphs we believe this campaign will cover almost all facets of a new marketing plan.