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VW's New Strategic Plan

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** See ATTACHED file(s) for complete details **
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Part 1

1. How would you describe VW's new intended business strategy?
2. How would you describe VW's new advertising strategy?
3. Explain how effective you believe that the advertising strategy will be in helping to achieve the business strategy of VW in the long-term.
4. Do you agree with Martin (paragraph 18) when he concludes that the advertising campaign achieved its goal of "igniting a new conversation with owners"?
5. If ad copy "crystallizes a brand's essence," what is the essence of VW? If it can be easily changed with a new ad campaign, what do we know about VW's business strategy?

Part 2

1. Does the trouble at VW suggest that VW executives confused business strategy with advertising (a non-strategic marketing activity)?
2. What are three essential elements that you would prefer to see in an ad campaign which would parallel the message in VW's business strategy?
3. To help answer the question of whether VW should plan to stay in the U.S., what information would executives need to consider?
4. How do you explain the relative success of VW in Europe (paragraph 2) given its failure in the U.S.?
5. Does this case teach us something about the classic debate over "style versus substance"? If it does, how does what you learned apply generally to formulating a business strategy?

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This explanation provides you a comprehensive argument relating to VW's New Strategic Plan

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Part 1

1. How would you describe VW's new intended business strategy?
The new intended VW's strategy is that of differentiating its products by improving quality. Currently, Volkswagen brand has lost confidence because of repeated quality problems. It is the intention of Volkswagen to improve the quality of the cars and improve the image of Volkswagen,
2. How would you describe VW's new advertising strategy?
Volkswagen's new advertising strategy is provocative, designed to catch attention, and get people to talk. The Golf is to be named the Rabbit. The Rabbit had failed in past and had been discontinued. The advertising strategy of Volkswagen is designed to stimulate interest in the Golf. It is confrontational and is designed to generate interest.
3. Explain how effective you believe that the advertising strategy will be in helping to achieve the business strategy of VW in the long-term.
Volkswagen's advertising will play the limited role of stimulating interest in the Rabbit. It makes people talk about the car, draw attention to the launch of Rabbit, and maybe even lead to some purchases. However, the long-term effectiveness of the advertising strategy will depend on the quality of the car being sold. If the quality of the car has improved then the advertising strategy will achieve the long term business goals of increasing sales.
4. Do you agree with Martin (paragraph 18) when he concludes that the advertising campaign achieved its goal of "igniting a new conversation with ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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