vw.com/routan/en/us/ Competitive Review

Competitor

Model

Features

Price

Honda

Odyssey

Aggressive Front and Rear Styling, Power Sliding Doors, Alloy Wheels, Bluetooth® Hands Free Link®, Honda Satellite-Linked Navigation System ™ with Voice Recognition and Rearview Camera and Tri-Zone Climate Control

$26, 805

Kia

Sedona

Alloy Wheels, Auto Light Control System, Navigation System, Bluetooth with voice recognition, Rear seat DVD entertainment system

$24,595

Toyota

Sienna

Alloy Wheels, Dual Sliding Doors, Star Safety System, Tire Pressure Monitor System

$24,260

Distribution Review

Based on psychographic and demographic segmentation, a direct marketing campaign would be the best way to approach the marketing of the Volkswagen Routan Minivan. The goal is going to be to reach families that want to use technology to help them decide the type of vehicle that they want to purchase. The Volkswagen Routan is distributed exclusively through Volkswagen dealerships. This usually entails limiting distribution to a single channel. Products that are distributed this way are usually highly priced, and require the intermediary to place a lot of detail in its sell. Most vehicles are distributed this way due to the nature of the type of product that it is.

Strengths/Weaknesses/Opportunities/Threats

Strengths

Weaknesses

Passenger Comfort

Handling

Fuel Economy

Perception

Reliability

Marginal safety rating in a rear-end crash

Opportunities

Threats

Increased safety features

Fuel-efficient technology

Lower pricing

Intense competition

Downward pricing pressure

Inflated gasoline prices

First Year Objectives and Issues for achieving it

Positioning strategy

Volkswagen (VW) is a famous international brand name that has traditionally been associated with the mass market. The best strategy for product positioning of the Volkswagen Routan Minivan is that of by attribute or benefit. This is the most commonly used positioning strategy for most products. Their goal should be highlighting their amenities over their competitors and what benefits that these bring to the consumer.

Product Strategy

The product classification of the Routan should...

The product is thought to be secondary as modern minivan perception has remained on the outer edge of observed consumption and has remained firmly in the realm of satisfying useful needs. This is all about differentiation through experience. The branding strategy needs to be one of national campaign that highlights the differences that this minivan has over its competitors.
Pricing Strategy

The pricing strategy for the Routan needs to be slightly below the competitors which all run about $25,000. The strategy needs to highlight the better features of the Routan over the competitors but with a slightly lower price. Pricing and VW's positioning firmly places the Routan in the low to middle premium minivan category.

Distribution Strategy

The current distribution strategy of direct marketing is what needs to continue. This is the best way to market vehicles as vehicles are large purchases that often appeal to specific groups depending on the type of vehicle being sold.

Marketing Communications Strategy

The communication objective is a combination of push this minivan to those consumers who are families that have a need for a vehicle that has contains the features that the Routan has. It also has a pull objective because they want to try and capture their current customers who currently own one of their sportier vehicles. The idea is to convince this group of people that the Routan is the next logical choice of vehicle purchases for them.