Volkswagen Routan minivan marketing plan

Marketing

Volkswagen Routan Minivan Marketing Plan

Description of Product

The Volkswagen Routan Minivan is a not-so-mini size van with dual-sliding doors, a minimum seven-passenger capacity, multiple interior configurations, and many available options. Optional features for the Routan include entertainment systems, multiple audio sources, phone connectivity, navigation systems and power doors and tailgate. The Routan is a joint venture with Chrysler. It is manufactured at a Chrysler facility in Windsor, Ontario in Canada. The platform contains a MacPherson strut-front and twist-beam rear suspension. Brakes are four-wheel antilock disc, with ESP-stability control (The 2009 Volkswagen Routan, 2008).

Core

The Core product is not the touchable, physical product. One can't feel it. That's because the core product is the benefit of the product that gives it is value (Three Levels of a Product, 2010). In this case with the Volkswagen Routan Minivan, the benefit is convenience. There is an ease with which a person can go where they like and when they want to. Another core benefit is that of speed since a person can travel around relatively quickly with a car.

Actual

The actual product is the touchable, physical product. It is something that one can get some use out of (Three Levels of a Product, 2010). With the Volkswagen Routan Minivan it is the vehicle that one test drives, buys and then collects.

Augmented

The augmented product is the friendly part of a product. It usually is made up of lots of added value, for which a person may or may not pay a price (Three Levels of a Product, 2010). When a person buys a car, the augmented part of the product that they receive includes the warranty, the customer service support that is offered by the car's manufacture, and any after-sales service that may be provided.

Product Life Cycle

The product life cycle of a product consists of a period of development before it is introduced or launched into the market. It then attracts more and more customers as it grows and eventually the market stabilizes and the product enters the maturity phase. At this point the product is taken over by the development and introduction of other competitors, so it goes into decline and is eventually withdrawn (The Product Life Cycle (PLC), 2010). The Volkswagen Routan Minivan is a relatively new product that was just introduced in 2009; this makes it in the introduction phase of the product life cycle.

Current Marketing Situation

Market description

The Routan is conceptualized beyond functionality into a personally relevant experience that is not defined by VW, but the customer. Volkswagen is thought to be The People's Car, consequently it is only seems fitting that VW would try to facilitate mobility to the masses. Vehicle mobility is a product of which there are many, and therefore in order to differentiate it, brands have to create a unique and relevant experience. One-way forms of communications are being replaced by more interactive forms of media and in order for VW to continue to be the people's car; it will need to embrace sharing control of what products and services consumers want.

Product Review

The 2010 Volkswagen Routan ranks 5 out of 7 Minivans according to the U.S. News and World Report. This ranking was based on their examination of 13 published reviews and test drives of the Volkswagen Routan along with an analysis of reliability and safety data. The results have been somewhat varied. Reviewers said that while the Routan drives slightly better than the Chrysler minivans, it still lagged behind the Honda Odyssey. While the VW characteristics facilitate the interior, some people have said that simply putting nice coverings on a Chrysler interior just isn't enough. In spite of these negative things, the Routan has some strong points as well. Its passenger cabin is roomy, and while its interior isn't as versatile as Chrysler, the Routan's seats are more comfortable. Though reviewers say the Odyssey outperforms the Routan, it's only by a matter of degrees, and the Routan has a lower starting price. The Routan has had very good crash test scores. And while the Routan's warranty isn't longer than its competitors, it's the only minivan to offer free scheduled maintenance for three years or 36,000 miles. Volkswagen has jointed with Chrysler in order to produce the Routan.

Targeted Segment

Customer Need

Corresponding Feature/Benefit

Families

(consumer market)

Ample seating

Built in entertainment

Easy Entry

Safety

Ample room

Seating for seven

Dual fold down DVD screens

Dual sliding power doors

Rearview back camera

Large cargo capacity

Source: http://www.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 be one of enhanced customer experience that will be especially appealing not only to the targeted segment but to the general population, which in turn may result in purchases by untargeted consumers. 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.