Shangai Volkswagen

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------------------------------------------------- SHANGHAI VOLKSWAGEN Prepared for: Global Marketing – Sam Guo Prepared by: Mario Marra Date: February 15th, 2012 ------------------------------------------------- Shanghai Volkswagen is loosing market share. Since we arrived to Chinese market we had a continuous growth, but in 1997 the market participation started to decrease. Today, in 2004, we have a market share of 16% substantially lower of the 51% that we used to have eight years ago. We also are loosing our position of leadership in the market. There are many causes why this is happening. First, China is growing but we are not. In the last years many of Chinese move from the lower class to the medium class. The…show more content…
Price is an important factor that consumers take into consideration before buy a car. We must to maintain our prices in the same line of our competitors. Our most important target in the next years will be young people who are having more income. We need to show our products in places where young people usually attend, like universities, young and fashion neighborhoods and in streets where youth used to frequent. Another important factor to succeed with our “Start from Zero” strategy is the promotion. Considering our target will be young people, is necessary to promote in the most popular TV shows that young people used to watch. Also we can advertise in fashion magazines and billboards in fashionable areas. Our recommendation to address this new strategy is: * Decrease our structure costs. We need to renegotiate with our suppliers. They need to understand that if we do not reduce our costs we are not going to increase our sales. This is important for them to maintain our commercial relationship. * Hire new creative and capable people to design the new cars. They need to work in team with SAIC because they know more the culture of the country. We also need to train in design issues our current employees that are working in manufacturing. * We recommend launch new models of cars, especially for young people. We need to design new, young and fashion models for our target as
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