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Brand Implentation - Essay Example

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VOLKSWAGEN BRAND Instructor Institution Submission Date Volkswagen The Volkswagen is a brand name for a group of entrepreneurs; companies whose main area of operation is within the automotive industry. They are well known for the manufacture and sale of the Volkswagen, Audi, Skoda, SEAT, Bentley, Lamborghini, Bugatti, and Porsche vehicles all over the world (Sanz and Damme, 2006, p.4)…
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Brand Implentation

Download file to see previous pages... It however faces very stiff competition by the Toyota brand as well as the general motors’ company (GM). The Volkswagen brand currently ranks second from the Toyota and preceding the general motors’ brand within the global context. Though the general motors’ has had dominance within the US in the past, an acute decline within their sales has resulted to the takeover by the Volkswagen brand within the region. She is now the fastest growing brand as well as the brand whose sales has sky rocketed within the recent past. Future projections reveals the brands’ target as being to double their sales and production within the near future by adopting a strategy of increasing by more than 10% their sales annually. The greatest strength attributable to the commendable success of the business brand is the diversity within their products. Not only does the brand company produce the Volkswagen motors but has other products such as the golf, Audi, Skoda, SEAT, Bentley, Lamborghini, Bugatti, and Porsche. This diversity of production ascertains the good coverage of the market with the variations with their products. This also provides an advantage to the brand in that there is wider scope of distribution of risks from just one brand of operation to the diversified brands. There is also good representation of the various economic classes of people within the diversification strategy. Moreover, the sales made through the various brand products ascertains higher profit realization form various customer segments without actually affecting the main motor brand; the Volkswagen. Over and above, the innovativeness of the team strategically places the brand a notch higher that their competitors as they have been seen to have a very strong team of innovators. Nevertheless, the SWOT analysis reveals critical weaknesses that the brand suffer worst of which is the poor cash flow as noted by the extreme credit facilities extended by the brand especially to the first time customers. The brand is consented to the policy of ‘sign and drive’ through which potential buyers are not obligated to have any down payment as they purchase the vehicles in credit. This is a competition tool that has been useful to rate the brand the best within the competition spheres as her popularity of low credit as well as the no down payment has surpassed all her competitors’. Moreover, her diversification within the product line has seen her increase customer base over the years by gaining more access within the Indian as well as the Chinese market through the support of the Golf. These economies are popular in preferring the small vehicles and as such the brand gains the advantage over her competitors. Through the Golf, the brand records over two billion new customers annually within the emerging economies. Despite the internal challenges that the brand is faced with lots of internal challenges though some pointed out to the external environment which must be thoroughly addressed for the purpose of successful progression of the brand. The fuel shortage or concern within the global market necessitates the design of conservative automotives. The fossil fuels are facing the threat of extinction and thus require that locomotive industries device of ways that shall safe and utilize the fuels more efficiently. The ...Download file to see next pagesRead More
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