Latin American Market Vs. U.S Market - Essay Example

Latin American Market vs. U.S Market al Affiliation Volkswagen Market Positioning: Latin American Market versus the U.S Market Volkswagen (VW) is a German automobile manufacturer that produces the Audi, Bugatti, SEAT, Scania, Golf, Passat, Lamborghini, Beetle, and Porshe (about 50% share) brands. Volkswagen is a German automobile company and it is the original and largest-selling marquee of the Volkswagen group. Volkswagen means “people’s car” in the German language. Volkswagen is marketed in twenty-six countries in Latin America.

The company boasts of having a lot of experience in the automobile industry having been in existence now for close to seven decades. The company has faced many challenges in various markets with stiff competition coming from Toyota, BMW, Mercedes, and Nissan. The paper discusses the anticipated market positioning of the company in the U.S.A., Mexico and Latin America.The Volkswagen Group of Latin America is today regarded as the leading automobile company in Latin America (Seume, 2001). This is not the case in the United Sates where there is a lot of competition in the automobile industry.

The public has perceived the Volkswagen passenger cars as powerful vehicles in Latin America and in the United States. However, Volkswagen currently does not boast of being a top brand in the U.S. market especially given that its brands have proven to be less reliable compared to those of competitors. The U.S. market largely demands products that are highly reliable with a touch of luxury. The U.S. market also places a lot of emphasis on quality. In consideration of the above, Volkswagen should do its best to assure its customers in the U.S. market of quality, reliability and moderate pricing.

In Latin America and Mexico where the income per capita and disposable income of nationals is lower compared to the U.S. statistics (Kotabe & Leal, 2001), the company should position itself as an affordable alternative to beautiful cars. The company should thus price its products relatively lower than competitors taking caution to produce more compact cars in view of production costs. The Volkswagen group in Latin America has set new records as far as sales revenue, vehicle sales and earnings are concerned.

The Volkswagen Company has expanded its market share in Latin America as its distribution network has become more robust. In the United States, the company should strive to double its market share; from two percent to four percent by 2014 (Seume, 2001). Volkswagen in the United States should expand its regional offices due to the predicted high sales. In the U.S., the car manufacturer needs to strengthen its relations with local car dealers to ensure that its brands receive greater attention in the market.

The company should also offer after sales services and other customer care services to customers in a bid to serve the demands of customers positioning itself as a most caring company, relative to its competitors. This in effect will increase and improve the satisfaction levels of its customers. By adopting a global positioning strategy, exclusively diverse services, unique branding and vehicles models, the company has all that it needs to lead its competitors in Mexico and Latin America and improve its market share in the United States.

Considering that the U.S. market is more and more becoming environmentally sensitive, Volkswagen should present itself as a producer of fuel efficient cars with green technology being among its core concerns.ReferencesKotabe, M. & Leal, R. (2001). Market Revolution in Latin America: Beyond México. West Yorkshire: Emerald Group Publishing.Seume, K. (2001). VW New Beetle performance handbook. Osceola, WI: MotorBooks International.