The Value of Nostalgia: The Case of Volkswagen - Term Paper Example

When Hitler became the Chancellor of Germany in 1933, he started implementing his decision to develop a robust automobile sector in Germany. Volkswagen Beetle was designed as a people’s car with high end designing and technology implemented in the manufacturing of the car model. Beetle was a car designed by Volkswagen to focus on the factor of nostalgia for the customers. Also, the young generation of customers and were considered as the main segment targeted by the model. The model was designed on high end German technology and design to bring on the factor of memorable experiences for the customers.

Volkswagen introduced the model of Beetle in the market of the United States of America at the time of the end of the Second World War. At that time, there was increased reservation in America related to the acceptance of imported cars2. The first promotional campaign of Volkswagen Beetle was done by printing advertisement campaigns in the New York Times3. The company increased its markets in the 1960s by expanding the number of dealers. The brand recognition of Volkswagen reached an all-time high during this period.

The 1970s saw fluctuations in the exchange rates which decreased the profit margins of the company. The 1980s saw a decline in the sales volume of Beetle due to the new environmental policies which caused the productions to be lowered. Volkswagen follows an efficient management style in marketing its different sub brands. The management extensively uses the strategies of brand extension to use the nostalgia factor in marketing the products, especially the Beetle model. The management has remodeled and revamped the old Beetle to re-launch a modified version of the original Beetle.

The management style of Volkswagen tries to reach the past and also attempts to create value out of the old or abandoned brands. The management of Volkswagen tries to deliver value to the customers by holding on to the meaningful memories and relationship