According to Arnold Communication’s Market Research, Volkswagen’s New Beetle Market Segment Consists of a Very Diverse Group of People, That Is, the Baby Boomers and the Gen X’ers.

1) According to Arnold Communication’s market research, Volkswagen’s new Beetle market segment consists of a

very diverse group of people, that is, the Baby Boomers and the Gen X’ers.

•  Baby Boomers are the demographic of people who were born between 1946 and 1964 just after the World War

II (34 to 54 years old). These are the people who mostly have a former experience or personal memory of the

original Beetle. Baby boomers grew up at peak levels of income, and had a general belief that things would

improve over time. They have worked for almost all of their adult lives, had good pension schemes, paid for

housing when it was relatively cheap, and many had the opportunity to retire early. Market segment size :

•  Affluent Baby Boomers (income >= $15,000) : 46,000,000

•  Non-affluent Baby Boomers (income < $15,000) : 3,800,000

•  Gen X’ers or the Young Generation audience (18-34 years) are typically born between 1965 and 1980. These

people have no former experience or any personal memory of the original Beetle. The “latch-key kids” grew

up street-smart but isolated, often with divorced or career-driven parents. They are extremely individualistic,

entrepreneurial, into labels and brand names, self-reliant, cautious, skeptical, and averages 7 career changes in

their lifetime, unlike previous generations. They are raised in the transition phase of digital media and have the

desire to learn, explore and make a contribution. Market segment size :

•  Affluent Gen X’ers (income >= $15,000) : 30,000,000

•  Non-affluent Baby Boomers (income < $15,000) : 3,000,000

2) My primary target would be to connect the Experience of the past with the Aspirations of the future. Arnold’s

research showed that potential Volkswagen Beetle drivers shared some common characteristics like confidence,

individualism and a desire to be the center of attention. They were more educated than the average car purchaser. I

would target the affluent members of the Gen X’ers because :

• They are single or married without children, who have unique and active lifestyles. So, the size of the car would

suit them well. They would develop brand loyalty since it’s mostly the first car and that will translate to additional

Volkswagen purchases at later stages in life.

• They would connect with the fun aspect of the car with its various range of colours & unique design cues like the

use of circular shapes (representing human forms like the eyes, heads and the “smiling face” stance), which are

inviting and friendly and represent completeness, that people are mostly drawn to.

• They would want to be seen in the new Beetle because of its simplicity, reliability, originality backed up with