Launch Of The New Beetle

Events leading to the Launch of the New Beetle

Several decisions taken by VW even before the New Beetle is launched that contribute significantly to its success. To rejuvenate a stagnant brand that was in a free fall, VW terminates their 35 year contract with DDB Needham and brings Arnold Communications on board. VW gives Arnold a clear directive "The brand image has seriously eroded and there is a perception of poor quality and reliability" Arnold Communications is to make the brand more relevant to the 90's buyer.

Arnold Communications concludes after conducting a demographic survey that the current VW consumers were younger, more affluent than in the past & typically more educated. Individually they were adventurous, creative, confident & experimenters. Also Arnold Communications ensured they incorporated input from the VW dealers as well as the senior management. Based on this research Arnold recommends a new Product positioning & Brand essence. The Brand essence is making German Engineering more affordable. The Product is to be positioned so as to be approachable and not exclusive to the privileged like other import products of those times. The research led to the "Drivers Wanted" Brand position which had the byline "On the road of life, there are passengers and drivers". The importance of this Brand Position is tremendous because VW then uses it as a launching platform for the New Passat and New Beetle. The success of the initial campaign is immediately felt as initial sales experience an increase of 16% over previous years. The New Passat is launched on this platform and is an immediate success. The New Passat further improves VWs Brand image and in 1999 VW records a 178% increase as compared to 1993.

Marketing a Classic :The New Beetle Campaign

Based on research and interviews Arnold concludes that the target audience is 18 to 34 year olds and Baby Boomers. While diverse the target audience's common quality