Positioning strategy of volkswagen

We defined four objectives through which Volkswagen shall become the most successful and fascinating enterprise of the global automotive industry by

Positioning strategy of volkswagen

The Battle for your Mind, Al Ries and Jack Trout describe how positioning is used as a communication tool to reach target customers in a crowded marketplace.

Jack Trout published an article on positioning inand regular use of the term dates back to when Ries and Trout published a series of articles in Advertising Age called "The Positioning Era. The Battle for your Mind Positioning strategy of volkswagen become a classic in the field of marketing.

The following is a summary of the key points made by Ries and Trout in their book. Information Overload Ries and Trout explain that while positioning begins with a product, the concept really is about positioning that product in the mind of the customer.

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This approach is needed because consumers are bombarded with a continuous stream of advertising, with advertisers spending several hundred dollars annually per consumer in the U. The consumer's mind reacts to this high volume of advertising by accepting only what is consistent with prior knowledge or experience.

It is quite difficult to change a consumer's impression once it is formed. Consumers cope with information overload by oversimplifying and are likely to shut out anything inconsistent with their knowledge and experience.

In an over-communicated environment, the advertiser should present a simplified message and make that message consistent with what the consumer already believes by focusing on the perceptions of the consumer rather than on the reality of the product.

Getting Into the Mind of the Consumer The easiest way of getting into someone's mind is to be first. It is very easy to remember who is first, and much more difficult to remember who is second.

Even if the second entrant offers a better product, the first mover has a large advantage that can make up for other shortcomings. However, all is not lost for products that are not the first. By being the first to claim a unique position in the mind the consumer, a firm effectively can cut through the noise level of other products.

For example, Miller Lite was not the first light beer, but it was the first to be positioned as a light beer, complete with a name to support that position. Similarly, Lowenbrau was the most popular German beer sold in America, but Beck's Beer successfully carved a unique position using the advertising, "You've tasted the German beer that's the most popular in America.

Now taste the German beer that's the most popular in Germany. If a brand is not number one, then to be successful it somehow must relate itself to the number one brand.

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A campaign that pretends that the market leader does not exist is likely to fail. Avis tried unsuccessfully for years to win customers, pretending that the number one Hertz did not exist. Finally, it began using the line, "Avis in only No. Whether Avis actually tried harder was not particularly relevant to their success.

Positioning strategy of volkswagen

Rather, consumers finally were able to relate Avis to Hertz, which was number one in their minds. Another example is that of the soft-drink 7-Up, which was No.

By relating itself to Coke and Pepsi as the "Uncola", 7-Up was able to establish itself in the mind of the consumer as a desirable alternative to the standard colas. When there is a clear market leader in the mind of the consumer, it can be nearly impossible to displace the leader, especially in the short-term.

On the other hand, a firm usually can find a way to position itself in relation to the market leader so that it can increase its market share. It usually is a mistake, however, to challenge the leader head-on and try to displace it. Positioning of a Leader Historically, the top three brands in a product category occupy market share in a ratio of 4: That is, the number one brand has twice the market share of number two, which has twice the market share of number three.

Positioning strategy of volkswagen

Ries and Trout argue that the success of a brand is not due to the high level of marketing acumen of the company itself, but rather, it is due to the fact that the company was first in the product category. They use the case of Xerox to make this point. Xerox was the first plain-paper copier and was able to sustain its leadership position.

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However, time after time the company failed in other product categories in which it was not first. Pibb to take on Dr. These examples support the point that the success of a brand usually is due to its being first in the market rather than the marketing abilities of the company.

The power of the company comes from the power of its brand, not the other way around. With this point in mind, there are certain things that a market leader should do to maintain the leadership position.

First, Ries and Trout emphasize what it should not do, and that is boast about being number one. If a firm does so, then customers will think that the firm is insecure in its position if it must reinforce it by saying so.

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