Volkswagen & Suzuki Alliance Case Study Analysis Essay Example

and Yamaha, manufactures automobile models like the Alto, Grand Vitara, Swift, Splash, and SX4.

Suzuki Motor manufactures a variety of motorcycle goods such as cruiser, motocross, off-road, scooter, street, and touring models, along with ATVs. Likewise, the company produces non-vehicle items like boat outboard engines and powered wheelchairs. Suzuki Motor has operations in over 190 countries. Despite General Motors parting with its stake in Suzuki, they continue collaborating on diverse technologies, particularly hybrid automobiles. Suzuki also creates cars via its many subsidiaries and international joint ventures.

This article cogently highlights critical elements of marketing management. Volkswagen's decision to buy a 20% stake in Suzuki, with the aim to manufacture cost-effective cars and access novel markets, serves as an excellent exemplification of how marketing and management strategies can profoundly influence a company's trajectory. Despite the recent steep decline in macroeconomic conditions, Volkswagen continues to uphold its targets, mirroring the current tendencies in its marketing management.

Throughout the year, approximately 60 newer versions, product improvements, and successors equipped with highly efficient and low-consumption engines were introduced. They are confident that with the unveiling of these models, they can surpass Volkswagen's performance as anticipated. Volkswagen is implementing Dual Marketing tactics to emphasize its key points, even if they tend to clash at times. This approach helps Volkswagen avoid alienating or sidelining any potential audience they'd prefer not to dismiss or depict their brand in one specific way.

The groundbreaking "Unpimp my ride" initiative was unveiled, focusing on design and control, along with the "obeying your fast" message for the GTI. Additionally, the "safe happens" striking TV commercials for Jetta were released. Regardless of the backlash, both these strategies effectively promote the unlikely

combination of speed and safety as core values of the VW brand. This article's key takeaway is that Volkswagen strives for productive collaboration with Suzuki, setting itself apart from GM that formerly held a 20% stake in Suzuki.

The German car manufacturer is also aiming to master the affordable compact car market, which is currently led by Suzuki in India and Southeast Asia. This article reveals the intentions behind this arrangement, demonstrating how it will benefit both organizations and influence their future trajectory. Critical and comparative analysis of various articles is evaluated; comparing it to other sources. Business Week’s Tokyo bureau correspondents, Makiko Kitamura and Yuki Hagiwara, penned an enlightening piece that complements the current one from the Wall Street Journal on December 9, 2009.

The text expressed that for Volkswagen to have a say in Suzuki's management decisions, a 34% stake would be required. Furthermore, it noted the familial ties between Suzuki's CEO and the company's founder's granddaughter, speculating on potential shifts post his demise. The report additionally pointed out the shared weakness of Volkswagen and Suzuki in the hybrid and electric vehicle space. The potential of future collaborations between Volkswagen and Suzuki also got a mention. I appreciated this article for its detailed insights and fresh perspective on the issue.

Volkswagen has adopted a dual marketing strategy for its current and future marketing approach, which may initially seem perplexing to customers. This shift represents a significant departure from its previous "Drive one" campaign. The new strategy focuses on unifying two key factors that customers often consider when purchasing a vehicle: "Safety ; Engine Power". Chris Harnick of Mobile Marketer had a discussion with Charlie Taylor,

the General Manager of Digital Marketing and Motorsports at Volkswagen, based in Herndon, VA, about the brand's mobile marketing initiatives. Taylor revealed that, according to J.D. Power and Associates' 2008 data, 18% of car buyers are now incorporating mobile technology into their vehicle shopping routine.

The auto shopping procedure, which typically spans a six-month period, is undergoing changes as an increasing number of customers have unprecedented access to vast amounts of data. I refer to this situation as consumer domination. Consumers utilize a variety of channels in the process of shopping for a car. Mobile devices have become particularly useful in the final stages of the shopping process, being mostly used to check inventory and investigate trade-in values, frequently when customers are physically present at our dealership.

Volkswagen's latest update to its mobile approach included the creation of its WAP site at htpp://m.vw.com. It plans to incorporate mobile media and search into future campaigns, with SMS messages set to become a principal medium for future model launches and promotional exercises. In an effort to reduce the manufacturing costs of small cars, Volkswagen is joining forces with Suzuki, known for its proficiency in producing profitable compact vehicles. This partnership is part of VW's strategy to gain traction in the Indian and Southeast Asian markets where Suzuki already holds a strong position.

A rather brilliant strategy to penetrate new markets involves utilizing Suzuki's pre-existing distribution outlets. Volkswagen and Suzuki are gearing up to tackle the recent upheavals in the automobile industry by jointly bearing research and development expenses. Suzuki's dwindling cash reserves will likely get a much-needed boost from Volkswagen's $2.5 billion. This cooperative strategy promises mutual benefits for both

Suzuki and Volkswagen. It enables Suzuki to tap into Volkswagen's diesel engines and electronics technology, and also securing a slice of Chinese market where VW holds dominant position.

Conversely, Volkswagen is aiming to master the art of manufacturing high-calibre cars at a reduced expense. Ultimately, the two firms are keen on working together on various other subjects, particularly concerning fuel-efficient vehicles and green tech. Synopsis/Inferences From the text, it was inferred that establishing an early thorough understanding of a business's vision, philosophy, and strategy along with all other procedures ensuring the brand's internal comprehensibility before external communication, results in an enhanced brand value and business performance, be it financial or strategic.

The field of automobile marketing necessitates a comprehensive approach that potentially starts with the comprehension of brand attitude. This doesn't hold any secrets: it is identified in the same manner as other non-physical brand elements of a company. Businesses ought to be aware that since their reputation is evaluated on subjective, typically emotional criteria by the audience, their communication strategies must align similarly. These considerations may not always be rational or evidence-based, yet they require a solid grasp of consumer behavior and extensive research into the perception of brands and how companies would like them to be seen.