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Segmentation, Targeting and Positioning, Volkswagen

Segmentation, Targeting & Positioning by Volkswagen

Segmentation, Targeting and Positioning, Volkswagen


Many successful companies across the world apply segmentation, targeting and positioning (STP) as part of their marketing strategies. Volkswagen (VW), a company that makes cars is one of the successful companies that apply STP. Established in 1937, the company manufactures several car brands including Audi, Seat, Lamborghini, Skoda, Porshe, Scania, Man, Bentley, Bugatti, and Volkswgen (Volkswgen, 2018a; Bhasin, 2017; Volkswgen, 2018b). While its headquarters is in Wolfburg, Germany, the company has several branches and plants spread out in different parts of the world. This enables it meet the needs of its global clientele, with the help of a robust distribution network. This paper focuses on how Volkswagen has segmented its market, its target markets (segments), and how the brand is positioned.

Segmentation and Targeting …

Market segmentation, according to William Stanton, is the process of dividing the heterogeneous market for a product into several sub-markets or segments, each of which tends to display homogeneity in all important aspects (Rudani, 2010; Tabavar n.d., p. 63). …… Targeting, according to Bihani (2004), is the processes of evaluating how attractive market segments are and choosing the segment(s) to enter … Volkswagen applies segmented marketing and has its market partitioned based on a mix of psychographic, geographic, demographic and behavioural factors to meet the specific needs of different groups of customers. With regard to psychographic segmentation, the company has segmented its market based on customers’ interests, beliefs, values, social status, and lifestyles. In this regard some of the segments the company targets include consumers who simply need mobility, …. , and consumers who need convenience and comfort. The compact or small cars that VW manufactures such as the beetle, polo, and golf are aimed at catering to the needs of consumers who simply need mobility or who simply wish to enjoy the utility value of a car (Schmid, 2013). These cars are simple in design and are not fitted with fancy or luxury components. These cars are also cheaper to buy and maintain. 

Sports …. as a market segment brings together consumers who enjoy driving and getting the maximum possible power, speed, and thrill out of a car … continue reading


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