Volkswagen Brand Audit 1
Brand Overview
Volkswagen originally began under orders from Hitler to build a cheap car for the people of
Germany, hence the name Volkswagen which means “the people’s car.” After WWII, the factory in
Wolfsburg produced cars for the occupying British government (“History,” n.d.). During this time they
also introduced the Beetle, still popular today. The company began to sell cars overseas in 1947. In
1949, the “Volkswagen-Finanzierungsgesellschaft mbH” or VFG company was founded (“History,” n.d.).
During the 1950s, Volkswagen continued to expand overseas, and obtained a global market share of
50%. The iconic Volkswagen van, officially called the Transporter model but nicknamed the Bully, was
created in 1950 (“History,” n.d.). The 1960s marked a period of crisis where Volkswagen’s business
model of mass-producing one model of car began to fail as other car companies diversified their
offerings. In response, Volkswagen shifted more investment into research and development (“History,”
n.d.). During this time Volkswagen became a public company, selling off 60% of shares to the German
people with the remaining 40% divided between the government and Lower Saxony state (“History,”
n.d.). Volkswagen’s first acquisition is the Auto Union group. The Passat and Golf are created in 1973
and 1974, respectively (“History,” n.d.). Meanwhile, the Beetle has passed the Ford Model T in
production. Volkswagen opens a bank sector in 1973 to help its customers receive credit and financing to
buy their vehicles (“History,” n.d.). By the 1980s, Volkswagen had a factory on four continents.
Volkswagen acquired the Spanish company SEAT SA in 1991 after a long period of working together in
a sales alliance (“History,” n.d.). The same year, they also acquired Czech brand Skoda, thus gaining
further access to Central and Eastern European markets. The 90s marked a period of increase
productivity, quality, and environmental efficiency (“History,” n.d.). Interestingly, Volkswagen adopted
a four-day workweek in its German worksites. Clearly Volkswagen was comfortable with doing things
differently than other car companies. The luxury brands Bentley, Bugatti, and Lamborghini are added in
the late 90s, and the commercial vehicle division becomes its own separate brand (“History,” n.d.). The
2000s mark growth into developing economies, such as Russia and India. Today Volkswagen is
venturing into new environmentally friendly technologies, including its newest car, the up! (“History,”
n.d.). As always, the Volkswagen group will focus on research and development to maintain its status as
an innovative, quality car maker.
Brand Planning Assessment:
How would you characterize the positioning of your brand?
Volkswagen Automotive Group is the largest carmaker in Europe with several different brands
such as Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and the Volkswagen passenger car.
Their commercial vehicles include MAN, and Scania and their motorcycle line, Ducati. We could divide
these into four categories: low-end automotive cars, high-end automotive cars, commercial vehicles, and
motorcycles.
Volkswagen Automotive Group high-end cars include Audi, Bentley, Bugatti, Lamborghini and
the Porsche. Since the brand images of these cars are high, Volkswagen Automotive Group has positioned
these brands to make these cars less common in the United States. For example, to keep up the image that
they are more prestigious, car enthusiast must obtain their car by importing them to the United States.
Although there are dealerships throughout the United States, they are scarce compared to Toyota or Ford
dealerships. Volkswagen Automotive Group has also limited the amount of cars that they send overseas.
This creates a more personalized high-end car for a more of a “wow” statement for the owner when they
are driving down the street.
The low-end of Volkswagen Automotive Group cars include the SEAT, Skoda and Volkswagen
passenger car. SEAT and Skoda positioning of these care are unknown in the United States because they
are mainly located in South America, Europe, and Africa. The Volkswagen passenger car is most
commonly known in the United States which is because of the way they advertise on television to
compete with other cars companies such as Toyota, Honda, Ford, Volvo, and GM.
Volkswagen Automotive Group also has their commercial vehicles MAN and Scania. Like the
SEAT and Skoda, MAN and Scania are only located in Europe, because of the little profit they would
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make trying to compete with the American made commercial vehicles. Ducati motorcycles are commonly
used as a racing motorcycle and possess a high-end brand image in the motorcycle community. It is
mostly advertised within the United States within motorcycle magazines, racetracks, and celebrity
endorsements.
What have been the key marketing activities that have most contributed to the success of that positioning?
Volkswagen Automotive Group key marketing activities have contributed to the success of the
positioning in many ways. For their high-end cars by making them uncommon and almost unavailable in
North America they have been able to maintain a prestigious image. For their low-end cars they have
effectively integrated similar marketing channels to help them compete with other local and foreign
distributors. Their Ducati racing bike has been successful in marketing in the motorcycle community
making it one of the most sought after racing bike in the North America.
What are the greatest opportunities to enhance that positioning?
Volkswagen Automotive Group greatest opportunity to enhance their positioning would be
advertising their pricing values on their Volkswagen passenger car for the people who have lower income.
I wouldn’t change the positioning on their high-end cars. The element of a foreign car, expensive, and
hard to find makes their high-end car more desired and prestigious than other luxury cars. Also, the
position that Ducati uses to marketing their racing bikes is what makes it a luxury bike. They highly
market it in motorcycle magazines and on race tracks.
Brand Valuation Assessment:
How has your brand built resonance?
Established since 1937, Volkswagen has a long time to invest in and build the brand resonance.
Volkswagen’s brand resonance is reflected in the following categories:
1. Brand salience:
It is not difficult to think of Volkswagen when a person wants to purchase a car. Volkswagen is
one the most popular car brand along with Toyota, Ford, and BMW... American and European people will
mostly likely to recognize a Volkswagen car or its sub-brand one or even when just look at their logos.
However, customers will not think of individual brands of Volkswagen such as Bentley, Audi, and
Lamborghini… These brands are luxurious ones which target at only wealthy class. So the breadth of the
German Corporate is still very limited.
Nevertheless, Volkswagen recently applies its slogan “Das Auto” which means “the car” in most
language. With “Das Auto”, Volkswagen wants to make it name corresponding to car in general. People
will perceive Volkswagen as a word for car, as Hoover for vacuum. The purpose of this is to make
increase both the breadth and depth of the brand so that whenever anyone mentions a car, they would
think of Volkswagen immediately.
2. Brand imagery: Each brand of Volkswagen has different ways to define its image:
 Audi: In the premium segment, Audi has become one of the strongest car brands worldwide
under the motif “Vorsprung durch Technik” – Head start through technology. The brand aims
to take over market leadership in this segment and relies heavily on its sporty, high quality
and progressive image. The success of Audi’s four rings in all markets around the world,
coupled with the numerous honors and awards conferred on Audi models, is impressive proof
of the fact that Audi has evolved into a premium, high prestige brand. This success is
primarily attributable to a consistent marketing strategy with innovative engineering solutions
and an emotional design language (Volkswagen Annual Report 2012).
 SKODA: With its “Simply clever” slogan ŠKODA has become one of the fastest emerging
brands, particularly in Europe and China. The brand relies on delivering a strong value
proposition and an attractive design, coupled with intelligent ideas for the use of space that
are technically simple but offer refined and practical solutions. The high recognition for the
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brand concept is reflected in its numerous awards for ambitious, innovative and sophisticated
vehicle design.
 SEAT: Models that regularly win awards for their outstanding design are representative of the
SEAT brand image. By sharpening the brand profile and placing additional focus on the most
important brand values of “dynamic”, “young” and “design-oriented”, SEAT is aiming for
stronger growth, particularly in Europe. The new brand claim “Enjoyneering” suitably
expresses the character of the brand as a passionate perfectionist and emotional technology
leader.
 Bentley, Bugatti and Lamborghini round off the brand diversity of the Volkswagen Group in
a refined manner. They reside in the luxury vehicle segments and distinguish themselves by
their exclusivity, power and elegance.
 Volkswagen Commercial Vehicles stands for superior mobility with its three core values of
reliability, economy and partnership. It offers a range of different transport solutions at the
highest levels of engineering for different customer groups. The light commercial vehicles in
the Caddy, Multivan/Transporter, Crafter and Amarok ranges are tailored to meet the
individual transportation needs of customers in retail and craft businesses, as well as civil
authorities and service providers. Family-friendly MPVs and leisure-oriented motor homes
are valued by private customers as derivatives of our light commercial vehicles.
 Scania: The success of the Swedish Scania brand is based on the core values of “customer
first”, “respect for the individual” and “quality”. For over 100 years, the company has been
manufacturing high-performance trucks and buses with highly innovative technology and
offering customers efficient transport solutions in combination with a variety of service
packages, including financial services.
3. Brand feelings:
Volkswagen has built up its brand feelings from different levels. Some products make users
feel warm; some fun, and some secure. Nevertheless, most of Volkswagen cars focus more on
excitement, social approval, and self-respect – more gravity feelings rather than the intensity.
These private feelings create a stable stand for Volkswagen in the market.
 Excitement: Volkswagen commercials attempt to invoke happiness and excitement from
audiences. Slogan or tag line “Get in. Get Happy”.
 Social approval: In 2010, Volkswagen equipped Africa with infrastructures to organized
World Cup 2010. The Corporate feels its social responsibilities and an urge to support Africa.
Volkswagen built infrastructures, provided education, enhanced living standards, and
relentlessly fought HIV in Africa. These are just a part of what Volkswagen did to give back
to community. This helps to build Volkswagen as a corporate with a cause, gaining social
agreement. The impact of charity in Africa will blur the side of environment-unfriendly of car
engines. People will look at Volkswagen with a great amount of good will after
accomplishment is Africa is broadcasted.
 Self-respect: With the sleek designs and powerful engines, any of Volkswagen cars is a
symbol of delicacy. In addition, the cash value of a Lamborghini, Bentley, or Audi always
dictates the class of the owner. Customers could feel the taste of accomplishment when they
own a Volkswagen.
4. Brand resonance:
 Loyalty: Volkswagen owns a large amount of loyal customers. Since each brand of
Volkswagen has distinctive characteristic and values, customers rarely change the brand. For
example, a person who loves Lamborghini would never buy a Toyota or BMW. The car
brand is the customer’ brand. It is consistent with their style, which the rate of repeated
purchase is high. Interestingly, the brand that has most loyalty is Volkswagen passenger cars.
Customers are satisfied with not only the values of the brand but also the outstanding quality
of the product.
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
Community: There are many communities of Volkswagen both online and offline. Some
communities share the experience of owning a Volkswagen and others want to know more
about Volkswagen’s car feature. Moreover, there are clubs for people who love Volkswagen.
They even have t-shirts and souvenir for their own groups, which demonstrate the spirit of the
community. Some communities include:
o http://www.communityvw.net/
o http://vwcommunity.ca/
o http://www.ivdub.com/groups/
These communities are concrete evidences of engagement of customers in Volkswagen.
People who own a Volkswagen share some certain relationship and feel connected, which
will connect them to the brand. The relationship between customer and the Corporate is really
enhanced. They attempt to better understand the brand and contribute to the development of
the products.
 Engagement:
o Commitment in sport and culture: Volkswagen Arena: Volkswagen Arena is a multipurpose stadium in Wolfsburg, Lower Saxony, Germany and serves as the home stadium
of the 2008–09 Bundesliga champions VfL Wolfsburg. When people went to the
Volkswagen Arena, they can feel the spirit of Volkswagen, and really engaged in brand.
Moreover, reputation from sponsoring numerous sport events is a precious source of
brand equity to Volkswagen (13Ap).
o Volkswagen Junior Master: The football program in 20 countries with 800 teams. Juniors
participate in the game to show their passion and commitment to soccer. The program is a
good chance for juniors to learn a play. At the same time, Volkswagen can build up brand
image to juniors and their parents.
o Museum of Modern of Art: Volkswagen cooperates with Museum of Modern Art in New
York to promote Think Blue – innovative solutions to efficiency and green ecosystem.
This partnership improved Volkswagen’s reputation as a friendly partner in environment
reservation, in contrary to the pollution that cars usually cause.
o Motor Sport: Volkswagen participated in Formula 3 races in Dakar. The team is always
the forerun and takes advantages of technology to conquer challenging races. Customers
can support Volkswagen team as a football team, with all of their heartedness and
enthusiast. The relationship between customers and Volkswagen is elevated to a new
level (13Ap).
5. Summary of brand resonance:
Volkswagen has focused on brand salience, brand feelings, brand judgment, and brand resonance to
define its name. In each area, Volkswagen Groups has done variety of activities to promote it names.
Therefore, customers can perceive Volkswagen as an outstanding brand with a wide range of brand
salience, outstanding images, positive feelings with social responsibilities, and high engagement.
How would you assess the value of your brand to the company?
Volkswagen’s brand value can be assessed from 3 areas: sale number, it competitors, and brand
resonance.
1. Brand resonance:
Based on what the Group has attempted since it was founded, Volkswagen has built up concrete
and consistent brand names. Each brand has different values due to different target markets and
customers. Through history of expansion, the enormous value of Volkswagen makes it easy to
expand, spin-off, or acquire any other product line. All of this influence confirms Volkswagen as a
highly valuable brand.
2. Brand value numbers:
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In general, Volkswagen brand value is $17,758m in 2012, and increases to $23,666m in 2013. And
among 100 global brands, Volkswagen’s rank is 55. All of this number reflects the gargantuan
value of Volkswagen (Brandirectory ).
The following table shows how much each brand contributes to Volkswagen Group, which reflects
how much each brand values.
(Source: http://annualreport2011.volkswagenag.com/divisions/brandsandbusinessfields.html)
3. Competitors:
Among the 7 most popular luxurious car brands (BMW, Mercedes-Benz, Audi, Lexus, Porsche,
Bentley Motors and Rolls-Royce Motor Cars), three of them belong to Volkswagen Group.
Volkswagen brands have taken over a large market share in luxurious car. However, to fully
understand Volkswagen’s value, we should look at its strongest competitor, BMW and how it is
doing.
Both gigantic car brands come from Germany and share several similarities. But BMW has
surpassed Volkswagen a little in the past. BMW’s brand value in 2012 is 21,282 million and is
23,236 million in 2013 (Brandirectory). The acceleration rate of BMW is slower than
Volkswagen’s. High acceleration demonstrates that Volkswagen is speeding up and equals with
BMW.
In addition, BMW also constructs a very strong brand name by sponsoring variety of sport events
as well as investing in 360-degree campaigns. To compete with BMW, Volkswagen must have
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been equipped carefully and very confident in its brand name. BMW is a very effective projection
toward Volkswagen’s brand value since they are compatible in the car industry.
In short, brand resonance, brand value numbers, and the strongest competitor, BMW, has clarified
the colossal value of potential of Volkswagen.
Brand Growth Analysis:
Source: http://www.volkswagenag.com/content/vwcorp/
What is your brand’s architecture?
The brand architecture is a marketing tool used to show which brand elements should be used to
represent a company’s products (Keller, 2013). Volkswagen Group’s brand architecture consists primarily
of one corporate brand that oversees twelve individual brands including SEAT, Skoda, Volkswagen,
Audi, Bentley, Bugatti, Lamborghini, and Porsche (Volkswagen Group Brands and Products). The
corporate brand is divided into two divisions: Automotive and Financial Services. From the Automotive
division, Volkswagen Group incorporates a branding strategy that creates individual umbrella branding
for each of its eight family brands.Analyzing Volkswagen Group’s overall architecture and hierarchy, the
corporation has implemented a vertical line extension, extending into premium, or prestige brands like
Audi, Bentley, Bugatti, Lamborghini, and Porsche; however, the corporation also maintains market
coverage with entry-level brands such as SEAT, Skoda, and Volkswagen (Volkswagen Group Brands and
Products).
How would you critique it?
The current architecture allows each individual brand to maintain its own identity; as a result, the
positive associations, feelings, and judgments of each individual brand is separate than that of
Volkswagen Group’s. The Group implements a “House of Brands” approach and the broad architecture
allows for a diverse market coverage as well as consumers’ perception of each brand’s credibility. The
umbrella branding strategy can be positive for Volkswagen Group in cases of negative associations,
where these associations might not necessarily affect the public’s feelings and judgments about the Group
specifically, but only the individual brand.
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For example, Volkswagen is one of the brands existing in the Low Consumption Small Cars
product category. As depicted in the brand hierarchy chart above, Volkswagen acts as the family brand
and can be divided into three categories: Compacts, Sedans, and Wagons. Compact cars consist of four
individual brands: Golf, GTI, Beetle, and EOS; SUVS consist of Touareg and Tiguan; Sedans consist of
Passat, Jetta, CC, and EOS; and Jetta SportsWagen maintains its own category in the wagon category
(Volkswagen Group Brands and Products). Each individual brand also maintains different modifiers to
further create points-of-differences between different makes.
What is good or bad about its hierarchy?
Volkswagen Group’s overall architecture currently reaches into both family-oriented or middleclass markets and extends into luxury, prestige markets. The hierarchy effectively establishes points-ofdifferences from both entry-level brands and prestige brands; however, opportunities remain in the lowend or value-conscious markets, where Volkswagen group has yet to extend into. Though SEAT, Skoda,
and Volkswagen are valued as high quality in markets, an extension into a value-conscious brand,
possibly costly, would allow taps into new markets. This low-end brand extension would also benefit
from Volkswagen Group’s established equity. In establishing differentiated family brand images (provide
examples like Volkswagen is family oriented, Porsche as sports, Bentley as high-class, etc), the brand
extension should also inherit a new brand name, as to establish itself from other family brands, for
example, Toyota’s Scion brand.
How does it fit into a broader brand portfolio?
Volkswagen group has a strategic manner of placing their products to tailor the needs of every
customer in mind. The Volkswagen Group corporate brand is divided into the Automotive and Financial
divisions, which separates the products the Group produces and financial services affiliated with those
products. The strength that the Volkswagen Group has is that alongside offering variety of products, each
brand maintains its own character and operates as their own independent entity on the market.
Volkswagen Group’s broader brand portfolio executes a line extension that appeals to a variety of
markets. For example, Porsche maintains a strong presence in the Sports Luxury category, Audi in the
Luxury category, and Volkswagen in the Low Consumption Small Car category. Since Volkswagen
Group has such a large brand portfolio they own the largest amount of car companies such as Bentley,
Audi, and Lamborghini. Their company is recognized for taking modern German Engineering and
producing vehicles that were safe, reliable, and comfortable at an affordable price.
How well has the Brand expanded into new markets or channels?
As Volkswagen Group maintains a prominent presence in the passenger car market through their
umbrella branding strategy, they’ve been able to expand into new markets by following the latest trends
and technology and implementing features into their higher-end vehicles. For example, the
implementation of Apple products in the back seats of a Bentley incorporates a co-branding strategy
where Bentley’s overall equity is improved and further establishes them in the luxury car market. Judging
Volkswagen Group’s growth strategy, they tend to follow the current market trends and make adjustments
to their current products by following the market trends such as making eco-friendly and hybrid vehicles
for most of their models, abiding by their company goal of offering “attractive, safe and environmentally
sound vehicles which can compete in an increasingly tough market and set world standards in their
respective class” (Volkswagen Group: The Group).
How would you judge its growth strategy?
Volkswagen Group is constantly following trends and by doing this they are successful in the
growth of their company and its overall strategy. They use their most sold models and create a
“revamped” newer version of classic models from time to time. For example, in 2001 they sold 100,000
Passat’s from the 80,000 vehicles sold in 2000. In 2002, they released this same model with a more
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refined look and included technology up to date, which attracted customers to purchase this vehicle for
the amenities and retail price. (Wards Auto) By being able to introduce vehicles other than the Beetle that
they are known for, selling vehicles for every style whether it be commercial or sport or simply due to
price and prestige, Volkswagen has a vehicle marketing specific audiences in which they grow in
reputation with their prestigious and luxury brands such as Audi and Lamborghini to their economical and
compact cars such as the Jetta and Beetle.
Recommendations
Volkswagen has several opportunities for growth and maintaining brand equity:
1. Expand lower price brands SEAT and Skoda into the United States. Alternatively, Volkswagen
could manufacture a low cost vehicle under the Volkswagen brand, though this would risk
lowering the prestige of its current Volkswagen brand cars. Using a co-branding strategy might
prove most effective. For example, Volkswagen could market a low price vehicle under the
brand SEAT by Volkswagen or Skoda by Volkswagen, since Americans are unfamiliar with those
brands and would look more favorably on the car if it were connected to the well-respected
Volkswagen brand name. A lower price car could also be successful in the US market by using
the Volkswagen name to advertise attributes not normally touted in cheaper cars, such as quality
German engineering and excellent safety features. Such a vertical brand extension would allow
Volkswagen to increase market share and cater to a new market segment that has previously been
under-utilized.
2. Create a point of difference with other car companies by emphasizing green/environmentallyfriendly technology in all of its cars. Volkswagen cars are already some of the most fuel efficient
and lowest in carbon emissions, so Volkswagen should capitalize on this in advertising and
positioning. Demand for green technology in cars is increasing, and Volkswagen can only benefit
by shifting its brand offerings and image to address this demand. Volkswagen has already begun
to act on this growth opportunity by increasing the number of environmentally friendly cars in its
offerings. These include the TDI Clean Diesel and hybrid versions of many of their popular
models. Their new slogan, “Think Blue,” refers to the BlueMotion technology used in these
models (“TDI diesel & hybrid cars,” n.d.). By not using a variation of green in the slogan, they
have set themselves apart from other car brands’ advertising of their environmentally friendly
cars. In addition, they claim a point of parity by saying that their eco-friendly cars are also highperformance. In other words, these cars perform just as well as non-eco-friendly cars from other
brands, but are also good for the environment. Volkswagen can also expand into the electric car
category.
3. Volkswagen could bring back the Transporter, more commonly known as the classic VW van.
Many customers, when asked to recall the Volkswagen brand, think of this iconic vehicle, despite
it not having been in production for decades now. Volkswagen should utilize this high level of
recall, and benefit from the imagery associations of coolness, nostalgia, and adventure the vehicle
already enjoys. The Transporter would essentially be a cash cow for Volkswagen; besides
modernizing the engine, few other modifications from the original would be needed, since
customers desire the van as it used to exist. This vehicle would especially appeal to younger age
segments, which view it as a great car for traveling and spending time with friends. In addition,
the van is already so well known that minimal marketing would be needed to facilitate sales.
4. Emphasize safety features to create a favorable brand response amongst customers with families
and expand brand meaning. Volkswagen is already known for having quality cars in terms of
engine performance, etc., and for making practical cars. Touting safety features will be important
in the future not only to establish a point of parity with other carmakers who are seen as safetyconscious brands (such as Volvo), but also to expand brand response to include judgments of
superiority in terms of safety features and feelings of security. The market segment of adults with
small children is highly coveted in the car market, and Volkswagen has already begun to tailor
their advertising to reflect this focus. Recent ads have shown parents with babies in their arms as
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they go car shopping, asking the car salesperson if their cars are safe. Slogans such as “the safety
of a Jetta” and “safety happens” suggest that safety should be a key performance element of
Volkswagen’s brand meaning. Solidifying this brand meaning is important not only for family
cars like the Jetta, but also for the Tiguan and Touareg SUVs, since SUVs have a reputation for
rolling over. Volkswagen’s existing brand association of “quality German engineering” will
facilitate this brand meaning and response expansion.
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References
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(n.d.). Retrieved April 7, 2013, from http://brandirectory.com/profile/volkswagen Volkswagen Annual
Report 2012.
(n.d.). Retrieved April 12, 2013, from
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History. (n.d.). Volkswagen International. Retrieved April 20, 2013, from
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d360605@inspiration%2F1940%2Finformation%2FCompany%20history%2F0
Keller, K. L. (2013). Strategic Brand Management (4 ed.). Boston: Pearson.
TDI clean diesel & hybrid cars. (n.d.).Volkswagen of America. Retrieved April 23, 2013, from
http://web.vw.com/tdi-clean-diesel-and-hybrid/?sem=google
Volkswagen group brands and products. (2012, December 31). Volkswagen Konzern Startseite.
Retrieved April 23, 2013, from http://www.volkswagenag.com/content/vwcorp/
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Retrieved April