Volkswagen's Iroc Concept: Reviving the Scirocco to Target A Niche Market


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : MKTG153 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Process Outsourcing, Customer Service, Call Center Management
Case Length : 16 Pages
Period : 2000-2006
Organization : Volkswagen AG
Pub Date : 2006
Teaching Note : Available
Countries : USA, Europe
Industry : Automobile

Abstract:

In August 2006, Europe's largest automaker Volkswagen AG (Volkswagen), unveiled the Iroc concept (Iroc) at a special event in Berlin, Germany. The Iroc was a prototype of the third generation model of the Scirocco, a sports coupé launched by Volkswagen in the 1970s that became a cult car in the US and Europe. The Iroc, which was expected to hit the market in 2008, was seen as an attempt by Volkswagen to fill the gap in its product line and target a niche market of Scirocco enthusiasts. Analysts opined that the Iroc would help bolster the image of Volkswagen, which had of late been catering predominently to the mass market, and had few niche products.

They also felt that Volkswagen had few emotional brands targeted at customers in the US, and the new Scirocco would help fill that void.

Issues:

» Understand the rationale behind the development of the Iroc by Volkswagen

» Appreciate the importance of niche markets and emotional brands for automobile manufacturers in the US and Europe

Contents:

  Page No.
Reviving a Cult Car 1
Background Note 1
The Scirocco Story 2
The Gap in Volkswagen's Product Line 4
The Iroc Concept 5
A Drive Down Memory Lane 6
Outlook 6
Exhibits 8

Keywords:

Volkswagen AG, Iroc Concept Car, Scirocco Sports Coupé, New Beetle, Product Line, Mass Market, Emotional Brands, Scirocco Fan and Enthusiast Clubs, Retro Models, Product Management , Niche Marketing, Brand Management, New Product Development, Competition, Automobile Manufacturing

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