Tuesday, July 18, 2017

Is Volkswagen a Premium or an Entry Premium Level Car?

Volkswagen, literally translated from the German as the "people's car," started out as an economy line, appealing to the public as the least expensive transportation. Although the company expanded their line into more upscale automobiles, Volkswagen still markets largely to the young crowd buying their first, sporty cars.

Market

    The Volkswagen market demographic is largely young professionals or students. Cars such as the Jetta -- manufactured to compete with the Toyota Corolla and the Honda Civic -- and the iconic Beetle are marketed directly to the young crowd. Using rock stars and celebrity chefs in promotions, and creating advertising campaigns featuring quirky music and unexpected twists, Volkswagen aims to appeal to the young crowd.

Family

    Volkswagen does have cars in its line for older drivers. However, they are not considered premium or luxury cars. They offer more features and larger sizes. For example, the Touareg, Polo and Routan sell at a higher price point and focus on an older market.

Audi and Bentley

    Volkswagen owns the Audi and Bentley names, and through these lines, targets the luxury crowd. The Audi line sells well in Europe and Volkswagen invests heavily in the brand. The market for Bentleys is not as large, but Volkswagen's strategy is to increase the market by lowering prices slightly and increasing contemporary styling.

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