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Topics: Automotive industry, Automobile, Porsche Pages: 9 (2405 words) Published: March 19, 2014
Abstract
The purpose of this report is to analyse and explain the marketing plan used by Volkswagen to expand their market in the UK. It indicates the basic demand of the UK automobile market, market objectives and explains their marketing strategies through porter 5 forces, 4ps, segmentation and positioning. And this report is divided into 3 parts to deal with them separately.

Table of Contents
1 Introduction……………………………………………………………………………………………..

2. External environment……………………………………………………………………………….. 2.1 PESTILE…………………………………………. 2.2 SWOT………………………………………….. 2.3 Competitor analysis……………………………………… 3. Marketing objectives
3.1 SMART (LONG & SHORT)……………………………………….. 4. Marketing strategies
4.1 Porter 5 forces………………………………….. 4.2 4PS……………………………..
4.3 Segmentation………………………………………… 4.4 Positioning ……………………………………. 5. Conclusion……………………………………..
6. Final reference……………………………………………………………………………………………….

Introduction
The German largest automaker, Volkswagen delivered 9.1 million cars in 2012 (City A.M. Reporter, 2013). As the second biggest international vehicle manufacturer in the world (ibid), it is really important to maintain their market share worldwide and continue with its ambitious expansion. According to a report by BBC in 2013, in 2012, the new car registrations rate in the UK rose 5.3%, which is the highest level since 2008. Since the positive situation in the UK, it is necessary for the Volkswagen to consider about expand their market share there. For an international company, it is significant to get to the external business environment in a foreign country. The report will analyse it from the perspective of PESTLE, SWOT and Competitor analysis. Then using SMART (long&short) helps understand their marketing objectives in the UK markets. Additionally, the five porter forces, 4ps, segmentation and positioning are used to illustrate their marketing strategies. In this report, it will analyse the situation of theVolkswagen then propose the market plan of Volkswagen for expanding the market share and long-term survival in the UK these several years.

PESTILE
The External Market Environment

There are a wide range of factors effect on the European automobile companies enters the United Kingdom's car market, including political, economic, social, technological, environmental and legislative factors. To start with, because of financial crisis through all over the world, a major contraction of the monetary system in 2007, some of the weaker firms might desist from their current structure, turning to merge with a big company to avoid a bankruptcy. Hence, demand for motor vehicles had almost halved in late 2008 and early 2009. (Holweg, Davies and Podpolny, 2009). What is more, the increasing pressures also from the reduce carbon emissions and the dependency on fossil fuels. Thus, if Volkswagen Touareg would like to expand new market in Britain, they should recognize exceptional benefits of Touareg compare to the UK's local car in order to long term survival. The industry's economic contribution is a significant reason to decide whether the UK's government supports your development. Substantial direct employment and job multiplier in the supply chain will help Touareg owing Britain's domestic automotive industry. (Holweg, Davies and Podpolny, 2009) In addition, household disposable income, interest rates, and the cost of energy in the car also effect on the entry of Touareg. However, there are some advantages can help German companies to decrease the barrier. In terms of research and development expenditure data, according to a report, Germany has the highest growth rate, with 13.7%, Great Britain only with 9.7%, the UK as the worst performance in this investigation. (DSTI, 1994 cited Leoncini and Montresor, 2000). Indeed, while’ Germany shows almost coincident and relatively steady patterns, Great Britain characterized by lower values with more pronounced cyclical...
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