The Value Proposition of the Volkswagen Company Essay - 1

The Value Proposition of the Volkswagen Company - Essay ExampleThis is the strategic initiative taken by the company Volkswagen to target customers (Global Strategy for Volkswagen, 2010). The company has historically bathe sed the organization on the basis of differentiation as its strategy. They bought the same product in differentiated form for a niche audience. After the ball-shaped economic crisis, the company has started focusing on cost leadership so that they can provide the customer with the same product at a go bad price. This is done keeping in mind the economic scenario across the globe. Analysts have considered this to be a move whereby the company will hamper its brand examine which is the companys biggest addition. The management of the company believes they are not playing with the brand image they are just focusing on streamlining some be so that they can focus the saved money on enhancing brand image and various other promotional activities for the brand Volkswag en (Volkswagen Strategies, n.d.). Brand image is the biggest asset for the company and has created what Volkswagen is today. For any normal car buyer, Volkswagen is not into the consideration state. The companys biggest strength is its brand image which has created by forming an emotional bonding with the juvenility of the world. Customers of Volkswagen are brand loyal because of the perceived image of the brand. It is the emotional bonding and association with the brand which results in repeat sales from the customers. This is why relationship trade becomes so important for Volkswagen. The whole framework of the company is based on relationship marketing (Alkhafaji, 1995). Right Relationship with right Customers-Brand Image The objective at Volkswagen has always been on having the right relationship with the right customer segment.