A General Analysis of VW Group's Marketing Strategy in China under Digital Era

Abstract

Volkswagen is a household name in China. VW brought its first car- Santana to the Chinese market in the 1980s. Nowadays, Volkswagen cars are everywhere on the streets of China. The reason why Volkswagen is favored by the 1.4 billion Chinese people is inseparably related to the excellent marketing strategy of the Volkswagen Group. This paper analyzes a series of marketing strategies launched by the Volkswagen Group for the Chinese market and Chinese conditions. Using the 4P model, we analyze the marketing approach of the Volkswagen Group in China in the context of the digital era in terms of product, price, place and promotion. First of all, a wide product line and product portfolio allows customers to get the best value for money and the best price/performance ratio for their willingness to pay. Volkswagen's superior reliability has long been well-established. Moreover, Volkswagen has one of the cheapest post-production maintenance among all competitors. Secondly, the pricing of VW Group products in China is quite competitive, and it is almost difficult to get a car from a European brand other than VW at the same price level. Third, VW Group's distribution network in China is very large. It has dealers nationwide, and Volkswagen dealers can be found in almost all places, even county-level cities. Finally, in today's digital information age, VW Group also firmly grasps the opportunity to actively use internet platforms (e.g., TikTok, Little Red Book) for brand promotion and marketing. VW is also active as a sponsor at many large events in China, further enhancing its brand influence.