Volkswagen's Model Marketing

Unlike many of its rivals, Volkswagen Group has defied the global recession to post a 6.7% year-on-year increase in deliveries over July, its third consecutive month of growth. Its rise from a single-marque company to a multi-brand concern that appeals to most segments of society, is not unique, but its ability to consistently create the best marketing, despite the economic climate, is.

VW's latest results confirm it as the main contender to topple Toyota at the top of the global automotive industry - a target it has set itself to achieve by 2018.

When the VW group acquires Porsche next year, its 10-brand stable will include Audi, Bentley, Lamborghini, Volkswagen Commercial Vehicles and Skoda.

Industry experts claim VW's success is based on a strategy introduced in the early-90s of creating a portfolio of strong brands backed by high-quality advertising. 'Over the past 20 years, VW's leaders have worked to fill every segment and niche in the market, almost duplicating the great days of General Motors in the mid-20th century,' says Garel Rhys, emeritus professor at Cardiff Business School.

He adds that VW has the financial muscle to persist with its acquisitions, unlike US manufacturers such as Ford, which jettisoned Jaguar and Land Rover after getting into financial difficulties.

In addition, unlike other mass-market car marques such as Renault and Peugeot, the core VW brand has continued to thrive in Europe, and is alone in holding a market share of at least 10%.

'We have had a history of good advertising, built over 30 to 40 years,' says head of Volkswagen UK marketing, Rod McLeod. 'VW has the right values for a recession - certainty, solidity and quality - and good relationships with its marketing communications agencies.'

Stephen Woodford, chief executive at incumbent agency DDB London, agrees the marque's advertising is right for the times: 'VW's marketing embodies the qualities of the cars themselves - it's always well thought-through, understated and intelligent. When times are tough, people look for the best value and most consumers are smart enough to know that means achieving the right balance of quality and price.'

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