Volkswagen is a German automobile manufacturing enterprise headquartered in Germany. “Originally named as Gesellschaft Zur Vorbereitung des Deutschen Volkswagen (Society for the preparation of the German People’s Car)”, the company was founded in 1937 by Deutsche Arbetsfront. It was at some point renamed and named as Volkswagenwerk.

The main aim of the company was then to manufacture the Volkswagen car, now popularly known as Beetle. Shortly after its factory’s constructions were done, World War II started. The company then started manufacturing military vehicles.

VW’s logo and tag line

Volswagen Group handles 12 brands in their portfolio and that is;

  • Audi, Seat, Skoda, Bentley, Porshe, Lamborgini, Scania, Ducati, Man, Bugatti, Volkswagen and Commercial Vehicles.

How VW Manages its Portfolio Segmentation

Since Volkswagen operate in 12 independent brands, the group mix of demographics and geographic segmentation variables to cater ton the needs of the customers in existing as well as emerging economies. It uses differentiated targeting strategy in their offering. This helps in understanding where the products stand in the mind of the potential customer and the image built in their mind.

Distribution Strategy

Volkswagen’s strategy in terms of managing its brand portfolio is its Distribution Strategy. That is their winning formula. The group is extensively using its dealership networks and expanding it to the developing nations to make their brands available to the existing as well as new markets. “In the year 2015, the distribution expenses rose from 16% to 23515 Million Euro”.

VW’S Reputation?

In 2015, the US Environmental Protection Agency (EPA) announced that Volkswagen has been installing sophisticated software to cheat diesel emission tests. As a result, its cars produced up to 40 times more pollution than allowed by US standards – Volkswagen’s cars were environmentally friendly no more. Reputation Institute’s research shows that with the EPA announcement, the general public’s trust was highly damaged. The company has also been accused by the EPA of modifying software on the 3 litre diesel engines fitted to some of their brands at some point.

Is VW transparent!!

Besides all the “noise” made about VW’s emission scandal, the Company is somehow transparent in their production process. Customers are allowed to get closer look during their production processes. In VW’s transparent factory a customer can accompany their “future” vehicle along the production line. The customer is able to actively get involved but obviously under expert guidance. That is how transparent the company is. “With us, not only are customers able to be there during the production of their car, but can also get involved themselves. Electric mobility that you can touch: this experience is unique in the automotive world”, said VW’s Head of Sales at some point.

I therefore with all the good and bad stories about “DAS AUTO” recommend the below reputation t;

  1. VW should always tell the truth. There is a saying that Companies/Organizations should always in any tight situation “say it first and right”. Digital and social media have ensured that wherever we go, reputation will proceed us.
  2. Always be Transparent
  3. The Customer is always right principle should always apply. It is important for VW to always listen to their customers. The art of cherishing feedback is always vital.


Click to access Brand-Architecture-and-Portfolio-Management.pdf



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s