Value proposition of Passat
Discuss About The Global Manufacturer Of Fantastic Products.
In this report, essential elements such as value proposition, marketing mix and justification for consumers purchasing decisions are highlighted. In this case, Peter a consumer prefers a Toyota Yaris model. management, a Passat presented to Peter would change his mind. The decisions made by consumers are essential in understanding the purchasing patterns made by customers. It is vital for businesses to understand the needs, tastes, and preferences of consumers if they are to satisfy their clients to the fullest. In this case, Peter being a student would want a vehicle that is faster in the event that he is needed in a place urgently such a car would enable him to beat time. A spacious car is also crucial for Peter since he has to carry his friends and, in the event, he has a family in future such a vehicle will be able to meet his needs.
Issues dealing with safety are also critical as safety is the first thing that a consumer has to be worried about when it comes to driving a vehicle. A vehicle that is highly safe is needed for reducing many cases in the road attributed to lack of safety. Peter needs a car that he can be comfortable with while driving and a Passat will be convincing enough compared to a Toyota Yaris.
The value proposition is the top thing that predicts whether potential customers will bother studying more about your goods and services. It is also the primary that needs to be tested to determine if one is right and, in the event, it is right, it impacts sales hugely. The less known a business, then the better the proposition needed.
The 2017 Volkswagen Passat delivers a pleasant value with regards to the competitive midsize class and as such impress consumers with its upscale cabin, smooth performance, and enough spacing not forgetting a powerful engine. The 2017 Passat accords a comfy ride as it provides ample room for both family and friends. The spacious and quiet cabin inculcates high-quality components. The Passat is hailed for its smooth if not sporty ride. Its four-cylinder engine that is turbocharged provides sufficient power coupled with perfect acceleration. The Passat has an archived record of moderate reliability. However, reliability is not the only component that makes this vehicle a better pick. Some of the features that lack in this model entail the lack of touch screen display in its infotainment base.
Passat performance
The Passat has been associated with steady acceleration and has no problems in adapting to highway speeds despite the fact there is a turbo lag with the 170-horsepower. The sports mode assists in delivering acceleration speeds faster though it can lead to choppy incidents of driving in places where there is traffic such as cities. The Passat’s transmission can be identified as smooth and the dual-clutch transmission facilitates a more proactive transmission response. The Passat has a four-cylinder engine and this makes the car more powerful.
The Passat has been ranked as the most fuel-efficient cars. The turbocharged engine receives 23 mpg when the vehicle is in the city and 30 mpg on the highway. Though fuel economy for vehicles such as Passat is ranked slightly lower compared to other models, the difference does not make a huge impact on one’s budget in becoming a primary element in influencing the buyer’s decision.
The 2017 Passat is ranked five-star in ratings as per the Traffic Safety administration. The models are crowned five-star with regards to side crash tests in both rollover and frontal crash evaluations.
The Volkswagen comes with many safety features. Some of the standard safety characteristics involve a camera on review, forward collision alerts, an independent emergency braking and an intelligent crash system that turns of the fuel pump. The intelligent crash response system is responsible for unlocking the doors and turns on hazard lights when airbags are deployed following a crash. This is quite huge compared to what is offered in other vehicles that are considered standard.
Peter a master’s students have tastes and passion for cars and believe in trendy cars that offer most comfort. One thing with students is that they tend to be associated with classic yet authentic products that are trending in the market. The choice of a Toyota Yaris may seem appealing to Peter due to its affordability and fuel consumption associated with Toyota vehicles is a plus. As such maintaining a Toyota Yaris is economical as the automobile is fuel-efficient.
The Toyota group of companies has been known for customizing their vehicles to suit the various needs and demands of various customers. Thus, one thing that Peter is looking out for a vehicle that can use the least fuel as possible so that he does not have to constrain his budget. The Toyota Yaris, however, has a small cabin and, in this case, would limit the number of people carried, assuming that Peter gets a family and has friends, then it means the vehicle will not accommodate all persons.
Justification for purchasing the Passat
The 2017 Passat is a trendy vehicle that is just fresh and raw in the market and as such will be ideal for Peter. One key trait that will make Peter change his mind is that with this vehicle, there is enough room to accommodate more passengers.
The car also offers some of the excellent safety measures such as the collision alerts and the Intelligent system that unlocks the doors in the event there is an accident. Safety is one of the measures that many customers put first when it comes matters of life. This model has also been rated on a scale of five by the National Safety Standard making it sustain and save the people it has carried in the event of a coalition.
In terms of speed and performance, there is no doubt that Passat is the best so far. The Passat has an active acceleration that allows the car to accelerate faster making an excellent companion in rushing and attending to urgent matters. It must also not be forgotten that most accidents and collisions have been caused by brake failure but with the 2017 Passat, there is no need to worry about the braking pedal as the vehicle has an emergency bra1king system that is independent and, in the event, that all braking systems fail then this will be the lender of last resort.
Toyota Yaris is available in four different models. Toyota provides vehicles that are both manual and automatic transmission vehicles in all the four different models. The Toyota Yaris is a vehicle that is powered by the 1.5-litre petrol engine that can either a 6-speed manual transmission or auto paddle shifters. There is no diesel engine on such models. Though power features compared to other models are lower Yari does not seem underpowered by any means.
The Toyota Yaris comes with a pack of seven airbags, brake assist and disc brakes on all the four wheels. Also, Toyota Yaris offers headlamps that are projectile in nature, a 7-inch infotainment system and a driver’s seat that is powered.
There are three types of value propositions all incorporating benefits and a resonating concentration (Hassan , 2012). The accrued benefits provide a comprehensive list of positive traits that suppliers believe they are offering to the esteemed customers based on their good knowledge about such consumers and markets (Bhat, 2009). The favorable points of difference refer to some of the factors that differentiate the offerings by a particular supplier among other alternatives. In achieving such milestones, knowledge about competitors’ next moves is critical in shaping the strategy of the company.
Toyota Yaris
Customers define value differently and this depends on features by a particular product (Lars, 2018). Thus, there is the need to developed a balanced relationship that is transparent that addresses both the positive and negative repercussions (Rakesh, 2015). Positive consequence refers to the benefits that accrue to a customer whereas the negative consequence is associated with sacrifices made in terms of costs that are either monetary or non-monetary. A value proposition has measures that are different from the conventional measures of value.
The large size of Volkswagen Group is one of the factors that has contributed to the growth of the firm (Marketing Mix, n.d.). With regards to products, the company produces different cars that keep customer satisfied and meet their varied needs. A wide range of cars is offered such as Golf and Passat among others. The different models that are available all depend on the tastes and preferences of the clients.
The advertisement by Volkswagen of Passat has been made possible through print media, internet and the TVs aiming to promote its products. However, considering that India began experiencing a decline in the automobile industry, the company had to use other marketing techniques such as home media and BTL media. The company also uses social media avenues in marketing its brands. In strengthening image associated with its brands, the firm established an integrated marketing strategy in 2009. Volkswagen has also been hailed for sponsoring many car events with corporate events in its lists.
The company allows customers to purchases its cars through leasing and this has enabled the company to reach a wider pool of customers. What this means is that customers do not have to clear the whole amount to own the car. Though this strategy is widely used in countries such as UK and USA, it is not that effective in India.
Volkswagen makes it possible for cars to be manufactured and be distributed in key locations for strategic reasons so that delivery and availability of the cars is on time. There are many distributors located throughout the country who are tasked with distributing the manufactured cars.
One of the main aims of the company is to penetrate markets since it understands there are a ready market and demand for such cars globally. For instance, Volkswagen targets urban regions as an urban client would want to spend less than 45 minutes in accessing a Volkswagen dealer. Thus, coverage in terms of sale for the Passat is high. Also, Volkswagen has an excellent CRM system that maintains a strong truck of its clients and service needs.
Safety features
With regards to the size, options, and power of the engine, Volkswagen prices span from affordable to expensive and this is also for other car dealers. However, Volkswagen takes pride in being a manufacturer of automobiles that can be purchased by an average person. Comparing Volkswagen Passat to other vehicles such as Hyundai, it is evident that Volkswagen is cheaper. Thus, in the Sedan category, the sales from Volkswagen has better figures in terms of the sales. The most selling Volkswagen is Volkswagen Jetta and Volkswagen Passat.
Toyota has always been known to prioritize its customers first and fathoms the importance of ensuring that its product is easily accessible to the target audience. Toyota sells its automobiles through dealerships. Sales are made by selling staff based on one to one transactions. The sales personnel in such dealerships work in teams of seven.
The staff is highly talented not only in sales but also on the product information, insurance, and other aspects entailing finance. Toyota concentrates on the pull strategy and manufactures cars based on the demands of customers. With this type of dealership Toyota is identical to the Western dealership. The company here tries to minimize the costs associated with supply chains while maintaining products that are of high quality.
Toyota was ranked as the second largest manufacturer of the two-car marker in 2003. Due to creativity in developing innovative designs and hefty investments with regards to promotion activities, Toyota has been able to entice customers from across the globe. They manufacture vehicles of high quality and price them appropriately.
Normally, the selling price of a product calculated by summing the cost price and profit together and an increase in the cost of production is directly transferred to consumers in the form of the selling price. Though the case of Toyota is slightly different. Instead of estimating the selling price, they concentrate on the profit. According to Toyota, they believe that it is the market forces that are responsible for determining the selling price. As such the profit for the company has been increasing over the past few years due to high-quality products and low-priced vehicles.
As per a report of 2007, Toyota was said to have sold more than two million units globally. Toyota offered vehicles of the different price range. The price for their vehicles ranges from $180000 and goes all the way to $80,000 based on the model, options added and model. The use of low cost and differentiation has made Toyota to establish a competitive edge in the automobile market. Toyota differentiates its products based on quality and level of technology.
Value proposition
Toyota employs various promotional techniques in boosting their sales revenue. They advertise their products through the radio, billboards, internet, and brochures among other means of advertising. Toyota uses catchy slogans in capturing the attention to their brands. Also, Toyota initiated a cashback offer. Such offers are rewarded by the Toyota corporate to dealers and customers.
Such offers are important as they attract non-cash purchasers. Some of the promotional programs allow customers to utilize rebate as a deposit. Lately, in promoting the new model of Toyota Yaris, they initiated a show known as the block. Through promotional shows, they are able to target and reach a wider audience. In such shows, they try to lure customers by according them a chance to win a brand-new Toyota.
Conclusion
As such value proposition is the promise that clients are given and gives them assurance that a company will deliver. It is basically a statement that gives them reason of the benefit they will get by purchasing a particular product. In establishing a value proposition that is effective, it is important for businesses to begin brainstorming and concentrate on targeting a demographic niche that has common traits. This can be achieved by conducting a thorough market research. A well-crafted and thought out value proposition has been associated with helping a business grow. A value proposition is necessary as it helps in grabbing the attention of consumers as it captures stellar figures and this in turn benefits customers. A marketing mix on the other hand is important in enabling customers get what they need in most convenient time and place. As such it is crucial that suppliers use a marketing mix that enables them address all the needs of a customer. In the above cases, the two brands that is Toyota Yaris and Volkswagen Passat are two powerful brands that can be convincing for a particular buyer.
In this case, Paul prefers Toyota Yaris which is seen as less costly in terms of maintenance and fuel usage. On the other hand, Volkswagen Passat has a large cabin that can accommodate more people and also its safety features are one that can convince someone purchase such a model. Safety is considered number one priority by most consumers and this is one issue that can convince Paul to purchase this model. Speed is also another important element that most consumers look at, in this case a Passat is faster compared to the Yaris and Paul may consider this another plus. Based on such factors it is no doubt that Paul may end changing his mind and opt to purchase the Passat since there are many enjoyable features that Paul can get from such a model compared to the Yaris.
References
Bhasin, H. (2018, January 12). Marketing mix of Toyota – Toyota Marketing mix. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-toyota/
Bhasin, H. (2018, January 13). Marketing mix of Volkswagen. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-volkswagen/
Bhat, H. (2009). What’s the Value Proposition? Retailers Need to Offer Strong, Well-articulated Benefits to. Retrieved from livemint: https://www.livemint.com/2009/04/03003227/What8217s-the-value-proposi.html
Hassan , A. (2012). The Value Proposition Concept in Marketing:How Customers Perceive the Value Delivered by Firms– A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom. International Journal of Marketing Studies , 4(3), 68-83.
Lars, P. (2018). Introduction to Maketing. Retrieved from https://consumerpsychologist.com/intro.htm
Marketing Mix. (n.d.). The Marketing Mix. Retrieved from marketing mix: https://marketingmix.co.uk/
Rakesh, D. (2015, August 30). Car dealerships – What is your value proposition? Retrieved from linked in: https://www.linkedin.com/pulse/car-dealerships-what-your-value-proposition-rakesh-dutta
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