Volkswagen Composition


Volkswagen Phaeton

Mission, eye-sight, goals

The mission of Volkswagen Group is to provide a quality product, create a security environment, and enhance production and satisfy customers. If Volkswagen Group achieves the mission, then Volkswagen Group can reach its vision which is centering on positioning the Volkswagen Group as a global economic and environmental leader among auto manufacturers. To be able to achieve its vision and mission, there are some goals will be mentioned to make Volkswagen Group more successful. Firstly, Volkswagen will need to continue to produce innovative and technological items that can fulfill customers' require. Secondly, in order to be a leading manufacturer, Volkswagen Group should maximize its quantity as product sales to much more than 10 , 000, 000 vehicles a year that is above the average stocks of industry. Thirdly, Volkswagen is planning to increase their return upon sales just before tax in least 8% so that Volkswagen can handle or perhaps guarantee the hard market intervals. Finally, with Volkswagen organization, it is necessary to include top organisations and to make a first-class group to make sure business will be work very well.


Volkswagen Group is an automotive business established at the headquarters in Wolfsburg, Germany in 1930. There are lots of brands under Vw Group just like Volkswagen, Porsche, Audi, Scania, Bentley, SEAT, Lamborghini and Skoda. Volkswagen is the brand under Volkswagen Group, which usually manufactures vehicles for broaden ranges of people who from middle class to upper class. There are various choices for cars that Vw produces including Polo, Vento, Phaeton, Passat and Beetle and so on. Phaeton is the high grade car, which will designed for upper class customers, and Volkswagen proclaimed this car as the top-end high-class car. Unfortunately, Phaeton is usually not so well-known in American market, in 2005, " Volkswagen just announced that it was withdrawing it is luxury Phaeton model from the U. T. market. No real surprise there. In the two years since its introduction in November 2003, VW offers sold just 3, 715 Phaetons. ”1

Reasons cause failure

It makes sense that Volkswagen presented the bigger and even more expensive and probably more profitable autos into American market. Since there are lots of inexpensive brands via Japan and China enter into American market and share industry with Volkswagen. Actually, delete word the Phaeton was quite good; Forbes called the Phaeton a " superb car. " 2 It has the standard and classic view, expected rate and very good horsepower, and also good traveling experience. Although why Phaeton was failure in American market. There are several reasons described below.

Firstly, Phaeton was failed in U. S marketplace because of its wrong market segmentation. Phaeton is a luxury car that designed for the older and wealthier people, but the market segmentation of Vw is more focus on young generation and provides inexpensive cars. With this kind of situation, the amount of buyers that Vw can attract to buy Phaeton is limited.

Secondly, Vw did not do very well on researching the market and development, because Phaeton is not really meet customers' need and wants. Consumers who inexpensive to purchase Phaeton are sets of people who are outdated and wealth. But this kind of segment of folks that may target more in brand historical past, they may select other cars from other luxury brands including Audi, AS BMW HYBRID, Mercedes, Lexus and so on.

Thirdly, the price setting pertaining to Phaeton is usually not so effectively. " The price for Phaeton was started for $64, 600 base and $94, six hundred with the W-12 engine, ”3 its price was lower than most of its competitors. Specifically, " The BMW 7-Series in 2005 started for $69, 300, the Mercedes S-Class started out at $74, 250, the Audi A8 at $68, 500, as well as the Lexus LS at $55, 573. ”4 Compare to these types of luxury brands, the price of Phaeton is not too high, but is not low enough to attract clients to choose Phaeton rather than select other brands.

Fourthly, the dealership experience is unexpected....