Abstract

The case narrates the story of the German automobile company Volkswagen and its Beetle brand of passenger cars. Beetle’s emergence as a successful, cult brand between the late 1950s and early 1970s is examined in detail. The case discusses the brand positioning, advertising and promotional strategies adopted for the Beetle brand in the US during the above time period. It also studies the problems faced by Beetle after the mid-1970s, which forced Volkswagen to stop the production of Beetles worldwide in 1979. The reasons for the relaunch of the Beetle in the late 1990s have also been discussed. The case critically examines the success of New Beetle in the early 21st century and discusses its future prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Cult brands and role of emotional bonding in building strong brands.

Keywords

German, automobile company, Volkswagen, Beetle, passenger cars, successful, cult brand, brand positioning, advertising, promotional strategies, US, problems, mid-1970s, 1979, 1990, New Beetle, 21st century, future prospects